7 Ways a Hotel Consultant Can Boost Your Hotel's Earnings in 2024

Running a hotel is tough, and making money is crucial. That's where a hotel consultant comes in handy. They're like a knowledgeable friend who knows all about hotels and can help yours thrive.

Hotel with pile of cash at the front door

Let's look at 7 ways a good consultant, like the team at Ammonite Hospitality, can help your hotel earn more:

1. Smart Pricing Strategies

A consultant helps you set the right prices for your rooms. They use key metrics like RevPAR (Revenue Per Available Room) to find the sweet spot. Also, a good consultant will look at the market and your competitors to see whether your pricing strategy is correct. It could be as simple as increasing your price by £5 per night.This way, you will know your hotel is priced correctly and you can make more money without turning guests away.

2. Better Online Presence

There are lots of websites where people book hotels, like Booking.com, Expedia or Agoda. A good consultant knows which ones work best for your hotel. They help you manage your online travel agent (OTA) mix, so you're visible in the right places without paying too much in commissions. Keeping on top of the OTAs is very important as well, making sure photos, descriptions, pricing and offers are all correct. A good consultant will take care of this for you.

3. Revenue Management Systems

There are special computer programs called Revenue Management Systems (RMS) that help hotels make more money. A consultant like Ammonite Hospitality can help you choose and use the right RMS for your hotel, like IDeaS or Duetto. These systems help you make smart decisions about pricing and bookings. Using a system like this allows for you as a hotel owner/manager to track the revenue splits for all areas of the business. What is the revenue of the pub bar vs the restaurant bar? How does the revenue of the spa compare to cakes? These systems let you figure this out. I would say that an RMS is typically reserved for much larger hotels and resorts.

4. Upselling and Packages

Consultants come up with great ideas to offer guests extra perks. Maybe it's a room upgrade, a spa package, or a special dining experience. This makes guests happy and boosts your Average Daily Rate (ADR). The key to earning more money here is to increase you Average Customer Value. As you have already paid to acquire the customer in some form (booking commission or marketing) the more revenue you can extract out of the customer the better your bottom line looks.

For example: OTA Customer books a room at £150pn. Now deduct VAT and booking commission (let's say 35% total) = £97.5 left over. If you can upsell a bottle of champagne for £25profit. This takes your Profit for the booking to £122.50. You have essentially added £25 to you bottom line without any extra work.

5. Trimming Costs Wisely

A good consultant looks at your hotel's expenses. They might suggest energy-saving measures or smarter staffing schedules. The goal is to cut costs without cutting quality, so your profit margin grows. Every £1 saved leads to £1 in bottom line profit. In terms on enterprise value £1 save could equal £10 extra enterprise value. This can add up significantly over time.

For example: Customer books room Direct at £150pn. This is a repeat customer you marketed through your email list so there isn't any extra acquisition cost. You are saving yourself 15% of the booking value vs booking through an OTA = £22.50.

6. Targeted Marketing

Consultants are great at helping people discover your hotel. They can help create a strong social media presence or improve your website to get more direct bookings. This lowers your reliance on OTAs and saves you money on commissions.

7. Staff Training for Success

Your team is super important. A consultant can train your staff in areas like upselling techniques or using the property management system (PMS) efficiently. Well-trained staff leads to happier guests and more revenue.

Choosing the right consultant is key. You want someone who really understands hotels and explains things clearly. The team at Ammonite Hospitality is known for being approachable and hands-on. They don't just give advice - they help make real changes happen.

If you want your hotel to perform better and increase profits, talking to a consultant could be a great move. Companies like Ammonite Hospitality are here to help your hotel reach its full potential.

It is like having a smart, hotel-savvy friend on your side.

Remember, every hotel is unique, and that's what makes them special. A good consultant understands this and helps your hotel stand out. With the right guidance, your hotel could become a real success story in your local market!

Send us a message at hello@ammonitehospitality.com to have a discussion about how Ammonite Hospitality can help your hotel thrive. Or alternatively, book a Hospitality Audit, where we will find out where there is room in your hotel to make more money!