Can discounts help generate revenue for my business? Isn’t it cutting into my potential revenue?
Yes, they can. Here’s how to use discounts and vouchers to generate more revenue and bookings for your hotel.
Offer new customers a discount with a special promotion
Everyone loves a good sale.
It’s the reason why mega-sales events like Black Friday are so popular.
Offering a discount or a unique promotional package to new customers is one of the most popular ways for hotels to attract new customers that were previously on the fence about staying at your hotel. Vouchers create golden opportunities for your business to wow your new guests and keep them coming back again.
If you don’t want to reduce prices, you could also add complementary services like free couple’s spa sessions or a complimentary meal at your hotel’s restaurant to entice potential customers.
Assign spending rewards to encourage customers to spend
For example, a free $10 voucher for a return visit for every $50 spent encourages customers to spend enough to hit the minimum $50 spend. You could implement this at any of your hotel’s facilities like a restaurant, gift shop, or any leisure activities to increase revenue.
Follow these two steps to implement an effective spend reward program:
- Calculate your average order value at your venue
- Assign a voucher reward tier for a value 20-30% higher than the average order value
For example, if your average order value is $40, set up a voucher reward if customers spend $50 on a single receipt (20% higher than average). If you’re using contactless technology, you could pre-load these vouchers into their wristband before their stay for a seamless experience.
Giving free credits is handy when you’ve just launched a new service and want to bring in new customers. This addresses any hesitation a customer may have to try something new out, allowing you to delight them and opening up the chance to become a paying customer.
You could also offer credits as part of a package. For example, if your hotel is well-known for its food, offer dining credits at the restaurant as part of a staycation package. Alternatively, appeal to digital nomads by providing accessible, fast WiFi credits or complimentary access to a private lounge to do their work.
Implement time-sensitive expiry dates
Time-sensitive deals use urgency to convince customers who may be on the fence and push them to make a decision quicker.
You see this strategy used on hotel booking sites. They use personalized time-sensitive discounts expiring in a day or a matter of hours to encourage casual viewers to take action, increasing bookings and revenue for your business.
Promote gift vouchers as potential gifts for special occasions
Vouchers make fantastic gifts for your guests to gift to their friends and loved ones. More importantly, it’s a win-win for both. Vouchers instantly increase your hotel’s cash flow by selling stored value upfront while giving your guests something to look forward to. Giving the gift of a hotel stay or curated experience allows your hotel’s unique value to stay in the minds of your customers and the person they’re gifting the voucher to.
Conclusion: Discounts give you opportunities to delight your customers
When used effectively, discounts give you opportunities to convince customers on the fence and encourage cross-selling and upselling of your hotel’s facilities. Use a discounted package or promotions to get potential customers into the door.
Once they’re in, you have the perfect opportunity to delight them and make sure they come back for a return visit, gaining another repeat customer.