The formula for success is straightforward, even if the execution is not as simple and demands much more now than before the pandemic outbreak. The keywords are flow and productivity. Once the hotel has built a base, the sales team can refine each step of the flow.
There are four major parts to increase B2B revenue in hotels.
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Customers
Full-service hotels need B2B customers to fill all the hotel departments, such as hotel rooms, meeting space, and food & beverage. A hotel needs many customers from different industries to minimize the risk of some customers not doing so well in some industries. Diversity is the key here, with the total customer portfolio spread over different companies in different sectors. The number of customers is vitally important. Too few customers will not fill the hotel, so the more, the merrier, and it is better to have to say no due to a fully booked hotel than an empty echo in the lobby and meeting space.
Inquiries
A long list of customers having the hotel as top of mind will increase the number of inquiries coming into the hotel. A hotel that builds a solid long-term relationship with its customers will receive more requests than other hotels. That is a good starting point, but people forget, so there have to be continuous creative reminders to keep the hotel top of mind. If the hotel handles the inquiries in a timely and friendly way, the customer will trust the hotel and send more potential business. As a result, the number of inquiries will continue to flow.
Win rate
Speed and the correct offering, including the right rate, are essential in winning the inquiry. The competition is fierce and will be for some time. The only way to succeed is to win more of the incoming inquiries. Do not let the inquiries slip or sit idle in the hotel PMS. In a highly competitive market, action is the key to winning.
Production
Traditionally, hotels sign agreements with corporations, travel agents, and other travel-trade companies for future room nights. The salesperson will negotiate a room rate based on an estimated volume of room nights. It is just an estimate and, most of the time, a bit high, so the customer would get a lower rate. The hotel B2B salesperson wants to secure the estimated volume and revenue and therefore needs to keep track of the production to take action before it is too late. Measure total production from B2B customers to track if you are getting closer to your goals.
How to increase B2B revenue
Hotels are never happy with their revenue. There is always a way to optimize the total revenue by attracting more customers or increasing rates. When a hotel is pleased with the flow of customers, inquiries, win rates, and B2B production, it is time to refine each step starting with customers. The question is whether another mix of customers could improve revenue and profitability. Start by finding more profitable customers and winning inquiries from them rather than less profitable customers. The flow is the same, but the customers and inquiries are different and drive profitability. It is easier to succeed if the sales team is highly productive and can focus on bringing in the business instead of spending hours on tedious manual handling of data, analysis, and other admin/non-productive tasks. Well-designed workflows supported by a B2B Sales CRM especially designed for hotels will increase productivity and bring the hotel faster to higher profitability.