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Raise RevPAR with value selling

March 03, 2010 |

Many front-desk employees are focused on getting the business, which is good. What is not good is that often they use only one of the available levers to get that guest to stay in your hotel, and that lever is fading or discounting rate.

One of the biggest opportunities across our industry to raise revenue per available room is right there in our lobbies. This opportunity does not require a capital expense and can show immediate results. It exists across all segments of the industry and has a proven record of performance. What is it? It is how we train our front-desk associates. Many of these associates are focused on getting the business, which is good. What is not good is that often they use only one of the available levers to get that guest to stay in your hotel, and that lever is fading or discounting rate. While effective in closing the deal, your profitability suffers.

The better lever to use is value selling. When you set the rates at your hotel, you thought about what you offer and how that compares to your competitors. If you did the right thing and set the rate accordingly, why would your front-desk associates sell a discounted rate rather than value?

Here is a simple but proven example of how value, not rate, can be sold.

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