hotel occupancy rate
hotel occupancy

Hotel Occupancy Rates- Marketing ideas to increase Occupancy

AxisRooms Marketing
AxisRooms Marketing

Table of Contents

Increasing hotel occupancy rates in the fiercely competitive hospitality industry requires innovative strategies, customer-centric thinking, and a deep market understanding. Whether you're managing a boutique hotel, a sprawling resort, or a property in the heart of the city's central business district, this comprehensive guide will explore actionable marketing ideas that help you increase hotel occupancy rates to new heights and understand the importance of occupancy rate in a hotel.

What is the Occupancy Rate in the Hotel Industry?

The hotel occupancy rate is a vital metric indicating the percentage of available rooms occupied over a specific period. It provides insight into your hotel's performance, helping you understand market demand and adjust your strategies accordingly.

Hotel Occupancy Rate Formula

Here’s the formula to help you find hotel occupancy rates-

Divide the number of occupied rooms/ the total number of rooms and multiply by 100.

Example

Suppose your hotel has 80 rooms, and 60 were booked on a given night.

Your occupancy rate is 60 divided by 80, multiplied by 100 = 75%. 

What is the Average Hotel Occupancy  Rate?

According to Statista, the average hotel occupancy rate in September 2023 globally stood at 69%. 

What is a Good Occupancy Rate for a Hotel?

The ideal occupancy rate is between 70% and 95%. However, it varies depending on your hotel's location, number of rooms, category, amenities, target audience, seasonality, etc. 

How to Improve Hotel Occupancy Rate?

Here are some tried and tested marketing ideas hotels use to increase occupancy rates. 

#1. Optimize your Website for Bookings

Your hotel website is like a virtual front door to your business. It's the first place potential guests come knocking, and you want to ensure they feel welcome and compelled to go inside. That's why optimizing your website for conversions is crucial!

  • Integrate a booking engine: It helps you get incremental direct bookings. 
  • Clear CTA: Make booking buttons prominent and easy to find.
  • Mobile Optimization: It allows guests to book with you quickly, on the go.
  • User-friendly navigation: Simplify the booking process with intuitive navigation, making the whole booking process hassle-free for your guests, 
  • Content quality: Showcase high-resolution images, virtual tours, and informative descriptions.

#2. Collaborate with Online Travel Agencies. 

While direct bookings are ideal, OTAs provide immense reach, especially for smaller properties.

  • Profile optimization: Ensure your property listings on OTAs are complete, accurate, and visually appealing.
  • Promotions: Leverage OTA promotions and exclusive deals to attract new guests.
  • Cross-promote: Encourage OTA guests to book directly by offering exclusive perks for future stays.

Pro tip: To get more bookings via OTAs, you need to ensure real-time distribution of your rooms and rates on all of them. But you can’t do it manually. That’s why you need the  AxisRooms Channel Manager that has earned the trust of over 4000 hoteliers like you. 

#3. Implement Dynamic Pricing 

Dynamic pricing adjusts room rates based on demand, seasonality, and competitor pricing.

  • Adopt a Revenue Management System (RMS) or invest in a revenue management service to analyze historical data and forecast demand.
  • Offer early-bird discounts or last-minute deals to capture different segments.
  • Implement length-of-stay pricing to incentivize longer stays.
  • Use a cloud-based Hotel PMS that comes with a dynamic pricing feature. 

#4. Leverage social media marketing. 

Have you ever considered using social media to boost your brand's presence and drive more direct bookings? Social media is a game-changer for reaching your target audience and showcasing your unique offerings. Let's explore leveraging this powerful platform to boost hotel occupancy rates. 

  • Targeted Ads: Run location-specific campaigns on platforms like Facebook and Instagram.
  • User-Generated Content:  Post check-out, talk to guests, and encourage them to share their experiences with a branded hashtag.
  • Influencer collaborations: Partner with travel influencers to expand your reach.
  • Live streaming & stories: Showcase behind-the-scenes glimpses to create buzz.

#5. Invest in local SEO. 

A solid local online presence with SEO can make a huge difference in potential guests' discovery. It optimizes your hotel's online presence and makes your hotel appear in relevant local searches, which can attract more guests to your property. 

  • Google Business profile optimization: Update your profile with accurate NAP (Name, Address, Phone number), high-quality images, and business hours in GBP & Bing Places 
  • Local keywords: Enrich your website content with location-specific keywords. 
  • Local citations: Ensure consistent & updated information across all online directories.

#6. Offer unique packages and experiences. 

Create unforgettable memories for your guests. Roll out personalized packages designed to cater to your guests' unique preferences.  

  • Staycation packages: Cater to audiences looking for a nearby escape.
  • Workcation packages: Let your guests know you can offer theme office-like facilities, such as stable Wi-Fi, workstations, etc., for working from your hotels. 
  • Wellness retreats: Offer spa treatments, yoga sessions, or wellness coaching.
  • Adventure packages: Include activities like hiking, scuba diving, or guided tours.

#7. Enhance guest loyalty programs.

Loyalty programs foster repeat business and increase customer lifetime value.

  • Points-based system: Allow guests to earn points for each stay and redeem them for discounts or perks.
  • Tiered memberships: Offer different levels with escalating benefits.
  • Exclusive offers: Provide members with special rates, room upgrades, or complimentary services.

#8. Capitalize on event-based marketing. 

Hosting events at your property is a great way to attract potential guests and boost your business!

  • Corporate events: Partner with local businesses to offer special conference and meeting rates.
  • Weddings and celebrations: Create packages including catering, venue hire, and accommodation.
  • Seasonal events: Tailor packages around local festivals, sports events, or concerts.

#9. Improve your hotel's online reputation. 

Positive guest reviews can influence a potential guest's decision in your favor. It's true! Reviews from past guests can be the deciding factor for potential guests. 

  • Encourage feedback: Send follow-up emails or offer incentives for reviews.
  • Respond promptly: Addressing positive and negative reviews professionally and swiftly is critical to emerge as a hotel that listens to its guests' feedback. 
  • Showcase positive reviews: Feature positive testimonials on your website and social media.

#10. Email Marketing and Personalization. 

Email marketing remains an effective channel for direct communication with past and potential guests.

  • Segmentation: Segment your list based on booking history, location, and preferences.
  • Personalized offers: Send tailored deals and recommendations based on past behavior.
  • Automated workflows: Create automated campaigns like welcome emails, birthday offers, and post-stay follow-ups.

#11. Tweak your Marketing for the off-season

Avoid vague strategies and create detailed marketing campaigns that resonate with your target guest segments' needs and preferences.

Identify and target specific guest segments.

  • Run marketing campaigns to attract guests who typically travel during low-demand periods, such as business travelers, real estate hunters, trade show attendees, and retirees.
  • Align your hotel's amenities, location, and brand with these groups' needs to create appealing offers.

Highlight off-season attractions. 

  • Showcase activities or features that make your property unique during off-season periods.
  • For instance, a ski resort with low summer occupancy could promote local summer activities to attract previous winter guests.

Read Also- Expert Tips to Boost Summer Holiday Bookings at your Hotel

Upsell to current guests. 

  • Encourage weekend guests to extend their stay into mid-week or entice summer visitors to book extra days in the shoulder season.
  • Offer value-added packages or discounts to guests who have already booked to maximize their stay duration.

Implement these marketing ideas diligently, monitor your occupancy rates regularly, and adapt your strategies to stay ahead in this competitive landscape.

Your turn!

Share your favorite marketing strategies in the comments, or let us know if a strategy worked wonders for your property!

Read Also-How to Estimate Break-Even Occupancy Rate for Hotels?

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