Running a small hotel comes with its challenges. Competing with larger hotel chains that have bigger marketing budgets can feel tough, especially when you’re working with a smaller team and limited resources. However, small hotels can thrive by using the right marketing strategies. This guide shares simple, cost-effective marketing tips that will help you boost direct bookings, build guest loyalty, and improve your overall revenue.
Why Hotel Marketing Matters for Small Hotels
Think about this: How much of your revenue comes from OTAs (Online Travel Agents)? If it’s a lot, you’re paying a significant amount in commission fees. What if you could bring in more bookings directly through your own website and keep that extra revenue for yourself?
In this post, we’ll show you how to reduce your OTA dependency and get more direct bookings. You don’t need a huge budget for this—just smart, simple steps.
1. Maximize Direct Bookings to Keep More Revenue
The best way for small hotels to boost profits is by focusing on direct bookings. When guests book directly through your website, you avoid the hefty commission fees that come with OTAs. Here’s how you can make sure your website helps bring in more bookings:
Tip: A good booking engine will make the reservation process fast and simple for your guests, which leads to more confirmed bookings.
Fact: According to a 2024 report by HotelTechReport, small hotels that optimize their booking engine for mobile saw a 30% increase in direct bookings. This shows how crucial a smooth mobile experience is for converting bookings directly from your websiteInteractive Question for You: How much of your business comes from OTAs? What would it take to shift some of that to direct bookings? Let us know in the comments below!
2. Upselling: A Simple Way to Increase Revenue
Upselling is an easy way to earn more from each guest without needing more guests. Offering upgrades or additional services can add to your revenue. Here’s how to upsell:
Tip: Offer these upsells during the booking process or when guests check-in. Personalizing their stay makes them more likely to buy the extra services.
Case Study: The Zing Hotels in Thailand implemented upselling strategies across their properties, offering add-on packages such as guided tours and room upgrades. As a result, they saw a 25% increase in revenue per guest
3. Low Budget Hotel Marketing Ideas
You don’t need a fortune to market your hotel. There are plenty of low-cost marketing ideas that are easy to implement and still effective. Here are a few:
Tip: Focus on Instagram to show off your hotel’s unique features and engage with guests. It’s a great way to build a following and attract bookings.
Fact: A study by Revinate found that 80% of travelers use social media to research their next stay. By actively engaging with potential guests on platforms like Instagram, you can build brand awareness and increase direct bookings
Interactive Question: Which social media platform works best for your hotel? Are you focusing enough on Instagram for its visual appeal? Comment below and share your experience!
4. Build Guest Loyalty: Get Repeat Business
It’s much cheaper to keep existing guests coming back than to find new ones. So, guest loyalty marketing is an important part of your strategy. Here’s how you can keep guests coming back:
Tip: Even a simple loyalty program can work wonders. A small gesture like a handwritten thank you note or a personalized email with a discount can make guests feel valued and encourage them to return.
Fact: According to a 2023 study by Guestline, loyalty programs result in 35% more direct bookings from returning guests. Offering simple rewards can help build a consistent guest base
5. Reducing OTA Dependency with Channel Management
How AxisRooms Can Help
A channel manager like AxisRooms can save you time and reduce your dependency on OTAs by automatically updating room availability and pricing across multiple platforms, including your website. This ensures your pricing is consistent everywhere, reducing the chance of overbookings and helping you bring in more direct bookings.
Here’s how AxisRooms can help you:
With AxisRooms, you can manage all your bookings efficiently and focus on growing your direct revenue without worrying about missing out on bookings from OTAs.
Tip: A channel manager will help you stay organized and reduce time spent managing multiple platforms manually.
Case Study: Hotel Indigo in Bangkok implemented AxisRooms' channel manager and reduced their OTA dependency by 20% shifting the focus to more direct bookings and improving profitability.
Question for You: Do you use a channel manager? How much time do you save by using it? Let us know in the comments!
6. Hotel Branding: Stand Out from the Competition
Small hotels often have an advantage in that they can provide more personalized service. You can use this to your advantage by creating a strong brand identity. Here’s how:
Example:
A boutique hotel could focus on offering an intimate, local experience that larger hotels can’t provide, such as giving guests the option to book local tours or dine at small, local eateries.
7. Hotel Revenue Management: Use Technology to Maximize Profits
Hotel revenue management software can help you make smarter pricing decisions by considering factors like demand, seasonality, and local events. By using revenue management tools, small hotels can increase room rates during peak seasons and offer discounts when demand is low, maximizing overall revenue.
Tip: Revenue management software can help small hotels stay competitive by automating the pricing process.
Final Thoughts: Make Your Small Hotel a Big Success
Small hotels have a lot of potential for success, especially with the right marketing strategies. By focusing on direct bookings, improving guest loyalty, and using tools like channel managers and revenue management software, small properties can compete with the big hotel chains.
Now, it’s your turn: What hotel marketing strategies have worked best for you? Share your tips and experiences in the comments below!