HOW TO INCREASE REVPAR IN 2017October 19, 2016 blog.life-happens.com

THE YEAR OF DIRECT BOOKING IS COMING TO AN END

This year was a wake-up call for hotels to regain control over their distribution chains.

However, direct bookings won't necessary help your RevPAR as well.

But here is the right way to use direct booking strategy practices to increase also the RevPAR

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REVPAR – CPA = NET PROFIT PER BOOKING

DIRECT BOOKINGS

• Don’t necessarily increase hotel RevPAR • Still have a cost per acquisition/booking

Let’s break down the RevPAR formula into its two main factors and see which direct booking practices can also increase RevPAR.

Metasearch Bidding

Offering More Non-refundable

Digital Marketing

REVPAR FACTOR #1: OCCUPANCY

Bid on metasearch websitesWhen you bid with a higher CPC, you will improve your hotel rank and drive more traffic to your site. Also OTAs will drive more traffic to your hotel deals but at no additional cost to you (you only pay your CPC but your hotel rank will go up).

Offer more non-refundable ratesOffering more non-refundable reservations will simply increase occupancy by reducing cancellation rates. You can do that easily with Life Happens’ free of charge service.

Use Digital MarketingShow a specific message to the most relevant audience – those who showed interest in your offer. It will increase their chances of staying with your booking, and canceling another hotel.

Occupancy

Growing popularity of metasearch websites on Google search, compared to OTA Source: Google Trends

REVPAR FACTOR #2: ADR

Increase ADR of non-refundable reservations with Life Happens

Use Digital Marketing to boost ADR

ADRIncrease ADR of non-refundable reservations with Life Happens

You can receive an extra fee from every booking made with a Life Happens protection plan.

Every time your guests choose to book a non-refundable reservation with a Life Happens protection plan, you receive a commission. That will increase your ADR by an average of 3% per every room booked with this added protection.

Use Digital Marketing to boost ADR

Use digital marketing to target potential guests and introduce them to the extras your hotel offers.

RLSA (Remarketing Lists for Search Ad) allows you to go even further to target people who visited your website when they were searching Google, and incentivize them with up-sale/cross-sale offers.

SUMMARY

For 2016, “direct booking” is a buzz word, but in 2017, it’s going to become the norm. Grow and prosper from an online direct booking channel while still increasing RevPAR.

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