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Tips for driving RevPOR … and profits

As noted in my last post, RevPOR is a better indicator than RevPAR or ADR for boutique hotels. Thinking in terms of capturing the total spend per room opens up revenue areas and inspires ideas for capitalizing on them while enhancing overall guest experience.

Here are a few ideas that can help drive total RevPOR, increasing gross revenue and profit in boutique hotels.

In-room offerings

  • Bath menus, including an attendant to draw and prepare it for the guest
  • Welcome amenities such as a wine and cheese offering, fresh flowers or chocolate-covered strawberries
  • Upgraded turndown service menus with freshly baked chocolate chip cookies, rose petals, hot water bottle bed warmers and monogrammed robes
  • Unique minibar offerings like signature cocktail recipes to encourage guests to buy two mixers and the spirits to create an in-room beverage
  • Spa “starter kits” in a minibar-style display
  • Special occasion menus: birthday, anniversary and celebrations upgrades like a CD guests take home with “your song” playing when they walk in the room, in- room couples massages, breakfast in bed, a room full of roses, birthday cakes delivered to the room, etc.

Spa and retail

  • Treatment upgrades
  • At spa check-in, offers to extend treatments to longer, more luxurious versions whenever possible
  • Suggested spa-at-home prescriptions for guests after treatments to help them take home the spa experience
  • Selling treatment products in the retail area; if guests like them, they will buy them for home use

Food and beverage

  • Including breakfast with every room night. With this strategy, ADR can increase US$20 to US$25 per day with double occupancy, with added breakage from guests opting to use the room but not the dining option.
  • Offering a flat-rate wine-pairing add-on option to all dinners of three courses or more
  • Driving bar business simply by inviting every dining reservation to arrive early for a drink in the bar, and at the end of the meal inviting guests to stay for a signature after-dinner drink 

Marketing

  • Designing amenities to be an exciting option for local residents. A boutique hotel can offer trendy or classic pleasures that excite and entertain the local residents as well as out-of-town guests. A spa, restaurant, bar or retail boutique geared only toward overnight guests is limited in smaller hotels and resorts. Expanding into the community will allow the boutique property to have a level of business with the programming, products, service and creativity equal to stand-alone competitors and large resorts.

Please feel free to contact me with any questions and add to this list yourself. There are hundreds of ideas that could be added; these are some easy-to-execute and proven revenue generators.

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