How Does Asset Tracking & Management Help in Improving Hotel Revenue?

What do you think of hotel assets?

What items count as the hotel's assets?

Most of the people think of hotel assets to the products like sheets, bathrobes, mini bar drinks and snacks, and to those Bibles which are placed in every hotel room's nightstand drawers.

But in the hospitality industry, there are far more assets that hotels are responsible for besides these simple room items.

Hotel assets include almost everything in their territory, from items in guest rooms to the paintings lining the hallways on each floor, to the products for sale in the gift shop, till the premises of the hotel.

For example, the hotels which run their own continental breakfast it's necessary for them to make sure that they have enough amount of food and serving supplies to feed guests in the morning.

Moreover, the hotels that have their own restaurants should ensure that the kitchen should be fully stocked, to meet the guest's demand.

Some hotels also offer services like a business centre, spa, gym, pool/sauna, etc. which need to be tracked, every single asset present over there which also separates the respective required area to function.

Ever wondered what happens when a hotel does not monitor or manage its assets?

How all the things function and how smoothly it works?

Taking an example of a hotel shop, till the time inventory will not be kept up-to-dated, the guests won't be able to purchase the items which are required to be restocked and further to be put back on display.

How can hotels function smoothly with Asset Tracking?

The associated hotel team should conduct regular audits of daily use items like towels, bathrobes, etc. otherwise it will be difficult for the team and officials to list out which item is short and due to what reason, due to theft or misplacement.

All these are the common and most relative problems anyone can imagine talking about hotel inventory management. These problems don't look much big but results in the huge loss of sales of a hotel as a whole and also affect customer satisfaction in a negative with the reason behind unprofessionalism and customer service.

Keeping track of the hotel's assets is a huge commitment with all the possible benefits from its worth of effort and help. Undoubtedly asset tracking and management of a hotel proven to be medicine in the pain providing a huge relief.

Hotels that manage and track their assets in a proper manner have greater chance of stability, correction, and revenue improvement. While, the hotels that don't manage and track their assets in an essential way, they won't last in the league for much time.

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The use of asset management and tracking prevent the banana skin in the hospitality business such as theft, misplacement, non-compliance, etc.

Moreover, they can avoid unnecessary financial losses and can grow their income in the long run.

A hotel, the hospitality business is tough to run and can be challenging; all the team members, staff and the management are needed to be synchronized for all the daily operations, cost controls, and customer service.

It is important for hotel business to be balanced and control the costs during all the operations so that revenues can be increased at the maximum to be profitable.

Also Read: 15 Useful Asset Tracking Tips to Help You Track Your Assets

The following are the ideas that can help you to increase your sales and control the costs:

1. Happy employees:

Employees are the most important assets of all. They are the direct approach to the guests; therefore, they should be happy.

After all, it's your employees' who receive, tackle, and come in direct approach to the guests. Therefore, you need to encourage your team to come up with ways to cut costs that increase revenues and maximize your customer service.

For that, you can reward them for their ideas and efforts. This is obvious that happy employees engage positively with the guests.

2. Provide supreme services:

Similarly, happy guests will pay the surplus. They will further tell their friends and family about their experience (which is great and worth experiencing).

As today's internet has created the world of instant feedback (both positive and negative); hospitality will be judged.

On the contrary, unhappy guests can come back with their negative reviews to retard your growth. So, you need to keep your guests happy by providing them top of the line services.

3. Use of latest technology:

You should list your property on an online group booking platform. An online platform will help you generate leads and increase your overall group hotel bookings.

4. Spot on! Sight:

Guests always like to pay for and more if they feel they are receiving worth value for their money. The actual value is always less important than the glimpse value.

For example, your guests will pay you $20, if they feel like the service, you are offering is worthy, beyond its actual cost i.e., $5, which is definitely a big win.

Also, increasing your hotel rating scale that is going from a 3-star to a 4-star rating hotel can make a huge difference in how you catch the sight of.

5. Special events and functions:

If you have enough space, you should increase the group bookings just by hosting some business conferences, special events, reunions, family gatherings, and weddings.

This way you will gain popularity based on income as well as customer interaction.

Also Read: How Can Asset Tracking Software Boost Your Business Efficiency?

6. Enhance point-of-sale revenue:

For the most of revenue earnings, you must partner with the local vendors' example car rental companies, restaurants, amusement parks, and concert venues, etc. that allows you to sell all the additional services to your guests.

You can use your front desk, gift shops or other areas to sell tickets, rent cars, or you can offer guests with some special discounts.

You can do it more with accessories like developing a line of hotel-branded products like shampoo, soaps, t-shirts, robes or linens to sell to your guests.

7. Approach directly to your guests:

You should maintain contact with your guests personally with the gathered contact information including the guest's email address.

In this, social media networking can help you keep contact with prior guests as well as engage with new potential clients.

Developing relationships, creating special offers for the returning guests and creating an email newsletter can keep your name in front of the mind of your guests.

8. Audit entirety:

Hotels spend nearly half of their income on the operational budget of heating and cooling.

A high-efficiency HVAC system investment can save thousands of bucks. For this, switching hallway lighting from incandescent to LED can be a saviour significantly, by saving money on electricity costs.

Audit entirety including the energy costs, technology, phone systems, and supplies for savings can help a lot to increase the revenues.

9. Preference to guest referrals:

You should give preference to your guests' referrals to spread the word about their experience. You can reward them with discounts for their next stay, free meals, gift cards, spa vouchers, etc.

10. Unique stand out:

You must give some space to your guests to choose you over others for reason.

Also, You can make your hotel stand out unique using pricing, outstanding customer service, free entertainment by the pool, or later at the checkout time. You just need to be creative with your strategies. Always concentrate on what the guest is looking for, in the services.

Also Read: Which Industries are using RFID for Asset Tracking?

Conclusion:

Today is the competitive environment, in any business industry where it is very difficult to make your own space to standout.

But it is always possible to make changes to increase your bottom line; you can use creative and proactive solutions; you can reduce your operating costs and increase revenues without disrupting your day-to-day operation.

Hotels that manage and track their assets in a proper manner and can build greater chance of stability, correction, and revenue improvement.

Undoubtedly asset tracking and management of a hotel proved to be medicine in the pain, providing a huge relief.

Frequently Asked Questions (FAQs)

Q. 1 - What is hotel revenue?‍

A hotel revenue helps to anticipate the guests' demand to optimize the inventory and price availability in order to maximize revenue growth. The purpose of revenue management means selling a room at a low price if a higher demand is not expected.

Q. 2 - What is the revenue in the hotel industry?‍

Revenue management in the hotel industry refers to the strategic distribution by dividing the market and pricing strategies to the right guest at the right time to boost revenue growth.