How to Increase Occupancy Rates: Guesthouses, Hotels, Bed and Breakfasts

When it comes to increasing occupancy rates for a guest house

, B & B or hotel there are a few essential dos and don'ts. The two most important are: Do add value and do not lower rates.

Low rates, when compared to your competition, can actually devalue your establishment while at the same time do nothing to actually increase revenue. In most cases, a reduction in rates is not actually noticed by guests. Most people don't shop for rate alone.

"You get what you pay for" is still true and when a product is not known, its price will define its quality.

Adding value is much easier to advertise and promote and is perceived as more appealing than a price reduction.

Creating a package is probably one of the best ways to add value as the added value is more tangible than in some of the other available options. You can create a package based around a calendar event such as a valentines package break. Here you can bundle in a free romantic meal, pillow chocolates, miniature wines and a spa type pamper package for the bathroom. With all of this added you are more likely to be able to increase the rate slightly while the customer still leaves with a feeling that they received good value for money.

Another example of a package might be a pamper weekend, bundle in some expensive toiletries for a spa experience in the room plus a free massage with a local practitioner add in a box of expensive chocolates and some free wine.

Yet another idea is to link up with a local restaurant to offer a meal package, combine this with a theatre ticket or equivalent entertainment activity to offer a great package for not much more than the competition charge for just a room. After all, most customers are likely to take in a show and eat dinner somewhere during their stay. This way, they feel like they got it for free or at least at a discounted rate.

The main thing to remember when it comes to adding value is that however you achieve it, try to offer something that really does feel valuable. Multiple additions are the easiest way to go about this, for example:

Valentines package: 3 nights plus 50% off dinner at X restaurant plus 50% off shows at X theatre plus free wines plus bathroom pamper pack plus pillow chocolates all adds up to a great value package and a very romantic weekend.

What you have done here is to add one or two large value items and then bulked the deal out with multiple small value items.

How to Increase Occupancy Rates: Guesthouses, Hotels, Bed and Breakfasts

By: Hamad Subhani

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