Make More Money, Do Less Work: 4 Steps to Automate Your Hospitality Business
Time is money and staffing can be challenging. How you leverage hospitality automation can be the difference in getting the most out of your limited time and resources. In this blog, we're going to show you how to make more money while doing less work. Sit back while we walk you through email marketing, yield management, automated texts/emails, and booking abandonment strategies that are sure to save you time and streamline operations.
1. E-Mail Marketing: Personalized Communication for Results
Build Your Lists
To start, every property should have an effective email marketing strategy with a strong subscriber base. Targeting past guests, providing subscription options during online bookings, and using lead magnets such as guides and travel tips are all proven methods to grow your email list.
Designing a Successful Email
As your subscriber base grows, how you craft compelling emails involves careful consideration of several key factors to drive the outcomes you want. Here are the most important things to consider with your emails:
- Subject Lines: Keep them short, around 30 characters.
- A/B Testing:
- Experiment with different subject lines to identify what resonates best with your audience.
- Test your CTA (Click-to-Action). Change the location, revisit the text.
- Urgency: Create urgency with phrases like "Limited Time Offer" or "Ending Soon."
- Personalization: Include the recipient's name for a more personalized touch.
- Clarity: Clearly convey the email's purpose to avoid misleading subject lines.
- Spam Triggers: Avoid spam trigger words and excessive exclamation marks to prevent emails from being flagged.
- Words like “As seen on,” “F r e e,” and “Bonus.” See more from SendX.
- Mobile Optimization: Optimize your emails for mobile devices.
- Emojis: Use emojis sparingly and relevantly for added visual appeal. 😉 For help you can reference a website like Emojipedia.
- Thought-Provoking Questions: Pose thought-provoking questions to engage your audience.
- Power Words: Incorporate power words like "Discover," "Exclusive," or "New."
Test Different Layouts
Apply consistent branding when designing your e-mails. Here’s an example that showcases several e-mails from one independent hospitality property with a connecting theme, but also varies in each design:
Measure Your Results
Caring about the results of your email efforts is crucial for understanding performance, refining strategies, enhancing audience engagement, and achieving your marketing goals efficiently and effectively.
A client case study highlights the remarkable success seen with rezStream, boasting a 99.7% delivery rate, a remarkable 52.4% open rate, and a strong 3.2% click rate. These efforts translated into 3,221 additional website visits, 42 online bookings, and a substantial $39,584 in additional revenue (excludes phone call booking revenue).
Watch our webinar "Make More Money, Do Less Work" and see these items broken down in more detail.
2. Yield Management: Maximizing Revenue through Strategic Pricing
Automating your rates and leveraging yield management rules is about maximizing revenue based on supply and demand dynamics. Creating rules around occupancy and timeframe enables dynamic pricing adjustments for optimal returns. Implementing yield management strategies involves setting rules within your reservation software that respond to various occupancy scenarios.
Here are some common occupancy rules:
- 3 Months or More Away: If occupancy is high (50-60% or more), consider raising rates by 15%.
- 1-3 Months Away: If occupancy is high, raise rates by 10%.
- Within 7 Days: If occupancy is at or below 50%, lower rates by 10%.
Things to Consider
While adjusting rates based on occupancy is a powerful strategy, it's essential to consider market trends, competitor pricing, and guest demographics. Stay informed about industry trends and events that might impact demand. Keep an eye on competitors' pricing to ensure your rates remain competitive. Understand your target audience and adjust pricing strategies accordingly. By combining occupancy rules with a keen awareness of market dynamics, competitors, and guest demographics, you can optimize your pricing strategy for maximum revenue.
3. Booking Abandonment: Strategies for Recovering Lost Reservations
Want to reach out to those guests who “forgot” to complete their reservation online?
Booking abandonment is another email marketing strategy that occurs when a guest adds a room/unit to their reservation but abandons the booking before completion. An effective campaign can recapture guest interest at a low cost and is easy to implement by sending timely reminder emails with special offers.
Around 75% of visitors who start a booking abandon it. Notably, recovery rates for booking abandonment tools like RezRecover from rezStream are impressive, with a 55% average email open rate, a 16% average booking recovery rate, and a remarkable 30% lift in average order values for recovered bookings.
These statistics and testimonials underscore the effectiveness of booking abandonment recovery strategies, showcasing not only increased revenue but also the satisfaction of hoteliers who have implemented these solutions.
“…rezRecover by rezStream has proven to be an indispensable tool for our hotel. It not only pays for itself every month but also significantly enhances our revenue by converting potential guests who would have otherwise slipped through the cracks. With its impressive conversion rates and flexible pricing, we highly recommend rezRecover to any hotelier looking to boost their bookings and revenue. It's a worthwhile investment that truly delivers results."
- Steve Segner, Owner Operator, El Portal Sedona Hotel
Building a 3 Email Booking Abandonment Campaign
4. Automated Text: Enhancing Guest Experience and Revenue
Take your messaging a step further by implementing a text messaging approach. The importance of personalized automated messages that improve upsells, communication, and the hotel's reputation can be accomplished with the assistance of SMS.
Example Schedule
Consider this practical schedule for automated messages, designed to enhance the guest experience at various touchpoints:
- 2-5 Days Before Arrival: Send any necessary waiver forms or documents.
- Morning of Arrival: Welcome the guest, provide the registration card, explain the check-in process, and suggest any upsells.
- Afternoon/Evening of Arrival: Deliver a digital guidebook, offer information about the property, and present additional upsell opportunities.
- Morning After Arrival: Check for any issues or concerns and address them promptly.
- Evening Before Departure or Morning of Departure: Streamline the check-out process.
- Afternoon of Departure: Send a survey to gather feedback.
This thoughtful sequence not only automates routine communication but also enhances the overall guest experience. By leveraging automated messages at each stage, hoteliers can provide valuable information, address concerns promptly, and gather feedback for continuous improvement.
Let Us Support You
In conclusion, the exploration of automation in E-Mail Marketing, Yield Management, Booking Abandonment, and Automated Text/Emails unveils strategies that can revolutionize how independent hoteliers operate. The real-world results and testimonials demonstrate not only the efficiency of these strategies but also their tangible impact on revenue and guest satisfaction.
For independent lodging owners seeking to enhance their operations and guest satisfaction, the path forward is clear: harness the power of automation.
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