In the present hospitality industry, you can see an ongoing tug of war between the number of visitors and profit margin. If you are willing to shave off your profit margin, you can witness an immediate boost in your spot bookings and vice versa.
But only that regularly shaving off your profit margins can’t be a business strategy.
The hospitality CRM solution enables you to be closer to your customers and have a steady stream of return bookings.
If you are unwilling to compromise on your revenue source, you need to create additional reasons that could force your customers to pay a return visit. In turn, this will help you attract a better pool of customers who are more than simpleton price hunters.
In this blog, we will discuss realizing your business growth potential through smart visitor management. Also, we will discuss the principles of hospitality system to be applied to other industry verticals.
Repeat Customers, the Boon of Online Medium
In our last blog, we discussed the digital media’s impact on shaping the new hospitality industry. The present-day hospitality industry is much more unrelenting and unforgiving in your operational mistakes. It has practically overhauled the old ways of being hospitable for a profit.
In short, your guest is greatly more willing to leave the party and never return in the light of a single bad experience.
Needless to say, this could make a serious dent in your turnover.
Let me explain the relationship between customer churn-over and your business growth.
It means that there exists a practical gulf in revenue between retaining 10% or 3% of your existing customer base.
In the special case of the hospitality industry, you also require your returning customers to recommend your services to new potential customers.
In light of all this information, you should focus on creating a hospitality business model that will repeatedly attract return visitors. Ideally, this will further help you leverage the existing customers to attract new customers.
It will also enable hospitality management to improve their existing protocols in serving their customers.
Finally, this will improve the rate of growth for your business.
Discovering Multiple Points of Value Exchange
All successful businesses thrive on providing a relatively high value of exchange to their customer. This means that your business transactions aren’t just limited to providing a particular service or utility value.
They are focussed on providing a well-comprehended value exchange that extends beyond the transaction time.
First, let’s look into the interpretation of quality experience from the perspective of the customer.
In other words, how your customers will end-up experiencing your product or service is more important than what you have built.
The hospitality service should contain numerous micro-conversions that will help you improve the value of your business.
This is a brief list of the hotel management system as enumerated by four corners interactive.
This provides you with numerous opportunities to improve your customer value exchange.
The hospitality CRM solution will enable you to manage all your interactions from a single database. Having a unified majority of your interactions, you can easily identify the friction and enable smooth transactions.
Having to produce improved customer interactions at more touch points will drive your customer experience. This will help you get more customers.
Having all the customer interaction data will also help you arrive at the optimal pricing according to the availability of rooms.
In the digital world, a transparent pricing model could help you close more deals.
Identifying the potential Problem areas for businesses
In comparison, the hospitality industry has one of the largest set-up and running costs. This means that you can’t afford to lose money even in the short term.
In short, you need to start figuring out the best way to optimize your business revenue in a consistent manner.
A hospitality management system lets you connect the different part of your hospitality services. This will help you manage and iterate your touch points in your service.
Let’s discuss the usual trouble points in organizing your businesses.
- Dropping Room reservations
- Unable to attract online leverage
- Lack of Omni-channel customer interactions
- Rising unaccounted internal costs
The hospitality Solutions will let you integrate all data points into a single streamlined information flow. This will help you manage and leverage all data points to attract maximum data.
For example, let’s consider that you have a case of the rapidly depreciating rate of room bookings.
This could mean that your competitor is now offering an un-resistible offer.
Rather than panicking, you can now compare the booking rates during the same period last year.
This will give you an accurate idea of whether your booking rate is decreasing or appreciating. Further, this will help you understand the growth or depreciation rate in your business.
Understanding and Leveraging the External Influences
In our last blog about the hospitality industry, we discussed the significance of millennial in driving hotel revenues. As your business is mostly influenced by your customer preferences, understanding these influences becomes a significant part of the business equation.
Recently, the mobile-first approach is beginning to have its own swaying-effect on the hospitality industry. The mobile-first approach means greater speed and incremental efficiency.
If you are able to adapt to the new system, you could gain a competitive edge over your competitor.
The Hospitality consultancy firm sabre hospitality has found overwhelming favour for a mobile-first approach in their business operations.
This will also enable business people to learn and adapt to their current business dynamics.
If you are a hospitality service provider, you could be easily hit by the growing number of enterprises and ever-changing customer taste.
At the same time, you need to keep track and manage these demands to gain your entrance into the present industry.
A hospitality CRM solution lets you understand and satiate your actual customer requirements that will make a difference to your bottom-line.