In order to drive the most revenue possible at your hotel, it is important to adjust your market mix according to periods of high and low occupancy. Here’s how to do just that.
Recap: What is a market mix and why does it matter?
Your hotel’s market mix is the sum of distribution channels that you sell your rooms through, ideally selected strategically with the goal of driving the most revenue in the long run.
Developing the right mix of hotel distribution channels - and to do so strategically - is key to your ability to maximise revenue. Otherwise, you would be leaving the profitability of your hotel up to chance. This is because each distribution channel comes with different types of guests, and varying costs in terms of commissions.
Your specific mix should be unique to your hotel, depending on how it is placed in the market relative to competitors in terms of location, reputation, and service offering. It also depends on factors like your target market (and the channels they’re most likely to buy through), and how strong your existing database is (and the amount of repeat business you can generate from it).
But setting your distribution channel mix is never a ‘set and forget’ activity. In fact, you should adapt it to changes in supply and demand, dialling certain channels up and down according to periods of high and low occupancy.
What does a good market mix for high occupancy look like?
Periods of high occupancy (or ‘high season’) are the best times to make strategic changes to your distribution channel mix in order to maximise revenue. These are times when you can:
It’s also important to prioritise your profitable guests during this period. For example, business travellers tend to book last-minute, while leisure travellers book further ahead in time. However, you know that business travellers tend to spend more when they stay with you, and are therefore more profitable. So in high season, you can adjust your market mix by holding rooms for corporate bookings, while reducing inventory for leisure travellers.
What does a good market mix for low occupancy look like?
Low season guests tend to be different from high season guests, and so you can adjust your strategy accordingly.
Make sure you have the right tools
In addition to the tips above, it is extremely beneficial to make sure your hotel is equipped with the right tools to execute your strategies efficiently. For example: