How to get smart with hotel distribution during the low season

Peaks and troughs are the perennial features of every hotelier’s annual revenue graph. This is unlikely to change.

But with the right planning and strategy, underpinned by dynamic competitor and distribution channel data, you can raise those dips and maximise revenue in your off-peak seasons.

Of course, "off-peak" means different things to different people. If your core guests are summer holiday-makers, the fall is clearly your low season, whereas hotels catering for business people experience relatively quiet summers.

But regardless of when your low season is, this whistle-stop tour of the key strategies to achieve your goals should set you off on the right path.

Plan ahead for low demand, both for this year and future years:

1. Set your goals early on. Filling your calendar with a channel-by-channel marketing plan is ideal but hold promotions in reserve to unleash if demand dips below a set threshold.
2. Set realistic expectations. Your revenue targets shape your annual budgets. If they’re over-optimistic, failure is likely. So use this phase to produce achievable goals and share them with your team.
3. Be specific. Teams respond better to specific targets, so review historical low demand and set measurable goals accordingly, whether for occupancy, ADR or other metrics.
4. Prepare to execute. Know what’s coming next and allow time for the tasks needed to make it happen.
5. Prepare for the lows when it’s high. Are you building your database and guest reviews during the high season?

Now’s the time.

Think beyond rate slashing

During the low season, you should monitor your competitors’ rates but don’t get sucked into a downward spiral of price adjustment.

A better strategy is to justify the value of your prices with attractive packages that differentiate your rooms from your competitors’ without significantly adding to your costs.

Promoted through online and social, the more creative your packages, the better. Some ways you can achieve guest excitement and higher conversion are:  including cocktails upon arrival, breakfast, discounts for extended stays and late check-out.

Group business and loyalty package rates can also help build demand without publicly discounting your rates.

The guaranteed revenue they bring will give you time to catch your breath, while also contributing to occupancy targets.

Focus on demand bright spots

Identify the events, many of them small and local, that are likely to untap demand. These are your demand bright spots. 

Building unique packages that differentiate you from the local competition could work wonders in creating demand, particularly with “staycationers”.

Entice them with food associated with a culinary festival, perhaps. Look around and be inventive.

But don’t forget your data: it’s crucial for identifying demand that might otherwise go unfulfilled.

• Are low-season searches failing to convert?
• Has there been a surge from an identifiable demographic you could leap on?

Jump in to capture these latent demand leads.

If your plans don’t pan out, be nimble

By adopting a “test and learn” approach, you can adapt any plans that don’t fully live up to expectations.

To capture immediate business, these agile tips could help:

1. Rapidly react to highly converting booking channels. If you spot a surprise spike in transactions from a particular booking channel, consider an immediate release of extra inventory to capitalise on those advance bookings.
2. “Last moment” conversion optimization on direct booking channels can help you capture as much existing interest as possible. When a would-be guest abandons an online cart, consider a pop-up offering champagne on arrival or free breakfast. These offer low-cost ways of converting existing demand.
3. Usually steer clear of HotelTonight and other last-minute channels? Why not consider testing them with a period of limited engagement? In a competitive, low-demand environment, you might be successful.
4. Content marketing can be leveraged to show potential guests all the things they can do nearby. Build up excitement and intrigue, and you’ll create demand for off-season visits.

But with the right planning, good analysis of data on your own past performance, and an assessment of demand - in part associated with your competitors’ rates and local events - these last few tips will be optional extras to further boost your revenue rather than the basis of your activity.