5 Ways Hotels Can Ease Traveler Budget Concerns
by Pam Doute
Budget concerns driven by rising inflation can affect leisure traveler’s plans – but the right strategy can help to ease those concerns. What can the hotelier do to help soothe those pain points?
Make sure you know what’s important to today’s traveler and tap into those things that your guests are looking for. A recent survey by TravelBoom identified the key things that influence travelers when making vacation decisions and how price plays into it.
In this article, we will use insights from the survey to identify ways hoteliers can make a positive impact in easing traveler budget concerns.
Tip 1: Competitive Pricing & Promotions
Our 2023 Leisure Travel Trends study found that price AND location are the top influencers when guests are choosing their accommodations.
While you can’t change your location, understanding the local pricing landscape is crucial. Hoteliers must set their rates in ways that appeal to the budget-conscious traveler.
Using a hotel revenue management tool is a great way to stay abreast of the local landscape. These tools enable your hotel to look at local competitors and optimize pricing strategies, maximize revenue, and make data-driven decisions to stay competitive in a dynamic market.
Additionally, you can use the intel provided by the revenue management tool to create promotions such as early bird booking discount and extended stay discounts that not only match the local landscape but give you a competitive edge.
Tip 2: Flexible Room Options
To cater to travelers with different budget constraints, hotels can provide flexible room types. Consider the location and views of each room. Rates should be based on the most desirable attributes your hotel offers.
Rooms with a view garner a premium rate, allowing you to set lower rates for rooms that do not offer such an amenity. If your rooms on higher floors tend to be more in demand, set those lower level rooms at discounted rates.
The bottom line here is to establish those rooms that are in demand and set those rates higher, providing the discount shopper with options that are more wallet friendly.
Tip 3: Inclusive Amenities & Services
What amenities do travelers expect?
Per our 2023 travel study, guests have come to expect services like breakfast, Wi-Fi, and parking to be complimentary. A pool and in-room kitchen were also popular choices.
Travelers are looking for ways to save money and hotels can ease budget concerns by including essential amenities and services in the room rate. By offering complimentary Wi-Fi, breakfast, or even free self-service parking, hotels can help eliminate additional costs that travelers are not budgeting for.
These inclusive amenities give guests peace of mind, knowing they won’t have to spend extra money on basic necessities during their stay.
Tip 4: Partner with Local Businesses
Form partnerships with local businesses and provide exclusive discounts for your guests. It doesn’t matter if your hotel is primarily used by business or leisure travelers, these partnerships benefit all travelers.
Consider local restaurants, transportation services, tourist attractions, and local gift shops. Negotiate special rates for your guests and give them the opportunity to explore your destination without straining their budget.
Tip 5: Traveler Loyalty Programs
As we mentioned above under competitive pricing and promotions, our survey found that nearly 64% of travelers were influenced by deals and offers. Implementing a loyalty program can be a win-win for both hotels and guests.
Offer perks such as room upgrades, discounted rates, reserved seating at the pool or restaurants, or exclusive access to special events.
By joining these programs, travelers can accumulate points and enjoy benefits that help ease their budget concerns during future stays. Hotels, in turn, build customer loyalty and enjoy repeat business from satisfied guests.
Extra Credit: Transparent Pricing
To establish trust and maintain transparency, make sure you clearly communicate pricing and any additional fees upfront. Hidden fees and unexpected charges can be a major source of frustration for travelers on a budget.
By providing transparent pricing information on your websites and during the booking process, hotels can help guests plan their expenses more accurately, allowing them to make informed decisions and avoid unpleasant surprises.
In Conclusion:
Offering budget-priced room options at your hotel is beneficial for attracting cost-conscious travelers. Effectively marketing these budget-friendly offerings is essential.
Make sure your website and social media is doing all it can do to effectively communicate and highlight the value and affordability of your accommodations. This will ultimately drive bookings and revenue for your hotel.
And be sure to download TravelBoom’s 2023 Leisure Travel Study to get even more detailed insights, observations, and opportunities to help position your hotel as the top choice among travelers.