How to create additional revenue streams
Management

How to create additional revenue streams

December 24, 20192 min read

Generating supplemental revenue is common practice among hotels. But not all is lost for short-term rental professionals, as there are still strategies that can help you boost your sales beyond just rate and occupancy management.

As the short-term rental industry grows more competitive, professionals try to diversify their offer in search of a unique selling proposition to boost their sales.

Positioning your rentals as brands

Branding is crucial for guests to differentiate rentals and judge them according to their staying experience. Nowadays, many short-term rental professionals are qualifying their services as brands. This results in diversification for consumers, whose buying decision is increasingly based on uniqueness.

It’s important to showcase the upsides of your rental, be its extravagant design, how it’s situated near an amazing beach, or its historical significance. The best way to find your differentiating factor is by taking a look at what guests often point out in their positive reviews.

Costumer retention and loyalty programmes

Creating your own brand is the first step to gaining loyal customers. Studies show that around 79% of guests would book the same accommodation if they considered their experience was pleasant.

That’s where loyalty programmes and coupons come in. There are a lot of strategies to incentivise guests into becoming returning customers.

In order to start your own loyalty programme, you should first get to know your guests and find out what kind of perks would work best. Then, you can try offering them a discount on their next stay, complimentary services like free transportation, or even a custom welcome kit.

Strategic partnerships with local businesses

Initiating partnerships with local businesses will contribute to an increase in demand. This will help you add value to your brand and significantly improve guests’ experience as well. It will also be an additional revenue stream, so you don’t have to only rely on listing channels.

When you network with local points of interest, such as spas, restaurants or tour agencies, make sure to negotiate deals that allow either party to take some commission or even exchange goods and services.

This can be particularly useful if you want to tackle some of your weaknesses, or you’re simply unable to provide certain amenities. These partnerships are extremely beneficial to both parties and contribute to the development of your local community.

Regardless of which business strategies you decide to implement, they must all be based on your unique selling proposition, which is intrinsically tied to your local network and long-term planning.