Day 2: Develop a referral network
Get to know your competitors. There is substantial mutual benefit in having a close network of hotel professionals that can send you referral and overflow business. Often, your competitors cannot accommodate guests because of a sell-out, overbooking or they simply to do not offer the amenities a guest is looking for. Know the Revenue/Reservations Managers in your area and invite them to your property for familiarization tours. Keep in regular contact and monitor their occupancy by scanning availability online. When you detect a sell-out, call your contacts and ask them to send you overflow business. Negotiate an overflow rate in advance that is at least 10% lower than their contracted rate for a particular guest. Nobody will send you referrals if it costs them money. By discounting your rates nominally, you will build in a compensation structure and prevent out of pocket expenses for the referring hotel. Follow-up with a fax or email to the front desk to remind them that you have availability. If hotels in your comp set tweet, follow them. Re-tweet posts when it is to your benefit (i.e., noting a great coffee house near your hotel or an upcoming concert). These little gestures reap big rewards, cost nothing and draw attention to your property within a global network. Reciprocate often. When you send referral business to another hotel, make sure you toot your own horn (loudly) and be gracious when it comes to showing appreciation for their continued support and partnership.
Join us tomorrow for Day 3 of 5 Low Budget Revenue Strategies for Independent Hoteliers: Never forget who your friends are