Improving Income Streams in the Hospitality Industry

In a trading environment which is becoming increasingly more challenging, it is important that hospitality business owners maximise their income in the periods that they are open.

The number one priority is to ensure the satisfaction of your customers. This will encourage them to spend more and return at a future date, but how can you set yourself apart from your competitors?

Technology

Customers will be attracted by a well-designed website, where they can easily see what you are offering. They will enjoy the convenience of being able to book online. Online drinks and meal ordering systems again improve the customer experience. Just make sure that it is kept up to date – particularly in relation to prices and opening times.

Training

The importance of your revenue team cannot be underestimated. The attitude of your staff is vital. Their priority must be to make each customer feel special. Training plays a big part in ensuring that your staffs’ attention to detail is impeccable. We all know that if we receive great service then we are likely to buy more and be loyal to the venue. Happy customers are your greatest ambassadors.

Value for money

There is nothing that customers like better than value for money, particularly with the recent increases in the cost of living. For example, in hotels you may be able to increase revenue by offering an extra night at a discounted rate, especially in low season. For restaurants you may consider a loyalty scheme whereby a free meal is offered after buying a number of full price meals.

Maximise opportunities

Events and attractions in your area provide a great opportunity to boost income. Hotels and restaurants can enjoy the run up to Christmas and New Year. For pubs the prospect of the football world cup is good news. If business owners are looking to increase capacity in order to maximise their income streams, a major consideration is what their current licence allows them to do. The top tips offered by Licensing expert Michelle Hazlewood of John Gaunt and Partners is as follows:

• Look at your council’s statement of licensing policy. If there is a cumulative impact policy (CIP) in place you must be prepared to justify your application for additional opening hours, in order to demonstrate that by doing so you will not be increasing antisocial behaviour. You may have to increase staff numbers and/or pay a late-night levy. These costs need to be built into your model.
• Check your current licence and lease to see what restrictions currently exist.
• When in doubt, early discussions with local licensing, and perhaps the police, will identify potential problems before you have gone to the time and expense of preparing you application for extended hours and people.

In conclusion, there are opportunities to improve your market share by focusing on customer satisfaction. Look at all ways to maximise turnover by taking advantage of up-and-coming events. Forward planning is critical to ensure success.