Times are tough. Hotels have been closed, cost bases remain and income is subdued. Plus, the UK is facing differing tiering restrictions, creating somewhat varying regulations for properties with multiple sites across the UK.
There is a common theme for hotels though; cash is king. The UK accommodation sector is seeing depressed revenues with lockdown closures and tiering systems that effect trading.
December is uncertain and the location of a property and the tier that applies dictates how it can operate. We all face barriers to business, revenue and profit and need to generate revenue where possible in order to keep cash coming in.
Black Friday weekend presented a 4-day sales opportunity with online gift vouchers. Having run successful campaigns in 2018 and 2019 with 2 hotels and analysed the trends, I knew what to expect in a normal trading environment with these properties. 2020 is hardly normal though and there was an air of caution, with the pressure of needing to deliver.
Would guests buy vouchers for hotels that are currently closed? What if there are 2021 lockdowns? Will the recent press coverage of many Black Friday offers not representing a deal impact sales?
The promotional message, impact, timing and technology were key. The voucher system used is advanced and I know it well. It offers benefits such as free type voucher templates for the buyer to use and enables the voucher to be set for dispatch on the buyer’s choice of date.
Guests are getting savvy – buy a discounted voucher during Black Friday weekend and select the electronic voucher to be delivered on Christmas morning to their loved one. The recipient receives an email with a hotel experience voucher or the full financial value of a monetary voucher – never knowing that the buyer purchased at a reduced cost!
The best bit is that the hotel gets paid at the time of purchase (not on redemption like many voucher platforms) via an integration with a payment gateway, providing a welcomed cash boost during a period of closure. Black Friday vouchers also have a lower redemption rate – meaning more profit for the hotel.
How did it perform?
Both properties achieved 5 digit gift voucher revenues in only 4 days of sales with a growth of up to 115%; a great achievement for independent regional hotels that do not have spas and therefore do not benefit from spa voucher sales.
The December sales period will be watched closely with marketing and revenue tactics deployed to maximise Christmas voucher sales opportunities.
Such activity may just be a saviour to hotels and provide that extra cash boost when it is needed most, keeping the business afloat in this difficult trading environment.
Stephen Callis | stephen@innitiate.co.uk