8 strategies to increase hotel occupancy

As mentioned in the introduction, focusing on occupancy alone can lead to false conclusions. It is important to look at the bigger picture and incorporate occupancy monitoring into a broader revenue management strategy.

The metric you should never lose sight of is RevPAR (revenue per available room), as it is the key metric that combines occupancy and average rate to give you a more complete picture of your property's performance.

In fact, to calculate RevPAR, you need to multiply the average daily rate (ADR) by the occupancy rate (OCC): RevPAR = ADR x OCC.

If you calculate RevPAR this way, and it increases, you know for sure that your profitability is improving. This is something that cannot be determined by analyzing OCC or ADR alone. For example, a high occupancy rate achieved through low rates can reduce margins, while a high average rate with few occupied rooms is not enough to generate significant revenue.

To learn more about RevPAR and how you can use it to improve your bottom line, read our dedicated article.

One of the most effective revenue management tools is the use of dynamic pricing strategies. This involves continuously optimizing room rates based on a variety of variables, both internal (such as past and future bookings) and external (such as demand pressure, seasonality, or local events).

By implementing dynamic pricing strategies, you can not only optimize revenue on every booking, but also:

• Maximize RevPAR by balancing occupancy rate (OCC) and average daily rate (ADR)
• Stay competitive in the marketplace by quickly adjusting to fluctuations in demand
• Manage demand flexibly by attracting customers during periods of low occupancy and capitalizing on peak demand

Another effective revenue management strategy for improving occupancy rates is the strategic management of length of stay. By setting a minimum (or maximum) number of bookable nights, you can optimize occupancy and better manage room turnover.

For example, setting a minimum length of stay (or minimum occupancy) during events or periods of high demand helps ensure that rooms are occupied for the duration of the event, avoiding gaps between bookings.

One of the most effective strategies to boost occupancy year-round is to create packages, which are promotional offers that bundle accommodation with additional services.

Not only will this help you increase the perceived value of the stay and attract bookings without selling out your rooms, but it will also differentiate you from the competition and enhance the guest experience.

To create truly compelling packages, it's important to learn about your guests' preferences and needs, and tailor your offerings to each customer segment. To understand how to do this, we recommend you read our article on creating hotel packages that appeal to guests.

Increasing direct bookings is an excellent strategy for rapidly increasing occupancy rates while reducing operational costs associated with online travel agency (OTA) commissions. This technique involves offering exclusive benefits to customers who book directly through your website or direct channels.

For example, you can incentivize direct bookings with:

• Discounted rates compared to those available on OTAs
• Complimentary services, such as parking, breakfast or a room upgrade
• Exclusive benefits for loyalty program members, such as reward points or discounts on future stays

These incentives not only make direct bookings more convenient, but also encourage long-term customer loyalty.

If you're looking for more ideas, check out our article on 5 tips to boost direct bookings from your booking engine.

To stand out from the competition and attract more business, don't just compare your rooms with those of similar properties. An effective strategy is to showcase your premium rooms and make them more appealing than the standard rooms at higher-class hotels.

For example, many guests may prefer a premium room at a 4-star hotel, possibly with perks like lounge access or additional services, over a basic room at a 5-star hotel for the same price, but with no other added value.

To achieve this, focus on what makes your offer unique: extra services, complimentary upgrades, personalized benefits, or small luxury details can make all the difference. By doing so, you'll not only increase the appeal of your rooms, but also position yourself as a competitive alternative to even higher-end establishments.

Social media is a powerful tool for increasing your hotel's occupancy rate, thanks in part to its ability to create “FOMO”, or the fear of missing out on something special. Sharing photos, stories and promotions that highlight your property's strengths, local events and positive guest experiences can create a strong sense of desire and urgency.

To maximize impact:

• Create limited-time offers and exclusive packages: Use phrases like 'this week only' or 'book by today' to encourage quick bookings.
• Showcase unique experiences: Share photos of your best rooms, scenic views, gourmet meals, or experiences available in your area.
• Engage your audience with contests and prizes: Give away midweek stays, an inexpensive way to fill low-occupancy periods and gather valuable data for future marketing campaigns.

Actively engaging with followers is equally important: respond to comments and posts and create polls to strengthen your connection with your audience. An engaged audience is more likely to share your content, potentially attracting new guests.

Finally, keep in mind that every social media post can serve as an invitation to book. Always use direct calls to action, such as 'Learn more' or 'Book now', to direct your audience to your website or direct booking channels.

Reviews are key to influencing potential guests' booking decisions and increasing long-term occupancy. Most travelers rely on feedback from other customers to get a real sense of the quality of your property’s experience, rather than official descriptions.

To collect more reviews:

• Choose a specific channel, such as Google Reviews or Tripadvisor, and direct your guests there to avoid scattering feedback across too many platforms.
• Ask for a review at the right time, such as in a post-stay message thanking them for their visit and politely inviting them to share their experience.
• Make the process easy and accessible by providing a direct link or QR code that quickly takes the guest to the review page.

Positive reviews increase your property’s visibility and trustworthiness, but even less favorable feedback can be valuable: responding to criticism in a professional and transparent manner shows care and commitment to guest satisfaction and helps build a solid reputation.

If you're looking to increase occupancy without sacrificing profitability, two of the strategies outlined in this article can provide more immediate results: dynamic pricing and strategic length of stay management.

Smartpricing allows you to automate both tasks, eliminating the need to manually adjust each rate, by synchronizing it with your PMS or channel manager and checking your calendar to ensure you are activating or deactivating minimum stay restrictions at the right time.

The result? Over 4,000 hoteliers who have already chosen Smartpricing have seen an average revenue increase of +30%.  

Want to see how Smartpricing works and how it can support you? Request a free, personalized demonstration.