Hoteliers and guests were in a holding pattern this morning after the latest consumer price inflation data announcement from the Office for National Statistics, with the rate of inflation flat on the month at 6.7% in September. A drop in food price inflation was countered by a spike in oil prices, preventing the rate of inflation from falling.
Hoteliers and consumers continue to face pressure caused by increased costs and concerns over possible interest rate increases. The data followed yesterday’s high wage growth rate, which saw average weekly earnings, excluding bonuses, growing by 7.8% in the three months to August, above the rate of inflation. The Bank of England will take this into account when considering interest rates, making further increases possible.
In this uncertain climate, generating further ancillary revenue in hotels and delivering value to guests will be critical to moderate stresses in the economy.
Yesterday saw Mews, the industry-leading hospitality cloud, launch its automated space management feature within its PMS to help hotels diversify their revenue streams and increase profit. Hoteliers can now utilise every square metre of their property by selling additional spaces and managing the inventory through Mews PMS to let guests – and non-guests – book.
Thinking beyond rooms and overnight stays, Mews has helped over 800 customers so far to optimise their properties by utilising every square metre to offer guests a well-rounded stay. The biggest increase in revenue has come from selling parking spaces and meeting rooms, which guests can upgrade during booking or check-in.
The feature has seen hoteliers generate more than €100,000 in ancillary revenue by upselling parking spaces alone.
Currently, almost 2,900 parking spaces in 189 hotels are managed with Mews, and there have been 9,796 reservations. 1,200 meeting rooms across 312 hotels are also managed with Mews PMS, where hotel staff can track digital bookings and manage dynamic pricing all within one platform.
Hotels can also sell these spaces to non-guests, who might be travelling with work or living locally.
Josef Lapka, VP Product Management at Mews, commented: “Many hoteliers sit on real estate that could be a real revenue generator for them. By selling spaces outside of the traditional room and offering guests much more, hoteliers are seeing a much larger impact on their bottom line. Initially we’ve seen the focus on parking spaces and meeting rooms, but this can be extended to all areas of a property, be it a spa, gym or event space.”