Are you a hotel operator looking for ways to increase revenue? More than ever, the hotel industry is catching on to up-selling ancillary services, following the example mastered by airlines in their search for new non-airfare revenue streams. For hotels, non-room ancillary services have taken the form of point-of-sale and online add-on amenities, point-of-sale concessions and co-marketing with local vendors such as restaurants and car rental agencies.
But one of the most overlooked but obvious, simple-and possibly the most lucrative-sources of added revenue for hotels is parking space rental, a highly valued commodity in today’s urban life. Here’s why:
Available
Hotels already own parking space so it is an available asset. To rent out space simply utilizes what is already owned. Often a hotel owner overlooks the value of parking but revenue can be optimized by selling extra spaces to any buyer, hotel guest or not.
Flexible
A hotel owner can choose when or when not to rent the extra spaces. For example, during slow periods the owner can rent extra spaces to non-guests but during busy times can use the spaces for hotel guests. And if a hotel owns extra parking space, those can be rented year-round.
Profitable
One of the most attractive features of hotel parking is that it is low maintenance. It does not require extra resources such as those needed for the hotel operation, offering a pure revenue stream with little to no expenditure. A hotel operator can optimize profit even more by utilizing a dynamic pricing strategy, another method that has been mastered by airlines and is also used by hotels in selling rooms. Dynamic pricing is flexible, allowing for increased prices during times of high demand and lowered ones during slower times and has been proven to increase parking revenue by thousands annually depending upon the number of spaces.
Marketable
Hotels located in or near airports, downtown areas or business or industrial parks stand to make the most profits because these areas are often in high demand. Increased population density translates to more autos and more parking spaces needed. As long as there are autos there will be a need for parking, regardless of the economic state. Parking is virtually bullet proof against economic downturns.
How does a hotel operator begin a parking operation, once convinced of the potential profit waiting to be tapped? Take the time to find a proven and solid parking software system. The market is flooded with hotel parking central reservation systems with varying degrees of capability. The best systems will combine reservation software, customer data collection, reporting, dynamic pricing and inventory management, all working together to support a hotel parking operation strategy.
Careful research and investigation for a software provider will take time, but the effort will be worth the reward in the end. The most advanced systems should offer:
- Real-time central reservation system for data gathering
- Omni-channel capability to allow for channel management, reporting and segmentation
- Real-time reporting
- Logical user interface system
- Ongoing research and development
- 24/7/365 online support
If you would like assistance on locating a parking software provider, contact PRS at contact@parkingreservationsoftware.com.
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