Unlocking Revenue Potential: How Branded Merchandise Boosts Hotel Income and Success from Day One
Updated: Jul 23
Main Sources of Hotel Revenues
Hotels derive their income from multiple sources, with room revenue being the predominant one. However, food and beverage services, as well as meeting and event spaces, also contribute significantly to their overall revenue streams. Here is a closer look at these primary sources of hotel revenues and how branded merchandise can enhance them, especially in the context of new hotel openings:
1. Room Revenue
The cornerstone of hotel revenue is room revenue, which is generated through the "sale" of guest rooms. For select-service hotels, this typically constitutes around 95% of their total revenue. These hotels focus on providing essential services at a more affordable price point compared to full-service hotels, making room occupancy a critical factor for financial success.
How Branded Merchandise Can Help:
Enhancing Guest Experience: Offering branded amenities such as high-quality toiletries, robes, and slippers can enhance the guest experience, leading to positive reviews and repeat business.
Souvenirs and Memorabilia: Selling branded merchandise like t-shirts, hats, and mugs can create additional revenue streams while also serving as free marketing when guests use these items at home or in public.
Loyalty Programs: Branded merchandise can be used as rewards for loyalty program members, encouraging repeat bookings and fostering customer loyalty.
Promotional Giveaways: At new hotel openings, giving away branded items such as keychains, tote bags, and water bottles can create buzz and attract initial guests, driving occupancy rates early on.
2. Food and Beverage Revenue
While select-service hotels may not have extensive dining facilities, they often offer breakfast services, limited dining options, and sometimes snack bars or vending machines. These food and beverage offerings contribute to the overall income, albeit to a lesser extent than room revenue.
How Branded Merchandise Can Help:
Packaging: Branded packaging for takeout options or snack items can enhance the perceived value and provide a unique touch that guests remember.
Gift Shops: Stocking gift shops with branded food items such as locally sourced snacks, specialty teas, or coffee can boost sales and provide guests with convenient gift options.
Event Catering: Offering branded catering supplies for in-hotel events can leave a lasting impression on attendees and encourage future bookings.
Opening Events: During the grand opening, branded food and beverage items can be part of the launch celebrations, creating a cohesive brand experience and encouraging social media sharing.
3. Meeting and Event Space Revenue
Some select-service hotels offer small meeting rooms or event spaces, generating additional revenue from business meetings, conferences, and social events. While this might not be the primary revenue driver, it provides a significant supplementary income.
How Branded Merchandise Can Help:
Event Packages: Including branded merchandise in event packages can enhance the appeal of the hotel's meeting and event services. Items such as branded pens, notebooks, and tote bags can be used during events and serve as promotional tools afterward.
Corporate Partnerships: Developing partnerships with local businesses and offering co-branded merchandise for corporate events can increase visibility and attract more bookings.
Memorable Experiences: Providing attendees with high-quality, branded keepsakes can make events more memorable, leading to positive word-of-mouth and repeat business.
Launch Promotions: Hosting events or meetings during the hotel’s opening period with branded giveaways can attract local businesses and organizations to consider the new hotel for their future events.
Enhancing New Hotel Openings with Branded Merchandise
New hotel openings present a unique opportunity to establish a strong market presence and attract guests from the outset. Branded merchandise can play a pivotal role in this process:
Creating Buzz: Distributing branded items before the opening through local events, social media contests, and partnerships with local businesses can generate excitement and awareness.
Guest Welcome Packs: Offering welcome packs filled with branded merchandise to the first guests can create a lasting positive impression and encourage word-of-mouth referrals.
Media Kits: Providing branded items in media kits for press and influencers attending the opening can lead to greater coverage and visibility.
Community Engagement: Partnering with local charities or organizations and including branded merchandise in their events can foster community goodwill and attract local support.
Conclusion
While room revenue remains the dominant source of income for select-service hotels, food and beverage services and meeting/event spaces also play crucial roles in overall revenue generation. By strategically incorporating branded merchandise into their offerings, especially during new hotel openings, hotels can enhance guest experiences, create additional revenue streams, and strengthen their market presence. These efforts not only boost immediate income but also contribute to long-term brand loyalty and recognition.
With so many options available, choosing the right branded promotional item can be overwhelming. Since 2016, we, at Florida Custom Merch, have helped numerous businesses achieve success through the use of custom branded promotional merchandise. Hiring an expert can help you select the perfect item, save time and money, and, most importantly, maximize your results.
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