Capturing revenue in the low season: Advice from 5 Lighthouse revenue managers

The dreaded low season: when the phones ring less, bookings slow to a trickle, and the local event calendar is bare.

Every revenue manager and hotelier fears the off-peak time of year as it is often the most challenging time to meet budget goals, boost occupancy rates, and maintain Average Daily Rate (ADR) goals.

What can revenue managers do now to prepare for the low-season or ‘off-peak’ time of year? Let’s ask members of Lighthouses’ very own RSS team what strategies they employ to steer the ship early in the course, and gain revenue in these slow times of year.

In this panel, we’ll ask 5 experienced revenue managers on the Lighthouse RSS team to weigh in and offer a few pieces of advice for how they not only survive, but capture additional revenue during the slowest times of the year.

Take advantage of the OTA Market: This could be ramping up the amount you contribute to an accelerator in order to increase your sort order, higher bids on Travel Ads, and changing your photos and descriptions especially if you are in a seasonal market, [no need to showcase the outdoor pool front page when it's snowing outside!].

Boosting hotel revenue during off-peak seasons can be difficult, but with a clear roadmap and effective strategy, you can maintain bookings and profitability.

Here are some key tips to capture revenue during slower periods:

• Optimize Discount Offers by reevaluating your lead times for advanced purchase offers and remove or adjust length-of-stay restrictions/discounts on stay and save promotions. Also, try offering competitive discounts for locals looking to escape without venturing far. Include special incentives such as food & beverage credits or experiences to make a staycation at your property irresistible. This can make your property more appealing to potential guests planning ahead or those looking for flexible, budget-friendly options.

• Create Value-Driven Promotions and Stay Packages. Instead of simply lowering rates, or the race to the bottom, create value-added packages that encourage longer stays, such as golf weekends or food and wine experiences. These not only target potential guests but also enhance their stay. You can also include flexible add-ons like food credits or breakfast included options, which can be adjusted dynamically based on hotel occupancy. As demand increases and you return to the high season, reduce the discount, ensuring that you maintain a healthy balance between value and profitability.

• Targeted Marketing: Increase your property’s visibility by running sponsored ads with OTA partners. Additionally, send tailored email campaigns to repeat guests, highlighting special offers, packages, or exclusive local events, making them feel valued and more likely to return (and become a direct booking!)

• Focus on Upselling and Cross-Selling. You can often increase the average spend per guest by offering upgrades, such as better room options, spa treatments, or additional amenities. Upselling at the time of booking or during check-in is especially effective during off-peak seasons, helping to maximize revenue even with fewer bookings.

By employing these strategies, you can keep your revenue flowing during off-peak seasons while continuing to provide value and an exceptional experience for your guests.

When preparing for the low season, it’s crucial to take a proactive approach. Focusing on your hotel's occupancy is key to maintaining the hotel’s performance. From a hotel’s perspective, adjusting the rate strategy to be slightly lower than competitor hotels, can help capture bookings outside of the typical booking window and establish a solid occupancy base.

A good starting point is reviewing historical ADRs for the low season and using that as a guide for setting current rates. During the low season, prioritizing occupancy—even at slightly lower ADRs—ensures steady occupancy levels. This approach helps avoid the need for significant last-minute rate drops.

By managing your rate strategy ahead of time, you stay competitive and are more likely to secure bookings well before the typical booking window putting you ahead on the booking curve for the market. Increasing occupancy ensures Revenue Per Available Room (RevPAR) growth, even if ADRs don’t show substantial increases, as more pickups occur.

• Dynamic Pricing for added features: During the off-season, you can increase revenue by offering extra features for an additional fee. Start by reviewing your room types and their current pricing strategies. Lower the prices for premium rooms compared to peak seasons to attract more bookings. Then, introduce optional upgrades like late check-outs, rooms located away from the elevator, higher floors, or rooms with special views.

• Implementing Additional Charges: Consider adding small fees for these extras. For example, charge a little extra for a late check-out or a room with a city view. Although these amounts may seem minor—ranging from $5 to $20 per reservation—they all add up and can contribute significantly to your overall revenue. This approach allows you to capture additional income without needing to increase base room rates.

• Customizing Guest Experiences: Offer guests the ability to customize their stay by selecting from various add-ons. During the booking process, allow them to choose from options like high-floor rooms, proximity to the pool or gym, and specific views. This flexibility makes it easier for guests to tailor their stay to their preferences, enhancing their overall experience.

• Managing Availability: To avoid overbooking certain features, manage the availability of high-demand add-ons carefully. For example, limit the number of late check-outs or high-floor rooms available to ensure you don’t oversell them, especially as weekends approach. This will help maintain a balanced and manageable inventory.

• Revamping Packages: If you offer special stay packages, like a romance package, consider adapting them during off-peak times. Instead of a comprehensive package, create a menu of individual items that guests can choose from and pay for separately. This way, guests can create a customized experience that fits their budget and preferences. For example, rather than a full romance package, offer options like a bottle of champagne, a bouquet of flowers, or a special dinner at a discounted rate.

• Flexible Offerings: Use this strategy to adjust your offerings based on current demand. During high-demand periods, focus on more inclusive and premium packages. In slower seasons, break down these packages into individual components that guests can select, making them more accessible and attractive.

• Enhancing Profit Margins: By thinking creatively about how to offer and price these extras, you can enhance your profit margins. The goal is to provide guests with choices that improve their experience while generating additional revenue for your hotel. Even small adjustments can lead to increased overall profitability, especially when managed thoughtfully.

In summary, by strategically pricing and offering add-ons, customizing guest experiences, and managing inventory wisely, you can make the most of low-demand periods and improve your hotel's financial performance.

• Plan in advance. You should know when your slow season will occur, but if you aren’t certain, use tools like the heatmap within business intelligence to identify dates when you should implement special strategies as early as possible.

• Utilize OTA campaigns and special promotions (if your brand affiliation allows). If you are independent you can really get creative with promotions.

• Join wholesale campaigns. Often wholesale partners are just as eager to drive business in the low season and will gladly work with you on a campaign or promotion.

• Look for newsletters / CVB-sponsored social media campaigns you can be a part of that promote your city or a region.

• Be aggressive on group offers, but think beyond the room rate. Can you waive a resort fee or parking? Can you reduce the charge for breakfast or parking etc.

• Be aggressive with opaque and package discounts. Consider upping the % discounts if your opaque structure is dynamic.

• Shop what the comp set is doing on government per diem, perhaps there are opportunities to offer per diem rate to government guests who were at a higher government contractor rate, or other offer.

• Modify length of stay discounts to be more attractive perhaps your summer stay-4 promotion becomes a stay-3 discount to entice more bookings in the off-peak season.

• Keep an eye on market intelligence tools to understand where the search volume is occurring for your market, it can tell you where you can focus your attention.

Example reviewing a previous year’s performance within BI’s heatmap. The first half of January dates around the St. Patrick's Day holiday, and dates around Thanksgiving are dates that a revenue manager could consider “off-peak”. By clicking on the “Total OTB” toggle, a user can get a quick sense of the ‘hot spots’ and ‘off-peak’ times of the year at a glance.

We hope you’ve enjoyed reading some of the ideas presented by the RSS team above, and now have some concrete takeaways that you can trial at your property during your next off-peak season.

If you’d like to learn more about our RSS offerings, be sure to learn more on our website.