If you checked our website, you know that with RoomAssistant, you can increase your revenue. Why should it be interesting for small hotels? Because RoomAssistant is oriented on upsell of services and products offered by hotel. So obviously, if you run smaller hotel and you don’t offer a wide spectrum of services, you might think that RoomAssistant is worthless to you. However, the opposite is the truth! In this post, we will dive quickly into how mobile app for hotels can create new business model that will help you generate more money.
Promote your other properties
It can be explained by simple example. Imagine that you have a hotel that has no restaurant. However, you (or your friend or somebody from your family) might own a restaurant in the same city. Wouldn’t it be nice if your guests enjoy their lunch or dinner time there? You can send a mass message to your guests with special offers or promo coupons to motivate them! Simply put, RoomAssistant can help you promote your other properties – among engaged users and, most importantly, for free.
Become an Affiliate partner!
There are probably some places to see or some things to do around your area. Why not to take chance of becoming the affiliate partner of those. Schedule meetings with local entrepreneurs – restaurant and spa owners, attraction providers, ski resorts. Find a great deal about commissions, price for number of people who came, or buy the bunch of tickets for the low price and sell them little bit cheaper than the regular price is. Afterwards, create separates screens in the application and promote those services via RoomAssistant the same way as we mentioned previously.
You can also create a separate department in RoomAssistant administration that will be handled by your partner, so guests can communicate directly with this company (e.g. restaurant, skipass seller). This will shorten the processing time, as there is no middleman between the guest and the company. You will spend no time with handling the request and moreover, you earn your bonus!
Is it worth it?
Right now, you are probably scratching your head and ask yourself how would you find the value is coming to your pocket. With two simple formulas, you can determine if this use of RoomAssistant is lucrative or not. So lets look at it!
Profit obtained from affiliate parnership
Profit = Revenue from affiliate services – RoomAssistant costs
This number will provide the gross profit expressed in the currency you use (EUR, USD, GBP etc.).
Return on Investment
ROI = (Revenue from affiliate services – RoomAssistant cost) / RoomAssistant costs
This % value will tell you, how much money you earned by spending 1 USD/EUR/(any currency) on RoomAssistant. E. g. if your ROI is 130%, each dollar you spent made 1.3 dollars of profit.
Note: Presented formulas are simplified and their purpose is to quickly help you determine if it is worth or not. If you want to calculate the real costs, you should add labor costs, price you had to pay for products (if you had to buy some) and so on.
If those numbers are negative, it means that it doesn’t bring any value to you. However, as long as they are positive, you are enjoying the profit! And besides, now you are offering a wide range of services that can help you win more business.
So, will you start today?