Tapping into the staycation market is a key revenue driving strategy for hotels and resorts. Here are some reasons why.
In recent years, the travel industry has witnessed a notable shift in consumer preferences and staycations have seen a rise in popularity. Hoteliers should be harnessing the opportunity to cater to this growing market and create exceptional staycation packages that resonate with guests.
The definition of a “staycation” varies depending on who you ask. For some, it means taking time off work and staying at home, while for others it means booking a hotel and sightseeing or being a tourist in your home city. For others still, particularly in the UK, the term is used to refer to domestic tourism, traveling within your home country instead of abroad. Here we’re using it to refer to local travel, be it day trips or booking a hotel or resort within or close to one’s home city.
Staycations gained popularity during the COVID-19 pandemic for several reasons that include global travel restrictions and safety concerns. Even when travel opened up again, many people still felt safer staying near home rather than venturing into crowded airports and sitting for hours on planes crammed with people. Since then, they’ve remained popular for several reasons that include cost and time considerations.
Tapping into this market is a key revenue driving strategy for hotels and resorts. Here are some reasons why:
Stay afloat during disruption: Local staycationing guests can keep a business afloat during economic global disruption – and if the pandemic taught us anything it’s that you can’t predict disruption (that’s what makes it disruptive). Building a local customer base now can help ensure a continuing stream of guests in the event of a tourism slowdown to your area.
Consistent revenue streams: Local guests will also keep your hotel and its ancillary revenue departments busy during off seasons and downtimes. Staycations provide a dependable and year-round source of revenue for hotels. Unlike traditional vacations that often have seasonal peaks, staycations are popular throughout the year. Marketing your rooms and ancillary revenue departments, like spa or day passes, to locals provides a steady flow of bookings to help hotels maintain a stable income, making it easier to plan and manage finances.
Reduced marketing costs: Marketing staycations can be more cost-effective compared to targeting out-of-town travelers. Since staycationers are local residents, hotels can focus advertising efforts on local channels, social media, and partnerships with nearby businesses. This targeted approach often requires fewer resources and yields a good return on investment.
Repeat business: Offering attractive staycation packages, experiences, and day passes, can help build customer loyalty among local residents. Satisfied staycationers are more likely to return for future getaways or recommend the hotel to friends and family. This repeat business can significantly boost a hotel’s long-term revenue.
Upselling opportunities: Staycations create opportunities for hotels to upsell various services and amenities. Guests who are staying close to home may be more inclined to indulge in spa treatments, dining, room upgrades, and other extras – in many cases because the thousands of dollars they saved by not flying leaves them with more to spend. Hotels can tailor packages to include these add-ons, increasing average revenue per guest.
Increased F&B revenue: Food and beverage revenue is a significant income source and staycationers often dine at the hotel’s restaurants or order room service. Offering unique dining experiences, themed menus, or special promotions can drive additional revenue from guests who are looking to enjoy a complete staycation experience.
Enhanced reputation: A strong local customer base can contribute to a hotel’s reputation in the community, which can extend globally. Positive word-of-mouth reviews and user generated social media posts from satisfied staycationers can lead to increased bookings from both locals and out-of-town travelers, further solidifying revenue streams.
Staycations are a highly effective revenue driver for hotels due to their year-round demand, cost-effective marketing, potential for repeat business, and upsell opportunities. By crafting appealing staycation packages and delivering exceptional guest experiences, hotels boost short-term revenue while building a loyal customer base that supports long-term success.
Book4Time’s Day & Resort Passes
To support the increasing number of luxury hotels & resorts tapping into the staycation market, Book4Time now offers Day & Resort Passes. This latest update empowers clients to set precise metered-entry periods and guest-type capacity limits, as well as generate packages, to create and sell staycation offerings. Hoteliers can use the Book4Time platform to market and sell packages that include items like spa services, pool/beach access, cabana rental, and food & beverage enhancements. These cutting-edge features are built into Book4Time’s existing suite, preserving its out-of-the-box functionalities, including spa scheduling, yield management & dynamic pricing, inventory management, and a robust point-of-sale system, offering a single all-in-one platform to manage all non-room inventory. Day & Resort Passes are also now available to the nordic and thermal/hot springs spa market.
Book4Time invites spa and wellness professionals to explore the enhanced capabilities of this latest release, setting a new standard for operational efficiency and customer satisfaction.
Image by mrsiraphol on Freepik
