If you are running too low on occupancy and if your advertising budget is too small, you should consider to learn more about bartering.
Barter helps you to expand on your advertising budget and therefore gain new businesses. Using barter on advertising, you will be able to retain full value for your rooms and you do not need to discount your rooms just to get in new customers. If your occupancy level is always high, you should only barter fewer rooms to protect positive cash flow.
By bartering unsold rooms, you are going to receive more advertising and your rooms will be filled with barter clients. In actual cases most rooms will be occupied by new cash customers attracted by the increased advertising.
It will be an advantage to work with a barter company who has substantial client base that can absorb the number of rooms you need to trade for bigger demand in advertising. This will allow you to control the use of rooms credits in the marketplace.
Short term arrangements on barter can be used significantly before there is any cash flow such as:
- to increase advertising to solve sudden drops in occupancy level
- new office space
- hotels pre-opening advertising
I highly recommend hotel management to consider other alternatives on ‘direct barter’ besides advertising media for unsold rooms to other related goods and servicces eg:
- cleaning services
- bed linen supply
- wines
- gifts etc.
Do contact me for further discussion on how you can utilize barter.
Do you have something to say or any suggestions? Do leave me your comments below. Do not forget to join my mailing to receive latest updates and corporate barter group focus network invitation.
