Hello again, I am Leela, the Resort Manager at Taravati.
In my experience managing resorts, one of the most frustrating challenges for owners and managers in Himachal is the constant pressure from Online Travel Agents (OTAs). While OTAs fill rooms, their commissions often eat into your hard-earned profits, making it incredibly difficult to grow.
At Taravati Resort, my focus isn’t just on filling rooms; it’s on maximizing every rupee of revenue and profit from each guest. This isn’t complex theory; it’s a practical revenue code that I implement daily. This article will share my three simple yet powerful strategies to reduce OTA dependency and significantly boost your bottom line.
To see me break down these profit-driving codes in detail and in Hindi, watch my video below:
https://www.youtube.com/@HotelResortCode
Pillar 1 (H2): The Direct Booking Multiplier: Turn Lookers into Bookers
The first and most critical step in maximizing profit is to shift bookings from high-commission OTAs to your direct channels. This isn’t about being anti-OTA; it’s about being pro-profit.
My Direct Booking Code:
- The “Value-Add, Not Discount” Principle: I never advise discounting your room rates to compete with OTAs on price. Instead, I focus on offering exclusive, irresistible value-adds for direct bookings. At Taravati, this might be a complimentary local Himachali cultural experience, a free upgrade to a premium view (if available), or a credit for our spa/restaurant. These perks cost you less than the OTA commission but are perceived as high value by the guest.
- Website as Your Best Sales Tool: I ensure our website (taravatiresort.com) is not just a brochure but a dynamic, user-friendly booking engine. High-quality images, clear room descriptions, and a seamless booking process are non-negotiable. I also integrate a simple chatbot to answer common questions instantly, guiding guests towards direct booking.
- Harness Social Media for Direct Engagement: My team uses Instagram and Facebook not just for pretty pictures but to actively engage with potential guests. I encourage direct messages and clear Calls-to-Action (CTAs) that link directly to our booking engine, bypassing intermediaries.
Pillar 2 (H2): Beyond RevPAR: My Code for Total Revenue Per Available Room (TRevPAR)
Many hoteliers focus solely on RevPAR (Revenue per Available Room), which primarily looks at room revenue. But for a resort, this is a limiting mindset. My TRevPAR Code ensures we capture revenue from every possible guest interaction beyond just the room night.
My TRevPAR Implementation Code:
- Monetizing Every Touchpoint: From the moment a guest books, I look for opportunities to enhance their stay and generate additional revenue. This includes pre-arrival upsells (e.g., special dinner packages, airport transfers, room upgrades), on-site activities (adventure sports, cooking classes, spa treatments), and local excursions.
- Strategic F&B Packaging: At Taravati, I design food and beverage packages that offer both convenience and perceived value, encouraging guests to dine on-site rather than seeking options outside. This includes themed dinners or special Himachali tasting menus.
- Leveraging Guest Data: I use our Property Management System (PMS) to track guest preferences and spending patterns. This data allows me to create personalized offers and promotions for returning guests or during their stay, increasing their “share of wallet.”
Pillar 3 (H2): The Dynamic Pricing Code: Never Leave Money on the Table
Fixed seasonal pricing is a relic of the past. In today’s volatile market, relying on static rates means you’re almost certainly leaving money on the table during high-demand periods or suffering losses during low-demand periods. My Dynamic Pricing Code leverages smart adjustments to maximize revenue daily.
My Dynamic Pricing Implementation Code:
- Monitor Local & Online Demand: I closely monitor local events, holidays, competitor pricing, and even flight/train arrival data for the region. Tools (even simple Excel sheets in the beginning) help me track demand shifts.
- Flexible Rate Structures: Instead of just one rate, I implement multiple rate types (e.g., Non-Refundable, Flexible, Long-Stay Discounts, Advance Purchase). This allows us to capture different market segments and adapt to booking windows.
- Early Bird & Last-Minute Adjustments: For high-demand dates, I ensure that rates gradually increase as occupancy rises. Conversely, for low-demand dates, small, strategic last-minute adjustments can fill otherwise empty rooms without devaluing the brand. The key is to be proactive, not reactive.
Conclusion: Empowering Your Resort’s Financial Future
Maximizing profit in the Himachal hospitality sector requires a blend of traditional service excellence and modern financial strategy. By implementing these direct booking, TRevPAR, and dynamic pricing codes, I believe any resort can significantly reduce its reliance on OTAs and take control of its financial destiny.
At Taravati Resort, these are the very codes I am implementing to ensure our long-term financial health and our ability to reinvest in outstanding guest experiences.
Join me on this journey to master the code of hospitality management!
➡️ Visit and Subscribe to My Channel: Hotel & Resort Code by Leela https://www.youtube.com/@HotelResortCode
