How did this Hotel in Amsterdam Boost ADR with Zero Upfront Cost? Part 3

Hello everyone,

Firstly, thank you all so much for the comments and email replies we got to the first two blogs in this series, we're really excited with how things are progressing at HotelFlex and it's great to hear you're excited too.

As a reminder to those who may have missed the first two blog posts, we are telling the story of the Teleport Hotel in Amsterdam who increased their ADR without any upfront cost, just some out of the box thinking.

We've been getting some really interesting questions coming back off the first two case studies, the two that came up time and again are:

  1. Does this not impact our housekeeping schedule?

This is a very valid question that's important to understand. The short answer is no. Because Teleport only used rooms that were empty from the night before, they were all clean and ready to go. No need for your housekeeping team to change their schedules whatsoever.

  1. Do guests not get upset being charged extra for early check-ins? We just offer them for free.

This is another very credible point. When we first started we were worried that the guests would react negatively. However, the results surprised us. The guests were, generally speaking, divided into two main camps:

The first was young leisure travellers in the 18-25 age bracket. To these guests, an early check-in was a "nice to have" but not essential. To them, if it was offered for free they would take it, but they would rather leave their bags at the hotel and explore the city then pay for it.

The second group were older travellers, typically in 40+ age bracket and were travelling for both leisure and business. Families with young children were also very often in this bracket. To this group, an early check-in after a long-haul early morning flight was a necessity. If it meant they could have a shower before their meeting or let their young children sleep - they would be more than happy to pay for it.

The key is ensuring that the second group of travellers receive the early check-in, not the first.

Business Travellers

The Results

So how did they get on?

The results, considering zero upfront investment, were pretty remarkable. 15% of guests targeted converted to paying for either an early check-in or late check-out. These guests were paying up to 30% of the cost of the room for the flexibility. Which resulted in over $1,000 of extra revenue each month.

But most remarkable of all, because there was no cost involved. They didn't have to re-clean rooms. All revenue generated dropped straight to the bottom line, it was pure profit.

Interested to Hear More?

Be on the lookout for my next email and I'll let you know how you could be the next hotel to join this trial.

Finally, please leave a comment! I would love to hear from you about your thoughts on the Teleport's strategies. Maybe you think your techniques are even better! Tell me what you think below.

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