It All Adds Up: How Small Transactions Increase Revenue & Improve Guest Experience

Using hotel technology to execute targeted promotions and upgrade opportunities can give guests a more personalized experience, while setting hoteliers up for a substantial increase in revenue

In the world of online gaming, “microtransactions” are available in-game purchases that only cost a small amount of money. They can range from buying a new outfit for a character, to purchasing extra lives, to additional levels or upgrades. The hospitality industry can take a digital page out of the online gaming playbook and utilize a similar strategy to allow guests to customize their stay while opening new avenues to drive non-room revenue. Here are a few ways:

Seize Every Opportunity to Upgrade

With the rise of mobile check-in and mobile key, offering guests upgrades is now easier than ever. When guests opens a hotel’s branded mobile app to check-in, why not provide them with an opportunity to upgrade to a room with a better view or a larger suite? They might not even realize they want the upgrade until the option pops up on their screen.

Similarly, an easy place to drive non-room revenue is through in-room dining. When a guest places an in-room dining order via a smart-room tablet or mobile app, forced modifiers can easily be integrated to increase the dining check. See a guest ordering a steak? Why not suggest a glass of Cabernet? Did a guest order the cheeseburger? Why not offer them the chance to upgrade their free side of fries to truffle fries? Don’t miss out on these tiny upgrades. Mobile delivery companies like DoorDash and Uber Eats already have this integrated into their ordering strategy — hotels with digital dining should, too.

Create Intentional Promotions

With events and conferences continuing to ramp back up, a great way to capitalize on larger groups staying at your property is to center promotions around upcoming events. Banners, information pages, videos, and even interactive chats can assist in promoting your unique amenities and engage your guests. If a business traveler comes back to their room after attending a full-day conference, send them a customized message with a discount to a spa treatment or a cocktail at the bar. When groups of guests come to town for a concert or sporting event, tie your promotions to that specific event. Intentional promotions encourage smaller purchases and provide added revenue.

Consider the Future of Incremental Transactions

Speaking of customization, when thinking about “microtransactions” in hospitality it’s important to take into account the future of incremental transaction technology. Specifically, data. With smart-room tablets and branded mobile apps, data can be collected from each guest. Maintaining historical data on guests can also help hoteliers customize offers and upgrades to guests who have requested special services or upgrades in previous visits.

Whether it’s a bigger room or a cup of soup, smaller transactions can add up to huge revenue increases. Something as simple as a fun promotion themed around a big sporting event or a convention can have an ROI far higher than expected. Seek out opportunities for smaller transactions, be intentional, and look to the future. “Microtransactions” are here to stay — and here to make you more money.

Want to learn more about how hotel technology can increase non-room revenue now and in the future? Request a demo today.

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