How Your Hotel Can Thrive Amidst Corporate Travel Decline

Written by Betsy Marone | November 30, 2021

Corporate Travel
Although 2021 has marked a positive shift for the hospitality industry, occupancy rates for hotels are still hovering below pre-pandemic levels. One large contributing factor is the decrease in corporate travel, which typically makes up a significant amount of dependable revenue for hotels.

While the rollout of vaccinations in the first quarter of 2021 helped boost hotel demand, most corporate travel policies remained constricted as companies did not want to take on the liability of increased travel. As a result, hotels in urban and city areas –which are often the site of corporate conventions – currently have lower occupancy rates than those in leisure destinations.

For hotels that generate a large percentage of revenue from corporate travel, there are creative ways to boost existing revenue streams while waiting on the corporate world to rejoin the hospitality industry. In this article, we’ll share three major ways your parking provider can help you shore up existing revenue streams.

Eliminate Revenue Slippage

Slippage and parking theft are the leading contributors to major revenue loss in parking operations. To remove this threat, Propark proactively implements a comprehensive onsite system that enables you to track vehicles from the moment they arrive to the moment they depart. This ensures that both guests and non-guests are unable to leave the secured lot until they pay. Propark also helps protect against revenue loss by using our detailed daily processes to compile a thorough and personalized revenue reconciliation package, which we deliver to you each week.

In addition, we supplement our onsite system with our Cloudpark Remote Management System. With 24/7 live assistance at the press of a button, Cloudpark ensures guests continuously have access to help, keeping processes running seamlessly. We also implement the leading Parking and Revenue Control Systems (PARCS) equipment to protect against revenue loss. By doing this, Propark can help maintain the most consistent revenue stream from parking to ensure no money is lost during uncertain times.

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Implement Yield Management by In-House Analysts

Charging the right parking rates is essential for consistent revenue generation, as they need to be high enough to significantly contribute to the bottom line but low enough to attract transient parkers, as well as guests. To accomplish this, Propark utilizes a yield management pricing strategy.

Taking into account localized consumer behavior, yield management has proven to reliably generate parking revenue. Because city parking is often limited and demand is high, this strategy directs parkers to your parking lot or garage, helping to boost revenue. Additionally, during this corporate travel lull, Propark Mobility’s in-house team of revenue analysts can further enhance operations by focusing on variable pricing, inventory management, and the analysis of historical data, current occupancy, and upcoming events.

Utilizing Marketing and Reputation Management

According to STR, three metrics are important to guests when they select a hotel: price, location, and reviews. Acknowledging the impact that online reviews can have on prospective guests, Propark goes beyond the role of an onsite parking management provider, enlisting the help of our in-house marketing department for comprehensive, active reputation management. This entails monitoring and responding to online guest feedback and analyzing it to pinpoint potential areas for enhancement. This aids us in our mission to ensure a positive guest experience, both online and in person, which maximizes revenue generation.

Additionally, a positive online reputation can ensure your hotel stays at the top of companies’ lists as they begin to allocate funds to corporate travel again. This can help your hotel return to pre-pandemic levels faster, as the hospitality industry continues to recover over the coming years.

Safeguard Revenue with Propark Mobility

The hospitality industry is slowly but steadily recovering from the COVID-19 pandemic, but your hotel doesn't have to wait to shore up revenue streams. Propark Mobility can help your hotel maintain dependable revenue streams and stay at the top of consumers' minds as corporate travel starts to gradually return.

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