Parking Strategies to Rev Up Your Hotel Revenue

The Importance of Parking Revenue in Hotel Operations

Today more than ever, hotels rely on parking as not only a substantive source of revenue but as an instrumental factor in the overall guest experience as well. As the first and last impression of a hotel, the valet process plays a significant role in creating that important connection with guests.

Parking revenue serves as a vital element of a hotel's overall financial framework. As such, it’s essential the hotel team work together to ensure maximum revenue collection and a positive guest experience. This is accomplished through quality customer service, advanced digital parking technologies and solutions, and effective parking management.

Challenges in Tracking & Collecting Parking Revenue

Given parking’s importance to the vitality of hotel operations, addressing challenges is paramount. One particular challenge hotels often face in collecting parking revenue is "Hot Cars.” These are vehicles driven by guests who check-in using overnight parking without their name being linked to a room reservation or folio. As a result, it can be difficult for staff to track and collect the correct fees, leading to missed revenue opportunities.

On average, hotels typically lose five to eight Hot Cars per week due to poor training, lack of technology, or simple miscommunication. While five to eight cars may not seem like a lot, these misses can actually result in six-figure annual revenue losses. To combat this, hotels can utilize innovative technology solutions like TEZ Technology’s SMS Valet to address challenges and collect 100% of that revenue from arrival to departure.

Leveraging Parking Technology & Strategies

Advanced technology solutions provide a seamless process for managing operations and addressing challenges like tracking Hot Cars by facilitating clear and recorded communication between the hotel and the guest. The guest completes a simple web form, similar to signing onto the hotel Wi-Fi, to update their room folio information and opt-in to paying online before check-out. This eliminates confusion and human error, helping to ensure maximum revenue is collected.

Some successful strategies for reducing (and ideally eliminating) Hot Car issues include:

• Clear Communication: Clearly communicate fees upfront to guests at check-in and provide them with a receipt for the fees they pay. This eliminates any confusion from the start and ensures that guests are fully aware of the fees they will be charged.
• Alternative Options: Provide guests with various options, such as valet, self-parking, or nearby public parking to suit different preferences and budgets. This ensures a positive experience and increases the likelihood of guests returning to the hotel in the future.
• Proper Training: Regularly train valet staff on revenue collection procedures and best practices. This ensures they are knowledgeable about all fees and policies and can effectively communicate these to guests.
• Regular Auditing: Conduct frequent audits of the revenue collection process to identify areas for improvement and ensure all fees are being collected. This guarantees an efficient and effective process, maximizing the hotel’s revenue.

Best Practices for Hotel Parking Operations

Hotels can and should focus on proven methodologies and innovative technologies to maximize parking revenue. This revenue stream is essential to a hotel’s ability to support a well-trained staff, ensure safety and security, maintain quality assets, and fund other essential hotel functions. With such efforts, hotels can boost their bottom line and provide guests with top-notch experiences.

To learn more about TEZ’s fully digital parking management solutions suite that has revolutionized guest experiences and hotel parking operations, visit www.teztechnology.com.