Rooms with a queue

Maximise profits from your pub's letting rooms by

promoting its profile effectively, advises Michael Cockman

In difficult trading conditions one revenue-boosting solution is to diversify - and there is certainly money to be made from letting your pub's rooms to weary travellers.

The good news is that offering accommodation does not have to be a very complicated part of your business. The formula is simple - just offer clean, comfortable rooms, fluffy towels, a friendly welcome, hot showers and a great breakfast. In an ideal world, a few people will pay you a lot of money at a very profitable gross margin of about 95%.

But all this comes at a cost. The high cost of setting up rooms in the first place could have a big impact on your rent. There is also the additional cost of the time and effort required to maximise capacity. It's a mistake to underestimate the difficulties of making an impact in a sometimes overcrowded market. The internet can help but presents its own issues.

Understand the internet

It may seem endearing to say that you know nothing about the internet and have to ask your children's help to send an email, but

this is no longer acceptable if you are run-ning a modern business, and it's vital to get

up to speed.

The internet now plays a part in about 35% of hotel reservations, and up to 75% of potential guests research their choices on the web.

So how can you justify ignorance of this potential stream of custom? You need to know how the internet works, how to build a great website with well researched and targeted text, and don't forget the vital importance of inbound links and the power of email as a communication tool.

Without this knowledge, you are likely to be exploited by suppliers using technical jargon to bamboozle you into unnecessary financial commitments.

Collect effective information

There are just a few points you need to remember to get the best revenue from your rooms: maximise income per room in busy periods and maximise the occupancy at whatever rate it reaches during the slacker periods. This is called "yield management" and can be much more difficult than it sounds, unless you ensure that you always use reliable information.

Collect and keep details about your progress (revenue/occupancy/rates charged) over the past few years to help predict what will happen next year.

This helps you to assess whether any day is likely to be busy or slack and act accordingly. Similarly, gather detailed information about the busy periods in your area, such as conferences, exhibitions, air shows and race days. Then you won't inadvertently sell rooms at low rates when you could have done better on the basis of sound research.

Always think about the price

In answering calls from potential guests asking the price of rooms, listen to their requirements before giving a definite answer. If you state a set price immediately, the caller may simply thank you and end the call, and you'll have spent hundreds of marketing pounds for no financial return. It's important to cultivate a dialogue, demonstrating your value-for-money proposition. Ask what the customer is looking for and be clear about how well your facilities meet their needs. By the time you have finished asking questions you will find the price itself is no longer the main priority.

Focus on taking this value-for-money approach whenever you promote your venue, particularly on your website. Be guided by your own instincts: you don't always buy the cheapest, but you always want a good deal.

Clarify your proposition

The list of small hotels, guest-houses and bed-and-breakfast establishments is endless in many areas. Customers have a difficult job choosing, so it is vital to make sure your venue is differentiated from similar properties.

First, write down your business vision, identifying relevant market segments to which your hotel rooms will appeal. If you are a keen angler, for example, you could develop a lucrative segment focusing on good fishing facilities in your area. If you or your partner are from France, you could design your offer around a French theme. Just make sure you remain interesting, because interesting is usually memorable - and memorable gets you talked about and recommended.

Get rid of gimmicks

Always offer a warm welcome and friendly, efficient service. If you provide what a guest wants, you will win repeat business and they will tell their friends and colleagues. When this happens you can reduce your efforts to attract new customers and you will have created more time for other areas of your business.

l Michael Cockman is author of Putting Heads on Beds, which is a practical guide to marketing your guest accommodation. Visit www.puttingheadsonbeds.co.uk for more

information.

More than a bolt-on - how operators maximise their letting rooms

l St Austell Brewery's 170-strong estate includes 14 managed hotels and inns in

Cornwall and Devon, offering a total of 248 bedrooms and 10 self-catering flats and

cottages. The diverse hotels and inns are

unbranded, ranging from the luxury of the Pedn-Olva, overlooking St Ives' Porthminster beach, to cosy village pubs with rooms, such as Mousehole's Ship Inn. St Austell backs its estate with a central reservations desk

website (www.smallandfriendly.co.uk),

brochures and direct marketing campaigns.

All hotels and inns will offer online

bookings by the summer. Bi-monthly

marketing meetings are attended by the managed estate and businesses within the tenanted estate. Rooms are audited to ensure they are up to scratch, area managers provide coaching, and customers are invited to complete feedback questionnaires.

l Shepherd Neame retail director Nigel Bunting says the Kent brewer and operator has big plans to grow the accommodation part of its business in 2008. He says: "We will continue to build and improve on our Kent portfolio of 13 hotels and pubs with rooms, and pursue our strategy of acquiring outstanding landmark sites and investing in our bedrooms.

"Following acquisition of Broadstairs' Royal Albion Hotel, in October 2006, we are starting a major two-phase refurbishment, including full garden landscaping, followed by interior redevelopment in 2009.

"A new guide to our accommodation houses is due to be published in March."

All you need to know under one roof

For licensees wanting to learn more about how accommodation can play a bigger role in their business, trade show Hotelympia is the ideal one-stop shop for advice.

The show will run from 17-21 February at London's Olympia and admission is free.

Full of relevant information and with more than 1,000 exhibitors, 400 chefs, 60 culinary competitions, 12 kitchens and eight seminar theatres, the show looks set to be the biggest yet.

Visit www.hotelympia.com to register for free entry.