How to Decide on the Best Hotel Room Type Mix to Improve Business

In every property, hotel room types should be used by hoteliers to position your room product to be more attractive and convey excellent value. However, it is easier said than done because deciding on the best hotel room type can be a little tricky. It may not sound like it but room types can make or break your pricing and revenue targets. 

In this blog, we will help hoteliers like you to understand how room types for hotels can help you generate revenue and how to choose the best hotel room type. 

What’s inside this blog?

  • Understanding the Different Types of Hotel Rooms

  • How to Identify the Best Hotel Room Types to Maximize Revenues

  • Frequently Asked Questions About Hotel Room Type

Understanding the Different Types of Hotel Rooms

Before deciding on which room categories fit your hotel, you must first understand the different types of hotel rooms so that you can leverage on this, giving you better results in revenues. Here are the various categories of rooms in hotels:

Room Types by Occupancy

  • Single room - 1 bed, 1 occupant; perfect for solo travelers

  • Double room - 1 bed, 2 occupants; perfect for couple travelers

  • Twin room - 2 beds, 2 occupants (can sometimes have joining single beds); perfect for group travelers

  • Triple room - 1 double and 1 single bed, 3 occupants; perfect for family travelers

  • Quad/Family room - 3 beds (1 double and 1 single), 4 occupants; perfect for family travelers

Room Types by Bed

  • Queen - 1 queen bed, 1 or more occupants

  • King - 1 king bed, 1 or more occupants

  • Suite/Executive suite - A room with separate living space and/or multiple bedrooms

Other Room Types

  • Apartments

  • Connecting rooms

  • Adjacent rooms

  • Studio

  • Villa

  • Penthouse

How to Identify the Best Hotel Room Types to Maximize Revenues

Deciding on which hotel room type to offer your guests and how many types to allot is very crucial because this can make or break your revenue targets. But with the right strategy like below, you will be able to maximize revenues. 

1. Know Your Target Market

To identify the best hotel room type to offer your guests, you have to define and understand your target market. Your rooms should be configured to suit guest preferences. Say for example, a solo traveler will most likely book a single room while couple travelers will go for the double room since they need a larger bed. The room categories must fit the type of guest in a hotel.

2. Highlight your unique selling point

The unique selling points of the types of guest rooms in your hotel will help you to decide the number of room types to allot at your hotel. Some of the areas that set one hotel room type apart from another can include the room size, amenities, views, service levels, decor, office desk and space, sofa beds etc.

Once you have identified your USPs, define what you offer to your guests in greater detail. It’s important to let your guests see the differences through your hotel pictures, descriptions and reviews so they can identify the types of reservation in the hotel available for them. Highlight what makes your property unique. This will allow you to charge a higher price.

Also, don’t offer too many room types or types of guest rooms. The maximum number of room types is between 4 to 5 but again, this varies from the type of hotel. Too many hotel room types will not only make guests confused, but will also prohibit them from booking continuous rooms for long stays. For example, if Room A is occupied from day 1-3, and Room B from day 4-6, and there is a guest booking from day 1-6, he will not be able to book if the rooms are separated. 

OTAs will also be less likely to offer different room types in one stay, reducing your visibility for this guest. By combining the room types, you are ensuring that this type of guest in a hotel can still book your room. 

So, even when the room size is slightly different, or one room has a balcony and the others do not, you don’t have to create a new room type for it. Just sell it as normal standard rooms and tell your guests that they have been “upgraded” to a room with a balcony. They will be even happier even though those rooms are actually sold as the same room type.

When you want to offer additional amenities to your room types, just add those as add-ons instead of a new room type. OTAs now have the capability even to select double or twin rooms so there’s no need to separate them as two different room types.

3. Conduct an inventory

Knowing the total number of rooms available, the types of guaranteed reservation, and the types of reservation in hotel is also important in deciding the number of hotel room types to offer. Inventory enables successful cost control of operations. 

The idea is to have your best-selling hotel room type with an adequate number of rooms. If your hotel is selling a lot of standard double rooms, please ensure that it has enough allotment, even though you have another type of more expensive double rooms. OTAs sometimes reduce your visibility if you run out of your cheapest best-selling rooms as they want to maximize the value for the guests. While room types can be very useful in marketing your hotel, it is important to have a good ratio between the total inventory and the number of room types. 

Let ZEN eManager help you identify the room types that are selling well from the performance data that we will give. With ZEN eManager express, you can leverage the power of AI (artificial intelligence) to collect and analyze data that will help you make better decisions.

Must-read: Understanding The Power of Data: How Data-Driven Pricing Helps Hoteliers Recover Stronger

Frequently Asked Questions About Hotel Room Type

Q: What is the best room type mix for my hotels?

A: There is no right answer to this. It depends on your target market. You have to understand your hotel’s positioning in the market and region, analyze the past demand of different room types, and decide which one is the best selling and which one should be reduced. This way, you’ll know the types of booking in hotel best to offer your guests.

Q: What are the different room types?

A: By occupancy, there can be single, double, triple, or even quad. Family rooms normally can accommodate 3-4 people. By quality, normally hotels separate the rooms to standard, superior, and deluxe

Q: What is the optimal number of room types I should have?

A: Again, it depends on the number of rooms in your hotel. When you have 10-20 rooms, 1 or 2 room types should be enough. But when there are more than 100 rooms, it is recommended to not have more than 5 different room types

Q: What if I want to offer something different to some rooms that I have?

A: Instead of separating them into different room types, you can also offer the additional services as add-ons. OTAs now can include add-ons such as free cancellation, breakfast, or even selection of double / twin bed under one room type.

Article by Cielo Fernando