INCREASING SHARE OF WALLET
What exactly is “increasing share of wallet”, and why is it a book direct strategy? Per Investopedia, “Share of wallet is the amount an existing customer spends regularly on a particular brand rather than buying from competing brands.” Companies grow wallet share by introducing multiple products and services to generate as much revenue as possible from each customer.
In short-term and vacation rental this can range from offering early check-in or late check-out opportunities for a fee, to offering the purchase of activities (kayaking trips or wine tours), to offering the purchase of items (snorkeling gear or bikes) so that the guest can purchase directly with you. If you can facilitate the guest to spend more money via your channels and through your guest journey, you can monetize this. A larger share of what the guest is going to spend (with or without you) on his or her entire trip can be enabled through you, and you can get a piece of the action. Hence, you increase your share of their wallet, or of what they’re already planning to spend.
There are 3 key benefits to bringing to life “Increasing Share of Wallet” to your own website:
- The first one is easy – added revenue in your pocket
- Better brand connection, creating elevated experiences for your guests. Elevated experiences lead to stronger emotional connections to your brand and can drive repeat bookings.
- You create a book-direct advantage – when these unique opportunities are ONLY on your website, you create exclusivity and a benefit to the guest to book direct.
This great article from VR Tech discusses an array of technologies that can help you increase your share of the guest wallet more easily and more efficiently. Adding this type of tech can enable efficiencies, making it a “no-brainer” that translates to positive ROI. https://vrtech.events/upselling-5-tech-tools/
Heather Richer has a broad background in lodging with experience in both short-term rentals and hotels. She is passionate about revenue management, and currently serves as the President of the Board for ASTRHO, and sits on the Revenue Management Advisory Board for HSMAI. Having been involved with other organizations like AHLA, HEDNA, and VRMA, she sees the value in education and unbiased resources needed for the underserved community of short-term rental homeowners. Heather is currently Principal, Richer Logic Consulting, and previously was CMO of RedAwning. Prior to that, she served as VP, Revenue Management and Distribution at Kimpton Hotels and Restaurants. She holds her Masters in Tourism Administration from George Washington University