My best mate Alexis has signed himself up to one of those charity boxing matches.
Big ‘Al’ as I call him is a Fireman. Strong as an Ox with the heart of a Lion and is a dab hand at Salsa so he is nimble. Not that I putting any pressure on him but his a dead cert to win surely?!
Being the good friend that I am, we are going up to St Albans to watch him and cheer him on. It will be the first time I have been to a boxing match live so I am really looking forward to it.
So we can make a night of it I started looking for hotels in St. Albans and saw that Travelodge have stepped up their game.
They are rolling out ‘Super Rooms‘ that will cost an extra £20-30 a night but includes extras you wouldn’t normally get in ordinary rooms.
A super smart move by Travelodge.
Let’s play devils advocate here and say these Super Rooms sell out each night.
Let’s say each Travelodge has 10 super rooms to sell each night (I would imagine more).
At £30 a night extra, that’s £300 extra revenue per night. 364 nights a year x £300 = £109,200 extra revenue per year.
Just imagine if they rolled that out to every Travelodge in the UK, Ireland and Spain.
That is 500 Travelodge’s x £109,200 = £54 MILLION EXTRA REVENUE PER YEAR
Now I know that is playing devils advocate but I bet the super rooms sell out 70% of the time, if not higher.
It is a important lesson that many businesses do not think about enough and you should remember this little golden nugget of information.
THERE IS ALWAYS SOMEONE WILLING TO SPEND MORE WITH YOU FOR A PREMIUM SERVICE.
So what are you offering?
Go and read the 80/20 Principle by Richard Koch if you haven’t already done so.
He will explain this far better than I can.