10 Easy tips to increase the Hotel’s revenue

how to increase hotel revenue

“How do I generate high revenue?”, is a frequently asked question in the hospitality industry. Many factors affect the smooth running of the business, so it is very important for hotel managers to find ways to optimise revenue management that can increase the hotel’s profit and income. To remain profitable, you have to look at every aspect of the business – like marketing, sales, and development. Certainly, maximizing hotel revenue is a team effort as there are many activities that will contribute towards achieving your targets and desired outcomes.

10 easy tips to increase your hotel’s revenue:

1. Customer satisfaction must be a focal point 

The first and foremost aspect of the hospitality industry is customer satisfaction. The customer is the kingpin of any business, so try to make your customer happy by providing high-quality services and products. Always ask for a review or feedback. If you get any negative reviews, always try to respond to them in a positive manner. Always work upon the changes suggested and make your services or products better. This will add to your reputation in customer satisfaction. These things will help you to get good reviews on your site and this, in turn, will contribute to increased direct bookings.

how to increase hotel revenue - customer service

 2.Ensure you have a better understanding of your target customer

The hospitality industry is a vast industry. Managing a hospitality business successfully needs a true understanding of the market and target customer. Firstly, identify your hotel’s strengths, weaknesses, new opportunities, and threats. After doing so, you will get to know about the market’s position and also the competition. Based on this, you can then decide your hotel’s Unique Selling Proposition. You can decide your USP by finding out what makes you different from your competitor. Equipped with these insights, you can establish the profile of your future guests. These things will help you to make better market decisions.

how to increase hotel revenue - hotel's USP

 3. Make your guest comfortable

Before their arrival, a warm wish can do miracles. You can pre-inform them about your guest services and the things they’ll experience in the hotel (for example, you can give them pick and drop services so that they do not face any difficulty). This will help you to create a bond with your guests and they’ll truly feel like home. You can also increase your revenue easily with upselling platforms.

strategies to increase hotel revenue - comfortable stay

4.Develop a day to day report

It is very important for revenue managers to keep track of their daily bookings. They usually create a monthly and daily pick-up report manually. To avoid this kind of time-consuming work you can use a Property Management System like Roomsy. The advantage of using a PMS is that it helps you to gain key insights – from the morning pick-up reports to the night pick-ups, from this year with the previous year and month.

strategies to increase hotel revenue - keep track of all reports daily

5. Make your website attractive and user-friendly 

Your website is the place where potential customers can find out more about you and easily create direct bookings. It’s like showing off someone’s personality, and it’ll help them to decide the right hotel for them. Show the most beautiful corners of your hotel with professional photographs and videos on your website. Your website should be user-friendly as hundreds of people will be using it.

hotel revenue generating ideas - user-friendly website

6. You should be benefit-driven

Don’t just specify various features of your hotel like spas, playground, jacuzzi and conference hall, etc. Instead, add the feature with their benefit. For example, “We have a luxurious spa and gym so that you can unwind yourself after a busy day.”

Or, “We have a kids’ play area, so you can indulge your kids there.”

Another example, “We have a spacious conference room, so you can hold meetings comfortably by using our boards and projectors.”

hotel room selling techniques - sell benefits

7.Promote direct booking

Direct bookings play a vital role in increasing your brand value and getting more profit for your hotel. Now that people rarely visit local travel agencies or online travel agencies for bookings, direct bookings are absolutely critical. Make sure to get as many direct bookings as possible because this allows you to receive the whole payment. This also decreases the amount you have to pay to OTAs’. But to actually receive direct bookings, you must compete with them. Promote more and more direct bookings by giving discounts and offers on them. In doing so, you save a major portion of your expenditure which can be used on advertisements instead.

hotel room selling techniques - direct bookings

8. Use social media platforms for the promotion

Social media platforms are often underrated but are a great way to reach your guests. It is very easy to now promote your hotel’s services and activities on a social media platform such as  Facebook, Instagram, and Twitter. Social media helps hotels to connect more with their guests. Try to post new information often and add more professional photos of your hotel regularly. Remember that it’s necessary to engage with your guests’ comments and testimonials. You should optimize your social media profile frequently and use necessary analytics to find out the views or activities on your social media site.

hotel revenue management - promote socially

9.Promote your hotel among local companies and sponsor some local event 

It is quite obvious that you will be surrounded by local companies and businesses alike, so promoting yourself amongst them will help you to build a partnership (or co-promotion of sorts). For example, If any meetings or conferences are held nearby, they can organise the event while you provide accommodation to the delegates. You can also give corporate membership and sponsor local events which will contribute to your hotel’s revenue.

hotel revenue management - sponsor local events

10. Offer discount deals to your regular customer

If a guest is returning to your hotel, they would expect you to know that they are loyal customers. Appreciate and reward them for being so and treat them as such. Ensure that you ‘welcome them back’ with an email or wish at the reception. Offer them some referral discount or loyalty bonus deals to show that you appreciate their loyalty.

Roomsy property management software


These are the tips you can pursue to increase your hotel’s revenue. These tips and tricks help you to consume less time and get more dividends. Using such powerful revenue generators strategies in the right circumstances can lead you to get a higher reputation but it all finally depends on how well you understand the customer you serve. Remember, it starts and ends with the customer.

Were these tips helpful to you? Do you think we are missing something from the list? Do let us know in the comments below!



Please enter your comment!
Please enter your name here