15 effective ways to increase hotel revenue and profits in 2023 (2023)

Every hotelier and host is faced with the questionhow to increase sales and profitswithout raising prices or spending more. When you're immersed in day-to-day business, it can be difficult to see the big picture and it can be difficult to get the right answers. While there are many ways to increase yourshotel revenuedepending on the needs of your property,Here are 15+ tactics to get you started.

1. Create a script

Before you begin your revenue strategy, you need to know where your business is today: from your results and revenue streams to your marketing efforts and online review results. Knowing the fixed cost of an available room is important to calculate how much it costsSet the right tariff plans, dates of actions and offers for groups and whether to invest time and effortspecific OTA channels. With this information, you can create an accurate, personalized roadmap to help guide your sales strategy in the right direction.

Your roadmap doesn't have to be formal, but it should accurately reflect the current state of your business in terms of finances, bookings, revenue and expenses so you can plan reasonable goals for the future. In addition, your script orHotel business planit needs to be reviewed and revised every year to achieve the best results.

2. Segment your target market

A key component of hotel marketing is guest profiling so you can tailor your marketing efforts accordingly. You need to understand who your guests are, why they book with you, and why they travel so you can understand how to focus your marketing efforts. The answers to these questions will help youDevelop guest segmentsand provide meaningful data to optimize yoursmarketing strategyand sales activity.

For example, you may find that your listing caters primarily to business travelers between the ages of 35 and 45, and that these guests choose to stay at your property because of its proximity to a convention center that hosts many corporate events. Armed with this knowledge, you can run unique marketing campaigns and paid ads that promote your business' ideal location and target business travelers directly.

You may find that you have different guest demographics depending on the season. If that's the case, you can add another guest persona and create an appropriate marketing campaign to target that specific group. Segmenting your guest market and creating targeted campaigns are strategies and give you new ideas to increase your hotel's revenue.

3. Sell the transactional experience

In the saturated travel market, it's important for hotel properties to showcase what makes them unique. As a hotelier, you need to put the best and most differentiating aspects of your hotel front and center on your website and social media accounts so potential guests can begin their experience before they even arrive for their stay. You might think this is difficult when you have small, basic accommodation, but the real difference is offering a transaction (basic accommodation and meals) and an experience (a memorable stay). This can often be achieved with superior service and more, rather than relying on fancy design.

Provision of aunique guest experienceit can become part of your hotel's value proposition. The team should listen to their customers' unmet needs and problems and strive to make them feel special. You also need real-world evidence or customer reviews to promote the unique offering you offer. When you find something that sets your property apart, you will attract more hotel guests and increase sales.

4. Maximize your online reach with a channel manager

How to increase online bookings? FORHotel-Channel-ManagerThe main function is to distribute your room inventory to several different Online Travel Agencies (OTAs) at the same time and to synchronize reservations with your Property Management System (PMS) in real-time to optimize occupancy and avoid overbooking. This means you can sell the same room on different OTAsBooking.com, Expedia, TripAdvisor etc. and once a room is booked the availability of the other channels is removed. A channel manager can bring your rooms to a wider audience, give you more visibility, reach more travelers and ultimately increase your hotel's revenue and occupancy.

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While using a channel manager is a great way to sell your room availability, you do have to pay commission to OTAs.

15 effective ways to increase hotel revenue and profits in 2023 (1)

5. Build your direct channel with a booking engine

You can use onebooking engineto balance bookings you receive through OTAs and to encourage commission-free direct bookings processed through your hotel website. A booking engine allows visitors to book directly on your website or on social channels like your Facebook page. Optimize your hotel website pages for SEO to drive as much direct traffic to your website as possible.

With an integrated booking engine, potential guests have an easy way to make their reservations or add-ons (room upgrades, late check-out, breakfast, and more). Always use cross-selling opportunities on your website.

Always follow a direct booking with a confirmation email to reassure guests that your hotel is legitimate and send communications just before check-in, e.g. B. A greeting with detailed instructions.

6. Partnership with local businesses

Building strong relationships with other businesses in the local community is another great way for your hotel to generate more revenue.

First, find out about local businesses and who could benefit from a joint marketing arrangement. Many companies and organizations can recommend your accommodation, such as small travel agencies, tour operators, conference centers, schools and many more. See if you can strike a deal where they will recommend your property for a commission fee.

Then improve your hotel packages. For example, you can promote partnerships with local tour operators and offer add-ons. The joint development of intelligent packaging in cooperation with local suppliers can lead to new additional revenue streams.

7. Try dynamic pricing

Regardless of your hotel type, you should regularly review your pricing plans and occupancy forecasts. Because demand is ever-changing, you need to be able to adapt and respond to changing market conditions. This is where dynamic pricing can help.

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Dynamic pricing in hospitalityIt is the practice of using a flexible pricing strategy for a room or hotel service based on market demand, often used to increase the price as demand increases. The basic concept behind dynamic pricing in a revenue management strategy is simple: the price of a hotel room or hostel bed is set based on supply and demand. Typically, room rates should be increased when demand exceeds supply (to benefit from ADR) and decreased when demand is weak (to increase occupancy).

Keeping track of upcoming events will help you with your estimates and allow you to realize your earning potential, especially in the off-season. It also doesn't hurt to check your competitors' prices; This can help you better predict demand and give you a competitive edge when deciding how to adjust your price.

8. Optimized for mobile devices

Making your website responsive and mobile responsive is no longer an option but a necessity.63% of travelerssay using smartphones to plan or book their trip is extremely important, while 58% use them to book accommodation. Simply put, if you want to get more bookings and increase hotel sales, a mobile-friendly website is essential.

The ubiquitous nature of mobile technology is also changing consumer expectations. It's not enough to have a scaled-down version of your website as a mobile page. Your mobile website must have a unique design. Millennials and Gen Z expect a fast, elegant and personalized mobile experience. If you don't optimize your website for mobile devices, you're missing a great opportunity to increase your hotel's occupancy rate.

9. Up your digital marketing game

Make sure you cover all critical digital marketing channels. First, make sure your information is accurate and up-to-date wherever potential guests find it. From yousocial mediaand your website to your Google My Business listing and OTA profiles, modern travelers search for your business online to read reviews or find specific information. Look up your property name on any search engine to see it your way.

Second, you can use digital marketing tools to your advantage. You can create engaging social media campaigns, try or automate a new social channel like TikTokThe Email Campaignis aimed at returning guests or corporate partners.

To get the most out of your various social channels, be sure to track certain metrics like engagement, impressions, and reach to see which strategies are working well. Test and iterate continuously to run successful digital marketing campaigns.

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10. Use high quality images

Few things will captivate potential guests more than quality images. Your real estate images have the potential to visually tell a story and entice travelers to book. Research has shown that67% of consumersRemember that clear, detailed images carry more weight than a long description (54%) and customer ratings and reviews (53%). Not to mention that many OTA sites will reject low-quality images, making it difficult to get your listing approved.

Your photos should help potential guests introduce themselves to your space. This emotional appeal will draw more people to your listing and help increase your income. In fact, a study conducted by Visual Web Optimizer showed that larger imagesHotel bookings up 9.46%. So when it comes to images, remember that the higher the quality, the higher your direct sales.

11. Win business from the group

Depending on your property, youcould attract large groupswho prefer to book larger hotels or smaller groups looking for a more personalized experience. Here's how you can target these three types of groups:

intimate wedding– Many people have smaller wedding parties with fewer than 30 guests. Use photos from past events to showcase your property's potential.

family meeting- Develop meeting-specific packages that can include custom menus and discounted room rates for groups.

corporate groups– Connect your property to aglobal distribution system (GDS)This will present your inventory to business travelers and your booking partners.

12. Use hotel revenue management analytics

Reliable revenue management technology can give hoteliers a competitive edge. These systems are beneficial for independent properties where yield improvements can have a significant impact on overall sales. See how revenue management software can improve your profit margin:

Competitive advantage– Automatically monitor your competitors’ tariffs, occupancy and sales channels.

demand forecasts- Get real-time access to consumer demand and update your rates or room types.


Avoid errors -Revenue management systems also prevent errors such as over- or under-billing rooms.

Automatic price updates– Define rules and triggers that the system executes automatically.

13. Implement residency restrictions

Instead of increasing prices or selling out quickly on busy nights, consider adding stay restrictions like closing on arrival or a minimum stay to increase occupancy on the nights in between.

Residence restrictions can be beneficial when your city is hosting events such as concerts, conferences or festivals, and during periods such as bank holiday weekends or spring break.

14. Optimize your inventory

Identify your different room types and rank them to increase your revenue per available room (RevPar). It calculates rewards not only for popular suites and rooms, but also for value-added features like larger rooms, better views, preferred bedding configurations, and attributes like balconies, fireplaces, wet bars, and pool access.

In addition to room inventory, properties need to know your secondary inventory or other items that you make available to guests. This ranges from toiletries to on-site gift shops and restaurants. Monitor this stock carefully to make sure you don't waste it and order more than you need.

15. Earn extra income

There are many additional ways in the hospitality industry to increase guest spend through upselling and selling room amenities, room service, amenities and special services. Consider adding more services like:

  • Transport to the airport
  • Mini fridge with drinks and snacks for sale
  • internal laundry
  • paid breakfast
  • Coworking Spaces
  • guides

final thoughts

When it comes to increasing your hotel's revenue, there are many different tools and ways to put together a customized plan that you can create either yourself or with the help of a professional revenue manager. With the tools and tactics listed above, you can start increasing your profits today.

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What are the 3 things we can do to improve the hotel? ›

7 Tips to Improve Service Quality at Your Hotel
  • Treat every guest like a VIP. ...
  • Make training an everyday priority and not just a one-time event. ...
  • Provide personalized customer service. ...
  • Create a positive start for new employees. ...
  • Update your technology toolbox. ...
  • Take measure of your customer service performance.
Jan 1, 2017

What is the biggest revenue source for hotels? ›

Business travel is the hotel industry's largest source of revenue and has been slow to return since the onset of the pandemic. Business travel includes corporate, group, government, and other commercial categories.

What are the main points that should follow to increase revenue management in hotel operation? ›

10 revenue management strategies
  • Monitor the competition. ...
  • Forecasting is key. ...
  • Know your guests. ...
  • Direct bookings are gold. ...
  • Don't neglect yield management. ...
  • Diversify your pricing strategies. ...
  • Work across departments. ...
  • SEO can make a difference.
Oct 5, 2021

How to increase hotel revenue in low season? ›

Below I've shared some ideas to improve your hotel occupancy during low season:
  1. Increase repeat guests. ...
  2. Run loyalty programs. ...
  3. Use unutilized spaces for different purposes. ...
  4. Organize events. ...
  5. Tie up with local businesses. ...
  6. Run discount offers and promotions. ...
  7. Meet the seasonal requirements. ...
  8. Run remarketing ads in the off-season.
Sep 22, 2022

How can I maximize my hotel? ›

How to make the most of your hotel points
  1. Choose the right card.
  2. Review reward transfer ratios and travel portals.
  3. Take advantage of free nights and other hotel offers.
  4. Be flexible with travel dates and hotels.
  5. Don't let your points go to waste.

What are the keys to a successful hotel? ›

Critical success factors at your hotel

The World Economic Forum estimates that 25% of a company's market value is directly related to its reputation. For hotels, a strong reputation is built on things like a great guest experience, strong branding, clever marketing and exceptional communication.

What are at least three 3 major trends in today's hotel industry? ›

Current and emerging hotel trends to be aware of
  • Smart hotel technology. Incorporating the Internet of Things (IoT) into a property is something that excites guests. ...
  • Sustainable hotels. ...
  • Robot staff. ...
  • Virtual Reality and Augmented Reality. ...
  • Unique brand experiences.

How can a hotel stand out? ›

Here are five ways to make your hotel stand out so you can attract new customers to your business.
  1. Social Media. ...
  2. Refurbishing. ...
  3. Loyalty Programs. ...
  4. SEO. ...
  5. Go Mobile.
Feb 20, 2019

What is the biggest expense in a hotel? ›

Fixed Costs

From the concierge to cooks to the housekeeping, there are many staff members on the payroll at all times. This is why labor costs are typically the largest part of average hotel operating expenses.

How do hotels increase demand? ›

Eight Surefire Methods To Increase Your Hotel Occupancy Rate
  1. Create Promotions & Packages. ...
  2. Offer Technology Like Canary Contactless Check-In & Checkout. ...
  3. Attract Group Business. ...
  4. Encourage Repeat Customers. ...
  5. Change Your Marketing for Times of Low Demand. ...
  6. Manage your online reputation. ...
  7. Partner With Local Organizations.
Nov 22, 2022

Who is the richest hotelier in the world? ›

Bicky Chakraborty
Barun Chakraborty
NationalitySwedish citizenship
Alma materUniversity of Stockholm
SpouseYlva Lindberg
5 more rows

What are the three key indicators of a hotel's revenue management? ›

The 3 Hotel Revenue KPIs that will Drive your Profitability Goals
  • Gross Operating Profit Per Available Room (GOPPAR)
  • Net Revenue Per Available Room (NREVPAR)
  • Total Revenue Per Available Room (TREVPAR)
Oct 24, 2022

What is the 5 step revenue management process? ›

This is a five stage process. The stages in this process are Data Collection, Segmentation, Forecasting, Optimization, Dynamic Re Evaluation.

What are the five core factors of revenue management? ›

Dynamic Factors in Revenue Management
  • Revenue Management Pricing. The most obvious factor in revenue management is the price. ...
  • Inventory Revenue Management Systems. ...
  • Revenue Marketing Strategies and Opportunities. ...
  • Sales Channels and Revenue Pricing.

How can I improve my small hotel business? ›

While there are many ways to increase your hotel revenue depending on your property's needs, here are 15+ tactics to get you started.
  1. Build a road map. ...
  2. Segment your target market. ...
  3. Sell the experience over the transaction. ...
  4. Maximize online reach with a Channel Manager. ...
  5. Build your direct channel with a booking engine.
Dec 10, 2022

How do hotels attract more guests? ›

10 Effective Ways To Attract Hotel Customers
  1. Impress Visitors before their arrival.
  2. Train your staff to deliver world-class service.
  3. Maintain Excellent Room Services.
  4. Offer better rates with recreational facilities.
  5. Establish an online presence.
  6. Take advantage of peak booking seasons.
Jan 11, 2023

How do hotels increase their customer base? ›

8 Customer Retention Strategies for Hotels You Can Implement Today
  1. Develop a loyal, profitable customer base.
  2. Reduce guest acquisition costs.
  3. Create a strong network of promoters.
  4. Encourage direct booking to reduce OTA commission fees.
  5. Upsell and cross-sell your services to those who already value you.

What are the five things you expect a hotel to have? ›

Five Basic Services You Should Expect From Your Hotel
  • Hotel Comfort and Cleanliness. Your hotel should be clean, end of story. ...
  • Safety and Security. It goes without saying; you want to feel safe wherever you lay your head down at night. ...
  • Upstanding Customer Service. ...
  • Great Amenities. ...
  • Breakfast.
Apr 30, 2018

What is the future of hotels in 2023? ›

In 2023, expect to see more hospitality operators move toward more sustainable practices in response to increased guest demand. According to the Booking.com Sustainable Travel Report 2022, “78% of global travelers intend to stay in a sustainable property at least once in the coming year.”

What is the hospitality prediction for 2023? ›

"Prior to this year we had a long period of low inflation in hospitality – the 2021 average was 2.6%, but the average in 2022 will likely be around 13%. Our comparative prediction for 2023 is 10.5%.

What is the future of the hospitality industry 2023? ›

Sustainable everything

This is the main direction of hospitality in 2023 by all dominant trends. It will drive major investments, and the hospitality industry is expected to develop and adopt more sustainable solutions in all its activities. Global hotel chains are introducing different programs and initiatives.

What makes a hotel high end? ›

Lavish bathrooms with upscale features such as heated floors and soaking tubs. High-end, lush linens and towels. Deluxe pillows and mattresses so your sleeping hours are as blissful as your waking ones. Beautiful views in every direction – inside and out.

What is the hotel rule? ›

Hotel rule is that this sign cannot be displayed longer than 24 hours. After this time, Hotel reserves the right to enter the room due to Safety and Security reasons. Hotel guests must have appropriate clothes and footwear when they are moving through the public spaces of the hotel.

How do you prevent a hotel break in? ›

Secure your values while you're away from your hotel room by using a tamper-evident hotel safe lock for securing your valuables. Use a tamper-evident secondary lock such as the Milockie Hotel Safe Lock on the safe. Hotels have passkeys or passcodes to enter safes for guests who forget their code.

What are the six fixed expenses in the hospitality industry? ›

What is the meaning / definition of Fixed Costs in the hospitality industry? Examples of Fixed Costs would be: rent, mortgage, salaries, insurance, taxes, utilities, land, building, internet, telephone plans, advertising cost, music entertainment, reservation expenses, newspaper subscriptions etc.

What are the three biggest expenses? ›

For most households, the big 3 expenses are housing, transportation, and food. These three categories can take up a huge percentage of your income. Housing in particular is getting more expensive every day.

What is the secret of a successful hotel company? ›

You need a good location, excellent reviews and a steady stream of guests for your hotel to succeed, and you can get those things by keeping in touch with your target audience, creating excellent maintenance and service plans, and marketing across many channels.

What is the salary of a CEO of a hotel? ›

Average Annual Salary (Estimated)

Chief Executive Officer salary in Hotel President ranges between ₹ 10.8 Lakhs to ₹ 13.2 Lakhs per year.

Do hotel owners make money? ›

Owning a hotel can be profitable if you have the right combination of location, price point, quality of the physical asset, marketing strategy, dedicated employees, and supportive investors and management partners. However, a hotel isn't profitable by default, so you can expect a lot of hard work to generate profit.

What are the three P's of hospitality sustainability? ›

The 3Ps of sustainability are a well-known and accepted business concept. The Ps refer to People, Planet, and Profit, also often referred to as the triple bottom line.

What are the key pillars of hospitality industry? ›

The Four Pillars of Hospitality Technology
  • First Pillar: Physical Infrastructure. This first pillar is the most readily understood as well as the most established and expensive to upgrade. ...
  • Second Pillar: Management Systems. ...
  • Third Pillar: Digital Marketing Channels. ...
  • Fourth Pillar: Your Staff. ...
  • A Checklist For Acquisition.
Jun 19, 2017

What is KPI for revenue? ›

Revenue Growth is a KPI used to measure how sales are increasing or decreasing over time. It is calculated by dividing revenue generated during one time period by the revenue generated during a subsequent time period, subtracting 1, and then multiplying by 100 to obtain a percentage.

What are the 4 P's of the revenue cycle? ›

The 4Ps of revenue management are: Pricing, Positioning, Pace and Performance.

What are the six stages of the revenue cycle? ›

The seven steps of revenue cycle include preregistration, registration, charge capture, claim submission, remittance processing, insurance follow-up and patient collections.

How do you grow revenue? ›

Strategies to increase sales revenue
  1. increasing your prices.
  2. finding new customers.
  3. selling more to existing customers.
  4. offering sale promotions to boost the volume of sales.
  5. developing new product or service lines.
  6. selling in new markets.

What are the 3 sources of revenue? ›

State and local governments collect tax revenues from three primary sources: income, sales, and property taxes. Income and sales taxes make up the majority of combined state tax revenue, while property taxes are the largest source of tax revenue for local governments, including school districts.

How can hotels improve customers? ›

10 Effective Ways To Attract Hotel Customers
  1. Impress Visitors before their arrival.
  2. Train your staff to deliver world-class service.
  3. Maintain Excellent Room Services.
  4. Offer better rates with recreational facilities.
  5. Establish an online presence.
  6. Take advantage of peak booking seasons.
Jan 11, 2023

What do you consider the three most important things when looking for a hotel? ›

Instead of just looking at the cost, consider the overall value of the stay you'll be having. The hotel that offers the best total value of price, amenities, and location for your upcoming stay is the one you should book!

How do restaurants improve their hotel? ›

Tips To Improve Your Restaurant Service
  1. Train Employees For an Excellent Customer Service. ...
  2. Encourage Effective Communication Between Staff Members. ...
  3. Ensure Accurate Wait Timings. ...
  4. Deal With Customers Complaints and Concerns. ...
  5. Use Technology For Better Restaurant Service. ...
  6. Maintain Hygiene And Cleanliness In Your Restaurant.

What are consumers looking for in hotels? ›

Customer service, good food, and quiet rooms go a long way with hotel guests. Equally, not all guests are the same. Business guests, group bookings, and families all have different needs. Catering to these individual characteristics are sure to set you apart from the competition.

What are five facilities that he should expect at a 5 star hotel? ›

Free Wi-Fi, gym, spa, private swimming pool in front of each room, safe car parking, fully equipped business centre, shuttle and cab service, multiple-cuisine dining options, cordial & professional staff, emergency services, guest-support counter and many more fall into the list of amenities that a 5-star hotel provide ...

What are the five most important qualities for a business hotel? ›

5 Characteristics of a Good Hotel
  • Quality Customer Service.
  • Comfortable and Well Equipped Rooms.
  • Clean and Tidy Environment.
  • Free Internet Access.

What is the most important thing in a hotel? ›

However, the mattress and bed are the most important things in your hotel room. Clean, high-quality beds and mattresses make the room feel welcoming and guests prefer hygiene too. Hygiene and comfort in your high-quality mattress and bed choice should ideally be uniform, and the mattress type has a big role in this.

What is the 5 10 rule in hospitality? ›

The 10 and 5 rule is a simple guideline that is widely used in the hospitality industry. The rule dictates that when a staff member is 10 feet from a guest, the staff smiles and makes direct eye contact, and when they are within five feet, the staff verbally greets the guest.

What makes a hotel better? ›

Every person who travels has their own idea of what makes for a good hotel, but most agree that there are six qualities that make for an exceptional stay. These include service, cleanliness, price, location, management, and the hotel's environment.

What are the big five in hospitality? ›

Goldberg (1981) used the big five model to delineate the five dimensions of personality traits, hence emotional stability, conscientiousness, agreeable, extraversion, and openness to experience.

How can a hotel improve its distribution strategy? ›

Maximising your direct distribution strategy in the hotel industry
  1. Promote your business online with social media. ...
  2. Sell more rooms online via social media channels. ...
  3. Use online booking channels to increase sales. ...
  4. Ensure your channel manager and booking engine are mobile-compatible.

How can I increase my F&B sales? ›

  1. Drivers are becoming more pressed for time, and many may never leave the fuel counter. ...


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