Every hotelier is always on the move when it comes to boosting revenue. But often, they might be stuck with ideas that fail to produce tangible results. As a result, you don’t have to shift your entire strategy, but just make a few tweaks, which will fetch you the results you seek. However, if you still think increasing the hotel’s revenue is unimportant, let us tell you that you’ve been living under a rock. 

One of the biggest reasons that forces a hotel to close down is the unavailability of funds. Thus, hotel revenue plays a significant role in ensuring the survival of the hotel business, along with turning it into a profitable establishment. To do so, hotels need to upsell and cross-sell other services, offer packages to guests, provide special dining experiences, etc to boost the hotel revenue. 

Why is Hotel Revenue Essential? 

a) First and foremost, hotel revenue is the backbone of assessing a hotel’s profitability. 

b) Ascertaining the hotel revenue provides an idea to hoteliers about their profitability for the coming months. 

c) By managing the hotel revenue, hoteliers can predict market demand and guest behavior which enables them to adapt to market changes. 

d) In addition, having an idea about the hotel revenue enables hoteliers to compare the performance against other competitors and capitalize on their strengths to bolster revenue. 

Top Ideas to Boost Hotel Revenue 

Partner with Local Businesses

Guests today seek a unique experience, and by partnering with local vendors and businesses you can provide an unforgettable experience, whether it’s a handicraft mart or an adventure camp. Here, you can either go one of the two ways.

You can either enter into a robust deal with them, wherein you recommend their services to your guests and in return get a commission, or you can foster a mutual agreement wherein both you and the local business can recommend each other’s service to prospective customers.

In the end, by using either of the two ways you stand a chance to make a handsome amount of revenue. 

Offer Incentives 

By reducing dependency on OTA platforms, and embedding the hotel’s website with an in-build booking engine, hoteliers can pivot customers to make bookings directly from the website, reducing commission to OTAs and enhancing revenue.

In return, hotels will be able to provide incentives like room upgrades, loyalty rewards, freebies, etc which will convince customers to choose your hotel over others.

Moreover, hotels need to invest in loyalty programs and exclusive rewards which can turn repeat customers into loyal subscribers, boosting revenue all the way. 

Leverage SEO and SEM to promote your Hotel  

With marketing strategies becoming robust, it’s time you utilize their potential. By improving your SEO score, you can bring significant organic traffic to your business, as it will help rank your hotel’s website on the first page of search engine results.

Additionally,  SEM is the best strategy for hotel businesses that are new to the game as it assists in driving the initial traffic for your business by enabling you to pay the search engines to display your ads when specific search queries are made.

For instance, you can run Google Ads, which will allow you to display your hotel’s room and special amenities, leading to high guest traction, and consequent hotel revenue boost.  

Upsell and Cross-Sell Hotel Services

Upselling and cross-selling hotel services can bring forth a new revenue stream, as it allows hotels to transform their services into exclusive perks such as spas, golf and sports clubs, room service, and others.

For a more nuanced understanding, cross-selling is all about persuading your guest to buy additional services, and upselling entails selling an upgraded product or service that will enhance your guest’s experience.

For instance, you can cross-sell services such as spa and beauty treatments, and exclusive classes, or you can upsell services such as room upgrades which will increase your hotel revenue like no other. 

Invest in Hotel Management System 

Technologies like Cloud Computing, Blockchain, and others have taken the world by storm including the hospitality industry.

This has paved the way for a cloud-based Hotel Management System as a smart way for hotels to decide the right price for different services.

Leveraging AI and ML algorithms can help hotels adjust their strategies accordingly, by using historical insights and market analysis.

At the end of the day, investing in a hotel management system can help your hotel turn profitable by enhancing growth in property value and returns, increasing revenue per available room, and reducing overall operational expenses. 

Conclusion 

Now, that you have looked at quite a few revenue-boosting strategies, it is important to note that it takes time to produce optimal results, so don’t forget to be patient.

As a tip, just start with the basic one, such as investing in a Hotel Management System, and see how that works out for you. 

With Revivo’s Hotel Management System, users have been able to witness 50% revenue maximization and an increase in hotel earnings within three months of deployment.

With guaranteed results like this, what are you waiting for? Connect with team Revivo today, to get the best deal to significantly boost your hotel’s revenue. 

FAQs

1. How do hotels generate extra revenue?

Hotels generate extra revenue by upselling and cross-selling their services, which can include room upgrades, spa treatments, beauty packages, exclusive programs, and much more.

2. How can you improve hotel occupancy to increase your revenue?

The best way to improve hotel occupancy to increase revenue is to leverage the power of the booking engine that is employed within your hotel’s website, which will help boost direct bookings, and reduce the commission paid to OTAs. 

3. What are the strategies would you implement to increase hotel revenue?

The best strategies to increase hotel revenue include, investing in a hotel management system, upselling and cross-selling services, offering incentives, leveraging the power of SEO and SEM, and partnering with local businesses.

4. How can I grow my hospitality business?

The only way you can grow your hospitality business is by focusing on growing the hotel revenue, as it is the foundation that holds the entire structure, functioning, and survival of your hotel. 

5. Which is the largest source of revenue for a hotel?

The largest source of revenue for hotels is room revenue, which is why hotels need to make use of dynamic pricing to set the right price, at the right place, based on various factors, including demand, market analysis, etc.