How to Increase Your Hotel Revenue (10 Innovative Ways)

The hotel and hospitality industry can be a challenging field with many hoteliers vying for the same attention and traction from customers. The customer’s needs are simple, they want a comfortable and clean place to stay for business or pleasure, whilst having essential amenities nearby. But how can hotels increase revenue when your competition is offering the same product? It’s all about the experience.

From customer service to a unique interior design that stands out from the rest, getting your brand more visible to the wider public online and giving your hotel a much-needed overhaul, are just some of the ways to draw in new and loyal customers.

The pandemic was a difficult time for the hotel industry, with many closed for months on end. It’s time to look ahead to a positive future with fresh and inventive ideas on how to increase hotel sales revenue.

Know Your Market Inside Out

When you look at some of the big brands in hotels, you can tell the difference in clientele from your average run-of-the-mill place to a hotel that is steeped with esteem and elegance. Firstly, you want to know who your target audience is when looking at how to maximise hotel revenue.

Look at your current guest profile, what are the strengths and weaknesses and what are the unique selling points of your hotel. You can build on this audience by identifying the wants and needs of not just current guests, but future ones too. Are you aiming at business people who need desk space or co-working areas, couples who would like to indulge in a spa, or families who would appreciate child-friendly spaces? Also, keep an eye on your competitors for aspects such as location, service levels and price, to help you get ahead and increase sales.

Offer Upgrade Options Prior to Arrival

Who doesn’t love an upgrade when it comes to hotel rooms? If your site features a number of superior rooms or suites, then it’s key to upsell these even before the guest has checked in. This can be achieved via your website with a discounted price that appears more appealing to the customer. Alternatively, you can offer this at reception when checking in to see if they would be interested in upgrading their room. Make it an appealing sale with items such as a larger space, better view and facilities such as coffee machines. This is a great way how to increase revenue in a hotel whilst enhancing the customer experience.

Provide Early Check-In and Late Checkout

As well as room upgrades, a simple trick is to charge for early check-in and a late check-out. Astonishingly some hotels provide this for free, when in fact this could easily increase sales. There’s a reason for people to check into a hotel, whether that’s being on holiday and they’ve got an early or late flight, they’re attending an event and need to get into the room early, or they need more time at the hotel to sort out admin. Providing an early check-in and late check-out makes their life easier, so charging for the privilege can be an easy win.

Give Your Premises a Facelift

First impressions count as soon as you walk into a hotel. That’s why ensuring that the interior and exterior are not only inviting but also look their very best. If there are marks on the carpet, flaky paint and dated furniture, the customer is less likely to return. That’s why investing in refurbishments and improvements will make a real difference. Remember to keep it in line with your branding. This could include repainting or revamping the reception area, or installing a hotel awning to make the outside look more luxurious. The bonus of this is that customers will spend more time on site because they can enjoy the eating and drinking facilities all year round.

Collaborate with Local Businesses

Teamwork and word of mouth are essential in business, whatever the industry. Having a good relationship with your local community is key and you can work in tandem to offer the customers fantastic experiences at a reasonable price. For visitors on holiday they want to explore the local area, so organising a deal with excursions or tourist attractions where you receive a commission for referring their outlet is good business for all.

Market Your Hotel More Online

We all understand the power of having an online presence – whether that’s a website, on booking sites or with your own social media channels. When searching for a hotel, most customers will instantly search online to find a place that is in a great location, offers the facilities they’re looking for and is at a great price. You want your presence online to be positive, so invite existing customers to post reviews and pictures online to attract the right customers. 90% of guests look at online reviews first before booking, therefore any negative comments will simply put them off. Also utilising social media channels such as Facebook and Instagram is your shop window to post about what makes your hotel unique and share the experiences of others.

Utilise All Available Space

How often have you walked into a hotel and seen a lot of wasted space? Perhaps there are meeting rooms which are frequently empty or the reception area is larger than it needs to be. Think smart about how to utilise these spaces better. Could you enhance the look of the meeting room so that it can also function as a venue space for parties and conferences when given the right creative overhaul? Is there a way to input co-working spaces in the reception areas that you could rent out on an hourly basis? This could be an effective way how to maximise hotel revenue by thinking beyond just selling hotel rooms.

Think About Offering Packages

As well as offering hotel rooms, there are many ways that you could turn this into a package, offering different benefits and experiences. Could you tie in the hotel stay with a dinner package, spa treatments or a discount on multi-stays? Customers want to get the best for their hard-earned money so if there is an opportunity to save, whilst indulging in a hotel stay, provide options that they can choose from. Also, tie these in with seasonal-themed events such as Christmas, Valentine’s Day and Easter so that you have a hook to pull people in.

Incentivise Your Staff to Upsell

It’s all well and good having these great ideas on how to improve revenue, but it needs to be a team effort. Therefore, giving your staff incentives to upsell items such as room upgrades, dinner packages and excursions are a great help. Your staff are the first people your guests will meet and their welcoming and friendly manner is what will lead customers to buy into the upsell. Providing incentives such as prizes at the end of the month or monetary gifts will be a sure way to get your team more enthused about upselling.

Expand Your Money-Making Facilities

Finally, a hotel is more than just a room, it’s an experience. So look at ways to expand money-making facilities. For example, does your hotel currently have a bar and restaurant? If not, then look at how you can launch one so that customers are spending their money in-house. Do you have items at reception for sale if they’ve forgotten essential items like toothpaste? Is it worth incorporating a mini-bar within the hotel room, offering guests ease of access to refreshments but at a premium price? Looking at different ways to increase revenue are important when thinking outside of the box on how to improve the customer experience and your bottom line.

At Shades of Comfort, we understand the importance of customer satisfaction and providing an environment where they feel welcome and relaxed. We coordinate the sale, installation and servicing of awnings, giant umbrellas and outdoor solutions for hotels, hospitality outlets, homes, retail and education in a well-rounded and efficient manner. With plenty of options to choose from and a leading team of experts, we’re on hand to enhance the day and night experience for everyone, all year round.