Hotel industry faces a powerful combination of pressure and opportunity. Hotel guests are expected to spend more on travel and other expenses. hit a record $777 billion, according to the American Hotel & Lodging Association. Costs are increasing, staffing levels are tight, and traditional revenue sources are being squeezed. What’s the best way to move forward?
It’s more than just increasing the room rate or reducing amenities. It’s about uncovering hidden revenue opportunities within the guest journey—and using modern tools to offer them without overloading your team. This is why we are sharing six smart ways to increase revenue without compromising service quality. We cover the following topics:
- Automated ways to increase revenue
- Unique add-ons, upsells and other ideas
- Increase bookings by incorporating more third-party reviews
Six Ideas to Increase Your Hotel Revenue
1. Automating Upselling: Rethink the Idea
Recent research has found that 49% of hotel executives “Strongly agree” with the fact that revenue from non-rooms will be a greater part of cash flow. It’s great to hear, but upselling by hand is out of date. Hoteliers are replacing the generalized offers and front desk pitches of their previous methods with personalized, dynamic offers that are delivered by smart technology.
3 Ideas to Increase Your Revenue Through Automatic Ancillary Sources
Hotels can use technology to deliver the best offers automatically via digital check-in and guest messaging. This ensures that the correct options are offered in the appropriate context. Here are a few ideas:
- Automate a message announcing spa packages or transport offers a few days prior to arrival
- Plan a text message to be sent mid-stay with promotional add-ons such as wine tastings and bike rentals
- Automatically apply discounts for early check-ins and late checkouts
2. Monetize Guest Messaging
Texting is the preferred method of communication for guests. In fact, 78% say texting is the best way Send them regular updates. How can you use this channel to increase revenue? You can add new communication touchpoints and discover opportunities to add paid add-ons.
How to Earn Money From Guest Messaging
Here are some ways you can make texting more profitable if you already communicate with your guests.
- Booking discounts sent to loyal customers can generate repeat bookings.
- The day before your arrival, suggest a room upgrade
- Send out a message about happy hours at the hotel bar
- Discounts on additional nights during guests’ stay
Fun fact: An in-stay guest received a text offering a discount on an extra night. They generated $15K instantly—see how they did it.
3. Digitize Compendiums for More Spending In-Stay
The paper compendium has been the standard way of displaying hotel amenities for years, but digital versions are more effective. You can provide your guests with a mobile version of all the information they need The following are some examples of how to get started: You can also promote relevant upsells. When guests are looking at the departure time, they will see an offer to book a late checkout.
Offer More Information to Get More Revenue
When guests see helpful information and upsells, they are more likely to browse. Here are a few ways you can incorporate this into your digital compendium.
- Offer discounts alongside menus at hotels
- Seasonal or limited-time updates can help you keep your content engaging.
- Refer local activities to guests using our referral links
4. Drive Direct Bookings Using AI
OTAs may be good for visibility, however their commissions quickly eat up revenue. Focus on converting customers directly through your website or phone line to increase profit margins. AI-powered communications allow you to answer questions instantly via phone or web without taking up the time of your staff.
Get more direct bookings with automated answers
When guests find it easy to get the answers to their questions, they are less likely to turn to an OTA (or even worse, a rival!) for information. Here’s how you can use AI to convert potential guests into booked travellers:
- Add an AI-powered chat widget for 24/7 real-time responses
- Answer questions with a virtual agent and manage reservations
- AI-powered conversations can now include direct booking offers.
5. Reduce chargebacks, payment fraud and other fraudulent activities
Hoteliers lose thousands each year due to chargebacks, fraud and unauthorized payments. These are easily avoidable. Digitalization prevents fraud by proactively preventing it, and makes your customers more confident when making payments. It also gives you more evidence for a successful challenge if there are chargeback claims.
Get rid of Fraud and Chargebacks
It is safer to collect payments electronically for both your guests and revenue. Here are some ideas to consider:
- Replace paper credit cards forms with PCI compliant digital forms
- Use digital check-in with integrated ID verification
- Send secure payment links rather than requesting payment by phone
6. Reviewing your experience will help you to drive future bookings
Even happy guests can forget to give a review. Because reviews directly influence where guests choose to book (and what they are willing to pay!)This is a lost opportunity to increase bookings. You can ensure that you are asking for reviews from every guest by automating this process.
Asking for Reviews Can Be Automated
Asking for a guest review can be done in several key touchpoints during the journey of a guest:
- Send automated thank-you messages to guests after they leave, and ask that they leave a review.
- Use a digital tipping system that prompts your guests to write a review once they have paid their gratuity
- Implement a digital checkout which asks for feedback from guests and directs them to their Tripadvisor profiles or Google profiles.
The Final Thoughts – More Revenue for Hotels Without More Work
Working smarter is the key to increasing revenue as costs and guest expectations rise. You can maximize your revenue by automating the key steps of your guest’s journey and providing great experiences.
You can rev up the hotel revenue engine. Canary TechnologiesIt is possible because of’solutions. Canary is trusted by more than 20,000 hotels across 100+ countries. It creates greater earning opportunities at every stage of a guest’s journey. Book a demo today What’s possible?
Canary Technologies
Canary Technologies The award-winning Guest Management Platform revolutionizes the hotel tech stack, digitizing all aspects of the guest experience from booking to checkout. Canary, the leading solution for HotelTechReport, is trusted by over 20,000 hoteliers across 90+ countries. This includes Marriott, Four Seasons, and Wyndham. Canary offers a range of solutions, including Canary AI (Artificial Intelligence), Mobile Check-In and Smart Checkout, Guest Messaging, Digital Tipping and AI Voice. Canary reduces fraud, improves guest satisfaction, increases revenue, and boosts staff efficiency.
Amanda McDowell
Content Marketing Manager
Canary Technologies
