10+ effective ways to increase hotel revenue and sales


By Cloudbeds

Every hotelier and host faces the question of how to increase revenue and profit without overspending. When you’re immersed in the day-to-day operations it can be hard to see the big picture, and getting the right answers can be complex. While there are many ways to increase your hotel revenue depending on your property’s needs, here are 10+ tactics you can start with right away.


1. Build a road map

Before you can get started with your revenue strategy, you need to know where your business currently stands: from your bottom line and revenue streams to marketing efforts and online reviews scores. Knowing the fixed cost of an available room is important so you can calculate things like how to set the right rates planes and dates for promotions and group offers, and whether to invest time and effort on certain OTA channels. With this information, you can create an accurate and personalized road map that will help guide your sales strategy in the right direction.

Your road map doesn’t have to be formal, but it should accurately reflect your business’s current status in terms of finances, reservations, revenue, and costs so that you can plan appropriate goals for the future. Additionally, your road map or hotel business plan will need to be reviewed and revised every year to achieve optimal results.


2. Segment your target market

A key component to hotel marketing is creating guest personas so you can tailor your marketing efforts accordingly. You need to understand who your guests are, why they’re choosing to book with you, and their main reason for travel so you can get a sense of how to direct your marketing efforts. The answers to these questions will help you develop guest segments and will provide powerful data to improve your marketing strategy and sales activity.

To illustrate, you might notice that your accommodation mainly attracts business travelers between the ages of 35 and 45 and that these guests choose to stay at your property because of your proximity to a convention center that hosts a lot of corporate events. Knowing this, you can run special marketing campaigns and paid ads that promote your property’s optimal location and directly target business travelers. You may notice that you have different guest demographics depending on the season. If this is the case, you can add another guest persona and create an appropriate marketing campaign to target that specific group. Segmenting your guest market and building targeted campaigns is strategic and it will provide new ideas on how to increase your hotel revenue.


3. Sell the experience over the transaction

In the saturated travel marketplace, it’s important for hotel properties to showcase what makes them unique. As a hotelier, you need to put your property’s best and most differentiating aspects at the forefront of your website and social media accounts so potential guests can start their experience before they even arrive for their stay. You may think this is hard to do if you have a small, simple accommodation, but the real differentiation is between offering a transaction (basic room and board) and an experience (an unforgettable stay). A lot of times this can be done with above-and-beyond service instead of relying on a fancy design.

Providing a unique guest experience can become a part of your hotel’s value proposition and staff should address your customers’ unmet needs and problems, and make an effort to make them feel like they are in for something special. You’ll also need real-world evidence or customer reviews to help promote the unique offer that you provide. If you can find something to set your accommodation apart, you’ll, in turn, attract more hotel guests and increase revenue.


4. Maximize online reach with a Channel Manager  

How to increase online bookings? A channel manager software for hotels is made to distribute your room inventory across several different Online Travel Agencies (OTAs) at once and syncs bookings to your PMS software in real-time so you can optimize occupancy while avoiding overbookings. This means that you can sell the same room on different OTAs, like, Expedia, TripAdvisor, etc., and as soon as it’s booked, the room availability will be removed from the other channels. A channel manager can connect your rooms to a wider audience so you get more visibility, reach more travelers, and ultimately increase hotel revenue and occupancy.

Though using a channel manager is a great way to sell your room availability, you will have to pay a commission fee to the OTAs.


5. Build your direct channel with a Booking Engine

To counterbalance the reservations you get through OTAs and boost direct bookings that are commission-free and processed via your own hotel website, you can use a booking engine. A booking engine will allow your website visitors to book their reservation directly on your website, or even your Facebook page.

This way, potential guests have a seamless way to book their reservations or add-ons (room upgrades, late checkout, breakfast, and more). Make sure you take advantage of cross-selling opportunities on your website.


6. Partner with local businesses 

Building strong relationships with other businesses in the local community is another great way your hotel can generate more revenue, and it’s been reinforced by the sense of community created during the pandemic.

To get started, research local businesses and who may benefit from a co-marketing arrangement. There are all kinds of businesses and organizations that can refer your accommodation, such as small travel agencies, tour operators, conference centers, schools, and more. See if you can make a deal where they recommend your property in exchange for a commission fee.

Next, enhance your hotel’s package offerings. For example, you can advertise partnerships with local tour companies and offer add-ons. Co-creating clever packages in collaboration with your local partners can lead to new upselling sources.


7. Try dynamic pricing

Regardless of your hotel type, you should revisit your pricing plans and occupancy forecasting on a regular basis. As demand changes constantly, you should be able to adapt to the changing market conditions and react accordingly. Here’s where dynamic pricing can help.

Dynamic pricing in the hotel industry is the practice of using flexible pricing for a hotel room or service based on market demand, usually used to increase the price as demand increases. The basic concept behind Dynamic Pricing in Revenue Management is simple: a hotel room or a hostel bed will be priced based on supply and demand. In general, room rates should be increased when demand exceeds supply (to capitalize on ADR) and lowered when demand is weak (to increase occupancy).

Keeping up with upcoming events will help your estimates and enable you to reach your revenue potential, especially in the off-season. It also doesn’t hurt to keep tabs on competitor pricing – this can help you better predict demand and give you a competitive edge when deciding how you are adjusting your price.


8. Get mobile-friendly 

Making your website responsive and adaptive for mobile is no longer an option, it’s a necessity. 63% of travelers say using smartphones to plan or book their trip is extremely important, while 58% say they use them to book accommodation. Simply put, if you want to get more bookings and increase hotel revenue, having a mobile-ready site is a must.

The widespread nature of mobile technology is also changing consumers’ expectations. It’s not enough to have a shrunken version of your website as your mobile page. Your mobile site needs to have its own unique design. Millennials and Gen Z-ers especially expect a speedy, sleek, and personalized mobile experience. If you don’t optimize your site for mobile, you’re missing out on a huge opportunity to grow your hotel’s occupancy rate.


9. Up your digital marketing game

Make sure you cover all the fundamental digital marketing channels. Firstly ensure that your information is accurate and up-to-date wherever potential guests may find you. From your social media networks and your website to your Google My Business listing and OTA profiles, modern travelers will research your business online to check reviews or find specific information. Look up your property name on any search engine to see it through their eyes.

Secondly, you can use digital marketing tools to your advantage. You could create engaging social media campaigns, try a new social channel such as TikTok, or run email campaigns aimed at returning guests or corporate partners.


10. Use high-quality visuals

Few things will captivate potential guests more than high-quality images. Images of your property have the potential to visually tell a story and entice travelers to make a booking. Research has shown that 67% of consumers consider clear, detailed images to 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 imagine themselves at your property. This emotional appeal will get people more engaged with your listing and help increase your revenue. In fact, in a study done by Visual Web Optimizer, larger images were shown to boost hotel bookings by 9.46%. So when it comes to images, it’s good to remember that the higher the quality the higher your direct sales will be.


11. Attract group business

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

Intimate weddings – many people smaller wedding gatherings with fewer than 30 guests. Use photos from past events to showcase your property’s potential.

Family reunions – develop reunion-specific packages that may include custom menus and group room-rate discounts.

Corporate groups – connect your property to a global distribution system (GDS) that will get your inventory in front of business travelers and their booking partners.


12. Use hotel revenue management analytics

Having dependable revenue management technology can really give hoteliers a competitive advantage. These systems are especially useful for independent properties, where profit improvements can have a significant impact on total revenue. Here’s how revenue management software can improve your profit margin:

Competitive advantage – automatically monitor your competitor’s rates and occupancy, and distribution channels.

Demand forecasts – get real-time access to consumer demand and you’ll be able to make updates to your pricing or room types.

Avoiding errors – revenue management systems also steer you away from errors, such as overpricing or underpricing your rooms.

Automatic price updates – set rules and triggers that the system will execute automatically.


Final thoughts

When it comes to ways to increase your hotel revenue, you have many different tools and avenues you can use to put together a customized plan, which you can build yourself or with the help of a professional revenue manager. With the steps listed above, you can get a head start on increasing your profit today.


Want to hear more ideas on how to increase your hotel revenue?
Published on 11 March, 2019
loading background.

About Cloudbeds


Founded in 2012, Cloudbeds is the hospitality industry’s fastest-growing technology partner, serving a global customer base of thousands of properties across 157 countries. Its award-winning Cloudbeds Hospitality Platform seamlessly combines operations, revenue, distribution, and growth marketing tools with a marketplace of third-party integrations to help hoteliers and hosts grow revenue, streamline operations, and deliver memorable guest experiences. Cloudbeds was named No. 1 PMS and No. 1 Hotel Management System by Hotel Tech Report in 2022, Best PMS and Best Channel Manager by the World Travel Tech Awards in 2021, and has been recognized by Deloitte’s Technology Fast 500 in 2021. For more information, visit

Get bright ideas and best practices delivered straight to your inbox

The Secret Strategies to Rate Plans and Pricing

Maximize your revenue potential.
Get the eBook
One platform designed to help hoteliers build revenue, save time and increase guest satisfaction.

You might also be interested in...


Cloudbeds Acquires Whistle, Moves to Solve Friction in Guest Journey


A quick guide to hotel automation for independent properties


6 ways to measure guest satisfaction (+ examples)

Web Beacon