11 Simple Ways to Successfully Increase Hotel Revenue

September 14, 2021


After 18 months of lost revenue and depressed earnings, hoteliers are doing everything they can to improve profitability. Some are seeking new and innovative ways to help their bottom lines while others are turning to tried and true methods that have successfully eased the pain of recessions in the past. 

Canary Technologies proudly serves thousands of hotels across the country, and we surveyed some to see which revenue strategies they were using during the strain of the pandemic. Below is a list of 11 of our favorite answers we received from our clients. 


There’s no silver bullet to optimizing hotel revenue. But many of the below strategies can be used together to successfully increase hotel revenue and help reverse the sting of the last 18 months. 


1. Offer Early Check-In and Late Checkout


One of the simplest ways to increase revenue at your hotel is to charge for certain premium services instead of simply giving them away for free. Many hotel guests want the ability to check-in to their rooms early and checkout of their rooms late. A staggering number of hotels are currently honoring these requests for free.


These fees can substantially increase hotel revenue and the data shows that customers are more than willing to pay anywhere from $20 to $50 for an early check-in. Some hotels are using this add-on to generate over $30k a year in fees. Imagine giving away $30k worth of services every year! 


On top of that, early check-in and late checkout fees are nearly 100% profit as the revenue drops straight to the bottom line results of the hotel. Not many revenue drivers can make the same impact on the P&L. 


It’s important to note that hoteliers cannot always allow guests to check-in early or checkout late if occupancy is high. Shameless Plug: Canary’s Upsell software makes it easy for hoteliers to approve or deny guest requests for early check-in and late checkout. Guests are only charged the early check-in and late checkout fees if you accept the request, allowing you more control over arrivals and departures. 



2. Promote your food and beverage options throughout the stay


Modern hotel guests are used to the on-demand convenience of ecommerce options offered by companies like Amazon, DoorDash and Uber. Customers today want to be able to order what they want, when they want, and have it delivered quickly. 


This is why Canary has created upsell options in their software that allow hoteliers to cater to on-demand customers. We provide your guests with digital access to menus directly on their phone. This way, they can browse your options at their convenience and purchase items directly through our platform. 


Allowing your guests to see a digital menu on their own phone is convenient and will significantly increase purchase rates. 


3. Offer room upgrades pre-arrival


Hoteliers should take advantage of upselling all throughout the guest journey. This should subtly begin before your hotel guests are scheduled to arrive. In addition to offering early check-in and late checkout, hoteliers can offer their guests room upgrades pre-arrival. 


Last minute room upgrades are a win-win for the guest and hotel. Offering upgrades to your guests immediately prior to their stay may allow you to provide a  discount on a nicer room. This way your guest will enjoy an upgraded room and you will enjoy increased revenue.


Canary software can offer room upgrades to guests at multiple touch points prior to arrival this includes post booking, all they way up to 24-48 hours prior to arrival, and even during the Check-In process. Our ability to embed upsells in hotel operations, such as Check-In,  increases guest adoption and provide you with incremental revenue versus stand-alone options. 


4. Partner with local businesses to offer excursions and experiences


Your leisure guests will more than likely be paying for excursions and experiences outside of your hotel. A great way to increase revenue is by partnering with local businesses so that you can offer their services to your guests at a discounted price. The business will then pay you a commission or a referral fee after your guest purchases their excursions or experiences. 


Your local business partners will appreciate the referrals and you will increase your hotel’s revenue with this simple tip. 


5. Take advantage of other upsell opportunities


Data indicates that there are 4 other common upselling opportunities for hotels. If your property is not already offering these upsells to guests, you may be missing out on valuable revenue. 


  • Parking Fees: Many hotels have added parking and valet fees to their standard billing practice
  • Pet Fees: Many guests will gladly pay an additional fee to bring their pets along with them. This can add to your cleaning costs, however. 
  • Shuttle Transportation: Guests will pay for convenience. Offering a shuttle to the airport or local attractions is a great way to increase revenue. 
  • Retail or Gift Store: Hoteliers can increase revenue by offering the things their guests want to purchase in-house in a gift store or retail shop.  


6. Promote upsells with text messages


It’s no secret, consumers prefer text over email. In fact, ~70% of guests prefer text messaging over email. Communicating with your guests via text messages while they are on-property increases adoption and revenue. 

7. Incentivize your staff to promote upsells


Incentivizing your staff to promote your upsell strategy has been proven to increase hotel revenue over time. Your staff will spend a lot of time with your guests which creates the perfect upsell opportunity. 


Every hotelier knows how important a friendly and motivated staff is to the success of the hotel. One way to motivate your staff is by rewarding them monetarily for upselling your services. You can also create a competition among your employees with a prize at the end of the month for the person with the most upsells. 


Regardless of your upsell strategy, your staff needs to buy into the strategy in order to be successful. Your staff is also a valuable resource for brainstorming revenue-increasing ideas because they know better than anyone what your guests want. 


Involving your staff in the revenue discussion, rewarding them for upselling services, and boosting morale is an effective way to increase revenue. 

8. Increase and improve your reviews


90% of guests check hotel reviews prior to booking a stay. Making sure that your hotel has great reviews online is critical to increasing revenue at your hotel. 


Adopting contactless technology, such as Canary, will effectively eliminate lines, allowing your staff to focus on hospitality instead of admin work, and allowing you to easily communicate with your guests before, during and after their stay. This technology will make check-in and checkout seamless and convenient for your guests and will encourage them to leave a positive review after their stay. 

9. Offer promotions to encourage bookings during slow periods


Most hotels have seasonal or weekly cyclicality in their business. For instance, many urban business-centric hotels typically have lower occupancy on the weekends versus weekdays. Conversely, many leisure-focused resorts have lower occupancy on weekdays than they do on weekends.


Hoteliers are constantly trying to increase revenue and promote booking during the slow periods of their business. The most successful revenue managers are able to brainstorm and create special bundles that allow guests to purchase deals during these slow times. For example, the business-centric hotel can partner with local attractions or restaurants to make their hotel a more desirable leisure destination for travelers. This will increase occupancy and revenue during the periods of time when things are typically slow. 

10. Market your hotel to appease specific guest demographics


Now that “work from home” is the norm, you could advertise your hotel as the perfect “work from vacation” destination. Advertising options like this will capture the attention of a certain demographic that will be more inclined to book a room. 


Many hoteliers were successful earlier in the pandemic by offering promotions for hospital workers. Staying abreast of trends and events - and creating targeted promotions - can be beneficial for both your hotel and the local community. 


11. Optimize your website, social media, and prices 


Most travelers and tourists discover hotels and resorts through online advertising and review sites. It is imperative that you optimize your online presence to cater to the guests who are actually looking for your hotel. 


This means improving online reviews, increasing your presence and impact on social media, and optimizing prices to attract the right customers. Optimization does not happen overnight. It will take time to figure out your customer profile and the best ways to use content on your website to boost natural traffic.


You do not want to simply raise prices at your hotel to increase revenue. Instead you will want to optimize your room prices. This means varying rates at different times and in different places online to attract the right customer to your hotel. 


It is best to hire a company who understands hotel optimization and can generate more revenue with the touch of a button like Canary Technologies. 


Interested in more information?


Canary Upsells is a solution that helps increase total-revenue-per-available-room (TRevPAR). Canary Upsells is also a fully-customizable and brandable solution that offers your guests pre check-in upgrades, in-stay discounts and deals, and streamline the check-out process with our contact-free option. No app download is required and the guest simply clicks a link sent by text message that will lead to our platform. 


Schedule your free demo of Canary technologies today!

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