{"id":23153,"date":"2019-06-27T08:35:04","date_gmt":"2019-06-27T08:35:04","guid":{"rendered":"https:\/\/www.xotels.com\/uncategorized\/5-ways-to-drive-incremental-revenue-to-your-hotel"},"modified":"2025-08-06T09:08:13","modified_gmt":"2025-08-06T09:08:13","slug":"5-ways-to-drive-incremental-revenue-to-your-hotel","status":"publish","type":"post","link":"https:\/\/www.xotels.com\/en\/revenue-management\/5-ways-to-drive-incremental-revenue-to-your-hotel","title":{"rendered":"5 Ways to Drive Incremental Revenue to Your Hotel"},"content":{"rendered":"

In last year\u2019s article at XOTELS – Hotel Revenue Management Consulting<\/a> on hotel ancillary revenue<\/a> we shared insider tips on how to generate extra revenue at your hotel or resort. We explained, among other things, how to upsell and cross-sell your services and how to leverage underutilized areas to increase revenue.<\/p>\n

<\/i>These main hotel revenue management<\/a> practices and strategies will stay relevant during the coming years, but there are now novel ways of increasing revenue per guest too. In this article, we will go into detail about these new methods of using the strategies mentioned previously and discuss other tips and tricks to supercharge your revenue by getting your guests to spend more.<\/p>\n

1. New Ways to Upsell and Cross-Sell Your Hotel<\/h2>\n

A great way of increasing revenue is by selling packages such as a\u00a0\u201cRomantic Escape\u201d\u00a0themed offer or a Golf & Sports package stay. Another option is appealing to a niche market. A pet-friendly hotel<\/a>, for instance, can attract a target group which is willing to pay more in order to take their pet on holiday. Also becoming a family-friendly<\/a> or female-friendly hotel<\/a> can offer possibilities to sell guests extra services.<\/p>\n

Here are some other ways to increase your hotel’s revenue. Room upgrades are a popular form to generate incremental revenue, and, as we discussed in a previous article<\/a>, adding a wider selection of room types is highly likely to lead to auto-upselling. As a basic example, two room upgrades that equate to an extra $60 per day per room will increase overall revenue by $43,800 per year. The hotel experience is, of course, replete with ways to upsell to guests. Other great initiatives are: early check in\/late check out, time-limited sales with countdown clocks placed on website promotional pages, and invoking the scarcity principle \u2013 where purchases become more likely when there aren\u2019t many units of the product or service left. Like upselling, the hotel sector offers countless methods to cross-sell. From add-ons such breakfast, lunch and dinner, a bottle of champagne upon arrival or other room service options to local excursions, and much more besides, such cross-selling initiatives can provide a powerful means to boost your revenue per guest. Importantly, all these little extras can add up to a sizeable amount.<\/p>\n

\"Hotel<\/p>\n

\u201cSuite Mata Hari <\/a>on seafront of San Sebastian, Spain\u201d<\/i><\/em><\/span><\/p>\n

2. Leverage Underutilized Areas<\/h2>\n

Last year we spoke about using certain areas of your hotel for another purpose. Some examples include selling your hotel’s garden as a location for events or allowing companies to conduct interviews and recruit staff in your meeting rooms.<\/p>\n

In addition to this, creating shared spaces is a great way of using underutilized areas in your hotel. Millennials<\/a>, who are a prominent target audience these days, like to spend more time inside hotel grounds compared to previous generations. By having some great communal areas within the hotel like a restaurant or bar your guests will not feel the need to spend their money elsewhere. This is perfect for boosting revenue as guests enjoy themselves and spend their money on-site. You can do this by:<\/p>\n