Creative Ways to Strengthen Hotel Incremental Revenue
April 18, 2021|Hotel Marketing

When we talk about increasing revenues, it usually revolves around getting more bookings and increasing occupancy rates. But when it comes to growing your incremental revenue, it is more about making your guest want to spend more on your products and services during their stay. This is especially applicable to smaller hotels, which cannot simply accept more reservations because of their limited number of rooms, quickly reaching capacity.

Upselling and cross-selling additional products and services are some of the most commonly used tactics to augment incremental revenue. It's an excellent way to explore and target niche markets. You can offer a product, service, or upgrade that a particular group of customers would highly appreciate.

You can start by offering standard hotel services such as early check-in and early check-out. You can also go for something more specific, like special group deals for traveling families or introducing pet-friendly rooms for animal lovers. These extras can create interest and attract guests while creating a perfect window of opportunity for you to entice them to spend more than their original booking.

Upselling and cross-selling play a big part in incremental revenue generation. But it would be best if you took note that timing is also crucial in introducing your add-ons. This means you should know exactly when to offer them to avoid hard-selling, which guests do not appreciate and could drive them away.

Train your staff to upsell and cross-sell and maybe encourage them with excellent sales incentives, but monitor and manage their performance to ensure they are not employing high-pressure sales tactics.

Another means of generating incremental revenue is utilizing unused spaces in your property. Consider renting out a restaurant, a conference hall, a yard, or a garden -- areas that you have that can be perfect for conferences, parties, wedding receptions, or any event. You might also have a spare lounge area that can be rented out as a cozy co-working space. Look around and see which areas can be potentially rented out. If you have a bar or a social room which barely gets filled, you should arrange to have some sort of attraction or entertainment like a live band or sports fixtures.

The goal is to present plenty of attractions to entice guests to book your hotel and then offer irresistible deals that would make them spend more during their stay. But beyond these steps that attract customers, it still boils down to providing the finest service a guest can experience. And repeat clients are usually more likely to spend more when they come back than first-time guests are.

Once you have caught your customers' attention, the next thing to be concerned about is making sure they return and keeping them as recurring clients. At this point, you've already established your approach on how to provide an outstanding experience, so it's time to conceptualize an incentive system or a loyalty program to encourage them to keep revisiting.

Provide individualized service to your guests to cater to their unique needs. This shows that they are valued and given importance. You can achieve this in the slightest and simplest ways, such as fulfilling simple room requests or having a helpful front desk that they can conveniently reach at any time. There are plenty of other ways on how you can provide a better customer experience. Check out our previous blogs to learn more about innovating your hotel.

Ultimately, driving your incremental revenue is mostly about maximizing your resources and stepping up the quality of services. Building your incremental revenue is a worthy means of augmenting your hotel's profitability and can be implemented to complement your conventional revenue management strategies. It's just a matter of finding the right balance of methods for your business.

If we can help your hotel marketing, reach out to us at or give us a call at 888-999-8086.

comments (0)

84 more from BezlaLLC