How to increase hotel revenue in 2025 [16 Ways]
Oaky
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No matter the season, the question “How to increase hotel revenue” is on top of every hotelier’s mind.
You might find it hard to continue using the same methods of generating revenue that worked before in the hospitality industry. To help you out and make sure you can not only increase hotel revenue but also diversify your revenue streams, we put together 16 most effective ways to drive revenue in 2025 and beyond.
What is hotel revenue?
Hotel revenue is the total income a hotel generates from its various services and offerings. It includes all revenue streams beyond room bookings.
How shifting to total revenue management can boost your hotel’s profitability
Traditional hotel revenue management in the hospitality industry focuses on optimizing room rates. But Total Revenue Management (TRM) takes a broader approach. It focuses on generating revenue across all hotel departments, including hotel rooms, F&B, spa, events, transportation, and more.
By adopting this strategy and expanding your focus, your hotel can become less dependent on occupancy rates. This not only helps to mitigate low-season dips but also increases overall revenue during peak periods.
In this article, we’ll show you how to increase room revenue while unlocking the full potential of your hotel's entire inventory and services.
How do you increase revenue at the hotel?
1. Decrease reliance on online travel agencies
It’s no secret that reducing reliance on online travel agencies (OTAs) can boost hotel revenue by saving on commission fees (often ranging from 15% to 25%).
To decrease OTA dependence, invest in a user-friendly website with a seamless booking engine.
This will ensure that potential guests can easily make reservations. Increasing visibility through SEO and GEO (Generative Engine Optimization) and marketing campaigns (e.g., PPC or social media advertising) can boost your direct website traffic, leading to direct bookings.
Building your brand and communicating your values are not less important to stand out in the competitive market. A strong and credible brand encourages guests to look for your hotel directly rather than booking through an OTA, especially if you have a robust guest loyalty program that drives repeat business.
2. Maximize direct bookings
Optimizing your hotel website is the first step to generating direct bookings. This includes:
Optimizing your website for search engines and mobile: Sales via mobile have been increasing compared to desktop or laptop, from 36% to nearly 50% of all digital travel sales in 2024. Booking.com reported 382 million mobile visits in July 2024, which was their peak month for mobile traffic. These data indicate a substantial number of mobile bookings in 2024—an opportunity you shouldn’t overlook.
Leveraging SEO, GEO, metasearch advertising, social media, and influencer marketing campaigns to attract users to your website.
Once users have landed on your website, your goal is to ensure a seamless user experience, resulting in a booking:
Create urgency: Use limited-time offers and special promotions to create urgency. They will motivate guests to book directly before the offer expires.
Offer exclusive deals and perks: Provide incentives for direct bookings. But instead of offering discounts, try value-added deals and packages. For example, instead of giving away 20% off on a guest stay, suggest a room upgrade + spa treatment bundle for just an extra $50.
Simplify payment options: Offer a variety of payment methods and provide transparent pricing to make the booking process more convenient for guests.
3. Kick off a consistent upselling strategy
To make an upselling strategy profitable, though, it should also become a seamless part of the guest journey, not a one-off effort. The key is to provide upselling opportunities to guests throughout their entire journey, from pre-arrival to front desk interactions and during the guest’s stay.
This not only maximizes your hotel’s revenue but also enhances the guest experience by giving guests the freedom to customize their stay. Hotels using Oaky hotel upsell software have seen amazing results, with ROI ranging from 6x to 215x or more depending on location and upsell potential. But one thing is clear—most of them see a significant increase in revenue and guest satisfaction.
How to get started with upselling:
Set up training for your team to upsell effectively at key moments (check-in, pre-arrival, and key touchpoints during the stay).
Use hotel upselling software to automate upselling, present upgrades and services to guests based on their booking details and preferences, and maximize revenue results.
Incentivize your team for successful upsells to boost their motivation and encourage them to improve their skills further.
4. Upsell early check-in and late check-out deals
Offering flexible check-in and check-out times is a highly attractive upsell, especially for guests with tight travel schedules. For you, as a hotelier, it’s an easy and proven way to generate extra revenue.
According to Oaky’s data, these deals are among the most profitable ones at the front desk. Late check-out is also a particularly strong revenue driver for in-stay offers. In fact, these room-related offers accounted for 12% of total upsell revenue for Oaky’s customers in 2024.
How to implement these offers:
Promote them in pre-arrival communication: Offer early check-in and late check-out options in your pre-arrival emails.
Train your team: Ensure staff can manage the logistics of flexible check-in and check-out times without causing operational disruptions.
Promote late check-out throughout the stay: Mention late check-out during check-in and remind guests about this option using QR codes in elevators, bedside tables, or in-stay emails and messages.
Use tiered pricing: Charge guests based on how early they want to check in or how late they want to check out.
5. Establish an effective guest loyalty program
Guest loyalty is crucial for driving repeat business and enhancing hotel sales and overall revenue.
A well-designed loyalty program fosters customer retention and rewards guests for their commitment.
The key to a successful loyalty program is a clear and simple structure, meaningful benefits, and personalization. The latter has become increasingly important in recent years. As Anthony Capuano, CEO of Marriott International, emphasizes,
“Hotels need to move from a more transactional relationship to a more emotional relationship,” stressing the importance of crafting experiences that transform a guest’s stay into a once-in-a-lifetime memory.”
To provide exclusive perks and instant rewards, for example, Marriott Bonvoy has partnered with companies like Starbucks and Uber, allowing members to earn additional Marriott points and increase program engagement.
How to Implement:
Offer tangible rewards: Provide real benefits such as free nights, discounts, or unique experiences.
Provide tiered rewards to incentivize guests to return for higher-value perks.
Keep it simple: Ensure the structure and redemption rules are easy to understand.
Promote the program across the board: Use your hotel website, email newsletters, pre-arrival upselling emails, and on-property signage to inform guests.
Encourage front desk staff to engage guests: Train staff to highlight loyalty benefits during check-in.
Personalize rewards: Tailor perks based on guest profiles, offering not only hotel room upgrades but also exclusive experiences available only to loyalty members.
6. Provide bundled deals
Bundling services or products together can make a positive impact on your revenue as well. The best part is that you don’t have to reinvent the wheel—just make the most of what you already have!
Bundling is effective because it increases perceived value. Guests are more likely to purchase packages when they feel they are getting extra value for only a slightly higher price.
How to Implement:
Create attractive bundles: Combine popular services, such as a room upgrade with early check-in or a romantic package that includes an exclusive dinner + a spa treatment.
Promote bundles on your hotel website and in pre-arrival emails to encourage purchases at every touchpoint.
Offer relevant bundles at check-in: Use open-ended questions to identify guest needs and suggest bundles and packages that will resonate with them. For example, offer a romantic package to honeymooners or guests celebrating an anniversary.
Track performance: Monitor bundle sales to identify the most successful combinations.
7. Elevate your food and beverage offerings
According to Expedia’s 2024 report, a hotel onsite restaurant is set to make a comeback in 2025. When booking accommodation, travelers not only book a place to stay, but they also book a dining experience. With more hotels opening restaurants featuring Michelin-starred chefs and exclusive seasonal menus, this trend has become even more prominent.
What’s more, nearly a third of travelers said room service from a famous hotel restaurant would make them more likely to book. While 31% consider tables reserved exclusively for hotel guests would be their top reason.
To jump on this bandwagon, create unique dining experiences to set your hotel apart from competitors. Offer local cuisine, themed nights, or exclusive food experiences for your guests.
How to implement:
Develop a seasonal menu: Use local flavors and ingredients to create a distinctive dining experience.
Bundle meals with room packages: Increase food and beverage revenue by offering meal-inclusive stays.
Communicate your F&B offers and promote special events: Use your website and social media and pre-arrival emails to advertise wine tastings, chef’s tables, and themed dinners.
8. Leverage dynamic pricing for your room upgrades and room-related services
Dynamic pricing for adjusting hotel room rates based on supply and demand, seasonality, and historical data isn’t new. But did you know you can take it a step further by applying the same approach to room upgrades and related services, like early check-in and late check-out?
By using hotel upselling software integrated with your RMS, you can maximize revenue through dynamic pricing on room upgrades. Moreover, you can also separate your upgrade pricing strategy from your overall revenue strategy, letting you capitalize more on the most profitable upgrades and generate even more revenue.
How to implement:
Invest in dynamic pricing software that adjusts your room rates in real-time based on occupancy, local demand, and competitor pricing.
Use your property's historical data to predict trends and optimize your pricing strategy.
Connect your RMS to Oaky. Start applying dynamic pricing to room upgrades and room-related services to boost ancillary revenue from guests looking for premium options.
9. Offer unique and authentic experiences
Authentic and unique experiences are reigning supreme among modern guests. A recent survey by McKinsey found that the availability of experiences is one of the most important factors that impact travelers’ decisions when choosing a destination.
62% of respondents mentioned the importance of dining experiences. And 58% highlighted authenticity (the ability to experience local culture and customers) as one of the crucial factors in their decision-making.
Younger generations, such as Millennials and Gen Z, are especially interested in experiences. 52% of Gen Zers say they are ready to splurge on experiences, compared with only 29 percent of baby boomers. Also, Gen Z travelers mention they try to save money on flights, local transportation, shopping, and food before cutting their spending on experiences.
It’s clear that offering experiences can be an additional revenue stream for your hotel. Unique experiences can encourage guests to spend more, book longer stays and create lasting memories.
How to implement:
Partner with local businesses, tour operators, or artisans to create authentic experiences.
Promote these activities through your website, booking engine, and email marketing campaigns (such as pre-arrival emails via Oaky).
Consider adding value by offering exclusive experiences to loyalty members.
Communicate high-margin experiences to guests at check-in.
10. Use automation to boost your results
Automation improves hotel operations and efficiency by handling tasks routine tasks for your team. By automating sending confirmations and follow-up emails, managing upselling offers, and running personalized marketing campaigns, your team can focus on revenue-generating activities while enhancing guest satisfaction.
To increase hotel revenue, consider using hotel revenue management software to align your pricing with real-time market demand, occupancy and historical patterns. In many cases these tools focus on only your room revenue. But to take it to the next level and unlock another revenue stream—your services and experiences—the best way is to use hotel upsell software.
It helps you unleash your entire upsell potential, maximize revenue from your premium rooms and services (dining, spa treatments, exclusive experiences for different guest segments). You can also upsell guests at every touchpoint—pre-arrival, at the front desk and during the stay—in an automated and easy way.
11. Embrace group bookings
Attracting group business is a powerful strategy for increasing hotel revenue. Group bookings, such as conferences, weddings, and family reunions, can boost occupancy rates and generate substantial income.
To attract group business, offer competitive rates and customized package deals that cater to the specific needs of group guests.
How to implement:
Create a clear, dedicated page on your website for group bookings, outlining the benefits and packages you offer.
Provide dedicated event planning services to ensure smooth and successful planning.
Offer unique experiences, such as customized menus and activities, to make group events memorable and set your hotel apart.
Train your front desk and sales team to handle group inquiries. Educate them on how to offer personalized support from the booking process to check-out.
Use a booking engine that allows group booking management with ease.
Offering group rates or special event packages can encourage group leaders to choose your hotel for future events.
Partnering with local businesses and attractions to offer exclusive packages and promotions can also attract group bookings. For example, partnering with local tour operators or restaurants can provide added value to group guests, making your hotel the preferred choice for their events.
Effective marketing is key to promoting your hotel’s group business offerings. Use social media to reach potential customers and showcase your hotel’s capabilities. Highlight successful past events and positive testimonials to build trust and attract more group bookings.
12. Apply stay restrictions
Stay restrictions can help you maximize revenue during peak times.
For example, applying minimum stay requirements during holidays or local events ensures you’re optimizing your revenue. This strategy helps prevent guests from booking a one-night stay during busy periods when longer stays are preferable.
How to implement:
Use your property management system (PMS) to set minimum or maximum stay restrictions during high-demand times.
Monitor occupancy levels and adjust restrictions to ensure maximum profitability.
13. Use the right marketing channels
Choosing the right mix of marketing channels to reach your ideal guests is key to increasing your hotel revenue. This can include email marketing, paid search, social media, and partnerships with third-party booking platforms.
Dive into your data to uncover the best-performing channels that help you capture your ideal customers. These are the channels you should consider doubling down on.
To drive more direct bookings and save on OTA fees, optimize your website not only for search engines but also for generative AI (GEO). With global organic traffic declining, make sure your website and content are optimized to be picked up by ChatGPT, Gemini, and other AI-driven tools.
Harness the power of social media to promote your hotel by showcasing its design, unique experiences, and surroundings, raising awareness about your destination and the exclusive things it offers.
Millennials and Gen Z are using Instagram and TikTok as their new search engines, so focus on what makes your hotel special. Short, engaging videos and high-quality photos that highlight your property’s standout features will grab attention. Partnering with local influencers or travel bloggers can also help you extend your reach to a wider yet relevant audience.
Don’t forget about paid ads. Both platforms offer robust targeting options. Use them to specifically target travelers based on location, interests, and behaviors, ensuring your ads reach the right people who are more likely to book your property.
Track ROI from your campaigns as well as the segments these campaigns have helped bring to your hotel. By using data, you can refine your approach further to generate more desirable bookings.
14. Encourage guests to share feedback and post online reviews
Positive reviews are crucial for attracting new guests. Ask your happy guests to leave reviews, and respond to any feedback you receive to improve your reputation.
According to Accor’s research, an impressive 97% of hotel guests have checked guest reviews when looking to book a stay in a hotel or resort. It shows the importance of investing your time and effort in creating a positive online reputation for your hotel and maintaining high scores on online platforms, especially OTAs.
How to implement:
Ask happy guests to leave reviews during check-out or via follow-up emails.
Offer incentives like discounts or loyalty points for leaving reviews.
Respond to reviews promptly, address any concerns, and thank guests for their feedback.
15. Optimize your taxes and VAT to maximize hotel revenue
To prevent revenue leakage, manage and optimize your taxes and VAT smartly. Bundling your deals in the right way, positioning cancellation fees as damage fees, and staying up to date with tax and VAT regulations can help ensure you're not missing out on potential earnings.
16. Bonus point: Improve team collaboration and processes
Finally, none of your efforts will pay off if your teams are working in silos. For instance, if your revenue manager tries to roll out an upselling strategy to maximize check-in upsells, but your front desk staff isn’t on board, it simply won’t work.
How to implement:
Invest in communication platforms like Slack, Microsoft Teams, or Trello to centralize communication. This way, you can break down silos between departments (e.g., front desk, marketing, housekeeping, and sales) and ensure everyone has access to real-time information and is on the same page.
Align your marketing and sales goals with your revenue goals. Use a shared dashboard to track key performance indicators (KPIs) like occupancy rates, average daily rates (ADR), and total revenue per available room (TRevPAR). By using data-driven insights, both teams can target the right guest segments with tailored promotions and offers.
Training your team members on upselling strategies ensures a consistent guest experience. Use upsell software like Oaky to automate and present upsell offers based on guest profiles and behaviors. Studies have shown that hotels that use automated upselling strategies see an average increase of 20-30% in ancillary revenue per guest.
Use data from your PMS, booking engines, CRM platforms and your hotel upsell software to track guest preferences, booking patterns, and performance metrics. Share this data across departments to inform decisions on pricing, promotions, and service offerings.
