For many hotels, Online Travel Agencies (OTAs) are a significant source of bookings. However, relying too heavily on OTAs can cut deeply into your profits due to high commission fees and competitive pricing pressures. To maximize revenue and create a more sustainable business model, hoteliers must explore alternative revenue streams that go beyond traditional room bookings.
At RevOptimum, we help hotels uncover innovative revenue opportunities that enhance profitability. Here are some of the best ways to generate additional income for your property.
1. Upselling and Cross-Selling
Guests are often willing to pay for added comfort and convenience, making upselling and cross-selling a simple yet highly effective way to increase revenue.
Ways to Implement Upselling & Cross-Selling:
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Offer room upgrades at check-in or during the booking process.
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Provide early check-in and late check-out options for a small fee.
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Introduce package deals, such as romantic getaway packages with champagne and flowers.
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Promote in-room dining enhancements, like breakfast-in-bed or minibar packages.
2. Monetizing Hotel Spaces
Hotels have valuable real estate that can be transformed into additional revenue streams.
Ideas for Generating Income from Hotel Spaces:
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Rent out conference rooms and event spaces for corporate meetings, weddings, or private parties.
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Partner with local businesses to offer pop-up shops or exhibitions in your lobby.
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Provide co-working spaces with daily or monthly memberships.
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Open up your pool, gym, or spa to local residents with paid memberships.
3. Food & Beverage Revenue
Your hotel’s restaurant, bar, and café can attract both guests and locals if marketed correctly.
Maximizing F&B Sales:
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Offer exclusive dining experiences, such as chef’s table events or wine tastings.
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Introduce happy hour specials or themed nights to attract local patrons.
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Implement room service promotions to encourage in-room dining.
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Partner with delivery apps to offer takeout and delivery options.
4. Experiential Offerings
Modern travelers seek unique experiences beyond just a place to sleep. Hotels can capitalize on this by curating memorable experiences.
Examples of Experiential Revenue Streams:
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Organize guided city tours or local cultural experiences.
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Offer wellness programs, such as yoga classes, spa treatments, or fitness sessions.
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Partner with local artists for art exhibitions or live performances at your hotel.
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Provide cooking classes, wine tastings, or mixology workshops.
5. Retail & Merchandise Sales
Selling unique hotel-branded merchandise and local artisan goods can create an additional revenue stream.
Merchandising Ideas:
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Offer branded items like bathrobes, pillows, or candles inspired by your hotel’s ambiance.
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Sell locally sourced souvenirs, artwork, or specialty foods.
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Introduce curated travel kits, including essentials like maps, sunscreen, and snacks.
6. Subscription & Loyalty Programs
Encouraging repeat business through exclusive programs can significantly boost long-term revenue.
How to Implement Subscription & Loyalty Revenue:
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Create a membership program with exclusive discounts, early check-in, or late check-out benefits.
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Offer a “stay now, pay later” plan for loyal guests.
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Develop a VIP program where frequent travelers receive perks like free room upgrades.
7. Strategic Partnerships & Sponsorships
Hotels can form partnerships with brands and businesses to generate revenue while enhancing the guest experience.
Examples of Strategic Collaborations:
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Work with car rental services or tour operators to offer commission-based bookings.
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Allow brands to sponsor in-room products, such as premium toiletries or complimentary snacks.
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Partner with fitness or wellness companies to provide exclusive guest experiences.
Conclusion
Diversifying revenue streams is essential for any hotel looking to reduce OTA dependency and boost profitability. By incorporating upselling strategies, leveraging hotel spaces, enhancing food & beverage sales, and offering unique experiences, hotels can unlock new revenue potential.
At RevOptimum, we specialize in helping hotels implement and optimize these strategies. Want to explore new ways to increase your hotel’s revenue? Let’s talk! Contact us today to learn how we can tailor a revenue growth plan specifically for your property.
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RevOptimum enables revenue management transformation for the hotel industry and supports hoteliers through our expertise and innovative revenue increase structures and proprietary tools. Every day, we strive to deliver the highest revenue performance, client excellence, service quality, and integrity that bring the power of success to the hospitality industry.
We are ready to work with your hotel to build a revenue management plan that brings in more RevPAR closely. Contact us to learn how you can reach all of your hotel revenue goals quickly.
