The hotel industry is facing a powerful mix of opportunity and pressure. Hotel guest spending on travel and associated expenses is projected to hit a record $777 billion, according to the American Hotel & Lodging Association. But costs are rising, staffing remains tight and many traditional revenue streams are feeling the squeeze. So what’s the smartest way forward?
It’s not just about increasing room rates or trimming amenities. It’s about uncovering hidden revenue opportunities within the guest journey—and using modern tools to offer them without overloading your team. That’s why we’re sharing six smart strategies to grow revenue this year without sacrificing service quality. Here, we cover:
- New ways to generate revenue with automation
- Ideas for unique add-ons and upsell opportunities
- How to increase bookings with more third-party reviews
6 Ideas for Increasing Your Hotel’s Revenue
1. Rethink Upselling With Automation
A recent survey found that 49% of hotel executives “strongly agree” that non-room revenue is going to become a larger part of their cash flow. That’s great news, but manual upselling is outdated. That’s why hotels are replacing generalized add-ons and front desk pitches with dynamic, personalized offers delivered through smart technology.
3 Ideas for Automatic Ancillary Revenue
Technology lets hotels automatically deliver offers via guest messaging and the digital check-in flow automatically, so the right options are provided in the right context. Here are some ideas:
- Automate a message to offer spa or transport packages a few days before arrival
- Schedule a mid-stay text with advertising add-ons like wine tastings or bike rentals
- Pair early check-in or late checkout inquiries with discounts automatically
2. Monetize Guest Messaging
Guests prefer texting. In fact, 78% say texting is the best way to reach them with updates. Have you considered how you can use this channel to drive revenue? It lets you add more communication touchpoints to the guest journey and surface new opportunities to offer paid add-ons.
How to Make Money Through Guest Messaging
If you’re already communicating with guests via texting, here are ways to make it profitable:
- Generate repeat reservations by sending loyalty members a booking discount
- Suggest a room upgrade the day before arrival
- Send an announcement about happy hour at the hotel bar
- Offer guests a discount on an additional night during their stay
Fun fact: One hotel sent a text blast to in-stay guests with an extra night discount offer. They generated $15K instantly—see how they did it.
3. Digitize Your Compendium for More In-Stay Spend
Paper compendiums have long been the standard for showcasing hotel amenities, but going digital takes it a step further. Your guests get a mobile-friendly version of the info they need and you can showcase relevant upsells at the same time. For example, guests looking at departure times will also see a prompt to book a discounted late checkout.
Offer More Information, Get More Revenue
When guests see upsell offers alongside helpful information, they’re more likely to browse and buy. Here are some ways to incorporate this into a digital compendium:
- Include discount offers alongside hotel restaurant menus
- Keep content engaging with seasonal or limited-time upgrades
- Utilize referral links for local activities that guests can book
4. Drive Direct Bookings With AI
OTAs are great for visibility, but their commissions eat into revenue fast. To fetch higher profit margins, focus on converting guests directly from your website and phone lines. With AI-powered communication, you can answer questions in real-time via your phone or website without tying up your staff’s time.
Automate Answers for More Direct Bookings
When guests can easily get the answers they need, they’re less likely to go to an OTA for info (or worse, a competitor!). Here’s how to use AI to turn potential guests into booked travelers:
- Add an AI chat widget that provides real-time answers 24/7
- Utilize a virtual voice agent to answer questions and manage bookings
- Incorporate direct booking offers directly into AI-powered conversations
5. Reduce Chargebacks and Payment Fraud
Hotels lose thousands to chargebacks and fraudulent payments every year. But the good news is that these are avoidable. Going digital proactively prevents fraud, makes your customers feel more secure when making payments and gives you more evidence to successfully challenge cases if chargeback claims occur.
Say Goodbye to Fraud and Chargebacks
Collecting payments digitally is safer for your guests and your revenue. Here are some solutions to implement:
- Replace paper credit card forms with PCI-compliant digital ones
- Use digital check-in tools with integrated ID verification
- Send secure payment links instead of requesting payment over the phone
6. Capture Reviews to Drive Future Bookings
A five-star experience deserves a five-star review, but even happy guests may forget to leave one. Because reviews directly influence where guests choose to book (and how much they’re willing to pay!), this is a missed opportunity to bring in more bookings. By automating the ask for reviews, you can be sure you prompt every happy guest, every single time.
Ways to Automate the Ask for Reviews
Incorporating an ask for a review can be done at several key touchpoints throughout the guest journey:
- Send automated thank you messages after guests leave and ask them to leave a review
- Use a digital tipping solution that prompts guests to leave a review after gratuity
- Implement a digital checkout that asks guests for internal feedback and automatically directs positive reviewers to your Tripadvisor or Google profiles
Final Thoughts: More Hotel Revenue Without More Work
As costs rise alongside guest expectations, growing revenue is about working smarter, not harder. By automating key parts of the guest journey and creating great experiences, you’ll optimize your revenue and create stays your guests will want to repeat again and again.
If you’re ready to rev up your hotel revenue engine, Canary Technologies’ solutions make it possible. Trusted by 20,000+ hotels in 100+ countries, Canary creates more opportunities to earn at every stage of the guest journey. Book a demo today to see what’s possible.
About Canary Technologies
Canary Technologies is revolutionizing the hotel tech stack with its award-winning Guest Management Platform, digitizing everything from post-booking to checkout. Trusted by 20,000+ hoteliers in 90+ countries, including Marriott, Four Seasons and Wyndham, Canary is the top-rated solution on HotelTechReport. Canary’s solutions include Canary AI, Mobile Check-In, Smart Checkout, Dynamic Upsells, Guest Messaging, Digital Tipping, AI Voice and more. Canary eliminates paper processes, boosts revenue, increases staff efficiency, enhances the guest experience, and reduces chargebacks and payment fraud.
Amanda McDowell
Content Marketing Manager
Canary Technologies
