How to Increase Hotel Revenue

How to Increase Hotel Revenue

In today’s highly competitive hospitality landscape, simply filling rooms is no longer enough to ensure strong profits. Forward-thinking hoteliers know that increasing revenue per guest is the key to a thriving business.

One of the most effective strategies is focusing on upselling and ancillary sales. This means making extra money from things other than room bookings. This includes spa treatments, dining, tours, and other upgrades.

Here’s how you can use upselling strategies to increase revenue and improve the guest experience at the same time.


Understand the Value of Ancillary Revenue for Hotels

Non-room revenue can account for a significant proportion of a hotel’s overall income. Every guest interaction is an opportunity to provide more. This includes food and drink services, spa packages, and event bookings.

Focusing on ancillary services not only boosts revenue but also deepens guest satisfaction by offering tailored experiences. A guest who enjoys a seamless upgrade or a memorable meal is more likely to leave positive reviews and return.

85.6% of executives agreed that non-room revenue would represent an increasing share of their hotel’s annual revenue over the next three years. [1]

Train Staff to Upsell Naturally

Your team members are your front line in upselling. Receptionists, concierges, and even housekeeping staff should learn to suggest relevant upgrades or services without being intrusive. Authentic recommendations that suit a guest’s needs feel helpful, not pushy.

Hotel upselling strategies can involve the following:

  • Reception staff might offer a discounted spa treatment at check-in
  • Concierges could suggest premium city tours and activities. Partnering with local businesses can increase your income and enhance your guests' experience
  • Housekeepers could leave cards promoting room service specials or late check-out options

Empowering your staff to personalise suggestions (based on guest type and length of stay) makes offers more appealing.

Maximise Signage to Promote Services

Well-placed signage is an often overlooked but incredibly effective tool for promoting ancillary services. When used thoughtfully, signs subtly encourage guests to spend more without direct selling pressure.

Consider these strategies:

  • In-room displays: Place cards on desks or bedside tables advertising spa specials, in-room dining offers, or room upgrades
Hotel non room revenue
  • Digital signage: Use screens in the lobby, lifts, and public areas. You can promote services like happy hour deals, breakfast buffets, or yoga classes
  • Bathroom signage: Tasteful signage can promote premium toiletries for sale, spa services, or luxury bath packages
Hotel non room revenue
  • Lift posters: Captive audience areas like lifts are perfect for highlighting short, time-sensitive promotions. For example: “Afternoon Tea, Served Daily from 1 PM – Book at Reception!”
  • Reception displays: While guests wait to check in, they are primed to notice offers on excursions, late check-outs, or premium Wi-Fi packages. Leaflet displays are ideal for this

Ensure that your signage is consistent with your brand’s look and feel. Keep messages short, engaging, and visually appealing.


Create Irresistible Packages and Bundles

Another effective way to increase ancillary revenue for hotels is by offering bundled packages. Instead of selling services separately, create attractive combinations such as:

  • Romance and wedding packages including champagne, chocolates, and spa access
  • Family deals with discounted meals, tickets to local attractions and excursions, and organised family activities
  • Wellness retreats combining accommodation, spa treatments, and healthy dining options

By packaging services together, you offer guests convenience and perceived value, making it easier for them to say "yes".


Promote Event Hosting Options

Typically, hotels are already set up for catering to many people at once. Rent out additional space for conferences, business meetings, weddings and other parties. This is a great way to attract more customers and generate additional revenue.

  • Offer catering packages to make your event space rental more comprehensive and appealing to event organisers
  • Invest in audio-visual equipment for hire by event organisers. This could include microphones, speakers, projectors, digital screens, lighting, and video cameras
  • Work with other local businesses to offer complete package deals. This can include photographers, photo booths, videographers, and entertainers.
    • Non-room hotel revenue

    Use Technology for Smart Upselling

    Booking engines and pre-arrival emails are ideal touchpoints for upselling. Offer room upgrades, spa bookings, and dining reservations during the online check-in process. Apps or SMS messages during the stay can further promote time-sensitive offers.

    For example:

    • “Upgrade to a deluxe suite for just £30 extra per night!”
    • “Enjoy a 20% discount on massages booked today - call Reception!”

    Personalisation based on guest data (such as previous purchases or preferences) can make these offers even more successful.

    “Upselling is one of the most successful tools in the hotel industry to make additional revenue, and the better the data is, the better we can do that before or on arrival”Gunnar von Hagen, corporate director of operations and central project management, Lindner Hotel [1]

    Reward Guests for Spending More

    Loyalty programmes can also incentivise higher spend. Offering points or discounts for booking hotel ancillary services encourages guests to take advantage of what’s on offer. For instance, a guest might receive a free spa treatment after booking two during their stay.


    Conclusion

    Driving hotel revenue isn’t just about selling more rooms. It’s about creating a richer, more memorable guest experience through upselling and ancillary sales.

    • Good staff training can help hotels make more money
    • Attractive package deals can also boost revenue
    • Clear signs are important for guiding guests
    • Using smart technology can increase profits too

    When hotel upselling is done right, it feels less like selling and more like enhancing the guest journey. A win-win for both you and your guests!


    Check out our hotel display guide to help put your ideas into practice!

    References


    1.‘Hospitality in 2025: Automated, Intelligent... And More Personal’ (2025), Oracle and Skift, https://www.oracle.com/emea/hospitality/hospitality-in-2025-report/