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 - generating additional income from non-room revenue streams such as spa treatments, dining experiences, tours, and upgraded amenities.

Here’s how you can leverage upselling strategies to maximise revenue and enhance the guest experience at the same time.


Understand the Value of Non-Room Revenue

Non-room revenue can account for a significant proportion of a hotel’s overall income. From food and beverage services to spa packages and event bookings, each touchpoint with a guest presents an opportunity to offer something more.

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 when it comes to upselling. Receptionists, concierges, and even housekeeping staff should be trained to suggest relevant upgrades or services without being intrusive. Authentic recommendations that suit a guest’s needs feel helpful, not pushy.

For example:

  • 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 to 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 (e.g., “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 sales 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. Renting out additional space for conferences, business meetings, weddings and other parties 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 that can be hired by event organisers, such as microphones, speakers, projectors, digital screens, lighting, and video cameras
  • Partner with other local businesses in order to provide comprehensive package deals, such as photographers or 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. Thoughtful staff training, attractive bundled offers, strategic use of signage, and smart technology integration can all significantly boost non-room revenue.

    When 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!

    References


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