9 Effective Ways to Increase Revenue for Small Hotels

how to increase revenue for small hotels

9 Effective Ways to Increase Revenue for Small Hotels

Being part of the management team in a small hotel calls for some specific qualities and tasks. If you are of a small hotel, there are some tips that you can use to increase revenue for small hotels.

How to Increase Revenue for Small Hotels?

Here are 9 proven ways to increase revenue in small hotels.

1. Optimize Your Pricing Strategy

Pricing strategy is a critical factor that is used to determine the optimality of the revenue.

Develop dynamic / variable rates which means changing the price depending on how much the rooms are in demand, what time in the year we are in, or when there are specific events in that particular region.

In particular, use conversion kits to analyze the booking curves and rates of the competitors to set a fair and effective price for an accommodation that will attract guests, as well as increase the company’s profitability.

2. Enhance Direct Bookings

Booking made directly from guests, customers or clients, however is more beneficial compared to those made online using third parties, since third parties charge highly for their commission.

To increase direct bookings:

  • Website user experience and the website position in terms of mobile responsiveness or friendliness should be improved.
  • Promo codes 10% to 15% off for the bookings done on your website only especially for those hotels which have active online presence.

A few ideas to follow as the primary steps towards the development of a sound booking engine is as follows:

You need to ensure that you engage in SEO and SEM in order to ensure that you are able to attract many visitors to your site.

It is highly recommended to apply email marketing in order to reactivate the previous clients to the hotel by offering special discounts and other attractive promotions.

3. Increase Your Online Presence

Your online presence greatly affects your bookings as it is an important factor to consider in booking. Make your hotel easily searchable on major review websites and other OTAs in order to ensure only good things are said about it.

It is also important to fuel positive reports from guests through encouraging those satisfied and show reasonable understanding to negative reports.

4. Upsell and Cross-Sell Services

Maximize your revenues by going the extra mile in some more ways of providing services to the guests. Some of the suggested upsell ideas include; rooms and suites, early arriving services, late checkout services, and other luxury services.

It is important to educate your staff as to when it is appropriate to inform their clients about these feature supplements in a polite manner.

increase revenue for small hotels

5. Leverage Social Media Marketing

The increase in the number of internet users has made social media a useful platform for small hotels to access a larger market base. Posts should be fun and attention catching, and should illustrate the properties services, friendly faces of the hotel, and things to do in the surrounding area.

Check out our article on Best Social Media Marketing Tips for Hotels

You can use paid-only ads to target potential customers by and use social media celebrities to further extend the promotion of your services. Invite guests to share on their social pages the time they had in your hotel so that many people could see them.

6. Implement Loyalty Programs

Another method to increase your hotel revenue is by implementing loyalty program. Owing to its ability to create goodwill and foster long term relationships with customers loyalty programs can greatly make the bookings to recur.

Implement a loyalty program where a hotel patron is offered incentives for use of the hotel’s services by either lowering the costs of services, free accommodation or special services. They should be advertised by putting banners of the program on the website, in the emails and when attending to guests.

7. Enhance Guest Experience

Making the guests to feel comfortable is an important factor that help to attract them back for more business and more references. The emphasis has to be put on the actual service delivery from the time a guest signs on with the hotel to the time he or she checks out.

Personalized approach meant that each guest would easily be remembered and their specific desire as well as occasions that they hold dear taken into consideration. Any problems that may arise must be solved immediately and with your employees, make sure they are ready to go the extra mile in fulfilling the expectation of any guest that comes to your facility.

Read more: 9 Ways to Improve Guest Experience in Hotels

8. Offers and promos

Offers and promos are particulars that allow people to buy products at a cheaper price than its usual price.

Package and offer your services to guests in an enticing manner, combine your offers with free additional services or sightseeing tours. Some of them are; romantic tropical escapes, family specials, and adventure deals. These packages even as they attract higher guest values help improve your hotel’s Average Revenue per Room Rate.

9. Leverage advanced technological solutions

That means any effort to cut down on waste and improve efficiency can go a long way toward helping a business thrive and smoothly transition into the digital age.

Leverage advanced technological solutions to increase organizational productivity and make guests more satisfied. Some of the features of an effective guest communication platform and automating such aspects as marketing can help in making your staff more efficient by completing many routine tasks thus allowing them to concentrate on providing the best guest experience.

Furthermore, for more convenient and minimizing close contact the following suggestions may be made: contactless check-in/check-out and mobile keys to the rooms.

increase revenue in small hotels
Read more: 10 Best Hotel Revenue Management Strategies


To increase revenue for small hotels it is vital to focus on better pricing tactics and initiatives in guest satisfaction, availability of superior marketing tools.

Specifically, it is possible to maximize the profitability of your hotel by adopting the following strategies:

  • Optimizing your technological platforms for the online management of the hotel and its services
  • Achieving the greatest possible exposure across the technological platforms
  • Considering different ways of upselling and cross-selling services

But never forget that long term revenue growth is a product of repeated positive experiences that will define the guests’ loyalty and feedback perception.

Use the tips outlined above to increase your income, and grow your small hotel into the success story that it deserves to be.

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