How to Increase Hotel Revenue

Hotel revenue is the equivalent of customer satisfaction and traffic in such facilities. The managers of hotel are employing marketing programs, trade publications, communications software, productivity and quality initiatives to improve the flow of traffic in hotels. Metrics such as average day to day room rate as well as repeat customers are the performance measures of a hotel.

If the revenue of a certain hotel is high, it means they are effective and successful facility.

Compare Rates

Comparing rates with other hotels in the area is very important for you to increase hotel revenue. First research the rates of these hotels without their knowledge that you are actually comparing rates as a competitor. It would be best to hire a mystery shopper, wherein she will act as a potential guest asking the various rates of the room. Then when the information is already on your table, study and compare them to your price. This will help you determine the appropriate prices for every room. Be sure that you can also offer the services that guest are looking for a hotel.

Examine the Hotel’s Expenses

A hotel should have a comprehensive monthly financial accounting, wherein it listed all the expenditures or cost. It would be best to have an accurate accounting in terms of the following:

  • features
  • services
  • amenities
  • taxes
  • leases
  • supplies
  • products
  • laundry
  • payroll
  • marketing
  • advertising
  • hospitality affiliations
  • insurance premiums
  • maintenance
  • utilities
  • facility payments, and
  • other expenses

Calculate the day to day overhead cost for each room. Then subtract the cost from the income of the room. By doing this, it will help you determine if you gain or not, which will help you decide the right cost.

Evaluate the Guest Room

Another effective way on how to increase the hotel revenue is to assessing the genera condition of each room. An evaluation like this will include the window treatments, fixtures, appliances and electronics, towels, facilities, flooring, carpets, bedding, furnishings, surface treatment and structural appearance. By assessing the room, it will show if the accommodation of the guest will sustain increase in the revenue of the hotel or you may need to raise the rates to upgrade the hotel.

Determine the Amenities

It is also very important to consider the basics of a hotel room like bed, lamp, table, chair, phone, television, dresser and bath. You can also determine if you can add some amenities that the guest may need like internet connection or other needs. It would be nice if you can also have your competitor’s brochures, wherein you can able to see the service and amenities they provide to customer. This will help you determine if you still need to add certain amenities or features.

Quality of Service

Lastly, the quality of service is one of the most important ways to increase the revenue of the hotel. Make sure to hire friendly and good-natured staffs and crew, so that the guest will feel welcomed and comfortable for their stay.


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