10 Revenue Generation Ideas for Hotels That Still Work in 2022

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The hospitality industry keeps pushing forward thanks to numerous strategies. Given that the competition is harsh and that brands still experience the impact of the COVID pandemic, one of the most important strategies to have is a revenue-generating strategy. The challenging situation in the current markets renders many hotel owners and managers indecisive. 

They simply don’t know what works and what doesn’t.

That’s why we are here. We’ve done comprehensive research focused on identifying revenue generation strategies that still work in 2022. Here are the most noteworthy revenue generation ideas to inspire you to develop a plan of your own.

hotel revenue generation ideas

Dynamic pricing as a leading option among many pricing strategies

Yield management or dynamic pricing is still a huge thing, especially in local markets where the competition can be fierce. Being able to automate price adjustments according to the current supply and demand can make a huge difference.

How to apply it

Fortunately, you don’t need to do yield management manually. A solid booking engine with a pricing intelligence engine will do the job! You will also be able to foresee hotel performance, do demand forecasting on-demand, and see revenue forecast reports.

Real-life case study


The LOCAY Group consists of four beautiful boutique hotels located in Sydney, Australia. However, their business was jeopardized by many brands in the same local market. The hotels decided to increase revenue management and adopt a booking engine with a pricing intelligence engine. Thanks to automatically adjusted rates, the group experienced proactive revenue growth even in a competitive niche.

Personalized guest experience through distribution channels

Big brands have access to unlimited resources they can use to launch personalization initiatives across the board. Personalized guest experience through distribution channels is, in fact, offering the right room, service, or amenity, to the right guest, at the right time.

How to apply it

You need a reservation platform with a personalization engine to apply this strategy. 

Real-life case study

Curator Hotel & Resort Collection is a group of resorts and hotels. To personalize the guests’ experience and optimize booking, they implemented a reservation platform with a personalization engine. The result was 111% growth of RevPAR growth.

Cater to the needs of “man’s best friend”

Many people can’t imagine traveling without their pets. Enabling them to stay in your hotel with a pet and offering services tailored for pets can help you generate an additional revenue stream. 

How to apply it

You need to do research to find out what the best pet-friendly hotels do. It will give you a couple of ideas of what you can do with your property.

Real-life case study

Marriott hotels in Asia decided to go pet-friendly, but before investing too much money into it, they decided to run an A/B test. One ad was about spa and relaxation, and the other ad was focused on offering a luxury pet experience. The second ad had a 16% higher conversion rate.

Increase direct bookings

Increase direct bookings is the oldest revenue generation tactic in the book. When hotels don’t have to pay the commission, they are able to capture more profits and use it how they see fit. 

How to apply it

To increase direct bookings, hotels need access to a comprehensive booking engine with support for integrations. 

Real-life case study

fells hostel

After switching to a booking engine, 7 Fells Hostel managed to increase direct bookings to 72%.

Hotel benchmarking will never become obsolete

Hotel revenue can be observed as a function of performance which makes hotel benchmarking relevant. With benchmarking, you will discover weak spots in your operations and industry best practices. The best thing is that you can do both internal and competitive benchmarking.

How to apply it

It’s an easy strategy to apply. All you need is a proper benchmarking platform, and you can start doing it immediately.

Real-life case study

After using the benchmarking platform, Summer Hotels identified personalized messaging as the key to driving more direct bookings. The hotel came up with unique messages for every touchpoint in the guest’s journey. It took only one month to see the results — revenue increased by 29.% and the average length of stay increased by 9%.

Increase ancillary revenue

Another great idea is to increase the income from additional services and products you offer at your hotel. If you generate a stable ancillary revenue stream, you will be able to focus on other revenue-generating strategies.

How to apply it

While there are many strategies to help you increase ancillary revenue, the most efficient would be implementing a solution that automates ancillary sales.

Real-life case study

The SETAI hotel group wanted to increase ancillary revenue and decided to use an easy-to-integrate automation solution called UpStay. The solution was able to convert up to 20% of guests of the hotel to buy additional ancillaries and even room upgrades.

Make your property an environment for children to thrive in

Family travel is one of the best types of travel out there. When choosing a hotel, many parents look for activities specifically developed for the kids to participate in. These activities can range from fun to educational activities. Making your hotel more kid-friendly can help you make families more welcome.

How to apply it

The easiest way to make your property kid-friendly is to add the services children need.

Real-life case study

After conducting a market study, Beaches Resorts identified catering to the needs of the parents with kids market segment as a huge potential for revenue growth. They introduced various programs, including special needs, private childcare, teen, tweens, adventures, toddler, and infant programs. The age-appropriate programs enabled the hotel to increase revenue growth by 20%.

Improved property management

Property management systems play a vital role in hotels. They can contribute to revenue indirectly by ensuring repeat stays by offering delightful experiences to guests. With a state-of-the-art PMS, you will be able to burn through reservations and appreciate your guests’ time.

How to apply it

If you think your PMS is outdated, you should look for newer solutions leveraging the latest technologies. 

Real-life case study

The impact a PMS can have on revenue is best seen in the Hotel de Sterrenberg located in the Hoge Veluwe National Park in Otterlo, Netherlands. The hotel updated its old PMS system with a brand new one. The hotel saw an increase in revenue as there were 20% more repeat stays.

Search engine optimization of all online resources

With more and more people using the internet to search for, research, and book hotels, SEO is becoming increasingly important. SEO is all about identifying the relevant keywords for your potential guests and strategically implementing them. 

How to apply it

If you don’t have an SEO expert on your team, you will have to work with a freelancer or SEO agency, depending on the scope of work required. 

Real-life case study

After two years of watching the average occupancy rate and RevPAR decrease, The East Hotel, Hangzhou, China, decided to take action. They worked with an SEO specialist to devise a data-driven marketing campaign. In just one year, average occupancy rates increased from 68.1% to 80.3%, and RevPAR went from $69.96 to $91.65.

Full-on strategy for increasing revenue 

Hotels don’t have to use a strategy that solely focuses on promotion or improving a certain aspect of the operation. Instead, a hotel can develop a full-on strategy to increase revenue. It includes distribution channel optimization, competitive analysis, market segmentation, and internal benchmarking. 

How to apply it

Such a comprehensive strategy requires time and planning. Very often, a hotel needs to collaborate with an external agency such as a digital marketing firm or a revenue management consulting company that manages a respectable number of successful strategies in the niche.

Real-life case study

One of the noteworthy real-life case studies that showcase an elaborately planned strategy comes from a 417-room big resort in Orlando, Florida. After a robust digital marketing strategy, re-alignment of sales, room type names and description adjustments, and dynamic pricing, the hotel saw a 2.7% increase in ADR, 5% in RevPAR, and an overall revenue increase of 5%.


Given the complexity of the current market situation, the challenges that lie ahead of hotels, and that every hotel is unique, it’s hard to place a finger on the best strategy for capturing more revenue. Hopefully, these revenue generation ideas will help you come up with one of your own that reflects the specific goals of your hotel. 

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Graduated from Standford University, Arielle has over 5 years of experience in the Hospitality industry. She holds an MBA in business administration from the IDC Herzliya, Israel. She currently works as Account Manager at UpStay, building and maintaining strong, long-lasting customer relationships. She is deeply passionate about helping hoteliers unlock significant new revenue streams from unsold premium inventory.


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