To make it in 2026, hotels have to make their revenue go farther than ever. Last year in the U.S, average wages for hotel workers climbed between 3.7 percent and 5.9 percent year-over-year, while labor cost per occupied room climbed 2 percent to 11.2 percent. As labor costs rise, guest expectations climb and market dynamics shift — meaning relying solely on room bookings is no longer enough.
From attracting higher-value demand to unlocking new revenue streams across meetings, events and on-property experiences, let’s explore how to increase hotel revenue using proven tactics designed to drive bookings and enhance guest experience.
Key Takeaways
Want to crack the code on how to improve hotel revenue? You’ll need to go beyond the basics. Smarter technology, sharper strategies and a guest-first mindset are all a must. Increasing revenue per available room (RevPAR) comes down to optimizing every channel, touchpoint and opportunity regardless of your property’s size.
Below are 17 proven strategies that will show you how to increase hotel revenue:
Adapting to the times means adjusting your pricing strategy to meet your demand. To stay competitive, top-performing hotels use dynamic pricing tools and forecasting models to adjust rates in real time. These change rates are based on booking pace, local events and market conditions.
This year, using AI-driven rate management and integrating nontraditional data sources (airfare searches, regional weather and web traffic) will help you lead the pack. Automating this process will help you make smarter pricing decisions and earn higher revenue without increasing staff workload. Here’s how to get started:
Online Travel Agencies are great for visibility, but their 15-25% commission fees can significantly affect your bottom line. To master direct booking, guide guests to make reservations directly via your website, email campaigns or loyalty programs.
Not sure how? Clear ways to add value, like exclusive packages, complementary perks and special offers create strong incentives to book directly. Here are some tips:
It’s easy to let your various hotel sales channels (website, OTAs and Global Distribution Systems) fall into silos. Putting them all in one place makes it easier to maintain rate parity, avoid overbookings and see a 360-degree view of your hotel’s performance.
A centralized revenue strategy improves consistency and minimizes missed opportunities. When every team across the property works with the same goals and data, you get better forecasting and more agile revenue decisions. To get there, start with these steps:
Room upgrades, late checkouts and in-room extras are simple ways to boost the bottom line when presented at the right moment. One industry analysis found that a well‑executed upselling strategy (like pre‑arrival offers or targeted ancillary options) typically converts at over 6%, lifting revenue from each converted guest by 14% on average. That combination can translate into about a 2.7% bump in gross operating profit.
A hotel upsells platform like Canary’s Dynamic Upsells does this automatically by surfacing relevant offers during booking and throughout the stay. For example, a limited-service property can automatically offer early check-in or parking, while a resort may offer spa treatments or cabana rentals. To unlock more value from each stay:
Highlight value in every upsell: Use an upselling solution that makes it easy to add details so guests understand the add-ons that are available
If your booking engine is clunky, slow or confusing, there’s no doubt you’re losing revenue. Guests expect a seamless, mobile-first booking experience with minimal friction. Optimize every step, from room selection to payment confirmation, to prevent drop-off.
Audit your current journey and identify drop-off points. Then, test improvements like autofill, trust badges, mobile optimization and instant confirmation messaging. Here are a few quick wins:
Flexibility is currency. Guests want options, like early check-in and split stays, and they’re willing to pay for them. Thanks to hospitality AI, many hotels now offer personalized stay options that match guests' schedules and preferences.
These micro-revenue moments not only increase profitability but also improve satisfaction and reduce front desk bottlenecks. Here are a few flexible stay options that drive additional revenue:
Hotels don’t just sell rooms — they also sell an experience. Creative bundles (like romance packages, local food tours or spa + room combos) attract guests looking for a memorable time. These give you an opportunity to price strategically and stand out from the competition.
The key is relevance. Tailor packages to seasonality, traveler type and current trends (e.g., wellness, remote work, culinary travel). Ways to do this include:
Your guests aren’t all the same…so your offers shouldn’t be either. Use your guest management system to identify guests by behavior, demographics and booking patterns. Then, personalize pre-stay offers, email promotions and on-property upsells accordingly.
Doing this improves conversions, builds loyalty and increases guest spend over time. Here are a few ways to tailor your outreach to different types of travelers:
Did you know that group and corporate travel is often more profitable than leisure bookings? To grow this sector of your business, you’ll want to target these segments through tools made for corporate bookings, event planner partnerships and proactive outreach.
Offer dedicated booking portals, loyalty perks or custom event packages to make your property the easy choice for planners. To capture more group and event business:
With the right strategies, F&B can be one of your most profitable departments. Focus on reducing waste, streamlining service and offering creative experiences that attract locals as well as guests.
Think beyond standard menus. Chef’s tables, seasonal tasting menus and interactive culinary experiences enhance the guest experience and give your property a unique selling point. Digital menus highlight these offerings, making it easy for guests to discover add-ons and drive higher spend without overcomplicating kitchen operations. Practical ways to boost your F&B revenue include:
Online reviews can make or break your bookings. In fact, a 1-star rating difference can impact bookings by up to 20%. This is why you should make reputation management a priority by responding to feedback, addressing issues promptly and proactively collecting reviews.
A strong reputation builds trust and boosts your ranking on OTAs and Google. Here are a few ways to strengthen your online presence and guest perception:
Winery tours, surf lessons or food delivery partnerships can really set your hotel apart (and drive revenue!). By collaborating with local businesses and cross-promoting services, you’ll expand your reach and enhance your guest experience.
Local relationships also build community credibility, which is something that matters to many types of travelers. Here are a few ways to make local collaborations work for you:
Timing is everything when you’re wondering how to increase hotel revenue in low season. Look at past performance data to identify your soft periods, then launch targeted email, social and Pay-Per-Click campaigns focused on meaningful incentives.
Consider bundling amenities, offering limited-time discounts or targeting more local travelers with last-minute promotions. To make the most of your low-season marketing:
Modern hotel tech is a game-changer. The right tools let your team do more with less while improving the guest experience. And in 2026, that’s the kind of convenience guests expect.
Solutions like luxury hotel technology allow hotels to personalize the stay, reduce operational workload and uncover new revenue opportunities. Here’s how to put it to work:
Parking, day-use rooms and luggage storage are underutilized, but they can bring in real earnings. Consider offering non-traditional guests (e.g., remote workers, cruise travelers) paid access to these services to fill downtime between stays.
Smart packaging and digital access control let you monetize these assets without complicating operations. Here’s where to start:
Digital ads only work when they’re targeting the right travelers. Invest in potential guests who are about to make a booking and are searching for your destination or brand name. You can also re-engage people who’ve already visited your site or stayed with you before.
Track every campaign by revenue (not just clicks!) and double down on the ones that drive bookings. Here are a few ways to use ads strategically and boost bookings:
You’re beating back rising wages, energy costs and supply chain delays, so it’s vital to control hotel operating costs if you want to see real growth.
Smarter staffing, automation and better resource tracking can reduce waste and boost efficiency without sacrificing service. To protect your bottom line:
According to IDeaS, 67% of hotel owners and investors say having the right technology will have a high or very high impact on profitability. Canary’s end-to-end Guest Management System gives you the tools to increase revenue at every touchpoint, from pre-arrival upsells to seamless mobile checkouts.
Canary delivers measurable impact when it comes to increasing direct bookings, optimizing upsell opportunities and digitizing operations to reduce overhead. Trusted by more than 20,000 hotels in 100+ countries, Canary’s award-winning platform is built to help your team operate more efficiently and maximize profitability while satisfying your guests. It’s hotel revenue management done right.
Use Canary to:
Book a demo today and learn how to increase hotel revenue and enhance overall guest experience with solutions from Canary.
Room revenue remains the most profitable stream for most hotels due to high margins and relatively fixed costs. However, upsells, early check-in fees and personalized add-ons are growing rapidly as hoteliers adopt digital tools to increase guest spend per stay.
Hotel tech streamlines operations, personalizes the guest journey and opens new revenue opportunities. Platforms like Canary offer tools for upselling, dynamic pricing, mobile check-in and automated guest messaging. These are all designed to increase conversions and drive incremental revenue across the guest lifecycle.
Yes. With the right tools, many revenue-generating actions (i.e., upsell offers, flexible stay options, retargeting campaigns) can be automated. Hotel revenue management systems like Canary’s use AI to deliver timely, personalized offers that increase revenue with minimal lift from your team.
