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How to generate revenue from guests

With the rise of the value and unique experience seeking guests, hotels all around the world are getting prepared to capitalize on this opportunity to drive their revenue generation. Every hotel or travel business is dependent on their customers for generating revenue, which is why hoteliers are constantly looking for ways to increase guest spending by providing them interesting and personalized guest experience.

In this article, we are going to discuss the ways to make your guests spend more without charging exorbitant prices. Below are the two ways you can increase spending without jeopardizing your reputation with guests.


1.Building Customer Loyalty

Building a loyal customer base is one of the hardest feats to achieve in an industry that is so tightly contested. However, in order to drive revenue generation, it is imperative for hoteliers to build a loyal customer base who will keep on coming back to the hotel for more.

Forbes magazine recently revealed that acquiring new customers costs five times more than retaining existing ones.

The existing idea behind this can be illustrated as – every existing and loyal customer knows all about your brand and is easier to please than new prospects. So, hoteliers must figure out ways to attract and retain current customers, as it is much more of a cost-effective procedure than constantly marketing to new customers.

Ideally, a hotel should know all about their existing customers, right from the preference of the room to the preference of the wine. To do such an all-inclusive assessment, hoteliers need to get a hold of the guest data from various sources to get the true pictures of a guest’s preferred activity.

After spotting the potential loyal customer, hotels need to act accordingly to give that particular guest a unique and refreshing guest experience throughout all the stages of the guest life cycle.

Personalised pre check-in emails, VIP check-ins, free Wi-Fi, include other items (such as champagne, chocolates or flowers), treat them with a complimentary spa treatment, mini-bar in the room, etc can be convenient in order to build meaningful guest relationships.

Such tactics throw light and emphasis on the fact that a guest’s patronage is acknowledged and valued by the hotel.



Upselling can be considered as another neat way to consolidate more revenue generation from the guests. Upselling is particularly effective when you have established trusting relationships with existing customers. Because these customers know and trust your business practices and service level, there’s an expectation of quality.  

Three certain types of upselling – Room upgradation, Food & Beverage, and Hotel amenities, are discussed below.


Room Upgradation:

Room upgradation is the most common method of upselling. By capitalizing on your existing owner-guest relationship, it is possible to encourage your veteran customers to upgrade his booking to a premium room. For an example –

If one adds three $60 room upgrades per day, it is possible to earn around $63000 per year from upselling alone.

At the end of the day, it is the hotel’s job to assign better pricing and room types to a loyal guest so that they can focus on this opportunity to generate more revenue from the guests.


Food & Beverages:

A major key to the hotel’s financial success lies in the in banquet and catering. Thus, upselling techniques should be used in the food & beverages division to generate more revenue from the guests. For an example –

It is relatively easy to figure out if one of your guests is a Manchester United fan from the acquired guest data. At the game-day, the hotel can offer him 50% offs in drinks at the bar while he watches the game there.


Hotel Amenities:

Hotel amenities can be a major source of generating ancillary revenue. Guests will always be looking for ways to gain a unique guest experience. With the help of acquired guest data, it is possible to tap into this and make your hotel their preferred option by offering the right balance of guest service and price. For an example –

The hotel can offer couples some interesting discounts at the hotel spa or arrange a special candle-light dinner with a bottle of champagne etc.

Collecting and analyzing the guest data is key. Then use this data to send relevant communications, which should help make for an unique guest experience, eventually leading towards more revenue generation.



The correct data driven approach can boost the guest experience and build a lasting relationship between the guest and the hotel, all while increasing spending per guest. Hence identifying the most valuable guests and setting the best possible prices can lead to an ecstatic guest experience. All such activities will attract guests, develop lifetime loyalty and eventually bolster the revenue generation of the hotel.


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