Your Strategy to Increase Hotel Revenue

Eric Oppegaard


The third in our “Why Does Placement Matter?” series examines how placement of a property in an availability list or booking window impacts overall hotel revenue. In Part 1, we discussed the impact on hotel bookings. In Part 2, we discussed the impact on hotel nights.

Your Mission: Increase Revenue

Business information is readily available in a variety of mediums. What are the steps involved in building a plan to increase your hotel revenue?  Let’s begin with discussing each phase of the process:

  • Understand your business
  • Build a strategy
  • Consider your options
  • Document and validate your plan

Understand Your Business

“Details create the big picture.” – Sanford I. Weill

Start with research:

  • Do you know the current state of the industry?
  • Where does your organization stand in relation to your competitive set?
  • What are the strengths of your organization?
  • Can your team articulate and deliver on your unique offering?

Having a strong understanding of your organization and where you stand is key to building a strong foundation for your plan.

Ready… Set… Strategize!

“If you fail to plan, you are planning to fail!” – Benjamin Franklin

You’ve identified where you stand, where your competition stands, and the state of the market. Next, consider how you can capitalize on your competitive advantage, moving your organization ahead faster than the competition.

  • Could you reach out to a new market?
  • Can you deliver a new offering to address an unmet need?
  • Are you connecting with the key growing consumer demographics in your business?
  • Have you diversified your presence in the market?

Consider Your Options

When building your plan for revenue growth, consider your options to bring more guests to your property. Who are your guests and where are they travelling from? In Part 2 of this series we considered the trends related to business vs. leisure travelers. We also learned that over 25 million international travelers stayed in a hotel/motel during a visit to the U.S. Make it a goal to understand the value associated with each online channel you utilize and build the optimal mix to bring guests to your property.RevenueGrowth

In our study evaluating the results of preferential placement in hotel listings among booking and availability lists, data shows that on average, properties realize 7.8% growth in revenue after enrolling in Amadeus Instant Preference (AIP). This represents nearly double the revenue growth of those not enrolled in the AIP solution.  Additionally, statistics show that those enrolled realize faster revenue increases.

Document, Adjust, Validate

“Goals that are not written down are just wishes.” – Unknown

Once you’ve established your goals and have organizational commitment to achieve them, the work is not yet done. Clearly document and define your goals. Post them in a highly visible area, keeping them top-of-mind to reinforce your commitment to growth. Continually take action to move toward achieving your goals.  When challenges arise, ask yourself, “Will this action (or inaction) help me reach our goals?” If the answer is no, perhaps you should reconsider your approach.


There are many options available for hoteliers looking to increase their revenue. Diversifying and optimizing your channel mix is one key area to help increase your visibility to both existing and prospective customers. Let us show you how the demonstrated results of enrollment in AIP will help you meet your goals.

Learn more about preferential placement with AIP.

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