Rising inflation rates continue to affect costs across the hospitality industry. Today’s hoteliers must not only correct for inflation but also find innovative ways to increase revenue.
For a long time, increasing room rates was the staple of revenue growth, but this is no longer enough. To stay competitive, hoteliers must think beyond traditional pricing models and maximize every revenue opportunity available. That means taking a holistic view of operations, and this article explores five key ways to do so.
Five strategies for revenue growth
In episode 19 of Matt Talks, Mews CEO, Matt Welle, explores five strategies for hotel revenue growth. Watch the full episode here, or read on for the highlights.
Optimization: assess existing offerings and identify opportunities to increase average rates without significant changes to inventory.
Diversification: explore underutilized spaces, such as converting meeting rooms into co-working spaces, to generate additional revenue.
Collection: prioritize cash flow by implementing robust payment processing systems that ensure timely revenue capture.
Enhancements: create upselling opportunities for guests after booking, such as room upgrades, spa services or dining experiences.
Protection: safeguard revenue by minimizing chargebacks and ensuring that payments are collected securely.
1. Make more with automated revenue optimization
Revenue management isn’t just about setting rates. It’s about constant optimization. Many hotels that manage pricing manually look only 60 days ahead, which limits their ability to react to long-term demand trends. By integrating an automated revenue management system (RMS) with a property management system (PMS) like Mews, hotels can continuously evaluate market conditions and adjust pricing dynamically.
For instance, if a hotel experiences a sudden increase in weekend bookings seven months in advance, an integrated RMS like Atomize (a Mews company) can immediately raise rates and push updates across distribution channels without any delay. This eliminates lag time and ensures that hoteliers capture demand at the right price.
Additionally, revenue growth isn’t solely about pushing higher rates – it can also mean increasing occupancy strategically. A five-percentage-point gain in occupancy, even at slightly lower rates, can lead to higher total revenue through additional spend on food and beverage, parking and other services.
2. Diversify revenue streams beyond rooms
Selling rooms is just one part of a hotel’s revenue strategy. By thinking creatively about underutilized spaces, hotels can unlock significant new revenue streams. Many hotels already capitalize on this by offering coworking spaces, long-stay apartments and meeting rooms on a flexible pricing model.
For example, Penta Hotels transformed an underused meeting room into a coworking space, creating a vibrant hub that not only generates revenue but also attracts future bookings for meeting rooms. Similarly, some hotels have turned basement storage areas into karaoke rooms, bookable online and seamlessly integrated with digital ordering systems.
With a flexible PMS like Mews, hotels can sell spaces not just by the night, but by the hour, day or month. This allows hoteliers to cater to different guest needs, from business travelers seeking a workspace for a few hours to digital nomads looking for extended stays. Hotels that leverage these opportunities have seen substantial revenue increases, with long stays alone contributing €100m in additional revenue across Mews properties.
Oh, and the revenue optimization we already covered isn’t limited to room rates. You can unlock more growth potential by applying dynamic pricing strategies across multiple revenue streams such as parking, breakfast and bicycle rentals.
For example, parking spaces have far less price sensitivity than rooms. A guest who has already booked their stay is unlikely to cancel over a small increase in parking fees. Adjusting parking rates based on occupancy can generate incremental revenue without affecting demand. The same logic applies to breakfast pricing; charging slightly more on high-demand days, such as weekends, can help hotels maximize revenue.
3. Optimize payments and currency conversions
Payment friction can significantly impact the guest experience. Relying on manual processes or third-party payment systems often creates unnecessary hurdles, not just for guests, but also for cash flow and revenue growth. Slow transactions, administrative bottlenecks, and payment disputes can all stand in the way of operational efficiency and profitability.
A fully embedded, automated payment system eliminates these obstacles. By processing transactions directly within your PMS, hotels can accelerate check-ins and check-outs, minimize administrative workload, and reduce the risk of chargebacks or fraud. Secure, real-time payments enhance the guest experience while providing hoteliers with complete transparency and control over cash flow.
Automation also unlocks new revenue streams through pre-authorizations, seamless upselling and subscription-based services. From room upgrades and late check-outs to bundled experiences, a smarter payment system transforms every touchpoint into an opportunity to drive additional revenue.
Traditional payment methods often involve hidden fees and currency conversion costs that impact both the hotel and the guest. By offering multi-currency pricing at checkout, hotels can enhance the guest experience while capturing additional revenue. With Mews Multi-Currency, guests can choose to pay in their preferred currency, reducing uncertainty and ensuring transparency. This not only improves satisfaction but also allows hotels to earn a small commission on currency conversion, adding another incremental revenue stream.
4. Upselling and personalization at every touchpoint
Upselling is one of the easiest ways to increase revenue, yet many hotels fail to capitalize on it. Effective upselling requires a combination of automation and human interaction.
Mews enables upselling at multiple guest touchpoints, including online check-in, self-service kiosks and front desk interactions. Specialized upsell platforms like Oaky and Revinate can further enhance this process, offering personalized upgrade options based on guest preferences.
Beyond room upgrades, hotels can upsell services like spa treatments, late check-outs and dining experiences. The key is to make the offer enticing, with high-quality images and compelling descriptions. Additionally, AI-driven tooltips within Mews can provide front desk teams with guest insights, allowing staff to make personalized recommendations based on previous stays and spending behavior.
5. Protect and secure your revenue
Security and protection are essential to business success for many reasons. The most obvious is ensuring that the revenue you earn remains secure. The less obvious – but equally important – concern is the impact security breaches can have on your reputation, which directly affects guest trust and loyalty. A single security failure can lead to financial loss, legal issues and long-term damage to your brand.
Protecting revenue involves multiple layers, including preventing hackers from accessing sensitive information and guests’ financial details to mitigating fraud and chargebacks. Chargebacks alone, whether caused by human error or fraud, take time and money to resolve. The good news is that modern payment platforms can reduce chargebacks by automating processes and improving transaction accuracy, preventing incorrect entries and suspicious charges.
Another critical factor is regulatory compliance, which should be a top priority for any payment provider. Certifications like PCI DSS, ISO 27001, and SOC2 signal a provider’s commitment to security. Beyond compliance, automation plays a key role in securing payments. Tokenization, for example, replaces credit card details with encrypted tokens, keeping sensitive data protected.
The big picture for hotel revenue
While RevPAR remains a key performance metric, forward-thinking hoteliers are shifting focus to Total Revenue per Available Square Meter (TRevPAM) or revenue per available guest (RevPAG). This holistic approach considers all revenue sources – from rooms and F&B to parking and workspace rentals – ensuring every square meter of a property is utilized to its fullest potential. Learn more about the new generation of metrics for revenue managers.
More time should also be spent understanding the value derived from different customer segments. For instance, leisure travelers may be more inclined to spend on hotel dining or activities, while business travelers may prioritize convenience and amenities. By tracking revenue per guest and analyzing customer segments, hotels can tailor their offerings to maximize revenue.
Driving change requires a collaborative approach. Assemble a team of proactive individuals across various departments to discuss and refine your revenue strategy. Engage in open conversations about current performance, competitive benchmarks, and areas for improvement. Establishing a culture of innovation and collaboration will empower your team to execute strategies effectively and maximize revenue across your business.
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About Mews
Mews is the leading platform for the new era of hospitality, designed to streamline operations for modern hoteliers, transform the guest experience and create more profitable businesses. Customers include BWH Hotels, Strawberry, The Social Hub and Airelles Collection. Mews was named Best PMS (2024, 2025) and listed among the Best Places to Work in Hotel Tech (2021, 2022, 2024, 2025) by Hotel Tech Report, and won the Tech Hero 2024 Award at CIODAY. Mews has previously raised $335 million from investors including Growth Equity at Goldman Sachs Alternatives, Kinnevik and Notion to transform hospitality.
www.mews.com
