Many hotels still rely on fixed pricing models, using the same rates throughout the year or making only seasonal adjustments.
NB: This is an article from RoomPriceGenie, one of our Expert Partners
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This approach is like selling winter coats at full price in summer – it leaves revenue on the table and fails to capitalize on demand fluctuations.
Dynamic pricing solves this problem by continuously adjusting rates based on real-time factors like:
- Market demand
- Occupancy levels
- Local events
- Competitor pricing
How Dynamic Pricing Works
A strong pricing strategy relies on real-time data. RoomPriceGenie automates pricing by:
- Analyzing market trends, competitor rates, and local events
- Adjusting prices up to 24 times a day
- Ensuring rates reflect demand while maintaining profitability
- Saving hoteliers up to 10 hours per week on manual pricing updates
Hotels that implement automated revenue management increase revenue and avoid underpricing in high-demand periods and overpricing when demand is low – both of which can harm bookings and revenue.
The Power of Upselling: Beyond Just Room Upgrades
Pricing alone isn’t the only revenue booster. Upselling is a goldmine that many hotels underutilize.
Traditional upselling strategies often focus on face-to-face interactions at check-in. But there are multiple touchpoints where you can introduce upsell offers, including:
- Before arrival: Send a targeted WhatsApp, SMS, or email offering room upgrades or special packages.
- At check-in: Use digital check-in to highlight spa bookings, dinner reservations, or premium WiFi.
- During the stay: Promote on-demand services like laundry, parking, or breakfast delivery via messaging apps.
- At check-out: Offer late check-out, extended stays, or exclusive discounts for future bookings.
Upselling That Guests Actually Want
Most hotels focus on breakfast and room upgrades, but creative upselling goes beyond that.
For example, international travelers frequently forget plug adapters – so why not offer them at check-in? It’s a simple upsell that solves a problem while generating consistent extra revenue.
Other easy upsell wins include:
- Parking reservations
- Early check-in / Late check-out
- Room upgrades with better views
- Breakfast / Dining packages
The key? Offer relevant options at the moment when guests are most likely to say yes.
The Role of Guest Communication in Revenue Growth
A well-timed guest message can translate into thousands of dollars in additional revenue.
One hotel using the Canary Technologies messaging platform saw a $15,000 increase in revenue from a single message about Memorial Day weekend.
The takeaway? Don’t wait for guests to come to you – proactively communicate offers via SMS, WhatsApp, or the hotel’s in-app notifications. Guests are more likely to engage with messages on channels they already use daily.
