In a recent webinar with RoomPriceGenie, Canary Technologies, and Hotel Boost, hospitality experts shared insights on how independent hoteliers can increase revenue with dynamic pricing and upselling tactics. Here’s what you need to know.
Why Static Pricing is Costing You Revenue
Many hotels still rely on fixed pricing models, using the same rates throughout the year or making only seasonal adjustments. 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
Rodman von Heeren, our Sales & Revenue Manager at RoomPriceGenie, explained:
“Many hotels lose revenue by sticking to static pricing. Our customers, on average, see a 22% increase in room revenue just by using dynamic pricing and automation.”
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.
Bendix Urlbauer from Canary Technologies highlighted:
“Many hotels limit upselling to check-in conversations or a pre-arrival email with a 30% open rate. But the reality is, guests are more likely to say yes when offers are timely, relevant, and convenient.”
Maximizing Upsell Opportunities at Every Stage of the Guest Journey
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.
As Bendix highlighted:
“Check-out is one of the most underestimated opportunities. Hotels using automated upselling tools have seen thousands in extra revenue from just a single campaign.”
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.
Discover 5 powerful ways to use automated SMS in this article from Newbook.
The Overlooked Goldmine – Guest Reviews & Reputation
How Online Reviews Directly Impact Revenue
Did you know 81% of travelers check reviews before booking? And that a 10% improvement in ratings can lead to 9-15% more bookings?
This means managing guest feedback is just as important as pricing and upselling.
Ali’i Resorts used a simple strategy:
1. Directing happy guests to leave public reviews on Google, TripAdvisor, and OTAs.
2. Keeping negative feedback internal to resolve issues before going public.
The result? Their Google rating jumped from 3.5 to 4.6, leading to more bookings and increased revenue.
Automating the Feedback Loop
You can use automated guest messaging at checkout to:
- Encourage positive guests to leave reviews online.
- Capture negative feedback privately before it turns into a bad review.
- Identify trends in guest satisfaction to improve service and pricing strategy.
By optimizing your online reputation, you can charge higher rates with confidence and convert more website visitors into bookings.
Combining Dynamic Pricing and Upselling for Maximum Profitability
The most successful hoteliers today are those who embrace automation and data-driven decision-making.
- Optimize pricing with revenue management software: Use an automated revenue management system to set competitive rates that adapt to market demand.
- Increase revenue per guest with upselling: Implement an automated upselling tool to offer personalized upgrades and services throughout the guest journey.
- Use data to improve both strategies: Track guest spending behavior, identify the most popular upsells, and adjust pricing based on real-time trends.
- Leverage guest messaging for higher engagement: Send timely, targeted messages with exclusive offers to drive bookings and increase spend per guest.
Watch Now the Webinar: “Increase Your Revenue: Smart Pricing And Creative Upsell Strategies”
Watch our webinar, in which RoomPriceGenie, Canary Technologies, and Hotel Boost hospitality experts share more insights on revenue management and upselling strategies.
To learn how RoomPriceGenie can help your property increase your property’s profitability, start your free trial of our automated pricing solution today!
