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Hotel Marketing

Beyond Bookings: How Hotel Marketing Drives Revenue Beyond the Reservation

If the question is how do we create more revenue, generate more bookings, and do more upselling, marketing cannot be ignored in this equation, since it is a crucial part of your revenue optimisation strategy. 
Johanna Bernuy
Jun 19, 2024
5 min
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Today, marketing is no longer an optional extra for any business, and the hospitality industry is no exception. 

While some might view marketing as simply crafting social media posts and eye-catching visuals, the truth is that there are many other aspects to marketing and all of them are crucial for your brand to succeed.

Did you know that marketing strategies can increase revenue by up to 25% for businesses? This isn't just about short-term gains either. A well-defined marketing plan fosters brand awareness, builds customer loyalty, and positions your business for long-term success. And this holds true because companies with strong brand loyalty see a 3-7% increase in revenue compared to their competitors.

Imagine you've poured your heart into creating a luxurious haven, complete with impeccable service and stunning amenities. However, if potential guests don't even know your establishment exists, those efforts remain unseen. 

Marketing acts as the bridge, connecting your business with eager travelers seeking an experience like the one you offer. Either using organic content or paid media, one of the main goals for marketing is to increase the visibility of your business and the awareness of your brand in order to create more conversions ( direct bookings) and repeat business (loyalty).

In fact, if the question is how do we create more revenue, generate more bookings, do more upselling, marketing cannot be ignored in this equation when it is a crucial part of your revenue optimisation strategy. 

If you are not yet convinced, here are three ways that a hotel marketing strategy contributes to your revenue optimisation:

Capturing guests and driving direct bookings

The travelers are not flipping through brochures or relying solely on travel agents anymore. Today's travelers are digitally-empowered, carefully researching and booking their stays directly online. This presents a key opportunity for your hotel.

Among your main marketing assets, your website and social media accounts hold immense power. By optimizing these platforms for direct bookings, you can capture the attention of these online travelers and convert them into loyal guests, ultimately boosting your revenue.

Is your website optimised for direct bookings? 

It goes beyond just aesthetics – it's about creating a user-friendly experience that seamlessly guides visitors towards booking with you. 

Think mobile-first, most travel research and booking happens on smartphones. Make sure your website is easy to navigate and visually stunning on all screen sizes.  Prioritize a user-friendly booking engine. It should be prominent and easy to find, with clear progress indicators and minimal steps to secure a reservation.  

In the case of direct bookings, highlight exclusive benefits for booking directly on your website. Showcase security assurances and clear information about your property to build trust and encourage bookings.  By creating a seamless and secure user experience, you can convert website visitors into loyal, paying guests.

Is your content attractive enough? 

On the content side, you need to understand that today's travelers are bombarded with options. You don’t want your property to be just one more.

Your website and your social media accounts need to be captivating, instantly transporting them to the heart of your unique experience. Remember: travellers now book thinking about how shareable on social media this location will be. How can you showcase your property and location as an “instagram-worthy” destination?

A few things to keep in mind in this aspect: Invest in high-quality visuals that showcase the essence of your hotel. Craft compelling descriptions that paint a picture of the perfect getaway, not just a room with a bed. Remember, you're selling an experience, a memory they'll never forget.

Are you providing social proof? 

Modern travelers trust the experiences of others. Real reviews play a key role in convincing a guest to make a booking. Did you know that over 95% of customers consult online reviews before making a purchase, and nearly half consider them among the top three factors influencing their decisions? In the hospitality industry, this translates to the power of guest reviews.

Just like in OTAs it is easy to find what a hotel does best through a review, the same should happen in your website, making it easy for travelers to read about other’s experiences. 

Keep in mind that showcasing only perfect reviews can generate a sense of inauthenticity.  A balanced approach is key, including a mix of positive and negative reviews, along with your thoughtful responses to any concerns, builds trust and credibility. Potential guests appreciate seeing how you address issues and strive to provide exceptional service.

Discover more about how optimized increase direct bookings in this article.

Creating a remarkable and constant experience

Moving beyond the initial booking, creating a remarkable guest experience is key to building loyalty and positive word-of-mouth, which translates into more revenue. This is one of the most important aspects of your digital marketing strategy: how to create a guest journey that resonates with guests and puts your brand top of mind.

Is your guest journey smooth? 

Think beyond check-in and check-out. A remarkable experience starts from the moment guests book, with clear but interesting pre-arrival communication that builds anticipation. And of course, personalized. 

Although properties are paying more attention to this aspect, you still see two kinds of brands: the ones that don’t contact the guest until the check-in moment and the ones that overload guests with many messages each day. 

None of these approaches is correct. 

Look for a balance, don’t disappear but also don’t overwhelm your guests. Think about creating valuable touchpoints for each stage of the customer journey. Although it might seem like a task that can take all of your time, using the right tools will be extremely beneficial. A hospitality CRM, in this case, will help you to process your data and create the entire guest journey.

Get inspired with this article: 7 steps to creating a guest journey for the first time

Are you communicating with them multi-channel? 

Travelers expect convenience and choice. By offering a variety of communication channels like email, WhatsApp and SMS, you empower your guests to reach you easily on their preferred platform. At the same time, you increase your conversion rate. Did you know a multi-channel CRM has 9x times more conversions than an email-only CRM? 

Are you providing a personalized experience?

A touch of personalization makes an ordinary stay something truly special. Leverage guest data (with their consent) to tailor your approach. Use your hotel CRM to clean your data and understand the preferences of your guests. 

Once you understand your data, target different segments of your guests with different content. For example, couple’s offers to couples, upgrades and luxury treatments to high-spenders, family-friendly activities to family bookers, and so on. 

Read this: 9 audiences you can create for better hotel marketing campaigns

Nurture the relationship and loyalty

While securing the initial booking is crucial, fostering long-term guest loyalty requires extending your efforts beyond their stay. The probability of selling to an existing customer is 60% to 70%, whereas the success rate with a new prospect is only 5% to 20%. 

Studies suggest it can be up to seven times more expensive to acquire a new guest than to retain an existing one. This means investing in strategies to keep your guests happy can lead to significant cost savings for your business.

What happens after they leave your stay?  The guest journey doesn't end. You can create different touch points after check-out to engage with your guests and nurture the relationship. Add them to your newsletter, send a message on their birthday, send out special offers based on their previous stay (here, guest data is again important), and more. 

All these efforts will help you to boost your guest loyalty, which translates into recurring revenue. 

To learn more about the post-stay phase, read this article: Maximising Guest Relationships: How to reach guests in the Post-Stay phase.

As you’ve read, a digital marketing strategy is crucial for your hotel and it will help you not just to have content on social media but to truly impact your revenue. Although it might sound like a complicated process, the truth is that if you have the right tech by your side, things can run smoothly and your hotel marketing strategy will be in place before you know it.

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