Hotel Marketing Tips for Small Properties: Practical Strategies to Increase Revenue

Running a small hotel comes with its challenges. Competing with larger hotel chains that have bigger marketing budgets can feel tough, especially when you’re working with a smaller team and limited resources. However, small hotels can thrive by using the right marketing strategies. This guide shares simple, cost-effective marketing tips that will help you boost direct bookings, build guest loyalty, and improve your overall revenue.

Why Hotel Marketing Matters for Small Hotels

Think about this: How much of your revenue comes from OTAs (Online Travel Agents)? If it’s a lot, you’re paying a significant amount in commission fees. What if you could bring in more bookings directly through your own website and keep that extra revenue for yourself?

In this post, we’ll show you how to reduce your OTA dependency and get more direct bookings. You don’t need a huge budget for this—just smart, simple steps.

1. Maximize Direct Bookings to Keep More Revenue

The best way for small hotels to boost profits is by focusing on direct bookings. When guests book directly through your website, you avoid the hefty commission fees that come with OTAs. Here’s how you can make sure your website helps bring in more bookings:

What to Do

Why It Works

Have an Easy Booking Engine

A simple and quick booking process helps guests complete their booking easily.

Make Your Website Mobile-Friendly

Many guests book their stay from their phones. If your website is easy to use on mobile, you’ll get more bookings.

Offer Discounts for Direct Bookings

Give guests a reason to book directly—such as lower rates or special offers.

Tip: A good booking engine will make the reservation process fast and simple for your guests, which leads to more confirmed bookings.

Fact: According to a 2024 report by HotelTechReport, small hotels that optimize their booking engine for mobile saw a 30% increase in direct bookings. This shows how crucial a smooth mobile experience is for converting bookings directly from your websiteInteractive Question for You: How much of your business comes from OTAs? What would it take to shift some of that to direct bookings? Let us know in the comments below!

2. Upselling: A Simple Way to Increase Revenue

Upselling is an easy way to earn more from each guest without needing more guests. Offering upgrades or additional services can add to your revenue. Here’s how to upsell:

What You Can Offer

How to Sell It

Room Upgrades

Offer guests a chance to upgrade their room for a little extra.

Add Extra Services

Offer things like a late check-out, dinner packages, or spa treatments.

Personalized Experiences

Offer tailored experiences like a local tour or a special meal package.

Tip: Offer these upsells during the booking process or when guests check-in. Personalizing their stay makes them more likely to buy the extra services.

Case Study: The Zing Hotels in Thailand implemented upselling strategies across their properties, offering add-on packages such as guided tours and room upgrades. As a result, they saw a 25% increase in revenue per guest 

3. Low Budget Hotel Marketing Ideas

You don’t need a fortune to market your hotel. There are plenty of low-cost marketing ideas that are easy to implement and still effective. Here are a few:

Marketing Idea

What to Do

Use Local SEO

Optimize your Google My Business page and make sure your website shows up when people search for hotels in your area.

Engage on Social Media

Use Facebook and Instagram to share photos of your property, highlight local attractions, and engage with guests.

Start a Referral Program

Encourage guests to refer their friends and family in exchange for discounts on future stays.

Partner with Local Businesses

Work with local restaurants or attractions to offer special deals for guests and promote each other.

Tip: Focus on Instagram to show off your hotel’s unique features and engage with guests. It’s a great way to build a following and attract bookings.

Fact: A study by Revinate found that 80% of travelers use social media to research their next stay. By actively engaging with potential guests on platforms like Instagram, you can build brand awareness and increase direct bookings 

Interactive Question: Which social media platform works best for your hotel? Are you focusing enough on Instagram for its visual appeal? Comment below and share your experience!

4. Build Guest Loyalty: Get Repeat Business

It’s much cheaper to keep existing guests coming back than to find new ones. So, guest loyalty marketing is an important part of your strategy. Here’s how you can keep guests coming back:

Loyalty Strategy

What You Can Do

Reward Repeat Guests

Offer discounts, free upgrades, or points for returning guests.

Send Follow-Up Emails

After check-out, send personalized emails with special offers for their next stay.

Exclusive Offers for Members

Give your loyal guests access to exclusive deals, such as early check-in or a free breakfast.

Tip: Even a simple loyalty program can work wonders. A small gesture like a handwritten thank you note or a personalized email with a discount can make guests feel valued and encourage them to return.

Fact: According to a 2023 study by Guestline, loyalty programs result in 35% more direct bookings from returning guests. Offering simple rewards can help build a consistent guest base 

5. Reducing OTA Dependency with Channel Management

If you’re depending heavily on OTAs, it’s time to take control of your bookings. Channel managers help small hotels manage room availability across multiple platforms like OTAs and your hotel’s own website in real time.

How AxisRooms Can Help

A channel manager like AxisRooms can save you time and reduce your dependency on OTAs by automatically updating room availability and pricing across multiple platforms, including your website. This ensures your pricing is consistent everywhere, reducing the chance of overbookings and helping you bring in more direct bookings.

Here’s how AxisRooms can help you:

Feature

Benefit

Real-Time Syncing

Keeps your room availability up-to-date across all platforms, reducing the chances of double-booking.

Integration with Direct Booking Engines

Increases direct bookings by offering easy integration with your website’s booking engine.

One Dashboard for All Platforms

Manage all OTAs and your website from one place, saving time and effort.

With AxisRooms, you can manage all your bookings efficiently and focus on growing your direct revenue without worrying about missing out on bookings from OTAs.

Tip: A channel manager will help you stay organized and reduce time spent managing multiple platforms manually.

Case Study: Hotel Indigo in Bangkok implemented AxisRooms' channel manager and reduced their OTA dependency by 20% shifting the focus to more direct bookings and improving profitability. 

Question for You: Do you use a channel manager? How much time do you save by using it? Let us know in the comments!

6. Hotel Branding: Stand Out from the Competition

Small hotels often have an advantage in that they can provide more personalized service. You can use this to your advantage by creating a strong brand identity. Here’s how:

Brand Element

How to Strengthen It

Unique Selling Proposition (USP)

Think about what makes your hotel unique, such as personalized service or a beautiful location.

Consistent Branding

Make sure your brand message, colors, and style are consistent everywhere—on your website, social media, and in your hotel.

Use Local Culture

Incorporate local experiences or history into your branding. For example, highlight nearby attractions or offer local food in your restaurant.

Example:

A boutique hotel could focus on offering an intimate, local experience that larger hotels can’t provide, such as giving guests the option to book local tours or dine at small, local eateries.

7. Hotel Revenue Management: Use Technology to Maximize Profits

Hotel revenue management software can help you make smarter pricing decisions by considering factors like demand, seasonality, and local events. By using revenue management tools, small hotels can increase room rates during peak seasons and offer discounts when demand is low, maximizing overall revenue.

Revenue Management Tips

What to Do

Adjust Prices Dynamically

Set different prices for different seasons or during special events.

Use Data to Guide Pricing

Look at past booking data to predict when guests will book and adjust your prices accordingly.

Fill Your Rooms at the Right Price

Keep occupancy high by adjusting prices based on market demand.

Tip: Revenue management software can help small hotels stay competitive by automating the pricing process.

Final Thoughts: Make Your Small Hotel a Big Success

Small hotels have a lot of potential for success, especially with the right marketing strategies. By focusing on direct bookings, improving guest loyalty, and using tools like channel managers and revenue management software, small properties can compete with the big hotel chains.

Now, it’s your turn: What hotel marketing strategies have worked best for you? Share your tips and experiences in the comments below!