Hotels often focus on the wrong revenue drivers. Relying on OTAs, slashing rates during slow periods, or hoping for last-minute bookings isn’t a growth strategy. It’s a survival tactic. And if your hotel isn’t actively securing high-value business, you’re leaving money on the table.
A proactive sales approach separates hotels that grow from those that struggle. The most successful properties don’t sit back and wait—they go out and secure bookings, build strong corporate relationships, and find new ways to maximize revenue.
If your hotel struggles with revenue growth, here’s what might be holding you back—and how to fix it without the cost of a full-time sales team.
#1. Waiting for Bookings Instead of Securing Them
Corporate travelers are one of the most consistent sources for hotel revenue growth, yet many properties take a passive approach. Instead of actively pursuing these guests, they wait and hope for reservations to come in.
How to Fix it: Lock in Corporate Travel Accounts
Companies need reliable lodging, and they’ll return to the same hotel if the relationship is strong. Instead of hoping for corporate travelers to book, negotiate long-term rate agreements that make your hotel the go-to choice.
Sparrow Hospitality does this by:
- Identifying high-value corporate accounts that match your location and amenities.
- Negotiating competitive but profitable corporate rates.
- Handling direct outreach and follow-ups so your hotel stays top-of-mind.
Struggling to connect with leads? Check out our Ultimate Guide to Hotel Sales Prospecting.
#2. Using a One-Size-Fits-All Corporate Rate
Many hotels offer the same discount to every corporate client or stick to rigid pricing that doesn’t reflect market conditions. The result? You either undervalue your rooms or push potential clients toward more flexible competitors.
How to Fix it: Smarter, Data-Driven Corporate Rate Agreements
Corporate pricing should be customized and backed by data. Instead of guessing at rates, Sparrow Hospitality analyzes market demand, competitor pricing, and client needs to structure rate agreements that maximize revenue growth and the long-term success of your hotel.
#3. Slashing Rates During Slow Periods
Every hotel experiences slow periods, but cutting rates just to fill rooms eats into profits and teaches customers to expect discounts in the future.
How to Fix it: Fill Need Periods with Strategic Sales
Instead of reactive price drops, plan ahead with targeted corporate and group sales efforts:
- Outreach to businesses that need recurring stays (consultants, traveling staff, training groups).
- Build relationships with event planners to lock in group bookings.
- Develop strategic partnerships that generate consistent room demand.
Sparrow secures long-term partnerships by actively generating and converting sales leads so your hotel stay booked—even when business is slow.
#4. Ignoring Additional Revenue Streams
Rooms bring in hotel revenue, but they shouldn’t be your only source. Meeting spaces, food & beverage, and parking are all untapped opportunities for growth.
How to Fix it: Monetize More Than Just Your Rooms
Sparrow helps hotels increase revenue per guest through:
- Upsell strategies for corporate clients (meeting packages, premium rooms, extended stays).
- F&B optimization (targeted promotions, catering deals, corporate meal plans).
- Better pricing strategies for additional services (parking, late checkouts, VIP perks).
If you’re only selling rooms, you’re leaving money on the table.
#5. Relying Too Much on OTAs (Online Travel Agencies)
Many hotels rely too much on OTAs like Expedia and Booking.com for bookings. While these platforms bring in guests, they also charge high commission fees (often 15-25%), eating into your profit margins. Plus, hotels have little control over guest relationships when bookings come through third-party platforms.
How to Fix it: Drive More Direct Bookings
Most major hotel brands handle loyalty perks, email marketing, and ad campaigns—but that’s not enough if your guests don’t understand why booking direct benefits them. This is where your front desk team becomes your biggest asset for the revenue growth of your hotel.
Sparrow Hospitality trains your front desk staff to:
- Educate guests on direct booking perks (lower rates, rewards points, better flexibility).
- Engage with guests at check-in and check-out to encourage future direct bookings.
- Use real conversations to build guest loyalty—turning first-time visitors into repeat customers.
#6. Failing to Retain Guests
Many hotels focus on acquiring new guests but fail to retain existing ones. Repeat guests are far more profitable than one-time visitors because they require less marketing spend and often book direct.
How to Fix it: Build Guest Loyalty Programs That Work
- Offer rewards programs with discounts, upgrades, and free nights.
- Capture guest preferences (room type, amenities, F&B choices) to personalize future stays.
- Send post-stay follow-ups with special offers for their next visit.
- Leverage corporate accounts and business travel partnerships to secure long-term relationships.
#7. Poor Revenue Management and Pricing Strategies
Some hotels fail to adjust their rates dynamically, leading to underpriced peak periods or overpriced slow periods that drive guests away.
How to Fix it: Implement Smarter, Data-Driven Pricing
- Use dynamic pricing tools to adjust rates based on demand, competitor pricing, and local events.
- Monitor local event calendars and target group bookings ahead of time.
- Offer flexible rate packages (early bird discounts, extended-stay deals) to optimize occupancy.
A smart pricing strategy means higher revenue without cutting rates.
#8. Underutilizing Meeting & Event Spaces
Hotels often overlook their conference rooms, banquet halls, and meeting spaces, leaving valuable square footage unused. Consistent hotel revenue growth means tapping into these underutilized spaces.
How to Fix it: Actively Market Your Event Spaces
- Target corporate clients, local businesses, and event planners.
- Bundle room + event space packages for group bookings.
- Offer A/V, catering, and setup services as upsell opportunities.
- Adjust pricing based on weekday vs. weekend demand.
A well-managed event space boosts revenue and occupancy at the same time.
#9. Poor Upselling & Cross-Selling
Many hotels miss easy revenue by not strategically upselling. Guests are willing to spend more, but only if they’re offered the right options.
How to Fix it: Increase Revenue Per Guest with Upsells
- Train front desk agents to offer room upgrades, late checkouts, or VIP services.
- Promote F&B packages, spa services, and local experiences.
- Offer discounted add-ons (airport transfers, valet parking, breakfast deals).
- Use personalized emails before check-in to suggest relevant upgrades.
Every guest interaction is a sales opportunity. Maximize it.
The Bottom Line: Most Hotels Aren’t Selling—Sparrow Is
Most hotels don’t have the budget for a full-time Director of Sales—but that doesn’t mean they should miss out on corporate contracts, group bookings, and strategic partnerships.
Sparrow Hospitality acts as your outsourced sales team, proactively identifying, negotiating, and securing high-value business—so you don’t have to.
- Faster response times
- Targeted corporate sales efforts
- Sustainable revenue growth
Hotels can't wait for revenue to grow—get after it.
Book a consultation with Sparrow Hospitality today.
Ready to grow your hotel revenue?
Contact Sparrow Hospitality Services today to see how our sales experts can create a proactive sales approach, tailored to your market.
