Discover the Ultimate Hotel Growth Strategies To Increase Your Hotel Booking in 2023

The hospitality sector, particularly the hotel industry, is experiencing its strongest year since the COVID-19 pandemic. As each quarter progresses, the hotel industry’s growth rate is anticipated to keep improving.

So, don’t need to be surprised that you might see numerous hotel brands are striving to enhance their image intensely, and resulting in increasingly fierce competition.

Therefore, it is crucial for hoteliers to stay on top of the latest hotel growth strategies & trends. Ensuring that they effectively grow their businesses while attracting and engaging prospective guests.

Not only to stay in competition, with the right strategies to grow, you can elevate your hotel’s online presence, drive more bookings, and build lasting relationships with your customers (It’s needed for long-term benefit!)

Explore the best hotel growth strategies guide from this blog. From conventional revenue management strategies to enhancing your hotel’s digital presence. Learn how to apply these strategies to your hotel business for desired profitability.

How Large is the Hotel Industry (2023)

First of all, to understand how large the hotel industry is, you should know how the hotel industry is a major part of the global hospitality sector. 

Hotel industry comes from various types of accommodations, from luxury resorts and boutique hotels to budget-friendly motels and hostels.

To make it easier to understand, the scale of the hotel industry can be assessed by considering these four main key factors:

  • The Number of Rooms (World-Wide)
  • Global Revenue
  • Contribution to GDP 
  • The Level of Competition

According to STR Global there are an estimated 17.5 million guest rooms across 187,000 hotels worldwide. The precise figures for the total number of hotels and rooms may vary (could be higher), but these numbers already convey a great deal about the industry’s scale, right?

The hotel industry plays a significant contributor to the global economy, accounting for about 10% of worldwide GDP. Also, according to Statiska, the growth potential for hotels is positive and the revenue is expected to reach $408.80 billion in 2023, and it’s predicted to grow at an annual rate of 4.28% (also known as Compound Annual Growth Rate or CAGR) to reach $483.40 billion by 2027.

The visual number of expected hotel growth global revenue from Statiska.
Source : Statiska

To simplify, the hotel industry already generates a large amount of global revenue, and it’s expected to continue growing in the coming years.

The hotel industry is characterized by intense competition due to the large number of establishments, ranging from small independent hotels to international chains. 

Other than that, competition among hotels is driven by factors such as: 

  • Development Price
  • Location 
  • Brand Reputation 
  • Service Quality 
  • Customer Loyalty

The high level of competition makes it essential for hoteliers to differentiate their offerings and invest in effective marketing strategies to attract and retain guests.

Since COVID-19 emerged, hotels have had to adjust and innovate their marketing strategies to survive. While also undergoing a transformation due to changing customer preferences and advancements in technology.

The steady growth of the hotel industry can be witnessed from many businesses that have adapted and thrived through this. Leading to innovative insights and practices within the hospitality sector.

In 2023, the hotel industry is undergoing numerous trends driven by technological advancements and evolving consumer behavior. Here are the key developments that highlight why recent hotel growth strategies need to be implemented:

Anticipated Improvements in Guest Experiences

As technology advances, guests increasingly seek convenient and comfortable ways to plan and enjoy their stay.

Especially with the rise of online travel agencies (OTAs), people are turning to the internet more than ever, expecting the same level of simplicity and efficiency in their experiences.

“ Google Consumer Insight stated, in 2022 searches for “travel accommodations” in APAC (Asia Pacific) increased by 50% from the previous year. Similar increases can be found in other countries such as Australia, Singapore, and Japan”.

Key examples of technology enhancing guest experiences include online booking, self-check-in, advanced amenities, and collecting feedback to boost guest satisfaction.

Increasing Popularity of Sustainable Tourism

In 2023, 69% of travelers express a desire for sustainable travel.  The benefits of sustainable tourism are real, since it can provide unique and unforgettable experiences for the guest.

The popularity of sustainable tourism is not simply because many travelers become aware of the environment. Staying in eco-friendly hotels also gives them a sense of fulfillment by contributing to the preservation of local cultures, habitats, and ecosystems. Remember real experience is the key.

Growth of Wellness Tourism

Two women enjoy hotel wellness treatment by practicing yoga and relaxing in a pool.

The wellness tourism market is experiencing significant growth. In 2022, the wellness tourism market was valued at approximately $731.36 billion and is projected to surpass $1,974.18 billion by 2031.

Many big brands in the hotel industry such as Hilton, Marriott International, and Four Seasons Hotels Limited, and other other prominent players, are actively participating in this sector.

10 Proven Hotel Growth Strategies for More Guest

No more waiting, let’s explore ten proven hotel growth strategies that we have done to our clients that can help you to attract more guest: 

Initiate a Viral Marketing Campaign

Viral marketing campaigns will bring great exposure since its ability to engage the public on a large scale voluntarily.

This will enhance your hotel brand’s recommendations and strengthen its market position, ultimately contributing to the growth of your hotel business.

But yes it’s not as easy as it sounds. A hotel’s ability to effectively utilize social media networks is a crucial aspect for this.

In this sense, collaborating with someone with big influence in the hospitality industry (such as travel bloggers, famous travelers influencers, hotel experts, etc.) play a very important role in the success of viral marketing campaigns.

However, the credibility of your hotel company or brand remains the critical factor as well.

Read Also:
Benefits of Influencer Marketing for Hotel Business (2023)

Based on our experience, here are 3 primary strategies for creating a viral campaign:

  • Short Interactive Media: Since people’s attention span is getting shorter, short, interactive and funny video clips are more effective because people tend to forward them spontaneously. You can play with the caption with chain letters, where the message prompts the reader to send it to others.
  • Undercover: This is a type of viral message that is presented as a cool or unusual page, activity, or piece of news, without any obvious call to action. In undercover marketing, it’s not immediately clear that anything is being marketed.
  • User-Generated Content: This is a type of viral marketing where users create and manage their own lists of contacts using a database provided by an online service provider. By inviting others to participate in their community, users create a viral chain of contacts that grows naturally and encourages others to sign up too.

Read Also: Social Media Marketing Strategy for Hospitality Industry to Increase Booking Rates (2023)

Optimizing Referral Program

Female hotel marketer discussing referral program with a friend to enhance hotel growth strategies.

Organic Word-of-mouth marketing may take time to happen, since it needs strong brand recognition to be effective. It’s unfortunate because this approach is one of the most powerful hotel sales strategies for substantial growth.

Referral program can be the perfect solution for this! It not only helps your hotel business secure more booking leads but also enhances customer loyalty.

The core concept of this strategy is to reward your existing guests. Simply how it works is; existing guests refer their friends and family to your hotel in return for a reward.

Obviously, be careful of excessive costs on rewards. You need to choose something that provides real value without sacrificing too much of your business needs. 

Here are example of referral program that you can try and adjust for your hotel business: 

  • One Night Free Stay
  • A Free Breakfast with Beach View
  • A 50% Off Discount on Bookings 
  • A Free Hotel Pool Swimming with Free Lunch

Employ Data-Driven Hotel Revenue Management

Effectively managing your hotel’s revenue based on data is essential for your hotel growth strategies. This approach helps your business identify demand trends and opportunities for improvement with greater accuracy.

Managing your hotel’s data properly is crucial in the hotel industry as it helps you to sell the right room to the right guest, at the ideal price and time.

Additionally, it can help you create more profitable hotel menus, find high-quality inventory for better deals, identify services opportunities for upselling, and many more.

The most commonly used KPIs in hotel revenue management are : 

  • Revenue per Available Room (RevPAR)
  • Average Daily Rate (ADR)
  • Gross Operating Profit per Available Room (GOPPAR)
  • Occupancy Rate, and
  • Revenue Generated per Available Room (RevPAR)

Refining Third-Party Hotel Distribution Channel Decisions

There are numerous third party distribution channels available to support your hotel sales strategies.
But just because the distribution channel is important, it’s essential not to waste too much energy on ones that don’t maximize the profitability you’re seeking.

Calculate the cost that your hotel marketing has spent on the distribution channel (your employee energy also can be included), and evaluate which channels yield the best results.

The latest most used and popular third party hotel distribution channels are: 

  • Online Travel Agencies (OTAs)
  • Global Distribution Systems (GDS)
  • Metasearch sites – Google Ads, Trivago, and Kayak
  • Wholesalers and Tour Operators

Here are some hotel growth strategies tips for hotel businesses: there is a significant opportunity to generate direct revenue through mobile devices.Therefore, consider utilizing social media platforms such as TikTok, Instagram, Facebook, and LinkedIn to increase your hotel’s visibility and reach a broader audience.

Read Also : 13 Review Response Examples to Manage Your Online Presence Across Multiple Platforms

Enhance Direct Booking Channel Through Website Optimization

Two website interfaces showcasing hotel booking platforms with effective growth strategies.

Contrary to third party distribution channels, optimizing personal direct booking is a way for guests to make reservations directly without using an online travel agency (OTA) or third-party intermediary.

This could be from the hotel’s website and messaging tools like WhatsApp or Messenger.

Yes not many options, but it enables you to optimize your data and establish your hotel brand image. This can lead to long-term loyalty from your guests. One of the best hotel growth strategies you can count on.

In addition, direct bookings result in a higher booking value compared to OTA bookings and do not require payment of commission fees. On average, personal direct bookings lead to a 2X increase in booking value.

Understand The Recent Demand

The COVID-19 pandemic has greatly changed the hospitality industry, especially in how travelers behave.

Therefore, keeping up-to-date with current trends and demand within the hotel sector by also ​keeping your target audience in mind by understanding their needs and preferences is a must for your hotel growth strategies.

Doing so will help your hotel to identify business opportunities, build better hotel growth strategies, enhance marketing campaigns, adjust management strategies, elevate the guest experience, and build long-term success of your hotel’s offerings and services.

Novotel Nusa Dua, one of our clients, has enhanced their hotel growth strategies by developing a robust digital presence. Their marketing campaign focuses on social media, targeting families and couples.

They recognize their hotel’s amenities as perfectly tailored for these groups. By maintaining a dynamic online presence and producing content that showcases these features, they have stayed in line with current trends to effectively reach their audience. 

We are also aware, the current trends that 55% of Bali’s hotel bookings searchers for over the past year came from international travelers, we’ve included English captions to communicate with a broader audience effectively.

Read Also : Find Out NOVOTEL Nusa Dua Client Case 

Do Market Positioning Analysis

Market positioning analysis is the process of identifying and understanding the needs of your target market to create marketing strategy that will appeal to your potential guest.
3 main factors needs to consider when conducting market positioning analysis for your hotels business :

  • Target Audience : Who are your ideal customers? What are their needs and wants?
  • Competitors: Who are your main competitors? What are their strengths and weaknesses?
  • Your USP: What makes your business unique? What value do you offer that your competitors don’t?

This is the starting point for developing a market positioning strategy. You can assess your hotel’s place in the market and plan how to position your hotel effectively. 

There are several ways to set your hotel’s market position in the market. You can focus on:

  • Price 
  • Quality
  • Service
  • Location
  • or any other factor that is important to your target potential guest

The key is to choose a positioning that is relevant to your target market and one that your hotel can reliably maintain.

For instance, Capsule Hotels implement their hotel growth strategies by strategically positioning themselves within a specific price category. These hotels provide compact, minimalist rooms at prices lower than standard hotels and successfully attract travelers who value convenience and affordability over luxury.

Start to Optimize Your Hotel Digital Presence

It’s well-known among hoteliers that strong digital presence can help hotels attract and retain customers for hotel growth

Increasingly, individuals and travelers are utilizing the internet to research and book accommodations.

If your hotel doesn’t have a strong online presence, you’re missing out on a huge opportunity to reach potential guests.

Here are the major ways to start optimizing your hotel digital presence :

  • Social Media : Use platforms like Facebook, Instagram, and TikTok to show what your hotel offers by sharing photos, updates, and special deals. This will help you connect with potential guests and make them interested in your hotel.

  • Well Design Website & SEO : Make sure your hotel has a good website with well optimized SEO to make it easier to navigate and show up higher in search results, so more people can find your hotel online and increase booking rates.

  • Positive Review Across Digital Media (reputation) : 46% of those booking say they are influenced by previous experience, 41% say reviews and 39% say price. Therefore, make sure your hotel has positive reviews across digital media like OTA websites or GMB.

Re-Evaluate Hotel Chains Supplier

As part of your hotel growth strategies, it’s essential to regularly re-evaluate your suppliers. 

Re-evaluate your hotel supply chains  play a significant role in your hotel’s success. They can impact your costs, the quality of your offerings, and your hotel’s reputation.

Unknowingly, your hotel may end up spending a significant amount of money by outsourcing poor quality or overpriced hotel needs such as restaurant food, room linens, or operational software.

Doing this doesn’t mean your hotel always goes to the cheapest supplier. While cost is an important factor when evaluating suppliers, the cheapest option is not always the best when it comes to long-term value. 

Consider other factors like the quality of the products, the supplier’s reliability, their commitment to sustainability, and their ability to grow with your hotel. That’s how you can maximize the potential of your hotel growth strategies!

Utilize Hotel Management Tools Technology

Advancements not only influence the way your hotel conducts marketing but also the way management operates.

In today’s increasingly digital world, the effective use of hotel management tools and technology can play a pivotal role in your hotel’s growth strategy to :

  • Provide better guest experience
  • Increased efficiency
  • Improved accuracy
  • Reduced costs

Here are some of the top hotel management tools and technologies commonly used in the hotel industry:

  • Property Management Systems (PMS): This software manages daily operations like reservations, check-ins, check-outs, room assignments, and billing. By automating these processes, a PMS can save time, reduce human error, and ensure a smoother experience for your guests.
  • Channel Management Systems: In the era of online travel agencies (OTAs) and multiple booking platforms, managing room inventory can be challenging. A channel management system allows you to manage your hotel’s presence across multiple channels from a single platform, reducing the risk of overbooking and ensuring rate parity.
  • Customer Relationship Management (CRM) Tools: CRM tools help manage your guest data, for example, if a returning guest prefers a particular type of room or has dietary preferences, this information can be stored and used to enhance their next stay.
  • Revenue Management Systems: These tools help determine the most profitable price for your rooms, using data like demand trends, competitor pricing, and historical data. In an industry where pricing can significantly impact bookings, a revenue management system is crucial for maximizing profitability.
  • Digital Marketing Tools: Technology also plays a key role in marketing your hotel. Digital marketing tools can help you manage your social media presence, email marketing campaigns, and online reputation. These tools can also provide analytics to measure the success of your marketing efforts and guide your strategy.


The hotel industry is experiencing fierce competition therefore growth is an essential thing to highlight. It is crucial for hoteliers to stay on top of the latest trends and shape their hotel growth strategies to attract and engage prospective guests.  

With the right hotel growth strategies in place, hotels can elevate their online presence, drive more bookings, and build lasting relationships with their customers.

Share To

Other Category

  • Blog (188)