Want to Increase Hotel Revenue? Your Brand Holds the Answer

In the hospitality industry, we usually hear about revenue management as a game of numbers: setting the right price, filling more rooms, and maximizing profits. But I believe there’s a deeper truth that often gets overlooked—one that sets apart the most successful hotels from the rest.

If you’ve spent much time reading our past insight articles, you likely heard me write often about how a strong brand doesn’t just attract customers; it creates an emotional connection that drives higher rates, increases occupancy, and builds long-term loyalty. The fact is, if you want to maximize revenue to the fullest, you need to start with your brand.

Let’s start with price. Most hotels think they set rates based on supply and demand – rightly so. But that’s only half true. In reality, a brand gives you the power to command higher rates—not because your costs are higher, but because customers perceive your value as greater.

Think about luxury brands like Ritz-Carlton or Four Seasons. They don’t compete on price. Their customers expect to pay more because they trust the experience will be worth it. This principle applies at every level of hospitality. Whether it’s a luxurious urban boutique hotel or a budget-friendly roadside motel, those with a clear and compelling identity can push rates and still fill rooms.

However, it’s important to remember that the opposite is also true. Hotels that lack a strong brand are forced to compete on price alone. That’s a race to the bottom, and in that race, no one wins – especially your P&Ls.

While pricing is important, revenue isn’t just about what you charge—it’s about how many rooms you fill. Branding plays a crucial role here, too.

Hotels with strong brand identities enjoy consistently higher occupancy rates. Why?

When travelers recognize a brand they trust, they don’t hesitate. They book faster, with fewer comparisons, because they know what they’re getting. This is why major hotel chains invest heavily in brand consistency—to some, this corporate consistency may be mundane and uninspired, but for many travelers, it removes uncertainty, lessens the friction of choice, and builds brand preference.

We’ve seen this play out time and again. When hotels rebrand, their occupancy often jumps. A refreshed identity signals new energy, new experiences, and new reasons for guests to choose them. For independent hotels, establishing trust takes time since they don’t have the built-in recognition of a major franchise. Trust is earned through consistent guest experiences, delivering on promises, and building strong reviews. This becomes much easier when you have a clear brand strategy and a well-trained team committed to upholding it. In the end, a strong brand makes your hotel the natural choice for guests.

Ask any hotelier where the most profitable revenue comes from, and they’ll likely tell you: repeat guests.

Strong brands turn one-time guests into lifelong customers. They do this by delivering on a promise, time after time. Marriott, Hilton, and IHG all leverage this principle through loyalty programs, but you don’t have to be a global chain to benefit. Any hotel, of any size, can cultivate loyalty by building a brand that people want to come back to.

And here’s the best part: loyal guests cost less to acquire. When they book directly through your website instead of a third-party OTA, you avoid commission fees. When they return, without hesitation, you reduce marketing costs. Over time, this creates a compounding revenue effect—one that only branding can unlock.

Most hotels think about revenue in terms of rooms. The best hotels think about total revenue per guest. A strong brand doesn’t just sell rooms—it sells experiences.

It makes guests want to dine at the restaurant, book a spa treatment, or extend their stay. This is why boutique and luxury hotels focus so much on their identity. When guests resonate with a brand, they naturally spend more during their stay.

Even small branding tweaks can have an impact. Consider a hotel that markets itself as a “wellness retreat.” That brand positioning allows it to charge more for spa services, premium dining, and curated experiences. If it were just a generic resort, those same offerings wouldn’t command the same revenue.

Most hoteliers have used this dirty three-letter word: O-T-A.

Online Travel Agencies (OTAs) do bring in business, but they also take a huge cut. It’s imperative for hoteliers to drive more direct bookings. Easier said than done. How can you drive direct bookings? You guessed it – branding.

Marriott, Hilton, and IHG have spent years shifting bookings from OTAs to their own platforms by reinforcing their brand power. They do it through loyalty perks, direct booking incentives, and brand-led marketing campaigns.

Don’t fret, my fellow independent hoteliers —being an independent hotel doesn’t mean you’re forever married to OTAs. By investing in branding—through compelling storytelling, thoughtful design, and consistent messaging—you can create a direct booking strategy that saves thousands in commission fees each year. It takes time, effort, and investment, but in the long run, reducing dependence on third-party platforms leads to greater profitability and stronger guest relationships.

Most hotels think of branding as marketing. But in reality, branding is a revenue strategy.

Here’s a quick recap of the perks:

If you want to drive sustainable revenue growth, branding isn’t just an afterthought—it’s a strategic advantage. Investing in your brand means investing in trust, loyalty, and long-term profitability.

So, the real question is: How strong is your brand? Is it working for you, or working against you?

If you’d like to improve your brand, let’s talk.