How to Add Revenue Streams to Hotels and Motels
- Nate Jones, CPCU, ARM, CLCS, AU
- 7 days ago
- 2 min read
Hotel and motel owners are constantly seeking ways to boost profitability beyond room bookings. Whether you're managing a boutique motel or a large hotel chain, diversifying your revenue streams can help stabilize income and increase property value.
Strategies for Generating Additional Income
1. Offer Paid Parking or Valet Services
If your property is located in a busy area, monetizing parking can be a lucrative option. Consider offering premium valet services or charging for reserved spots. This not only adds revenue but enhances guest experience.
2. Add Vending Machines or Mini Convenience Stores
Installing vending machines or a small shop in the lobby can generate passive income. Stock essentials like snacks, toiletries, and travel accessories. These amenities are especially valuable for motels and budget hotels.
3. Rent Out Event Spaces
Hotels with conference rooms, ballrooms, or outdoor areas can rent these spaces for weddings, corporate events, or community gatherings. Offering catering and AV services can further increase profits.
4. Partner with Local Tour Operators
Collaborate with local tour companies to offer guests curated experiences. You can earn commissions for each booking made through your hotel, while enhancing your property's appeal.
5. Monetize Wi-Fi and Streaming Services
While basic Wi-Fi should be free, offering high-speed internet or premium streaming packages for a fee can be a smart upsell. This is especially effective for business travelers and long-term guests.
6. Create a Loyalty or Membership Program
Encourage repeat stays by offering exclusive perks to members. Paid memberships can include discounts, priority booking, or free upgrades—creating a steady revenue stream and customer retention.
Insurance Considerations for New Revenue Streams
Expanding services means new risks. Whether you're hosting events or installing vending machines, your insurance coverage should evolve with your business. Wexford Insurance offers customized commercial property insurance for hotels and motels, ensuring you're protected as you grow. From liability coverage to property protection, Wexford Insurance helps you stay ahead of potential risks while maximizing profitability.
Final Thoughts
Adding revenue streams to hotels and motels is a strategic way to boost income and enhance guest satisfaction. Whether it’s offering paid amenities or partnering with local businesses, each new service adds value to your property. Before implementing changes, consult with your insurance provider to ensure proper coverage. Wexford Insurance is your trusted partner for hotel and motel insurance. Contact today!
FAQs
Q1: What’s the easiest revenue stream to add to a motel?
Vending machines and paid parking are low-cost, high-return options that require minimal setup.
Q2: Do I need extra insurance for hosting events?
Yes. Event liability coverage is recommended to protect against accidents or property damage during gatherings.
Q3: Can I insure revenue-generating amenities like vending machines?
Absolutely. Wexford Insurance can help you cover equipment and liability associated with these amenities.
