Your nightly rates are set, your inventory is filled and your job is done for the day…right? Not quite! Even once all this is done, a savvy hotelier is still working to get ancillary revenue on the books. But this doesn’t mean you have to add extra work to your plate — that's where modern revenue management automation (RMA) comes in.
In this guide, we’ll explore how RMA maximizes your hotel ancillary revenue from the moment of booking. Whether you’re a hotel owner, operator or investor, you’ll see how modern tools simplify upselling tasks, personalize guest experiences and provide true hospitality that generates revenue far beyond the room rate. Let’s dive in.
Key highlights:
Revenue management automation is the use of advanced technology to handle the complex, data-driven tasks involved in maximizing hotel revenue. At its core, RMA does two things: sets the right price at the right time and makes the right offer to the right guest. And it does all of this at scale.
Modern RMA is built on two key pillars:
Together, these systems unlock new opportunities to drive profit and guest engagement, from pre-arrival to checkout. Understanding how both pillars operate reveals just how much value automation brings to modern hotel strategy.
While traditional systems focus solely on setting room rates, automated processes in revenue management include a second pillar dedicated to guest engagement and ancillary revenue.
Automated revenue management systems (RMS) ingest real-time data from your hotel, such as booking trends, seasonal patterns, local events and competitor rates. With this information, the system continuously adjusts room rates to optimize room revenue and occupancy.
This approach increases efficiency while ensuring your rates remain competitive and respond to market shifts. However, it’s only the first step.
The second, and often overlooked, pillar of RMA targets additional revenue. While room pricing strategies bring guests in the door, engagement and upselling maximize the value of each booking.
Automated guest engagement tools allow hotels to connect with guests at key moments. Pre-arrival messages offer premium room upgrades, discounted spa services or paid early check-in. Then, during the stay, tools like Canary’s AI Guest Messaging can promote restaurant specials or offer late checkout.
When hotel upsell software integrates seamlessly into the guest journey, it improves the guest experience and increases conversion on your total hospitality offering.
Some teams swear they can manage it all manually, and sometimes they can…until peak check-in times roll around. Picture it: Arrivals are lining up, the bar is packed with guests celebrating an anniversary and the noise makes it hard to hear the phone.
Truth is, tomorrow’s welcome messages and personalized upgrade offers are the first to fall through the cracks. This is where automation shows clear benefits that show up in key KPIs. Hotels using RMA see:
Getting more revenue isn’t always an easy thing. There are a lot of challenges that pop up when you’re trying to increase upsells manually — but luckily, automation is the solve.
Hospitality is about connection. Yet, many hotels miss out on thousands in potential revenue simply because connecting effectively with each guest is hard. Every day, opportunities go unnoticed or add-ons go unoffered when staff are too busy. But with Canary’s Dynamic Upsells, chances are never missed.
By leveraging historical data and guest preferences, automated upsell systems intelligently surface the right offers when guests are likely to convert. This hands-free approach ensures every guest is presented with valuable add-ons that enrich their stay, while the human touch is left to your team.
It’s great to have a front desk agent with a knack for pushing upsell revenue to new limits, but not everyone has this skill. With automation, every guest gets consistent, personalized offers (and you can fine-tune the message that gets the best return).
For example, Canary’s AI Guest Messaging can suggest a paid early check-in in a pre-arrival message, which staff wouldn’t normally have the opportunity to do. Automated solutions remove variability by delivering upsell prompts in real time, triggered by guest behavior or time of day.
When potential guests are doing their online research, they want answers fast — but your team can’t watch a chat window 24/7. Provide instant, ‘round-the-clock service through smart automation solutions like Canary’s AI Webchat.
With webchat, guests ask questions and stay on the path for a direct booking instead of bouncing to your OTA listing (or a competitor’s). By becoming an extension of your team, automated webchat converts interest into action and increases direct revenue.
According to the International Air Travel Association, travelers prioritize convenience and self-service — 16% prefer to book without a human involved at all. This study was specific to flights, but of course, these are the same travelers that become guests at your hotel.
Cater to these travelers through modern tools like a Digital Compendium to put spa appointments, restaurant menus and local tour info right at their fingertips. A digital compendium centralizes all available services, promotions and amenities in one intuitive place, prompting guests to explore and buy with ease. It’s like a 24/7, self-service, digital storefront for your property.
Phone inquiries rarely come at convenient times. An AI voice assistant handles questions, bookings and confirmations, making sure you never miss an opportunity to connect with guests.
Automation here means no more missed calls and no more missed bookings (even during peak times). Plus, fewer ringing phones make your lobby a calmer, more inviting environment for guests and staff.
The meaning of revenue management automation has evolved: it’s about adjusting room prices and unlocking every possible revenue opportunity throughout the guest journey.
Canary gives you the tools to do just that. While traditional RMS systems handle the pricing side, Canary’s suite, including solutions that automate the interactions that drive ancillary revenue and elevate guest satisfaction.
Book a demo for individual guidance on solutions that will transform your property’s profit potential today.
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