When Room Rates Are Falling: Finding Revenue in Unexpected Places
- angiewluo
- 3 days ago
- 1 min read
As per STR data, Singapore was the highest priced market across the top APAC markets. Recent STB data shows economy hotels down 5%, mid-tier down 3.5%, upscale down 3.4% — while costs keep rising with inflation. Every hotelier knows the squeeze all too well.
The Brutal Reality of Cost-Cutting
We’ve all been there: spreadsheets open, renegotiating supplier, maintenance contracts optimizing staff hours. But some costs feel untouchable:
Credit card fees: That 2.5–3.5% automatic deduction on almost every transaction. Try asking guests to pay cash instead — good luck.
OTA commissions: 15–25% disappears before revenue even hits your account. Direct bookings are a dream, but guests often check your website, then book on Booking.com anyway.
Looking Beyond the Room
When RevPAR can’t rise and costs can’t shrink further, the next step is finding revenue in overlooked places. Small additions can add up — without big investments.
Airport transfers: Guests can book a trusted driver directly through hotel digital guidebook, and the hotel receives a small commission.
Attraction tickets: Universal Studios, Gardens by the Bay, and other attractions, experiences in Singapore are available for booking via digital guidebook, generating extra revenue.
Local experiences: Neighborhood food tours or morning yoga classes — guests book through the guidebook, hotel earns commission.
Everyday conveniences: Printing, portable WiFi rental.
The challenge isn’t implementing these services — it’s thinking differently.
Hoteliers are also
Travel coordinators
Local connectors
Problem solvers
Convenience providers
Every interaction is a potential micro-transaction. Not in a pushy way — just genuinely asking: “What else does this guest need that we could provide easily?”
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