4 e-commerce lessons hotels must learn to drive revenue

  1. Insight

For decades, the hospitality industry has relentlessly optimised how it sells one specific product: the room. The revenue management is sophisticated. The distribution is efficient. The pricing is constantly refined.

Yet, a hotel can be operating at 100% occupancy and still leave significant revenue on the table. Why? Because while rooms are managed as high-value inventory, the rest of the hotel's offerings - the actual experiences - are not.

As operational costs rise and Average Daily Rate (ADR) growth plateaus, the traditional room-centric model is reaching its limit. The next phase of hotel revenue growth won’t come from simply pushing room rates higher; it will come from unlocking new, bookable revenue across the entire stay.

In the experience economy, guests aren't just buying a bed; they are buying how they spend their time. To capitalise on this, hotels need to stop acting strictly like traditional landlords and start acting like modern digital retailers.

Here are four essential e-commerce lessons hotels must put into practice to monetise the experience economy.

Lesson 1: Eliminate purchase friction (make experiences instantly bookable)

In e-commerce, if a product isn't visible, priced clearly, and easy to add to a cart in seconds, it simply doesn't sell.

Yet, most hotel websites still treat the very things that define the experience economy - spa treatments, dining, local activities, and room upgrades - as secondary afterthoughts. They are often:

  • Buried deep in the website navigation

  • Lacking clear, upfront pricing

  • Disconnected from real-time availability

  • Relegated to frustrating "request only" contact forms

This means experience revenue relies entirely on manual staff processes and the guest’s own initiative, rather than a structured commercial strategy. Hotels must adopt the e-commerce standard of a frictionless checkout: make every amenity and experience instantly bookable online.

Lesson 2: Merchandise the entire "basket" (sell the stay, not just the night)

The best online retailers surface their most valuable inventory at exactly the right moment to drive conversion and increase the overall basket size. Hotels must do the same by shifting their focus from selling nights to selling the full guest experience.

Traditionally, revenue management only optimises room pricing. However, forward-thinking hotels are extending this strategy across the entire stay. By treating experiences as digital inventory, they can be dynamically priced, packaged, and promoted.

When revenue systems, guest data, and experience platforms are integrated, hotels can stimulate demand intelligently. Instead of relying on standard room discounts, you can present highly relevant experiences, packages, and upgrades at the exact right moment in the booking journey.

Lesson 3: Personalise the digital aisle

Consumer expectations have been shaped by algorithmic retail. Today, most hotel websites show the exact same static offers to every visitor. But modern travellers expect the personalised, highly relevant shopping experiences they encounter on sites like Amazon or Shopify.

In practice, this means your digital storefront should adapt to the shopper:

  • The returning golfer should see tee times and clubhouse dining early in the journey.

  • The wellness seeker should be presented with spa treatments and retreat itineraries.

  • The family booking a suite should be guided toward kid-friendly activities and larger dining reservations.

This level of personalisation doesn’t just improve the guest's booking experience - it actively increases conversion rates, digital engagement, and total spend.

Lesson 4: Redefine the core metric (focus on total revenue per guest)

In e-commerce, the ultimate metric is Customer Lifetime Value and Average Order Value. In hospitality, adapting to the experience conomy means shifting our obsession away from purely Occupancy and ADR.

When experiences are visible and bookable, guests are far more likely to enhance their stay. This requires a shift in how hotels measure performance. The new golden metric must be Total Revenue Per Guest - a holistic number that includes the room, experiences, upgrades, and all ancillary spend.

Because while your physical rooms are strictly finite, your experience revenue is not.

The bottom line

When guests book a hotel, they're deciding how they want to spend their time. Hotels that only sell a room are severely limiting their earning potential.

Top-tier e-commerce retailers don't leave revenue to chance. They deliberately design, surface, and sell absolutely everything they have to offer. To thrive in the experience economy, it is time for hotels to do exactly the same.

Simon Bullingham

Founder & CEO

Simon Bullingham is CEO and Founder of Journey, and has been influential in shaping the evolution of marketing technology in the hotel space for the past decade. Simon’s talents lie in his innovation and spotting opportunities as to how technology can solve problems and generate revenue. Relentless in the pursuit of his goal; to revolutionise ecommerce within the hotel space, Simon is constantly pioneering product innovation and challenging the status quo.

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