Why gift card solutions are vital for hotel revenue growth
Key takeaways:
- Generate instant revenue upon gift card purchase
- Drive guest spending beyond card value
- Capture profit from unredeemed gift cards
- Boost bookings through strategic promotion
Whether used as a revenue buffer during off-season or as a way to increase total guest spend, gift cards do more than offer convenience. They drive action. Let’s explore four ways this underrated tool can make a meaningful impact on your bottom line.
Turning gifting into instant cash flow
When a guest purchases a gift card, the hotel receives payment instantly, regardless of when, or even if, the card is redeemed. This means gift card solutions offer a reliable source of upfront income that can help smooth out the financial dips during slower seasons or post-holiday lulls.
Because revenue from the gift card is recognized when it’s sold, not when it’s redeemed, hotels benefit from improved liquidity and more predictable hotel revenue streams. It’s a particularly useful strategy for hotels with seasonal patterns or unpredictable market shifts.
The U.S. gift card market is estimated to generate $477.1 billion in revenue in 2025
Unlock higher spending without lifting a finger
One of the most compelling aspects of gift card solutions is that they rarely cap the guest’s total spend. Think about the last time someone gave you a gift card. Chances are, you spent more than the value. When guests arrive with a prepaid card, they tend to treat themselves, going above and beyond the original amount to enjoy more personalized experiences.
75% of gift card recipients overspend
– 2024 Hospitality Solutions data
Dining, spa treatments and room upgrades are some of the top categories where overspending happens. Not only does this enhance the guest’s experience, but it also contributes to secondary hotel revenue streams that might otherwise have gone untapped.
Profit from what guests don’t use
Another often overlooked benefit? Not every gift card or voucher gets redeemed. This concept, known as breakage, results in no-cost income for the hotel once legal holding periods (which vary by region) are satisfied.
The total value of unspent gift card funds in the US is $23 billion
According to Forbes Advisor, typical breakage rates hover between 2-4% but vary significantly depending on the industry. For hotels, this represents a low-effort gain with funds that have already been collected and never require fulfillment.
When gift card solutions are scaled or integrated across multiple locations, even modest breakage percentages can contribute meaningfully to long-term hotel revenue streams.
Boost bookings with gift-fueled promotions
From holiday promotions to loyalty incentives, gift cards open the door to creative marketing strategies that boost bookings and expand reach. Whether sold directly to guests or used as rewards in a referral or email campaign, gift card solutions can help fill rooms and spotlight underutilized services.
They also drive awareness, especially when gifted by loyal customers, helping introduce your hotel to new audiences. When integrated with digital tools, these cards can be personalized, tracked and strategically distributed to support broader revenue goals.
Ready to turn gifting into growth?
Today’s hospitality market is about a more adaptive, high-impact approach to driving income. Gift card solutions help hotels bring in immediate cash, drive guest upsells, benefit from breakage and enable creative campaigns to strengthen hotel revenue streams.
If you’re not already leveraging a gift card strategy, now’s the time to start. Explore how Hospitality Solutions can help you implement and scale Gift Cards & Vouchers that drive measurable results.
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Gift Cards & Vouchers
Our gift card solution is fast to launch, easy to use, and expertly supported—helping you capture revenue year-round. With customizable designs, seamless integration, and real-time tracking, it’s the ultimate tool for boosting sales and guest satisfaction.
