Start with what you're already losing
Before deciding what to spend, look at what you already spend without realising it. If you do meaningful OTA volume, you pay 15–20% commission on every booking — often LKR 60,000+ a month. That's money already leaving your business for marketing you don't own. Seen this way, a marketing budget isn't new spending; it's a redirection of money you already lose into channels that build your own direct bookings. The question changes from "can I afford to spend on marketing?" to "can I afford to keep losing this much to commission?"
What's a sensible budget for a small hotel?
Think in flat monthly amounts, not percentages. At the entry level, a modest budget covers the essentials — a campaign, a landing page, and lead capture to stop losing enquiries — ideal for hotels new to marketing. A mid-level budget adds consistent search visibility and social presence so guests find you when choosing. Higher budgets add full ad management, content and video for aggressive growth. The right level depends on your rooms, goals and season — not a number pulled from the air.
Illustrative scenario. A 15-room hotel loses ~LKR 90,000/month in commission. It starts at LKR 45,000/month on search visibility and capturing direct enquiries. That shifts a modest share of bookings to direct; the commission saved covers the spend and more. As the direct channel proves itself, it steps up to a Growth-level budget. The spend grows because results justify it, not as a leap of faith.
Not sure what fits your hotel? A free growth audit gives a realistic budget with no pressure.
Why should ad spend be separate from the fee?
Your management fee (what you pay the agency) and your ad spend (money to Google or Meta) are different things. Some agencies blur them so you can't tell how much actually reaches guests — that's how hotels get overcharged. We keep them separate and fully visible: you always see what you pay for our work and what goes to ad spend, and the ad spend stays in your accounts, under your control.
Why HotelBoost: our prices are published — Essentials LKR 15,000, Starter LKR 45,000, Growth LKR 85,000, Scale LKR 150,000 — so you see the cost before you ever talk to us, with no lock-in. That exists precisely so a small hotel can spend confidently instead of fearfully.
What should you do next?
So how much should you spend? Enough to stop losing enquiries and redirect the commission you already give away — which means starting modestly and scaling as it proves itself. Start where the risk is low and let results decide the rest.
The clearest next step is a free growth audit: we'll look at your hotel, volume and goals and recommend a realistic budget — just a straight answer. → Book your free audit
Frequently asked questions
Questions hotel owners ask
How much should a small hotel spend on marketing per month?
Often LKR 15,000–45,000 to start — enough to stop losing enquiries and redirect OTA commission — then scale up as results justify it. Flat monthly amounts are clearer than percentages for small hotels.
Should ad spend be included in the agency fee?
No — they should be separate and visible, so you know exactly how much reaches guests versus pays the agency. Bundling them opaquely is how hotels get overcharged.
What if I spend on marketing and it doesn't work?
Start at the entry level with no lock-in, so your risk is a single month you can stop anytime. Low-risk starting is how you find out safely.