In this paper, we propose a new method for reversible data hiding by employing the hierarchical relationships of original images. There are many parameters for accessing the performances of reversible data hiding algorithms, including the output image quality, the hiding capacity, and the overhead for decoding. Considering the ease of implementation and the little overhead needed for decoding, we employ modification of difference values between pixels by using histogram-based scheme with extensions to pyramidal structure by utilizing inherent characteristics of original images. By doing so, global and local characteristics of original images can be utilized for hiding more capacity with acceptable quality of output image. With our method, better performances can be obtained with enhanced image quality, the more embedding capacity, and comparable amount of side information for decoding. More importantly, the reversibility of our method is guaranteed, meaning that original image and hidden message can both be perfectly recovered at the decoder. Simulation results demonstrate that proposed method in this paper outperforms those in conventional algorithms.