While it’s obvious that selling hotel rooms provides the primary source of income for hoteliers, an EyeforTravel report, Ancillary Revenues in the Hospitality Industry, revealed that nearly one third of hotels see a 25 percent boost in their bottom line from ancillary sales. And the total global hospitality market for ancillaries is worth more than $100 billion annually. Despite this, there are many hotels who have yet to embrace the significant revenue opportunities available through ancillary sales.
At the core, ancillary revenue is generated from selling products and services – upgraded amenities, personalized experiences and premium services – in addition to the hotel rooms you book each day. And the secret to maximizing ancillary revenues is to present offers at optimal touch points along the guest’s journey, when they’re most likely to respond favorably and most willing to pay for them. Let’s take a closer look at how hoteliers can boost ancillary sales at three key points in the travel cycle: pre, during, and post stay.
Pre-stay Profits
An ideal time to offer ancillary products and services to guests is before they even set foot in your hotel. Entice customers still in the “dream” phase of trip planning by bundling extras into attractive packages. A romance package may include flowers, champagne, and a couple’s massage, and tickets to a local family-friendly attraction may be part of a family package.
In addition to offering packages, you can also promote add-ons within the booking process. Offer services such as childcare, shuttles to and from the airport, and breakfast, which often represents more than 50 percent of total ancillary revenues.
If your hotel doesn’t have an on-site spa, fitness center, or restaurant, consider partnering with local businesses that complement your brand. Increase ancillary revenue within the booking process by letting guests reserve rounds of golf at a nearby course, a session with a personal trainer at a health club, or a cooking lesson with a local chef.
