How to Generate Ancillary Revenue in your Hotel or Resort
What can you do in your hotel or resort to generate additional income? It often sounds easier than it is in reality, so we have been brainstorming and have come up with some great hotel management tips to sell extra services and then there is the next challenge with upselling and cross-selling.
There are several extra services to offer in our hotels but how do you know what is most profitable. Which ancillary revenues bring more income while require less effort in terms of investment, time spent and people dedicated?
Start Upselling from Today and Maximize the Revenue of your Property
Over the last weeks, we have been racking our brain and plowing through hotel websites to gather best practices for upselling and generating ancillary revenue in hotels. We have looked at our own portfolio, and outside to come up with a list of amazing tips.
Whatever the size of your property, the potential of ancillary revenue is big and the options to get it can be very creative …
WHAT ANCILLARY REVENUE OPPORTUNITIES EXIST IN HOTELS?
Your hotel has high occupancy, the reviews of your resort are good, or your want to increase the average income of your hotel or resort. This is the moment when you ask yourself “What is next?” Annual industry reports say that ancillary sales will account for more than 18% of a ‘tourism business’ total revenues. Want your piece of the pie?
There are 4 different ways to use ancillary revenue opportunities and start with a total revenue management strategy:
1º CREATE PACKAGES:
Bundle ancillaries (add-on services) with higher category room types. This option is known as “Themed Packages”, and is all about selling an experience. You can call them romance, adventure or family packages.
Be aware that some guests look for the entire travel experience, but others prefer to organize flights and hotels first … and think about activities after. Address both: