Rising operational costs, increased competition, and evolving guest expectations are pushing hospitality leaders to rethink how revenue is generated across the guest journey. Instead of relying solely on room rates, leading hotels are focusing on a more comprehensive goal: Maximizing total profit per guest
NB: This is an article from Duve
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Hotels are increasingly shifting from RevPAR-focused strategies to total revenue optimization.
This includes metrics such as:
- Total Revenue per Guest (TRevPG)
- Revenue per Available Guest (RevPAG)
- Ancillary revenue contribution
Industry insights show that non-room revenue is becoming a critical growth lever, particularly as hotels look to offset rising operational costs and fluctuating demand.
Ancillary revenue opportunities now include:
- room upgrades
- spa and wellness services
- food and beverage
- early check-in and late check-out
- transportation and transfers
- curated local experiences
For many hotels, the challenge is no longer what to sell – but how to sell it effectively and consistently.
How Leading Hotels Are Using Technology to Boost Ancillary Revenue
The most successful hotels are no longer relying on front desk staff to drive upsells manually.
Instead, they are using digital tools to automate and optimize revenue opportunities across the guest journey.
This includes:
- Pre-arrival upsell campaigns
- In-stay messaging with targeted offers
- Mobile guest journeys and digital concierge experiences
- Automated communication across channels like SMS and WhatsApp
These tools allow hotels to:
- Reach guests at the right moment
- Present relevant offers based on context
- Increase conversion rates without adding operational workload
This shift answers a key question many hospitality leaders are asking:
How are leading hotels using technology to boost ancillary revenue?
The answer lies in automation, personalization, and timing.
How Guest Personalization Directly Impacts Hotel Profitability
Not all upsells perform equally.
Generic offers often result in low engagement, while personalized offers significantly improve conversion rates.
Hotels are now using guest data to tailor offers based on:
- booking type (business vs leisure)
- length of stay
- travel companions (couples, families, solo travelers)
- past behavior and preferences
For example:
- A couple may receive a spa or dining experience offer
- A business traveler may receive a late check-out or transfer offer
- A family may receive activity or upgrade packages
This level of personalization helps hotels:
- increase upsell conversion rates
- improve guest satisfaction
- create more relevant and valuable experiences
It also reinforces an important principle:
Personalization is not just a guest experience strategy – it is a revenue strategy.
