The revenue generated outside your rooms a.k.a. ancillary revenue is often an untapped opportunity that can earn more than you anticipated.
Traditionally rooms have always been the hero in any
property’s story. They are, in most cases, the biggest
revenue generator and the focus when it comes to
strategy. Hotels however need to have a holistic view
of their properties’ revenue generating abilities and
opportunities; and look at ways to increase total
revenue spend per guest.
1) Value adds that are a win-win for customer and property owners
Creative packages and upselling will not just generate
incremental revenue but provide a positive guest
experience and cultivate brand loyalty. But, how do you
get creative with deals? Here’s a start:
Identify your property’s unique selling points location,
pet friendly … Look into what your guests love most about staying with
you check your reviews or just walk up to a guest and
ask.
Get familiar with your guest type (leisure, corporates,
tour groups etc).
Do an analysis of what ancillary offerings do you currently have (food & beverage, parking, babysitting
services, dry cleaning, spa facilities or leisure activities like kayaks or bicycles for hire)
This information becomes the framework for creating packages, or for using as optional extras so guests can create bespoke packages. Signature packages could be available all year round and become synonymous with your properties brand. They can be used to stimulate demand during low periods or be period specific like Christmas or school holidays. If you don’t offer any onsite facilities, consider partnering with local suppliers improves guest experience and you could earn some commission!
Turning lookers into bookers
From inspiration to research, booking and departure, as a hotelier you need to target every stage of a guest’s
journey. Let’s use the example of a guest looking for a break before the birth of their baby (that’s the inspiration). In
the research phase, they may be intrigued by packages that fit their reason to travel. For instance, you could offer mums to be a prenatal massage or virgin cocktails in the package. At the booking stage, ensure you have extras set up
(both on your booking engine and other channels) for guests to add on to packages. Check regularly to see
what’s selling and what’s not swapping the least popular ones until you find that magic combination that
will add incremental revenue onto each reservation. For direct bookings, train your staff to upsell. This is
particularly important during their stay and is also an opportunity for staff to engage with guests. The booking
lives on even after the guest departs send them an email thanking them to choose you and offer an
incentive to book again.
Wrapping up
By getting creative and having a holistic view to revenue generation, you will drive revenue into cost centres other than rooms and more importantly, give the guests a chance to create amazing memories and to forge a personal connection to your hotel and brand.
About the author
Elizabeth Bradley has worked in the hospitality industry for over 25 years with both national and international experience. She has worked in a variety of properties from small boutique hotels to large national chains at a head office level. Prior to moving into Reservations, Revenue and Yield Management, Elizabeth was an Assistant GM for a boutique hotel in the UK.