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Boost hotel profitability in 2025 by tapping into ancillaryrevenue streams. For hotel operators seeking to boost profitability, ancillaryrevenue is a key focus in 2025. Here are four key ways you can generate more ancillaryrevenue in your hotel.
SiteMinder is proud to partner with Pablo, a true pioneer in hospitality revenue strategies, to help properties thrive in this ever-evolving market. With SiteMinders powerful tools , hoteliers can tap into dynamic pricing, personalized offers, and seamless integrations that make it easier to track and boost ancillaryrevenue.
SiteMinder is proud to partner with Pablo, a true pioneer in hospitality revenue strategies, to help properties thrive in this ever-evolving market. With SiteMinders powerful tools , hoteliers can tap into dynamic pricing, personalized offers, and seamless integrations that make it easier to track and boost ancillaryrevenue.
Todays travellers expect seamless, personalised service – and the Single Guest Itinerary (SGI) delivers. And for hotels, this centralised insight enables tailored offers, dynamic upselling and operational efficiency – all of which translate to greater guest loyalty and increased revenue. The impact is measurable.
Well, here’s a trick called “ancillaryrevenue.” ” It is when a hotel offers additional services or packages to enhance a guest’s stay. For example; providing exclusive conference room packages, spa services, or even collaborating with local travel agencies for city tours.
This creates a more collaborative environment between departments that traditionally have separate goals, such as revenue managers and guest services or marketing and operations teams. DI can also be more proactive and suggest upsells tailored to guest profiles and booking patterns. Why it’s important for hotels?
What is ancillaryrevenue? Ancillaryrevenue is when you earn income from additional services or products offered at your hotel. By offering these added touches, you’re not just boosting your revenue; you’re creating memorable experiences that make your hotel stand out. It’s a virtuous cycle.
By combining information from different sources, revenue managers can visualize the entire customer journey, customizing pricing and promotions for different channels and groups. AncillaryRevenue Management Pricing In addition to room revenue, ancillaryrevenue streams play a crucial role in boosting overall profitability.
The report highlights that hoteliers view increasing occupancy and improving operational efficiencies as key priorities, with 85% of hoteliers anticipating that personalization could help deliver over 5% in incremental revenue.
Is boosting ancillaryrevenue just one more thing on your already packed to-do list? If youre already offering extras or promoting additional services, you're on the right track. And if youve started using automation tools to streamline upselling and improve guest spend, even better. It doesnt have to be.
What Are Revenue Management Tools? Revenue management tools are software and systems that help hotels optimize pricing, control cost , maximize occupancy, and increase profitability. Hotels can leverage CRM data to drive repeat bookings, upsell experiences, and build stronger guest relationships. Cheers, Patrick Landman PS.
Ancillaryrevenue to the rescue! For property management companies looking to expand profitability without adding inventory or dramatically increasing workload, alternative revenue streams can be a game-changer. Revenue Stream #1: Upsells and Add-Ons for Guests Guests are willing to spend more if it enhances their experience.
It may seem daunting but diversifying a hotel’s revenue is not too hard. Don’t lose sight of core ancillaryrevenue. For decades airlines have sold ancillary products such as better seats, extra bags, extra meals etc. It is about time hotels look at their core services and amenities as chargeable opportunities.
There is no set formula to increase a hotel’s revenue, it can be achieved by creating a good promotion plan, tapping into sources of ancillaryrevenue , upselling and other marketing strategies. Optimise ancillaryrevenue. Dynamic pricing is a modern hotelier’s most effective strategy for revenue management.
While revenue management is more focused on a hotel’s pricing and availability to maximize revenue, revenue optimization takes a broader approach to include a full range of revenue sources that includes food and beverage, spa services, events, classes, and other ancillaryrevenues.
Moving from merely managing hotel revenue to maximizing profit is a critical transformation that ensures your property's long-term success. This shift requires a comprehensive approach integrating cost control, strategic marketing, and top-notch guest services. Read Also: What is Dynamic Pricing in Hotels?
Offer Packages and Deals: Bundle rooms with other services, like breakfast, spa treatments, or local activities. This can entice guests to book at a higher rate while also increasing your overall revenue. Don’t Forget About Upselling: Train your staff to upsell guests to higher room categories or add-on services.
What is hotel revenue? Hotel revenue is the income your business earns from selling rooms or other products and services to guests. While revenue is mostly generated from selling your rooms, you can also collect revenue from your amenities such as a bar, restaurant, gym, or spa.
Collaboration with other departments The Future: Total Revenue Management What is Revenue Management? For example, highlight amenities (bar, restaurant, spa, pool), and leverage packages (romantic, weekend, spa offer), to both expose why bookers should stay at your hotel, and generate ancillaryrevenue by promoting those offerings.
The changed structure of our development team means better allocation of resources and more dedicated attention on the details that will move the needle in meaningful ways.”
Offer Packages and Deals: Bundle rooms with other services, like breakfast, spa treatments, or local activities. This can entice guests to book at a higher rate while also increasing your overall revenue. Don’t Forget About Upselling: Train your staff to upsell guests to higher room categories or add-on services.
Offer Packages and Deals: Bundle rooms with other services, like breakfast, spa treatments, or local activities. This can entice guests to book at a higher rate while also increasing your overall revenue. Don’t Forget About Upselling: Train your staff to upsell guests to higher room categories or add-on services.
Secondary sources of income might include food and beverage sales, amenity fees, health and wellbeing services, social classes, event and meeting spaces hires, or ticket sales to local attractions. You can also increase your room revenue by adding value via packages, running promotions, and offering extras and upsells.
Investing in such technology significantly enhances the effectiveness of a resort’s revenue management strategy. Some resorts also turn to outsourced revenue management services. Such services might include dining, spa services, on-site entertainment, or event fees.
You can use it as a casual marketing tool, letting guests learn more about your hotel, serving them exclusive offers, and even upselling other amenities during their stay. It’s another great way to generate ancillaryrevenue for your property. The benefit of these self-service check-in kiosks is two-fold.
Here’s how it’s making waves: Automation nation : From check-ins to room service orders, automation is taking over repetitive tasks, freeing up staff to focus on what really matters – personalized guest interactions. Every cent counted, every service charged! "Alexa, bring me room service!"
Revenue Strategies & Tactics Market Segmentation Hotel Pricing Strategies Forecasting & Budgeting Properly How to Distribute Effectively? The extra revenue and control over availability this provides is an essential technique at the disposal of revenue managers. Protect YOUR Brand!
Implementing cost-saving measures: Based on the analysis, cost-saving measures are implemented in the areas where costs can be reduced without affecting the quality of service. Upselling and cross-selling: track guest preferences and booking history, allowing hotels to offer personalised upsell and cross-sell offers.
Collaboration with other departments The Future: Total Revenue Management What is Revenue Management? For example, highlight amenities (bar, restaurant, spa, pool), and leverage packages (romantic, weekend, spa offer), to both expose why bookers should stay at your hotel, and generate ancillaryrevenue by promoting those offerings.
These may include supplies, utilities, or laundry services. Revenue management Revenue management is a huge umbrella concept that deserves its own full guide but there’s a few key areas where you can boost revenue and profit: Optimise pricing: Make sure you are selling your rooms at the maximum value possible at all times.
Using guest insights to improve your service above the competition. You can then try to generate extra revenue from upsells, extras, and other ancillaryrevenue. This allows you to understand if you are pricing your property correctly and make decisions that give you a competitive advantage.
Although hotels can 一 and should 一 diversify their income streams and realize the potential of ancillaryrevenue, distribution remains the cornerstone of hotel profitability and success. Not to state the obvious, but bookings and customer loyalty are ultimately driven by exceptional service and an amazing guest experience.
Hotels can improve GEO by creating detailed FAQs about nearby attractions, local experience guides, personalised travel tips, and service descriptions, all backed by statistics, reviews, and citations to boost visibility and relevance in an AI-driven digital world.
Whether through in-app chat, SMS, or WhatsApp, messaging transforms service delivery and smart automation makes it scalable. Room service ordering Room service has evolved from clunky phone-based ordering to a sleek digital experience. For luxury travelers, expectations are even higher 43% expect not to wait in line at all.
They were ordering room service, chilling by the pool with overpriced cocktails (bless their hearts!), How can I best upsell AV equipment or catering packages? AncillaryServices: Parking, laundry, minibar every single little revenue stream counts! learn more about how to optimise your AncillaryRevenue ).
Telephone and face-to-face are critical channels for hotels, even though, especially after the rise of online bookings, some hoteliers started considering them just operational services rather than commercial ones. Contact us for hotel management services to help build a solid plan to outperform your competition. Bunk Hotel Amsterdam.
In 2025, upselling continues to evolve as a critical strategy for hoteliers looking to enhance guest experiences and maximize revenue. Upselling today is about anticipating travelers evolving needs, using technology to tailor experiences, and offering genuine value that enriches their stay. The key is flexibility.
When strategically implemented, entertainment becomes more than just a guest delight tool — it’s a driver of brand loyalty , ancillaryrevenue, and five-star reviews. In-Room Entertainment Technologies Smart TVs with Streaming Services Gone are the days of limited channel selections.
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