Are you already a busy person?
Not necessarily. Your hotel is already making strides if it’s upselling and promoting additional services. If you have invested in automated upselling tools to increase guest spending and streamline sales, that’s a big plus. But even the best tech solutions miss a crucial opportunity. ancillary revenue Pre-booking strategies and pricing can be incorporated into your business. What if that could be changed?
By factoring in potential add-on sales before guests even book, you pave the way to higher ancillary revenue, a stronger total revenue management strategy—and ultimately, a noticeable boost in TRevPAR.
You can make it happen.
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What is ancillary income?
All revenue generated outside of the sale of rooms is referred to as ancillary income. Think of restaurant and pub revenue, spa bookings, event bookings or retail purchases. You can also think about paid extras such as early check-ins or Champagne upon arrival. Your hotel’s additional amenities and services can create a new revenue stream.
You may think that selling one additional breakfast or spa treatment or allowing a late check-out is not a big deal. These incremental sales can quickly add up.
Why they are important
- This reduces reliance solely on the revenue generated by rooms.
- They improve your overall profitability—key to increasing TRevPAR.
- By allowing guests to customize their experience, they enhance the guest’s satisfaction.
Ancillary revenue and Total Revenue Management
The hospitality sector is moving away from an exclusive focus on revenue per room. Hoteliers now adopt a holistic approach to their total revenue potential.
You’ll see the results.
According to STRNon-room revenue is around 32% Average hotel revenue is about 8% of the total. Of course, the percentage varies by property type, but it’s clear that areas like F&B, spa, events, and retail hold major untapped value.
You can achieve sustainable growth in TRevPAR by giving these departments a more strategic focus.
This is an especially timely approach given:
- Shifting traveler behavior post-pandemic
- The changing guest profile and booking patterns
- Economic volatility or regional volatility
Think beyond the room night to maximize your hotel’s earning potential.
How to Increase TRevPAR by Increasing Ancillary Revenue
The extra revenue potential of your hotel can be tapped in several ways. Start with one—or combine all three for maximum impact.
- Empower your team to sell smarter
Your staff is the first line of opportunity. The best part is? This method is easy to implement and doesn’t require expensive technology or new investments. Train your staff to be able to recognize guest preferences, and then suggest services that are relevant in an organic, friendly way.
Do you worry about your employees’ confidence? Regularly train your staff to master the art without sounding like a salesperson. Incentives can help you maintain momentum. Your team can be motivated by rewards like bonuses, vacation time, or small gifts.
- Automated Upselling & Cross-Selling
Even the most experienced staff cannot tailor each recommendation to every guest. Automation is the answer.
Upselling tools allow you to scale personalized offers—before and during the guest’s stay—without overburdening your team. The ability to offer upgrades and add-ons is a great way for guests to increase revenue.
- Use a RMS that prioritizes ancillary revenue
Do you think RMS is only for room pricing tools? Think again.
Modern systems include Atomize RMS Now includes ancillary revenue estimation.
This is what it means to you:
- It evaluates the full revenue potential of each booking—not just the room rate.
- The software offers smarter pricing suggestions, which take into account services such as dining, spa visits or special packages.
- It allows for pricing decisions to be made based on the total guest value and not just occupancy.
Eric BlatterGM – a GM Hotel de La CouronneHe shares his experience.
“Atomize’s ancillary revenues feature has helped us improve our revenue strategy. We’ve adjusted our pricing to reflect restaurant and bar sales and optimized certain packages, such as half-board, during peak seasons.“
He also adds:
“This feature allowed us to shift our focus from room revenue only, to a more comprehensive view of the total value of guests.“
It’s now your turn.
Take a smarter, more integrated approach to revenue management and watch your TRevPAR climb—without overhauling your entire operation.
Want to see the product in action? Book a no-obligation demo today.
