Hotels can generate income from more than just room bookings. This additional income is known as ancillary revenue. It includes revenue from food and beverage sales, spa and wellness services, parking, meeting room rentals, room upgrades, and additional experiences such as tours or late check-out fees.
Hotels increase their earnings by offering guests additional services or encouraging premium purchases. These opportunities can be promoted by front desk staff or automated through a Property Management System (PMS) or upselling platform. Common examples include promoting room upgrades, offering breakfast packages, or selling local experiences.
Many hotels track Revenue per Occupied Room (RevPOR) to measure performance. Integration between Point of Sale (POS), Property Management Systems (PMS), and Customer Relationship Management (CRM) systems enables hotels to identify guest preferences and personalize offers, improving conversion rates and guest satisfaction.
To maximize ancillary revenue, timing and relevance are key. Offers should be personalized to guest interests and delivered at the right moment. Digital tools and platforms can automatically generate and deliver customized offers based on guest profiles and behavior data.
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