Hotel operators are almost constantly faced with the challenge of driving revenue at their property.
In order to grow and maintain a positive presence in the local destination, hotels must generate additional revenue month-after-month as well as year-after-year. Hotel revenue generation is more complex than simply raising room rates every few months.
There are many other hotel revenue ideas that need to be considered in order to create a pricing strategy that is effective.
Ancillary revenue is revenue generated by additional products and services that are offered at your hotel. It’s an important revenue stream, as it allows hotel operators to increase the revenue generated per customer without consistently raising room rates at the property.
Here’s a few hotel revenue ideas to consider:
Display local artwork and sell it to guests
Guest rooms require decorations in order to appear comfortable and welcoming. Instead of purchasing generic artwork that will remain on the walls, consider partnering with local artists in order to display authentic prints, statues and fixtures that can be sold to guests.
Artwork makes a valuable and authentic souvenir, and guests will be pleased that they can purchase a local product from the convenience of their room. It’s a great way to commemorate their trip, without forcing them to step into every souvenir shop in town.
Create experiences that are available for purchase at your property
Transform your hotel from a place to sleep into a place to stay, play, and enjoy. Create a range of different experiences that guests can purchase at your hotel in order to improve their stay.
Some ideas include cooking lessons with the chef at the hotel restaurant, an opportunity to take a private tour of the hotel with one of the managers, or a private yoga lesson from an expert instructor by the hotel pool. Many guests are willing to pay more in order to enjoy a unique experience.
Offer upgrades that may enhance the guest experience
Guests are attracted to hotels that offer premier amenities and luxurious rooms, but there’s always room for a few upgrades. For instance, ancillary revenue can be generated at your hotel by offering upgrades such as higher-quality bedding, organic toiletry products or welcome baskets that include fresh fruit, crackers, cheese and local wine.
Guests are often looking to add special touches to their travel experience, and they are willing to pay more in order to improve the atmosphere and enhance their own experience.
Instead of automatically assuming that a room rate hike is the best way to improve hotel revenue generation, hoteliers should consider the diverse range of ancillary revenue options.
These options can easily be offered through an online booking engine, while also being available on-site. This makes it easy and convenient for guests to explore their options and finalize their decision at the time of their booking.
Ultimately, ancillary revenue should be used as a way to increase the revenue generated per guest, which can help maximize profits at the property.
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