How often do you think about ancillary revenue?
As a small accommodation provider, your main focus is booking the rooms at your property and keeping your hotel filled to capacity as often as possible.
While selling rooms is your main source of income and the way that you keep your business running, you also need to be open to the idea of other revenue-generating possibilities.
Because when you expand your products and services, you open up to the door to additional income and increase the potential for growing your hotel in new and exciting ways.
Ancillary revenue is defined as any revenue generated by products or services in addition to the hotel rooms that you book on a daily basis.
For example, any extras that you sell at your hotel would be included as part of your ancillary revenue.
Souvenirs, premier services and upgraded amenities are all part of the ancillary revenue that can help you increase the profits that you earn at your hotel.
Ancillary revenue can be extremely beneficial for your hotel. Your pricing strategy dictates the rates of your rooms, which ensures that you earn the base profit necessary to keep your small hotel in operation.
However, you should always be exploring additional ways to earn income. The more profit you generate, the more you can offer your guests and continue to grow your presence in the community.
Ancillary revenue has the potential to help you boost your revenue significantly, and is an important component in your overall business plan.
To learn more about revenue management and the importance of ancillary revenue, watch this on-demand webinar:
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