HOTELIGY BLOG

Ancillary Revenue

November 7, 2022

Ancillary Revenue

What is Ancillary Revenue?

It is a concept that originated in airlines where complementary products and services are offered at different stages of the customer journey.

The Ryanair company will come to mind for all of us, which from the moment of booking, begin to offer services such as insurance, car rental, priority boarding or food and drink menus.

When we talk about how to increase hotel revenue, we always focus on room sales. But we shouldn't forget all the "extras" we can sell.

This involves the sale of additional services such as: Late Check Out, Parking, Spa, Transfers, Romantic Surprises, Excursions, In-House Experiences, etc.

These are the typical services that are not sold if the client doesn't ask for them.

The sale of these services should be promoted from the moment of booking by including them in the package, upon arrival, and, of course, throughout the guest's stay.

As always, in these last two phases, hotel staff play a key role , but technology can provide support .

One example is creating an online store for additional services, accessible through the hotel and resort app.

In this way, we promote and raise awareness of these often overlooked services, and by selling these products through the app, we generate a positive impact on the hotel's TRevPAR .

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Ancillary Revenue 1

Digitize and enjoy the results

We know that check-in time is often not the ideal time to sell additional services, as there is usually a queue, guests arrive tired and all they want is to go to their room. 

Having digital tools in this case is very necessary, since we can make these services available to guests in a subtle and elegant way. 

We always talk about the harmony that exists between personnel and technology, because working together improves performance. The job of the receptionist in this case will be to inform the guest that they have all the information available in the App and offer a recommendation of the most attractive services.

It will be the guests themselves who access the app, discover the services and decide which ones they want to enjoy and at what time.

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Ancillary Revenue 2

Success story – Online store

Late check-out, babysitting services, transfers, excursions, flower arrangements, romantic room decorations… These are services that guests usually request, but with our app, we can offer them proactively. Thanks to integration with payment gateways like Redsys and Stripe, guests can pay directly within the app.

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