Best Ancillary Revenue Ideas For Your Hotel

The last couple of years proved to us that you can never be fully content in your hotel’s revenue strategy. Irrespective of your hotel has a strong core revenue stream with your finances on point. There are ways to improve your hotel’s overall offering and also safeguard your hotel’s revenue from an unexpected event. Diversifying your hotel’s income is one of them!

But how?

As a hotel owner, you can generate multiple revenue channels by creating new ancillary revenue channels. By upgrading guest amenities, offering add-on services that could go beyond the guest room sales. Pushing ahead with these channels will undoubtedly boost the total revenue of your hotel by a lot!

Let’s take a look at the ways you can generate additional revenue.

1. Food and Beverage Services.

These services are one of the most popular and beneficial ancillary revenue channels for generating additional hotel income. There are various ways to deliver food and beverage services to your guests to drive ancillary revenue. They are…
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• Offering a continental breakfast or a buffet program.
• Offering top room service to your guests.
• Having a restaurant, bar, or winery in your hotel.
• Providing your guests with mini-bars in their rooms.
• Renting out the common spaces of your hotel to the local coffee shops and other small businesses.

Although these ideas do drive the ancillary revenue, some of them may require more financial attention and effort than others. For example, opening a brand new on-site restaurant at your hotel would prove to be costly compared to room services and providing mini-bars.

2. Convert Empty Spaces into co-working spaces.

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A lot of people go on a business trip at least once a year! Could be for a couple of days or an entire week. On these trips, these people require a proper environment for their tasks. Turning the empty spaces in your hotel into co-working spaces could be the right thing to do!

Projectors, dual monitors, high-speed internet, office supplies, printers, etc…Now having a rentable space for these people, could be a good side gold mine for the hotel. And not just business travelers, freelancers and small business owners as well.

It’s different but sounds like a good idea for driving ancillary revenue for your hotel right?

3. Host Local Events -

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This could be a hit. Don’t hold back from hosting events at your hotels. Give out your event halls, common areas, outdoor areas and all the other large spaces to host or organize amazing events like concerts, comedy shows, wedding receptions, fashion shows, winery tasting, corporate events etc.

Now, this is a win-win situation. This helps your hotel build a strong relationship and partner with the local hospitality and entertainment companies. These events and programs will boost the booking conversion rate and also the number of potential guests researching for hotels to stay in your area. Not to forget the other guests from the area who won’t be staying but would still use your hotel services and the guests that will come back.

4. Selling Accessories and Merchandise -

As a hotel owner, you’d always want your hotel to be aesthetically good! After all the money you’ve put in the decor and everything else, you receive great feedback from your guests. Feels brilliant, isn’t it? How do use this to generate more revenue? Simple!

Take this chance to open an in-house home decor and gift shop. Sell anything that your hotel stands out for or something your guests can’t stop talking about!

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Here’s a few things you can sell in your hotel stores -

• Local art that you decorated your hotel with.
• Products like shampoos and soaps that are used in the guest rooms.
• Home decor items like curtains and sheets that are used in your rooms.
• Products like local beers, food items, etc. that can only be found in your hotel.
• T-shirts, caps, postcards, glass, etc. that have your hotel-branded on them.
• Gift cards and souvenirs for your guests for future visits.

5. Add on Guest Experiences -

The add-on services for the guests is a home run when it’s about driving total revenue. It’s equivalent to adding room service to your guest experience. Even though it’s hard work and can put a slight strain on the finance books, they can easily provide your hotel business with more revenue streams. Not to forget hotel amenities which is beneficial for the marketing of your hotel.
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Here are a few of the add-on services that can lift your ancillary hotel revenue -

• Spa area
• Massage Services
• Cooking and fitness classes
• Business seminars
• Movie rentals
• Arcades

Well, that’s about it. Here are the 5 best ancillary revenue ideas for your hotel. Hope this benefits you and your hotel business. Also, to know more about ancillary services, revenue acceleration, etc. book a demo with Quoality today or visit our site for more information.