Ancillary Services — The Future of Hotels and Revenue Acceleration

4 Minutes

Ciboni Vaz

Ancillary Services — The Future of Hotels and Revenue Acceleration

Ciboni Vaz
Published on

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Over the years, there has been tremendous growth and change in the hospitality industry. This includes from the perspective of both the hotels and clients. But for now, let’s talk about hotels.

Hotels all over the world want their business to flourish. From revenue acceleration to guest experience and retention, there is a constant push to be the best in every sector. But yet they aren’t realising their full potential.

How do you ask?

Well, Hotels are all about generating revenues from their primary source of income, that is rooms. Hotels can have the best designed and the coziest of rooms available for their guests but there’s so much more they’re missing out on. In the modern-day, guest experience isn’t just about clean rooms and comfy beds, it’s more than that!

This is where Ancillary Services enter the picture. But what are they?

Ancillary services are the future of hotels and revenue acceleration. They’re like a support system to the dominant revenue generator in the hotel. Ancillaries are like the side dish in the main course, they complete the stay experience. F&B, retail, and activities are strong revenue streams.

Ancillary services offer hotels to reach the revenue potential of their business and here are five reasons why hotels must start focusing on them.

Saving Money -

Your guests can easily save around 15%-40% when ancillary services are booked in advance. Hotels also offer lucrative discounts and deals on various services like F&B, spas, and tour packages. While clients save their money, hotels can also generate revenue through commissions paid for the ancillary services.

Simplify Travel -

Most clients are usually on the run with a super busy schedule. Also, many times ancillary costs aren’t clear to your clients. Managing these could really simplify trip planning for the guest while also helping them to make smart booking choices. Doing this guarantees appreciation and ensures guest retention.

A Personalised Experience for the Guests -

A guest looks for special or new experiences when they go to a new spot or return to their favorites. When you’re able to deliver something like that, guests talk about it. They remember everything. Via reviews, forums, or on their personal blogs. Providing something out of the ordinary not just brings back the old guests, but also attracts new ones!

Add Value To Your Guests’ Relationships -

When you offer something to your clients that they didn’t know — which helps them to save money, save time, and have an extraordinary experience — you deliver on your travel expertise and you add lasting value to that relationship.

Boosting Revenues -

It’s all about maximizing your revenue potential! And by selling the ancillary services, hotels can achieve that. Offer the guests the added-value services while generating more money over the supplies and work done for selling those services. In the time when the industry is reinventing itself, methods of generating more cash flow also must be updated.

These points easily tell you that ancillary services are a great opportunity and a fantastic source of additional income. Reach your business’ potential while also offering your the best guest experience and see what more services can your hotel provide to your guests?

Looking for inspiration? Start with these resources.

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