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In today's competitive hospitality industry, hotel operators are constantly seeking innovative ways to increase revenue and drive profitability. One such method is by optimizing and increasing ancillary sales - the sale of additional products and services beyond the core offering of accommodation.
Effective ancillary sales not only boost a hotel's bottom line but also enhance the guest experience and strengthen the overall value proposition. In this blog, we explore the importance of menu management in achieving successful ancillary sales.
Why Digitizing Ancillary menu Matters
Traditionally hoteliers have relied on paper-based menus. These menus are difficult to update resulting in a loss of potential revenue for the hotel. However, it has become increasingly outdated due to the fast-paced nature of the industry and the need for immediate updates to menus. Updating paper menus is time-consuming and can result in a loss of potential revenue for hotels.
In recent years, hoteliers have begun to transition from paper-based menus to digital menus, with QR-code menus being one of the most popular solutions. QR code menus are convenient for both hotel staff and guests. Customers can scan a QR code with their smartphones, and the menu will immediately appear on their devices. This eliminates the need for physical menus and reduces contact between staff and guests.
Overall, the shift from paper-based menus to digital menus, specifically QR code menus and dynamic online menus, has been a significant change for the hospitality industry. It has improved the guest experience, allowed for quicker updates and changes to menus, and streamlined operations for hoteliers.
Menu management is the process of designing, organizing, and optimizing a hotel's ancillary offerings to maximize revenue and guest satisfaction. It involves a strategic approach to categorizing and presenting ancillary products and services in a way that is easy to understand and navigate for guests.
A well-crafted ancillary menu can have a significant impact on a hotel's revenue stream. According to a report by the Hospitality Technology Magazine, hotels that actively sell ancillary services achieve up to 30% higher revenue per available room (RevPAR) than those that do not.
Additionally, a well-designed ancillary menu can enhance the guest experience by providing a seamless and convenient way for guests to access and purchase additional services. This, in turn, can increase guest satisfaction and loyalty.
How Quoality Ancillary Menu Works
Quoality ancillary menu management is a no-code menu. It involves three key steps: categorization, hierarchy, and template design.
It is also designed to be cross-device compatible. This means that the menu can be easily managed from a central hub on laptop & desktops as well as from the staff app on mobile & tablets, making it incredibly convenient and flexible for users. Whether you're on a desktop computer or a mobile device, you'll have access to all the tools you need to customize and optimize your menu offerings. With this level of flexibility and convenience, quality ancillary menu management is an excellent choice for any business that wants to streamline its menu management process and deliver exceptional customer experiences across all devices.
Categorization: The first step is to categorize the ancillary offerings into logical groups based on the hotel's overall brand and guest needs. Common categories include food and beverage, transportation, activities, and amenities. This helps guests navigate the menu and quickly find what they are looking for. Further, this enables hotels to personalize the menu at a guest level and based on the guest stage in the hotel journeys ie pre-stay, in-stay, and post-stay.
Hierarchy: Once the categories are established, the offerings should be further organized into a hierarchical structure. This typically involves a three-tiered approach:
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- Category: The top-level grouping, such as Food & Beverage
- Sub-category: The next level of groupings, such as Beverages or Snacks
- Items: The individual products or services, such as Coca-Cola or Potato Chips
This hierarchy makes it easy for guests to quickly locate and understand the various offerings available to them. And the hoteliers can personalize these based on the guest's preferences.
Template Design: The final step is to design templates for presenting the ancillary offerings. Two common templates are:
- Basic: This template is suitable for hotels with a straightforward ancillary menu, such as F&B and simple items. It typically includes a list of offerings organized by category and sub-category.
- Advanced: This template is suitable for hotels with a more complex ancillary menu, such as activities, rentals, tours, etc. It typically includes a detailed description of each offering, along with pricing, availability, and booking information.
- Reduced pilferage: This helps reduce pilferage, as all transactions are processed electronically and recorded in real time. This eliminates the possibility of staff stealing cash or mismanaging payments.
- Instant on-the-go ordering: It also enables guests to order and pay for ancillary offerings instantly, even when they're on the go. This provides a more convenient and seamless experience for guests, which can help increase sales.
- PMS integration to push sales data into folio: It can also be integrated with a hotel's PMS, allowing sales data to be pushed directly into the guest's folio. This streamlines the payment process and helps ensure accurate billing and reporting.
Benefits of Quoality Menu Management
Quoality menu management offers several benefits for hotels and guests alike:
- Personalization: With a well-organized ancillary menu, hotels can provide guests with personalized and tailored recommendations based on their preferences and needs. This can enhance the guest experience and increase guest satisfaction and loyalty.
- Always updated: By regularly reviewing and updating the ancillary menu, hotels can stay current with the latest trends and offerings in the market. This ensures that guests have access to the most relevant and up-to-date information and services.
- Increased revenue: A strategically designed ancillary menu can increase revenue for hotels by promoting and selling additional products and services. This can help to drive profitability and support the hotel's overall business objectives.
- Upsell: A quality menu management system can help hotels to upsell additional products and services to guests, increasing the overall value of each guest's stay.
- Enhanced guest experience: A well-designed ancillary menu can provide guests with a convenient and seamless way to access and purchase additional services. This can enhance the overall guest experience and increase guest satisfaction and loyalty.
- Increase staff efficiency: With an organized and easy-to-use ancillary menu, hotel staff can efficiently and effectively promote and sell additional products and services. This can save time and resources, allowing staff to focus on providing high-quality service to guests.
Conclusion
In conclusion, menu management is a crucial factor for boosting ancillary sales in the hospitality industry. Digital menus, particularly QR codes and dynamic online menus, have become popular solutions for their convenience, ease of updates, and improved guest experience. Quoality ancillary menu management is a no-code platform that offers three key steps - categorization, hierarchy, and template design - and is designed to be cross-device compatible, providing a convenient and flexible solution for menu management. It offers several benefits, including personalization, always updated information, and increased revenue, making it an excellent choice for businesses that want to streamline their menu management process and deliver exceptional customer experiences across all devices.