Learn about ancillary revenue in hotels and how to maximize additional income streams.
Ancillary revenue refers to income generated by a hotel from services and products beyond the basic room rate. This can include charges for amenities like spa treatments, restaurant and bar sales, parking fees, room service, event space rentals, and gift shop purchases. It represents a crucial component of a hotel's overall profitability.
Maximizing ancillary revenue is key for hotels to increase their total income and enhance the guest experience. For example, a hotel might offer a special package including a discounted spa treatment or a curated local tour upon booking, enticing guests to spend more while enriching their stay and boosting the hotel's bottom line.
Related terms
- ADR (Average Daily Rate)
- RevPAR
- Direct booking
- Conversion rate
