Ancillary revenue (hotel)

Ancillary revenue is the hotel’s second income stream after rooms. It does not require new bookings, because it comes from guests who are already staying. How much it contributes depends on whether guests know about the offer and how easy it is to order. It feeds directly into TRevPAR.

How it works in practice

Example: a 60-room hotel in York with an average of 45 occupied rooms a night. If one stay in five adds a £30 extra (a treatment, dinner, a transfer), that is about £270 a day, or more than £8,000 a month. The result depends on the offer, the season and whether guests hear about the extra at the right moment.

Typical ancillary revenue streams:

• breakfast, dinner and room service,
• spa, pool and treatments,
• parking and airport transfers,
• bike, e-bike or equipment hire,
• early check-in and late check-out.

How technology helps

With hotelspot each service is its own point of sale in the G-commerce Manager, with a price list, opening hours and a person in charge. Guests order in the app and pay online, and reports show revenue for each service.