COVID has hit the global hotel industry hard. But as with every crisis, new opportunities surface. During the financial crisis of 2008/09, we saw Airbnb and Uber emerge.

Many revenue-generating ideas were born over the past year. From staycation and workation to renting out equipment and even offering outsourced services like housekeeping. Hoteliers have been creative in finding ways to keeping their business afloat.

What was born out of a need for survival might lead to a more permanent shift in a hotel's business model.

The idea of non-room revenue is nothing new and even pre-pandemic was something more and more hotels embraced. F&B or MICE revenue management is still in its infancy for the overall industry but terms like Total RevPAR have evolved from buzzword to serious KPI.

Is now the time to look at non-room, ancillary revenue? Where are the opportunities?

Max Starkov
Max Starkov
Hospitality & Online Travel Tech Consultant

There are significant revenue opportunities outside of room revenue:

1. Make your property the “hero of the destination:”

Bundling rooms with local places of interest and activities into attractive hotel packages offers significant revenue opportunities. Hoteliers know their destination, local attractions and places of interest better than anybody else. This is where hoteliers can truly outwit the OTAs a d Airbnb, and provide real value to their customers.

You can position your hotel as the “hero of the destination” by launching packages, special offers and campaigns that promote a more unique, local experience, such as places of interest and activities, tickets to local attractions and sporting events, local dining, local pub crawls (in future better times), visits to hidden boutiques and local hangouts, and complimentary passes for public transportation or Uber passes. Introduce “live like a local” messaging in your marketing efforts.

Even simple things like selling tickets to sought after museums or museum passes at the front desk or via the concierge can generate significant revenues. By buying museum passes at the front desk of my hotel in Paris I beat what was a minimum of three hour line to purchase museum tickets at the Louvre. The hotel was smart to promote this service on their website!

Do you offer hotel packages and bundled services to target your local, short-haul and drive-in feeder markets, such as:

  • Family fun packages
  • Activity packages
  • Museum packages
  • Theater packages
  • Theme park packages
  • Special occasion packages, etc.
  • Weekend “Night on the town” specials
  • Coronavirus de-stressing packages with with a wellness ssoecialist
  • Spa packages at a nearby spa. 

2. F&B Ancillary Revenue:

If marketed well to both hotel guests and locals, F&B can bring significant ancillary revenues to any full-service hotel. A few things to consider:

  • Cooking classes
  • Wine Tastings
  • Chef's Menu Dinners
  • Converting suites and hotel rooms to spaces for private dining.
  • Coffee shop+WiFi in the lobby

3. Meeting Facilities and Hotel Spaces:

Opening the empty meeting facilities and hotel spaces to local customers and businesses can unlock great revenue opportunities. A few considerations:

  • Co-Working Spaces
  • Work-From-Hotel Daily Rates
  • Rent-a-conference-room packages
  • Pop-up Shops ( Roger Smith Hotel in New York City)
  • Showrooms

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