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?
This crisis is quite different from the one's faced by the hospitality industry previously. It has led hotels to reimagine their business models while being hyper-creative at developing opportunities for various revenue streams, including selling a room or an amenity or experience. Will it be sustainable post-pandemic? It certainly provides an opportunity to think beyond pandemic. Total Revenue has been a hot topic for some years and yet it is not mainstream. I believe it is time for the industry (Hospitality at large) to take a step back, look at strategic alternatives and think of the total revenue environment and where it needs to head from here.