Ancillary Revenue Opportunities – Only Our Imagination Limits Us!
Ancillary revenue, which includes all non-room revenue opportunities, was often overlooked by hoteliers until the pandemic struck. When room revenue became negligible during the peak of the pandemic, many hoteliers began to look beyond traditional room revenue and explored the opportunity that exists in ancillary revenue by finding creative ways to use their assets. Food delivery, DIY signature meals, laundry, and housekeeping, are some of the more popular forays into which hotel companies have ventured to survive the difficult times and grow their topline. For instance, QMIN, IHCL’s e-commerce food delivery platform, had a massive INR 66 crores GMV in FY22. Similarly, ITC Hotels has introduced food delivery (Gourmet Couch) and laundry services (Lavanderia), Ibis entered the coworking space, and The Leela recently introduced their signature fragrance and bath amenities.