Maximizing revenues for your hotel in this age of lower occupancies and ADRs is the smart thing to do. Many hoteliers are struggling to create the internal processes and systems to successfully sell ancillary services.

To begin with, the revenue opportunities are gigantic from both core "hotel" ancillary products: room upgrades, early check-in, late check out fees, etc. and "non-hotel" ancillary revenue from selling insurance, tickets to museums, theme parks and theaters, concerts and sporting events, etc.

Hoteliers need to study and copy the airlines' mastery for generating ancillary revenues "out of thin air": in 2019 the airlines' ancillary revenue grew to $64.8 billion from $28.5 billion in 2014. Some airlines like Allegiant Airlines in Las Vegas, Nevada generate as high as 40% of their total revenue from auxiliaries.

Linchi Kwok
Linchi Kwok
Professor at The Collins College of Hospitality Management
Peter O’Connor
Peter O’Connor
Professor of Strategy at University of South Australia Business School

One of the key opportunities overlooked by many hotels is upselling/cross selling in their pre-arrival email. Firstly, a startling number of properties don't even take this opportunity to reach out to the guest a few days before check-in. And even fewer leverage such emails to propose interesting, personalized and relevant offers to these highly qualified prospects. Having 'forgotten' about the amount spend on their initial purchase, a few days before arrival guests are much more receptive to such offers , helping to drive ancillary revenue for the property and capture an increased share of the customer wallet.

Meng-Mei (Maggie) Chen
Meng-Mei (Maggie) Chen
Assistant Professor at Ecole hôtelière de Lausanne
Larry Mogelonsky
Larry Mogelonsky
Managing Director Hotel Mogel Consulting Limited
George Noppens
George Noppens
GM E-Commerce at Fornova
Isabelle Jan
Isabelle Jan
Co-founder and manager of PrivateDeal SA
Max Starkov
Max Starkov
Adjunct Professor NYU Tisch Center for Hospitality and Hospitality & Online Travel Tech Consultant
Ross McAlpine
Ross McAlpine
Vice President, Client Services at Vizergy