February 13, 2018

Ancillary Revenue and Personalization: 2018 revenue management best practices, Part II

There’s a huge opportunity for profits when hotels focus on their guests’ ancillary spending as a way to grow revenue.

A report done by Eye for Travel estimated total ancillary revenues worldwide at $80-130B. In a survey conducted among general managers, 57% planned to increase their investment into ancillaries in the next 12 months, and 23% of general managers said their RMS does not account for any ancillary spending, while another 20% indicated they do not have an RMS at their property.

In a survey conducted among hotel guests, 60% said they would purchase add-ons during their stay, but 40% said they still needed to be convinced. For guests that wouldn’t purchase add-ons, 58% felt that the property is simply trying to make more money off them, and 63% felt that the products or services offered were not relevant to them.

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