Hotels can increase ancillary revenue by using guest-focused strategies such as personalised staff interactions, pre-arrival marketing, and targeted promotions. These approaches enhance the guest experience while driving up to 20% more revenue per stay.
Hotel Desk, Painting of gentlemen holding credit card.
When it comes to increasing revenue, hotels often focus on room rates and occupancy. But if you’re not maximizing ancillary revenue—the extra income from things like upsells, dining, spa services, and experiences—you’re leaving money on the table.
The good news? With the right guest-focused strategies, you can boost your hotel’s ancillary revenue without making guests feel like they’re being nickel-and-dimed. It’s all about positioning your offerings in a way that adds value to their stay while increasing your bottom line.
Let’s break down how you can do this effectively with guest-facing teams, pre-arrival marketing, and targeted campaigns.
Your front desk, concierge, and customer service teams aren’t just there to check people in and answer questions—they’re your frontline sales force. And the right training can turn them into revenue generators.
Why This Works
Guest-facing teams interact with travelers at multiple touch-points, from check-in to checkout. They have a unique opportunity to personalize offers based on real-time guest needs, whether it’s a room upgrade, a spa treatment, or a late checkout option.
How to Maximize It
- Empower staff with knowledge – Train employees to understand all available upsells and how to recommend them naturally. Instead of saying, “Would you like to upgrade to a suite?” they can frame it as, “We have a beautiful suite available with a waterfront view—would you like to take advantage of it?”
- Use subtle cues – A guest inquiring about dinner recommendations? That’s an opening to mention the hotel’s in-house restaurant or offer a discount on room service.
- Incentivize sales – Offer commissions or bonuses for employees who successfully upsell services. When done right, guests feel like they’re getting a premium experience, and your team is motivated to provide even better service.
A guest’s journey starts long before they step foot in your lobby. Pre-arrival marketing—emails, text messages, and app notifications sent before check-in—is a goldmine for ancillary revenue.
Why This Works
Guests are more likely to book add-ons when they’re excited about their stay but haven’t yet settled into their spending habits. A well-timed offer before arrival increases conversions dramatically.
How to Maximize It
- Personalized Pre-Stay Emails – Send a welcome email a few days before check-in with tailored offers. If a guest booked a couples’ getaway, highlight spa packages or romantic dining options.
- Exclusive Pre-Check-In Deals – Offer a discounted room upgrade, priority early check-in, or special experiences for guests who book before arrival.
- Mobile-First Strategy – Use SMS and in-app notifications to remind guests of limited-time offers they can take advantage of before check-in.
Not all guests are the same—so why market to them as if they are? A one-size-fits-all approach won’t maximize ancillary revenue. Instead, use targeted campaigns that align with guest preferences and behavior.
Why This Works
Data-driven marketing ensures that your offers are relevant, increasing the likelihood of conversion. Personalized recommendations make guests feel understood rather than marketed to.
How to Maximize It
- Segment Your Audience – Business travelers might be interested in express laundry service, while families could be drawn to discounted theme park tickets. Use past booking data to segment guests and target them with relevant offers.
- Seasonal & Event-Based Promotions – Running a special for spa services during winter? Offering a ‘romance package’ for Valentine’s Day? Seasonal campaigns align with what guests are already thinking about.
- Loyalty & Repeat Guest Offers – Give past guests an incentive to spend more by offering exclusive deals on their return visit. This not only increases ancillary revenue but also boosts retention.
Ancillary revenue has the power to be a game-changer for profitability. Hotels that optimize these strategies can see a 10-20% increase in revenue per guest. With rising costs in the hospitality industry, this extra income helps offset operational expenses and drives long-term growth.
The key to boosting ancillary revenue isn’t aggressive selling—it’s smart, guest-focused strategies that enhance the stay experience. When your team is prepared, your pre-arrival marketing is on point, and your campaigns are tailored to the right guests, every stay becomes an opportunity to boost revenue without compromising the guest experience.
That’s where Alliants comes in. With smart guest experience technology and real-time data insights, Alliants helps hotels tap into new revenue opportunities without disrupting the guest journey. Whether it’s offering the perfect upgrade before check-in or making in-stay services more accessible, Alliants makes it easy for hotels to personalize the experience and boost revenue—without the hard sell.
Want to drive more revenue while keeping guests happy? Focus on what they truly value, and the revenue will follow.
