Is driving ancillary revenue just one more thing on your already packed agenda?
Not necessarily. If you’re upselling or promoting extra services at your hotel, you’re already making strides. Extra credit if you’ve invested in upselling automation tools to streamline sales and increase guest spend. Still, even the smartest tech solutions often overlook a key opportunity: incorporating ancillary revenue into your pre-booking and pricing strategies. What if you could change that?
By factoring in potential add-on sales before guests even book, you pave the way to higher ancillary revenue, a stronger total revenue management strategy—and ultimately, a noticeable boost in TRevPAR.
Here’s how to make it happen.
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What Is Ancillary Revenue?
Ancillary revenue includes all income generated outside of room sales. Think restaurant and bar revenue, spa services, event bookings, retail purchases, and paid extras like early check-in or Champagne on arrival. Every additional amenity or service offered at your hotel opens up another potential revenue stream.
Selling just one extra breakfast, spa treatment, or late check-out might not seem significant. But those incremental sales add up quickly.
Here’s why they matter:
- They reduce reliance on room revenue alone.
- They improve your overall profitability—key to increasing TRevPAR.
- They enhance guest satisfaction by allowing visitors to personalize their experience.
The Role of Ancillary Revenue in Total Revenue Management
The hospitality industry is steadily shifting away from a room-revenue-only mindset. Instead, hoteliers are adopting a holistic view of their property’s total revenue potential.
And it’s paying off.
According to STR, non-room revenue accounts for around 32% of total hotel income on average. Of course, the percentage varies by property type, but it’s clear that areas like F&B, spa, events, and retail hold major untapped value.
By giving these departments more strategic focus, you’ll be on your way to a comprehensive revenue approach that supports sustainable TRevPAR growth.
This approach is especially timely given:
- Shifting traveler behavior post-pandemic
- Evolving guest profiles and booking patterns
- Regional volatility or economic changes
No matter your reason, the goal is clear: think beyond room nights and maximize your hotel’s full earning potential.
3 Ways to Drive Ancillary Revenue and Boost TRevPAR
There are plenty of ways to tap into your hotel’s extra earning potential. Start with one—or combine all three for maximum impact.
- Empower Your Team to Sell Smarter
Your staff is your first line of opportunity. And the best part? This method doesn’t require new tech or big investments. Train your team to pick up on guest preferences and suggest relevant services in a friendly, organic way.
Worried about staff confidence? Hold regular training sessions to help them master the art of recommendation without sounding salesy. To maintain momentum, implement an incentive program. Rewards like bonuses, time off, or small gifts can motivate your team to consistently drive incremental sales.
- Automate Upselling and Cross-Selling
Even the best staff can’t personally tailor recommendations for every guest. That’s where automation comes in.
Upselling tools allow you to scale personalized offers—before and during the guest’s stay—without overburdening your team. Guests can choose upgrades or add-ons at their convenience, leading to higher conversion and revenue.
- Use an RMS That Prioritizes Ancillary Revenue
Think RMS tools are just for room pricing? Think again.
Modern systems like Atomize RMS now feature ancillary revenue forecasting.
Here’s what that means for you:
- It evaluates the full revenue potential of each booking—not just the room rate.
- It delivers smarter pricing suggestions that account for services like dining, spa visits, or special packages.
- It supports pricing decisions based on total guest value, not just occupancy.
Eric Blatter, GM at Hotel de La Couronne, shares his experience:
“Since implementing the ancillary revenue feature in Atomize, we’ve seen real improvements in our overall revenue strategy. Now, pricing reflects our restaurant and bar sales, and we’ve optimized packages like half-board during peak periods.”
He adds:
“This feature helped us shift from focusing purely on room revenue to a broader, more impactful view of total guest value.”
Now it’s your turn.
Take a smarter, more integrated approach to revenue management and watch your TRevPAR climb—without overhauling your entire operation.
Ready to see it in action? Book a no-obligation demo today.
