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Add-on Services that Can Increase Hotel Revenue

Add-on Services that Can Increase Hotel Revenue

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Seasonal dips and economic fluctuations make it a constant battle to achieve revenue targets. Rising labor costs and supply chain volatility further compound these difficulties. Many hotels struggle to remain profitable.

While cost-cutting measures are necessary, hoteliers must also be proactive in generating (and sustaining) new revenue streams. This is where unique amenities and add-on services can help; they allow hotels to generate ancillary revenue, which can mean the difference between turning a profit and struggling to break even.

Here in this post, we will shed light on six add-on services that can help increase your hotel’s revenue:

#1. On-site Entertainment 

Mixed-use spaces help you extract revenue from every corner of your property. On-site entertainment add-ons, such as a rooftop cinema, live garden concerts, or themed parties during the festive season can attract diverse crowds.  

Paired with a curated selection of food and beverage options, on-site entertainment can help you bump up the RevPAR  (Revenue Per Available Room).

Offer something special to make the most of available space and not only guests but even locals will want to keep coming back.

#2. Early Check-in and Late Check-out Options

This can be a win-win for both hotels and guests, as it typically requires no extra investment. Guests appreciate the flexibility and are often willing to pay an extra fee for the convenience of checking in early or checking out late.

Despite being one of the most frequently requested services by travelers who crave flexibility, many hotels still overlook this opportunity.

This add-on can also help increase occupancy rates by accommodating guests with varying travel schedules. 

#3. Champagne on Arrival

This add-on service particularly appeals to guests celebrating special occasions such as anniversaries or birthdays.

When guests are offered the chance to have a chilled bottle of champagne waiting in their room, they often feel encouraged to spend more money on an indulgence they might not have initially considered.

#4. Upsell Pre-Arrival Upgrades

While the hotel room serves as the primary product, add-on services like massages, room service, etc., provide hotels with extra revenue. 

With automated emails or text alerts, you can encourage guests to opt for pre-arrival upgrades. This way, guests will have time to consider indulging in a little extra luxury while they’re still in vacation mode and excited about their trip. 

This approach also saves time at reception and increases the likelihood that guests will opt-in due to pre-trip anticipation.

#5. Local Activity Package 

Partner with local tour operators, activity providers, or cultural experiences to create curated packages for your guests. 

For instance, if your hotel is near a ski resort, water sports center, hiking trail, fun park, or wildlife sanctuary, you can partner with these venues to create a packaged deal.

Such local activity partnerships not only provide added value for guests but also create an additional revenue stream for your property.

#6. Ancillary Transportation Service

Provide guests with convenient airport transfer options, such as a limousine, van, or sedan, for both their arrival and departure. 

This add-on service simplifies their travel plans and gives you another way to generate additional revenue. Tie up with a local chauffeur service on a commission basis if in-house drivers aren’t available. 

Many hotels also offer rides to downtown locations, or late-night pick-ups. For after-hours services, you can even include an extra charge.