While you can expand your hotel business by bringing onboard a few online travel agents, irrespective of being the top restaurant hospitality group in Arizona, you have to pay them a certain share of your income through them. The amount of money you pay to these agents on each booking through them is called commission.
Here, the good news for you is that you are not losing this money over bookings, as you can easily recover or rather earn way more than this amount through ancillary revenue.
What is Ancillary Revenue?
The term Ancillary Revenue is used to refer to your income from all the additional products or services offered to all the guests staying at your hotel. Surprisingly, you can significantly optimize your ancillary revenue.
Now, to optimize this revenue, you simply need to consider your hotel way more than just rooms that people can rent. Make sure to do it in a holistic way that does lean towards overall revenue generation.
You must consider offering quality and value-for-money services to all your guests, though. It indeed is a smart and effective way of boosting your hotel’s revenue and ensuring your guests enjoy an ever-desired enriching stay.
The following are some proven best ways to increase your ancillary revenue:
1. Consider partnering with multiple local producers
The easiest yet best way of implementing this idea is that you personally contact multiple local artists, import their paintings, and then hang them in the rooms of your hotel.
If not in rooms, you can choose to turn one or more common areas in your hotel into mini-galleries and organize exhibitions at times. Another option you can try is to put these paintings into guest rooms.
By organizing such an exposure to the artwork by different artists, your hotel can receive a certain percentage on the selling price of every piece that is purchased by your guests. Based on where your hotel is located in the city or town, you might provide a stage for various crafts men who can approach your hotel for all such events.
2. Provide your guests with adventure & entertainment
Well, no matter how big your hotel is, you must always consider the local angle and think from that perspective. Provide your guests with facilities like surrounding tours, sightseeing, and local attractions, organize multiple events for them, which could be free or paid.
By partnering with the local artists, you bring your hotel an exclusive opportunity to serve your guests. Besides, this turns out to be an equally lucrative business opportunity for your business along with these artists.
3. Let your guests talk
Your ability to let your guests take your hotel home plays a significant role in increasing your business revenue. Simply ask your guests for feedback regarding their stay and they might get the opportunity to rave about the services and quality of they got, which could include the bed sheets, pillow covers, paintings in the premises, shampoo and bathing soap out of all the stock they were provided with.
Well, this list of amenities they were served with could be long. Since you anyway buy these products for your guests, why not partner with a supplier who can provide you with discounts on your monthly/annual stock?
4. Must have a cellar
This indeed is the most obvious idea for your hotel business, as stocking liquor and local wine for sale to your guests turns out to be a surefire winner, when it comes to generating ancillary revenue. You can always combine these into different packages or additional deals for your guests.
To accompany the drink, don’t forget snacks. In case you can’t serve enough to your guests, you can always have your cookbook that you can sell them to take home.
5. Offer a place for business meetings
Finally, try and don’t ignore the ever-growing corporate sector. Business people travel from different parts of the world for meetings and often require places to conduct such meets. Make sure to provide them with such as a conference room to make it easier for them to conduct such business meetings. This might allow your hotel to arrange overnight stay for them.
When it comes to hotel business, you should always think outside the box. Organize different events and provide space for meetings and get-together for your guests. Make sure you always expand and never say no to your guests.