Introduction:

Ancillary revenue has increasingly become a crucial factor in the overall profitability of the hospitality industry. As a hotel owner or manager, capitalising on non-room revenues can significantly enhance your bottom line and skyrocket your results. This guide will provide seven key strategies to increase your hotel's ancillary revenue and will also feature Stasher, a revolutionary luggage storage platform that's helping thousands of hotels monetise their unused storage space.

1. Optimize Food & Beverage Services

The Food & Beverage (F&B) department is a vital source of ancillary revenue for hotels. In addition to providing a much-needed service to guests, it offers significant opportunities for additional revenue generation if managed strategically. Here are several ways to optimize your F&B services:

• Diverse Dining Options: Different guests have different preferences, dietary requirements, and budget constraints. Offering a variety of dining options can cater to a wider range of guests. This could include a choice of gourmet meals, themed dinners, or budget-friendly dishes. This diversity not only enhances the guest experience but also increases the potential for ancillary revenue.
• Innovative Menus: Stand out from other hotels by creating unique menus that reflect the local cuisine or showcase your chef’s specialties. This not only encourages guests to dine at your hotel but also becomes a memorable part of their hotel experience.
• Room Service Packages: Room service often incurs additional costs that some guests are willing to pay for the added convenience. Enhance your room service offerings by creating special packages, such as breakfast-in-bed, late-night snack packs, or a romantic dinner for two.
• Promote Your Bar: Encourage guests to enjoy your bar area. This can be achieved through a daily 'happy hour,' cocktail demonstrations, or by offering a unique menu of local wines and brews. Hosting wine or cocktail tasting events can also attract more guests.
• F&B Loyalty Programs: Establish a loyalty program for your F&B services. Offer rewards such as a free dessert on their next meal, discounts after a certain amount spent, or a free bottle of wine for frequent diners. This not only increases revenue but also encourages guests to return.

2. Upsell Rooms and Services

Upselling is an effective way to increase your hotel's ancillary revenue and provide an upgraded experience for your guests. The key to successful upselling lies in understanding your guest's needs and offering them additional services that will enhance their stay. Here's how you can capitalise on upselling opportunities:

• Room Upgrades: One of the easiest and most effective ways to upsell is by offering room upgrades. Guests might be willing to pay a little extra for a suite with a better view, a larger bed, or a private balcony. Ensure that the benefits of the upgrade are clearly communicated and that they provide real added value to the guest's stay.
• Add-on Services: Offering extra services can significantly increase your ancillary revenue. This could include things like late check-out or early check-in, where guests pay an extra fee to stay in their room outside the usual timings. This can be particularly attractive to business travelers or those with awkward flight times.
• Premium Amenities: You could also offer amenities such as premium Wi-Fi, stocked mini-bars, in-room coffee machines, or a selection of pillows for a fee. These little touches can greatly enhance a guest's stay and are often seen as worth the additional cost.
• Experiential Packages: Consider offering packages that combine room stays with experiences. This could be a wellness package that includes spa services, a fitness package with personal training sessions, or a local experience package that provides guided tours or special dining experiences.
• Transportation Services: Another upsell opportunity is providing transportation services. Offer airport pick-up and drop-off, shuttle services to popular local attractions, or even private chauffeur services for those looking for luxury.