Best Practices and up to the minute news on Customer Experience Management and Service Excellence
Best Practices and up to the minute news on Customer Experience Management and Service Excellence
The hospitality industry is evolving, and relying solely on room bookings is no longer enough to ensure sustained profitability.
Today’s travelers seek more than just a place to stay – they want unique experiences, convenience, and personalized offerings. Hotels can unlock new revenue streams by strategically incorporating ancillary services while enhancing guest satisfaction and loyalty.
Successful ancillary services aren’t just about adding extras – they must align with guest expectations and enhance their overall experience. A Deloitte report found that hotels generating significant revenue from ancillary services focus on offering value, convenience, and exclusivity.
Food and beverage upgrades, such as premium in-room dining or exclusive chef’s table experiences, are high-margin opportunities.
Similarly, extended check-outs, airport transfers, and VIP lounge access appeal to business travelers seeking seamless stays. Hotels that tailor these services based on guest profiles – offering spa discounts to leisure travelers or co-working spaces for remote workers – see the highest engagement and return on investment.
Read more: On-Site Bars and Restaurants are a Game-Changing Revenue Generator
Wellness tourism is booming, and the Global Wellness Institute predicts the sector will reach $1.3 trillion by 2025. Hotels that capitalize on this trend by offering wellness-focused ancillary services boost revenue and attract health-conscious travelers.
Wellness services, from guided meditation sessions to in-room sleep-enhancement amenities, can be seamlessly incorporated into a hotel’s offerings.
Properties like Six Senses and Miraval have successfully positioned themselves as wellness destinations, offering customized spa treatments, on-demand fitness programs, and holistic dining options.
Even urban hotels can capitalize on this trend by offering yoga classes, healthy room service menus, or partnerships with local wellness centers.
Read more: Strategies to Cater to the Emerging Wellness Traveler
Technology plays a crucial role in maximizing ancillary revenue. According to a McKinsey study, hotels using AI-driven personalization see up to a 20% increase in ancillary sales. By leveraging data analytics, properties can recommend relevant services to guests at key moments in their journey.
Mobile apps and in-room tablets make it easy for guests to book spa treatments, room upgrades, or dining experiences with a few taps.
Personalized pre-arrival emails and dynamic pricing strategies encourage bookings, while chatbots and virtual concierges ensure seamless service. The key is to integrate these digital tools without being intrusive. Offer smart, well-timed recommendations that genuinely enhance the guest experience.
Read more: 2025 Is Prime for a High-Tech Horizon in Hospitality
Hotels that embrace ancillary services as a core business model are better positioned for long-term financial success.
Hoteliers can boost revenue by identifying high-value services, integrating wellness trends, and using technology to personalize upselling while strengthening guest satisfaction.
In a competitive landscape, those who go beyond the basics of hospitality will emerge as industry leaders, delivering memorable experiences and sustainable profitability.
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