IHG just disclosed that ancillary services are driving their fee margins to record highs—61.2% in Q4, up 190 basis points year-over-year. Wyndham’s ancillary revenues are growing at 19% while their core room revenue barely moves. Accor is considering spinning off Ennismore because lifestyle hotels generate 3x the fees of traditional properties, mostly from non-room revenue.
Meanwhile, every major chain announced massive EV charging partnerships, wellness technology integrations, and alternative accommodation deals in 2023-2024. Over $500 million in venture funding poured into hotel ancillary technology last year alone.
We’ve been so focused on fighting the OTA battles and worrying about navigating the quicksand that is agentic AI – how much time are we spending on ancillary revenue opportunities?
