Hotels Urged to Boost Revenue by Focusing on Ancillary Services and RevPAG, Not Just Room Rates
🏨 Hotels need to expand revenue strategies beyond room sales. A global survey of 3,000 travelers shows 30% of travel budgets are spent outside rooms, with 55% potential for hotel services. Business travelers spend 72% more, and bleisure travelers 102% more on-property. Upselling earlier in the booking journey and offering co-working spaces, local partnerships, and bundled packages can enhance revenue. This shift requires revenue managers to oversee interconnected revenue streams, optimizing total guest value.
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