Additional revenue generated beyond core room sales, including spa, food & beverage, parking, activities, and other guest services.
Ancillary revenue in hotels refers to all income generated from sources other than room sales. This includes food and beverage (restaurants, bars, room service, minibar), spa and wellness services, parking fees, meeting and event space rental, laundry services, resort fees, Wi-Fi charges, gift shop sales, activity bookings, transportation services, and late checkout fees. For many hotels, ancillary revenue represents 30-50% of total revenue and often carries higher profit margins than rooms.
Ancillary revenue is critical for hotel profitability because it increases total guest spend without the acquisition costs of attracting new guests. A guest already staying at your property is the most cost-effective customer to sell to. Additionally, ancillary services often have higher margins than rooms, and they differentiate your property from competitors. Hotels that actively manage ancillary revenue streams typically outperform those that focus solely on room revenue.
Opally drives ancillary revenue by naturally promoting your hotel's services during guest conversations. Whether a guest asks about dining, activities, or late checkout, the AI provides compelling information and makes it easy to book additional services - turning every interaction into a revenue opportunity.