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Non-room Revenue - Fantasy or Opportunity?



Revenue from extra hosting services or products can be the basis for having a profitable operating structure.

The best part? The options are endless and adjustable to the size of each business!


This is called non-room revenue, which is, in a nutshell, price management of products or services complementary to your core business (accommodation) to maximize revenue and results. All bookings are opportunities to have revenue beyond the daily rate.

This is a much debated issue among the largest hotel units, which develop strategies to keep customers "indoors" and thus increase their spending inside the property.


In addition to improving the customer experience you will at the same time be increasing your revenue sources.


Examples:


  1. Activities focused on health and wellness: after a tumultuous year, many customers seek an opportunity to relax, rest and regain energy. To meet these needs, you can outsource in-room massages, offer personal trainer classes, or yoga sessions;

  2. Apply a pet supplement: according to Condor Ferries, 53% of the travellers look for units that accept pets, however, there are still few pet friendly units. So, if you are looking for a differentiation factor, this could be a great option: create a pet supplement that will be based on more thorough cleaning on check-out day and the necessary amenities (water dish, food and bedding);

  3. Add the price of decoration pieces or amenities to the directory: how many times have you been asked the price of the room decoration, the pillows or the robes? These are very common questions in the hotel business, and the big hotel chains were not indifferent to these requests and saw an opportunity to maximize revenue. In what way? By selling the products that are present in the rooms and common areas of the units, placing the price list in the room directory or even inside the closet;

  4. Hold events in one of the properties spaces: in properties with special features (with a lot of floor space or distinctive elements) you can consider creating a dossier to present these spaces, for events, show-cookings or art presentations;

  5. Local products and experiences: museum tickets, sightseeing bus tickets or local products that customers can take with them are some examples of extras that you can make available to your customers;

  6. Parking space: many customers rent cars to have more freedom and to visit more than one destination in Portugal, so, making this option available will not only be more beneficial to the positioning of the property online (since it will respond to another search filter), but it will also create another revenue stream;

  7. Meals, such as breakfast, lunch or dinner: as in the point above, this non-room revenue option will make it present in more search types - breakfast included and will represent one more additional revenue;

  8. Creating packages (romantic, New Year's Eve, Christmas, etc): adding value to the daily rate for festive dates is a great option to increase the unit's ADR




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