All About the Add-Ons: Hotel Ancillary Revenue in Europe

Author: Cathy Schetzina

Published: January 17, 2013

Medium

The debate over airline ancillaries may steal the headlines, but hoteliers are increasingly getting in on the action. From breakfast and bike rentals to in-room entertainment and event tickets, ancillary sales offer a compelling way for hotels to boost their bottom line. According to a forthcoming PhoCusWright Analysis, Hotel Ancillary Revenue in Europe, European hospitality companies lag their U.S. counterparts in add-on revenue – but opportunity abounds.

"The revenue potential for hotel ancillary sales is under-exploited in the European market," said Ralph Merten, PhoCusWright market analyst, Europe. "However, enabling technologies such as mobile and customer profiling continue to evolve, and personalized ancillary offerings could become a significant revenue stream for European hoteliers."

Ancillary offers can either be provided by the hotel's own facilities/staff (e.g., spa and wellness) or by third parties (e.g., city passes, event tickets). To succeed, hotels must become more sophisticated in collecting information about their customers' preferences and offer the right add-on at the right time via the most appropriate guest touch point.

Hotel Ancillary Revenue in Europe provides insight into the opportunities and challenges of ancillary products for the European hospitality market. The article features an overview of ancillary services by category, reviewing guest management technologies and touchpoints to outline a roadmap for European hoteliers to increase ancillary sales.

Want to learn more about the opportunity for hoteliers to sell in-destination ancillary products such as events and activities?
PhoCusWright's upcoming Special Project, In-Destination Events, Attractions & Activities: Europe provides a detailed picture of the European in-destination travel activities landscape, comprised of local events, tours and attractions that are often core to the leisure travel experience. The project features consumer surveys in five European markets (U.K., France, Germany, Italy and Spain), a survey of event and activity providers, in-depth executive interviews and third-party data analysis to deliver a 360-degree view of the local activities and events marketplace.
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