What’s Your Strategy For Earning Non-Room Revenue?

What’s Your Strategy For Earning Non-Room Revenue?

Revenue. Few words generate as much stress for hoteliers because a property’s success depends on a healthy flow of money. For so long, the focus has been on maximizing room revenue, and revenue managers have done an excellent job leveraging rates based on season, local events and market conditions. But, with the hospitality industry more competitive than ever before, what strategy, if any, is being put behind cultivating non-room revenue?

The days of purchasing in-room movies and using the room phone as ways to earn ancillary revenue are long gone. Successful revenue management today means going beyond the guest room and tapping multiple revenue streams to ensure profitability. Here are five tips for expanding revenue strategy beyond the room.

Automate For Efficiency

Today’s increasingly complex distribution landscape and overwhelming amount of data has propelled the revenue manager role in a new direction – from a focus on monitoring room inventory and setting rates to one deeply involved in generating total hotel revenue.

Mounting data must be managed in an efficient way, but what’s the best way to do this, so revenue managers can emphasize strategy for total hotel revenue? Automation is the answer. It drives convenience, enhances seamless operations, and encourages strategic decision-making.  

An automated revenue management system (RMS), like those provided by IDeaS Revenue Solutions, is crucial for handling sophisticated data analytics. The system powers what revenue managers once had to do manually, so they can focus more on developing a strategy to drive profits from multiple revenue streams. Revenue managers save time and money because automation assists, not replaces, their job.

Leverage Group Business

Looking beyond room revenue means exploring market segments ripe with profit potential. Since meetings and events business can represent up to 60% of overall revenue for hotels, especially large resorts, casino, and convention properties, now is the time to transform the way group business is booked to make it a consistent, strong revenue stream.

Maximize pricing opportunities on conference business with demand-based pricing and more accurate forecasting. Manage function space revenue management to boost opportunities from food and beverage, audio-visual equipment and more. A cloud-based application like IDeaS SmartSpace effectively enhances strategic decision-making to grow meetings and events revenue.

Eat, Shop & Spa To Increased Revenue

What areas of my hotel bring in money, but could bring in more? Embrace food and beverage, spa/wellness and retail opportunities. Creatively strategize on how to optimize revenue from these areas while elevating the guest experience. 

Upsell spa treatments at check-in or at other times during a guest’s stay. Add fitness and wellness classes at good prices, like yoga or Zumba. Offer a happy hour with discounted drinks and appetizers sold at piecemeal pricing (like $1 mini tacos or sliders), special early-bird or night-owl dinner pricing, and wine tastings. Let guests take the hotel home with them, especially if a hotel has something they really favor, such as sales of exceptional pillows, high-quality bed linens, bath products, a cookbook for signature restaurant and cocktail recipes, etc.

Embrace Everything Local

Guests crave a sense of place, and infusing local elements into a hotel product can give that property an edge against the competition.

Think local to drive ancillary revenue that bolsters your bottom line. Create revenue streams through local partnerships – as a bonus, you can further build your hotel’s story and solidify an identity in the community. Develop distinctive (and possibly exclusive) local experiences sold at your hotel. Bring the community inside by inviting local artists to display their creations in rooms and public spaces and earn a percentage of the sales. Look at unused space in a hotel – how can it generate revenue? Consider creating co-working spaces in available workspaces at the hotel or use flexible outdoor space for local farmers’ markets.

Delve Into The Data & Strategize

Mounting data is a goldmine of possibility. Tap into opportunity through the available data at revenue managers’ fingertips, and work with multiple departments to conceive a smart strategy to bolster an influx of money.

Work closely with a hotel’s sales, marketing and e-commerce departments to devise campaigns that drive bookings, including tie-ins with special local offers, spa therapies, food and beverage options, select booking windows, special events and more. Stay abreast of seasonal consumer shopping behaviors, market trends, a hotel’s online reputation and social media presence because this can inform pricing and promotional programs.


Maximizing room revenue is crucial, but profitability today means looking beyond accommodations in order to tap new revenue streams. Leverage group business in new ways. Explore the potential of meetings and events, food and beverage, spa and retail. Embrace local partnerships. Automate certain tasks, so revenue managers can devise targeted strategies based on available data. And, most importantly – ensure all revenue streams deliver real value to guests, so these streams can thrive.

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This article was created in collaboration with the sponsoring company and our sales and marketing team. The editorial team does not contribute.