Boost hotel profitability in 2025 by tapping into ancillary revenue streams. From F&B and wellness to unique experiences and retail, discover four key strategies to maximise earnings beyond room sales.
For hotel operators seeking to boost profitability, ancillary revenue is a key focus in 2025. Income creatively generated from unique products and services can provide a significant supplement to traditional room sales – without the big price tag of infrastructure investment. Here are four key ways you can generate more ancillary revenue in your hotel.
- Diversify Food & Beverage (F&B) Offerings
F&B services are a proven avenue for increasing hotel revenue. Research by CBRE shows hotel revenue derived from F&B can contribute from 11% to 29% of total revenue, depending on your offering. Themed dining events, branded F&B products or package deals can encourage guests to dine in-house. Additionally, health conscious menus and partnerships with local food producers or high profile chefs are on-trend ways to attract new diners in 2025.
- Expand Wellness and Spa Services
Wellness services are booming globally right now. In Australia, this industry is worth over AUD$45 billion, growing at 5% annually – and many of these services are offered within the accommodation sector. Expand your wellness offerings, open up public day-spa admissions to your facilities and design wellness packages to capture new customers in this growing sector.
- Curate Unique Experiences Through Partnerships
Offering unique experiences to guests by leveraging partnerships can also boost your ancillary revenue. According to a report by STR, hotels that offer experience-based services can see a 20-30% increase in guest spending. Partnering with local chefs, artists, guides or fashion and design brands to deliver unique events or products (think Rosewood London partnering with designer Anya Hindmarch) can elevate guest experiences while increasing your hotel’s chic appeal.
- Optimise Retail Products and Niche Services
Hotel-branded signature items are a growing market right now – even luxury giant Aman sells a $2,700 branded tote bag. Expanding into merchandise and upselling products or niche services – such as pet-friendly options, hot desks, event spaces, shuttle services and car rentals – can enhance revenue without the need for costly infrastructure investment.
Author:
Samuel Vivas Imparato
BMIHMS Learning Facilitator