Hola again, hospitality pros!
Following the great response to the last edition (and the launch of my new website) I wanted to bring you a fresh perspective that’s been top of mind in my recent conversations with hotel executives, revenue managers, and operational leaders.
I was recently interviewed about ancillary revenue in hospitality…and I walked away thinking: this is still one of the biggest missed opportunities in our industry.
Here’s a short summary of what we discussed, and why I believe the future belongs to those who stop thinking of ancillary as “extra”, and start treating it as essential.
Ancillary is not a side hustle. It’s core business
One of the first things I said in the interview was: “Ancillary revenue should be treated with the same level of analysis, strategy, and KPIs as rooms revenue.”
It’s surprising how many properties still don’t take it seriously. Or at least, not systematically. F&B, parking, early check-in/late check-out, activities, experiences, all of these are already revenue streams, whether or not you’re managing them proactively.
The question is: are you measuring, optimising, and reporting on them?
What gets measured, grows
Many teams still rely on intuition to make decisions around upsells or add-ons. That’s not scalable.
If you’re not linking your ancillary strategy to guest segments, booking channels, or seasonality, you’re flying blind.
Hotels that thrive tomorrow will be those that integrate commercial thinking into operations today.
It’s not about selling more. It’s about solving better.
I shared in the interview that guests don’t care about revenue targets. They care about value. The best ancillary strategy starts with empathy:
- What does this guest need?
- What might make their stay smoother, more comfortable, or more productive?
- How can we make it effortless for them to say “yes”?
Often, the biggest wins are small tweaks: pre-arrival emails that feel human, not robotic. Upsells that respond to context, not generic offers. Packaging that makes sense.
Looking ahead
Ancillary revenue is not a quick fix. it’s a mindset shift. It’s time we moved away from “extras” and into a model where every guest interaction is an opportunity to deliver value and generate revenue (in that order).
So, regardless of your role (revenue, operations, or general management): start the conversation. Map your touchpoints. Track the metrics. Involve your front-line teams.
Because the future of hospitality? It’s total. Not departmental.
If this resonates, be sure to check out all previous articles, available on my new website: https://torreshospitalityconsulting.com/ Let’s build smarter revenue models together.
