1) The document discusses various ancillary revenue opportunities for hotels, including food and beverage, room services, spa/beauty services, tours/activities, retail, and transportation services. 2) It notes that adoption of ancillary services is increasing in the hotel industry as a way to generate more revenue. 3) Analyzing ancillary service performance and sharing best practices can help hotels optimize these revenue streams.

1. Until it sleeps
1
Ecaterina Paun
protel hotelsoftware GmbH
Head of User Experience
#BTO2015
@buytourism
@katePfau

2. 2
#1
#BTO2015
@buytourism
@katePfau

3. You labelled me
3
#BTO2015
@buytourism
@katePfau

4. 4
Small
or
Big
Individual
or
Group
Family
or
Business
Spa
or
Sport
or
City
or
…
Hotel
or
Hostel
or
Villa
or
...
.de
or
.uk
or
.it
or
…
Hotels are different
#BTO2015
@buytourism
@katePfau

5. …but they all want
More
revenue
Less
commissions
More
data
5
#BTO2015
@buytourism
@katePfau

6. 6
#BTO2015
@buytourism
@katePfau
#2

7. I'll label you
7
#BTO2015
@buytourism
@katePfau

8. 8
#BTO2015
@buytourism
@katePfau
Travelers are different
Single
or
Family
Business
or
Leisure
Relaxed
or
AcSve
Young
or
Mature
or
Senior
UK
or
RU
or
US
or
…
=
different
preferences

9. …but they all want
9
#BTO2015
@buytourism
@katePfau

10. 10
#BTO2015
@buytourism
@katePfau
#3

11. So I dub thee unforgiven
11
#BTO2015
@buytourism
@katePfau

12. Booking
is
geZng
considerably
more
complex
And
more
expensive
Data
in
the
travel
industry
is
exploding.
The
way
that
users
are
engaging
with
the
Internet
changing
We
are
moving
from
a
single
device
pull
world
to
a
mulS-­‐device
push
world
12
#BTO2015
@buytourism
@katePfau
Technologically speaking

13. 13
#BTO2015
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@katePfau

14. 14
#BTO2015
@buytourism
@katePfau
for
Forbes,
Steve
Peterson,
IBM
Ins8tute
for
Business
Value
“…
but
most
of
the
Sme
I
prefer
my
travel
experience
the
way
I
like
my
morning
coffee:
consistent,
effortless,
and
predictable
”
Psychologically speaking
“95%
of
Guests
believe
hotels
will
look
to
new
tech
to
really
personalize
customer
experience”
#IHTF2015,
Jeremy
Ward,
Chief
Opera8ng
Officer,
iRiS
SoNware
Systems
Ltd

15. 15
#BTO2015
@buytourism
@katePfau
Marc
Rosenberg,
president
STRATACONNEX
“In
airlines,
I
charge
a
low
price
and
then
charge
up.
In
hotels,
I
pay
the
lowest
price
and
get
everything.
Where’s
the
logic
in
that?
”
Logically speaking

16. 16
#BTO2015
@buytourism
@katePfau
Bonnie
Buckhiester,
president
and
CEO
of
Buckhiester
Management,
“We
have
to
move
away
from
the
room-­‐centric
approach
…
It’s
not
all
about
rooms.
”
Economcally speaking
“The
industry
is
moving
from
a
focus
on
RevPAR
to
profitability
metrics.”
Sanjay
Nagalia,
co-­‐founder
IDeaS
“Instead
of
opSmizing
for
revenue,
a
hotel
needs
to
opSmize
for
profit”
Amar
Duggasani,
Chief
strategy
officer,
Rainmaker

17. 17
#BTO2015
@buytourism
@katePfau
2015

18. 18
#BTO2015
@buytourism
@katePfau
Sebas8en
Gibergues,
Head
of
leisure
online
and
travel,
Amadeus
IT
Group
“Merchandising
in
the
travel
industry
is
fast
becoming
a
mandate
for
all
players
in
the
supply
chain.
Airlines
are
implemenSng,
online
travel
agencies
(OTAs)
are
adopSng
and
travelers
are
benefiSng.
By
all
measures,
you
could
call
2015
the
year
of
adopSon
for
merchandising.”
2015
the year of adoption for merchandising

19. beware,
there’s things inside without a care
19
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@buytourism
@katePfau

20. 20
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@katePfau
Ancillaries

21. Exit:
night
Enter:
light
Take
my
hand
We're
off
to
never
never
land
21
#BTO2015
@buytourism
@katePfau

22. 1.
New
&
old
ancillary
revenue
on
hotels’
doorsteps
2.
AdopSon
3.
AnalyScs
4.
Best
pracSces
#BTO2015
@buytourism
@katePfau
22
>

23. Food
and
beverage
Room
services
Room
upgrades
Spa
&
Beauty
Sports
and
health
faciliSes
Retail
Tours,
experiences
and
packages
TransportaSon
services
MeeSngs,
IncenSves,
Conferencing,
and
ExhibiSons
(MICE)
Custom,
hotel-­‐by-­‐hotel
services
&
experiences
23
#BTO2015
@buytourism
@katePfau
New & old ancillary revenue on hotels’doorsteps

24. Food
and
beverage
RomanSc
dinner/lunch
Breakfast/Coffee/Aqernoon
tea/Cocktail
not
included
into
the
room
price
Midnight
snack
All-­‐inclusive,
demi-­‐pension
Self-­‐service
bars
and
vending
machines
Room
services
In-­‐room
borle
of
wine/alcoholic
drinks/basket
of
fruits/etc,
WiFi
In-­‐room
entertainment
Laundry
and
same-­‐day
dry
cleaning
services
Upgraded
beauty
products
such
as
name-­‐brand
shampoo,
condiSoner,
oils
and
cleansers;
Affordable
Minibars
24
#BTO2015
@buytourism
@katePfau
Ancillary services & products

25. Room
upgrades
Spa&
Beauty
Spa
treatments,
Massages
and
facials;
Hair
/beard/nails
salon
Sports
and
health
faciliSes
Golf,
Fitness
Sport
equipment/faciliSes
(ski
equipment,
ski
passes,
tennis
rentals,
bikes,
Segway,
etc)
Personal
trainers
Retail
25
#BTO2015
@buytourism
@katePfau
Ancillary services & products

26. Tours,
experiences
and
packages
Guided
tours
&
acSviSes
Event
Sckets
TransportaSon
services
Car
rentals
Pick-­‐up
service
Parking
MeeSngs,
IncenSves,
Conferencing,
and
ExhibiSons
(MICE)
26
#BTO2015
@buytourism
@katePfau
Ancillary services & products

27. Hotel
in
Ljubljana:
Personal
shopper
Shopping
adviser
1-­‐day
shopping
experience:
personal
shopper,
car
&
driver
&
…
Sea-­‐side
/Beach
Instant
photo
Sand
&
water
equipment
for
children
Baby
&
Child
care
27
#BTO2015
@buytourism
@katePfau
Ancillary services by hotel
<

28. 28
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@katePfau
Adoption

29. Good
day
to
be
alive
sir
29
#BTO2015
@buytourism
@katePfau

30.
30
#BTO2015
@buytourism
@katePfau
Detour: Airline Ancillary Revenue
2015,
SkiN
/
IdeaWorks
Company

31. 31
#BTO2015
@buytourism
@katePfau
Detour: Airline Ancillary Revenue
Ancillary
revenue
:
34.9%
of
total
revenue
Ancillary
revenue
/
passenger
USD33.41
Luggage
(hand
luggage,
too)
Seats
Priority
boarding
Food
&
Beverages
Desk
check-­‐in
Flex
Transport
Merchandiser
Wizz
Discount
Club
(2
/5)
Wizz
Privilege
Pass

32. Give me fuel
Give me fire
Give me that which I desire
32
#BTO2015
@buytourism
@katePfau

33. #BTO2015
@buytourism
@katePfau
33
2013,
SkiN
/
Monetate

34. #BTO2015
@buytourism
@katePfau
34
2013,
SkiN
/
Monetate

35. Segmentation
10%
-­‐
20%
of
travelers
are
not
at
all
interested
in
purchasing
ancillary
products
83%
of
millennials
value
personalizaSon
For
85%
of
travelers
a
customized
iSnerary
is
far
more
appealing
than
a
pre-­‐packaged
one
Luxury
travelers
make
up
to
18
purchases
prior
to
a
trip
at
an
average
spend
per
purchase
of
$184.55
95%
of
guests
believe
hotels
will
look
to
new
tech
to
really
personalize
customer
experience
#BTO2015
@buytourism
@katePfau
35

36. And
it
feels
right
this
Sme
36
#BTO2015
@buytourism
@katePfau

37. 37
#BTO2015
@buytourism
@katePfau
OTAs

38. Turn
around,
found
new
high
lights
38
#BTO2015
@buytourism
@katePfau

39. Trends in hotel ancillary revenue
%
of
hotels
that
make
up
to
10%
of
revenue
derived
from
ancillaries?
40%
%
of
hotels
that
make
up
to
25%
of
revenue
derived
from
ancillaries?
65%
?
EURO
/bed
in
ancillary
revenue
is
earned
by
an
average
establishment
200
Euro
39
#BTO2015
@buytourism
@katePfau

40. Trends in hotel ancillary revenue
#BTO2015
@buytourism
@katePfau
40
6%
15%
19%
25%
29%
6%
%
of
total
revenue
is
derived
from
ancillaries
0-­‐2%
2-­‐5%
5-­‐10%
10-­‐25%
25-­‐50%
50%
+

41. Trends in hotel ancillary revenue
%
of
revenue
managers
looking
to
invest
into
ancillaries
during
2015:
57%
+
%
of
revenue
managers
not
interested
to
invest
into
ancillaries
during
2015:
12%
+
41
#BTO2015
@buytourism
@katePfau

42. Trends in hotel ancillary revenue
#BTO2015
@buytourism
@katePfau
42
2%
11%
30%
41%
16%
“We
will
increase
our
investment
into
ancillaries
in
the
next
12
months.”
Disagree
strongly
Disagree
Neither
agree
nor
disagree
Agree
Strongly
agree

43. Trends in hotel ancillary revenue
%
of
revenue
from
bed
sales?
78%
%
of
revenue
from
food
and
beverage?
16%
%
of
revenue
from
remaining
ancillaries?
6%
43
#BTO2015
@buytourism
@katePfau

44. Trends in hotel ancillary revenue
#BTO2015
@buytourism
@katePfau
44
78%
16%
6%
Sources
of
revenue
/average
establishment
Bed
Food
&
Beverages
Other

45. #BTO2015
@buytourism
@katePfau
45
Careful what you wish
Careful what you say
Careful what you wish,
you just might get it

46. When to sell ancillaries?
46
#BTO2015
@buytourism
@katePfau

47. When to sell ancillaries?
47
#BTO2015
@buytourism
@katePfau
<

48. 48
#BTO2015
@buytourism
@katePfau
Analytics

49. #BTO2015
@buytourism
@katePfau
49
I'm your truth, telling lies
I'm your reasoned alibis
I'm inside open your eyes
Sad but true

50. #BTO2015
@buytourism
@katePfau
50
Customer
&
revenue
analyScs
Guest
profile
data
Guest’s
preferences
Loyalty
membership
ReservaSons

51. Data
Monitoring
ancillary
parerns
Does
your
the
PMS/RMS
track
ancillary
services/products?
Do
you
collect
data
related
to
ancillary
spend?
What
kind
of
product
is
being
consumed
The
way
it
is
being
consumed
Frequency,
pace,
price
Staffing
Are
you
able
to
provide
the
services
pushed
through
sales?
MarkeSng
AdverSsement
IncenSves
Metrics
#BTO2015
@buytourism
@katePfau
51

52. & Learning
We
need
the
data
to
make
decisions
Innovate
in
collecSng
the
data
Consider
progressive
data
gathering
Data
from
loyalty
program
memberships
Provide
guests
with
bonus
points
OpSmizaSon
on
ancillary
offers
is
not
automated
(yet)
Start
with
fixed
prices
A/B
tesSng
Consider
ancillary
sales
as
entry
point
for
selling
the
room?
#BTO2015
@buytourism
@katePfau
52
<

53. 53
#BTO2015
@buytourism
@katePfau
Best practices

54. #BTO2015
@buytourism
@katePfau
54
Speak the words I want to hear,
to make my demons run

55. Maximizing revenue from ancillary services
Sell
ancillaries
on
direct
booking
Creates
a
personalized
shopping
experience
OpSmize
ancillary
sales
to
reclaim
traffic
from
OTAs
Use
data
generated
by
booking
with
an
OTA
to
cross-­‐sell
ancillaries
(email,
phone)
Use
data
gathered
aqer
1st
stay
(OTA-­‐driven)
to
create
brand
loyalty
Use
mobile
friendly
websites
Avoid
price
manipulaSon
based
on
device/screen
detecSon
Train
staff
accordingly
Use
social
media
to
distribute
last-­‐minute
ancillary
offers
Beware
of
overcharging
for
essenSal
items
–
like
WiFi
and
minibars
#BTO2015
@buytourism
@katePfau
55

56. Maximizing food and beverage revenue
Correlate
restaurants
&
bars
prices
with
rooms
prices
Be
consistent:
quality
of
services
=
rooms
quality
Theme
hotel?
OpSmize
menus:
high-­‐season
prices
vs
low-­‐season
prices
Know
your
local
market
Affordable
minibars
#BTO2015
@buytourism
@katePfau
56

57. Maximizing spa revenue
Luxury
Do
not
offer
discounts
(not
even
in
low-­‐seasons)
?
Increase
price
in
high-­‐season
Dynamic
pricing
–
the
treatments
with
the
highest
profit
margins
are
being
offered
during
peak
hours
Consider
in-­‐room
treatments
for
low
profit
margins
treatments
to
keep
your
treatment
rooms
free
for
high-­‐profit
treatments
#BTO2015
@buytourism
@katePfau
57

58. Maximizing event revenue
Know
your
Revenue
Per
Available
Square
Foot
?
Calculate
your
revenue
from
renSng
the
space
Calculate
your
ancillary
revenue
from:
Food
&
beverage
Rooms
sold
Spa
&
wellness
sold
Pickup/parking
sold
#BTO2015
@buytourism
@katePfau
58

59. Maximizing revenue from tours & experiences
Commissions
generated
by
Cross-­‐selling
services
from
an
extern
Cross-­‐selling
local
experiences
(trip4real.com,
etc)
NegoSate
at
least
24h
cancellaSon
Recommend
&
sell
only
services
from
quality
providers
Target
millennials
first
(82%
parScipated
in
a
live
experience
in
2014)
#BTO2015
@buytourism
@katePfau
59
<

60. 60
#BTO2015
@buytourism
@katePfau
Takeaways

61. Takeaways
Room-­‐centric
approach
=>
HolisSc
approach
(managing
inventories)
Ancillary
=
Transparency
Ancillary
=
PersonalizaSon
Ancillary
=
Experience
People
remember
great
experiences
more
than
they
remember
great
savings
over
Sme
61
#BTO2015
@buytourism
@katePfau

62. #BTO2015
@buytourism
@katePfau
62
Wherever I may roam
The memory remains
&
Nothing else matters

63.
Thank
you!
63
#BTO2015
@buytourism
@katePfau
Ecaterina Paun
@katepfau
linkedin.com/in/katepfau

64. Enumerative bibliography
10
recommendaSons
to
get
hotel
ancillary
revenues
rolling
in
2015
eyefortravel.com
2014
Airline
Ancillary
Revenue
AcSvity
Surpasses
$38
Billion,
Up
Nearly
21
Percent
IdeaWorks/cartrawler
American
Express
Survey
Finds
Travelers
Want
High-­‐Tech,
High-­‐Touch
travelpulse.com
Ancillary
revenue
report
series
2012
Amadeus
Ancillary
revenues
in
some
sectors
of
the
tourist
industry
Renata
Imbruglia,
Sapienza
Università
di
Roma
Ancillary
Revenues
in
the
Airline
Industry:
Impacts
on
Revenue
Management
and
DistribuSon
Systems
Eric
Hao,
B.S.,
University
of
California,
Berkeley
Ancillary
Revenues
in
the
Hospitality
Industry
eyefortravel.com
Beyond
Rooms
and
Rates:
Packaging
and
PromoSng
Ancillary
Revenue
Streams
hotelexecuSve.com
Cross-­‐Sell
Your
Way
To
Profit
Amadeus
Discovering
new
ancillary
revenue
on
hotels’
doorsteps
hospitalitynet.org
#BTO2015
@buytourism
@katePfau
64

65. Enumerative bibliography
Fear,
loathing,
and
category
killers:
A
chat
about
hotel
distribuSon
and
merchandising
tnooz.com
Hotel
Ancillary
Revenue
in
Europe
phocuswright.com
Hotel
ancillary
revenue
model
quesSoned
hotelnewsnow.com
HOTELS
MUST
CREATE
MORE
ANCILLARY
PRODUCTS
TO
MAXIMIZE
REVENUE
GROWTH
VIA
@HOTELMARKETING
&
@PHOCUSWRIGHT
jlnpr.wordpress.com
How
to
Arract
the
Millennial
Hotel
Guest
skiq.com
How
to
EsSmate
Ancillary
Revenue
for
a
Hotel
smallbusiness.chron.com
trip4real.com
Interview:
Preferred
Hotel
Group
CEO
on
AdapSng
to
Consumer
Habits
skiq.com
The
drive
to
merchandise:
now
is
the
Sme
for
online
travel
agencies
tnooz.com
Top
10
Things
You
Need
to
Know
About
Ancillary
Revenue
and
Airlines
IdeaWorks/cartrawler
Youth
travel
beginning
to
bed
down
ancillary
sale
tnooz.com
#BTO2015
@buytourism
@katePfau
65