As the summer season approaches, the hospitality industry is poised to seize a significant revenue opportunity by implementing strategic add-ons. Hotels that effectively integrate and market extras, such as late check-outs, spa packages, and exclusive experiences, can enhance guest satisfaction while driving their bottom line by as much as 2%. This approach, though requiring careful execution, promises substantial returns with minimal investment.

The Power of Extras in Enhancing Guest Experience and Revenue

In the highly competitive hospitality market, simply offering a bed and a meal is no longer enough. Guests today are seeking unique, memorable experiences that go beyond the basics. Recognizing this shift, hotels increasingly focus on selling extras—additional services and amenities that can significantly enhance a guest’s stay.

According to Pablo Delgado, CEO of America at Mirai, “Implementing a strategy for selling extras can generate up to 2% additional income for hotels, making it a profitable venture.” Delgado highlights that the average value of extras purchased is €15, but a well-crafted value proposition can potentially double this amount.

Strategic Pricing: The Key to Success

One of the most critical aspects of selling extras is pricing them correctly. Delgado asserts that the right pricing can significantly impact guest satisfaction and revenue growth. He explains, “Choosing the right pricing type for each extra is crucial. This means considering both the type of price and the quantity. For instance, the price might be per person for extras like show tickets or spa access, per room for late check-out, or per booking for parking or car rentals.”

The strategic pricing of extras not only adds value to the guest experience but reinforces the hotel’s brand, making it stand out in a crowded market. By aligning the price of extras with the hotel’s overall value proposition, hoteliers can ensure that guests feel they are receiving good value for money, which, in turn, enhances overall satisfaction.

Operational Considerations: Seamlessly Integrating Extras

Operational integration is essential for hotels to sell extras effectively. Offering these services must be streamlined to avoid creating a logistical burden on staff and guests. Delgado advises hotels to start small and scale gradually, ensuring that all extras are accurately recorded in their Property Management System (PMS) or alternative methods like the comments field.

“Hotels should focus on high-margin items,” Delgado suggests. “Low-margin items might pose risks, and perishables should be avoided unless the hotel has an on-site restaurant to manage them.” This focus on profitability ensures that the effort invested in selling extras is worthwhile and contributes meaningfully to the hotel’s revenue.

Marketing Extras: The Importance of Visual Appeal and Clear Communication

Effectively marketing extras is as essential as pricing and operational integration. Delgado emphasizes enticing visuals, clear descriptions, and pricing that resonates with the hotel’s brand and customer expectations. By doing so, hotels can attract guests to add these services during the booking process rather than overwhelming them with too many options.

One of the advantages of selling extras through a hotel’s direct booking channel is the ability to bypass intermediaries, thereby keeping more revenue in-house. Delgado notes, “Offering more and better extras directly through the hotel’s website not only enhances the website’s value but also strengthens the hotel’s value proposition without breaching price parity.” This strategy allows hotels to stand out in a competitive market by offering unique extras that guests cannot find elsewhere.

Long-Term Strategy: Reviewing and Refining Extras

Implementing a successful extras strategy is not a one-time effort. Delgado advises hoteliers to regularly review the performance of the extras they offer, keeping those that are popular and profitable while discontinuing those that do not resonate with guests. This continuous improvement ensures that the extras offered remain relevant and appealing to guests, boosting satisfaction and revenue.

In conclusion, as the summer season draws near, hotels have a golden opportunity to enhance their income by strategically selling extras. By focusing on high-margin items, pricing them correctly, and integrating them seamlessly into their operations, hotels can significantly boost their revenue while offering guests a more memorable and satisfying experience. The potential for up to a 2% increase in income is within reach for those willing to invest in this profitable strategy.

Written by: My Thanh Pham

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