The days when hotels could live fat and happy on room revenue alone are well and truly behind us. The Hospitality Sales and Marketing Association International (HSMAI) has sounded the alarm and the solution by releasing its Ancillary Revenue Strategy Playbook: Going Beyond Room Revenue.
It’s a reminder that the hotel business is no longer just selling beds. It’s about wringing value out of every rooftop, every car park, every cocktail, and, yes, every pampered pooch that crosses the threshold.
Beyond the Bed Tax
For decades, hoteliers have known their bread and butter came from rooms. But as operating costs rise and travellers grow choosier, the industry’s traditional safety net has frayed. Enter HSMAI’s glossy new guide, with strategies, case studies, and a nudge for hotels to sharpen their commercial claws.
“Room revenue will always be foundational, but hoteliers who adapt and diversify their revenue strategies will be best positioned for long-term success,” says Brian Hicks, President and CEO of HSMAI. A diplomatic way of saying: if you’re only selling rooms, you’re already behind.
A Treasure Map of Untapped Assets
The playbook doesn’t waste time with theory. It digs into practical ideas that hoteliers can action immediately:
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Underutilised rooms: Why let them sit idle when you can sell them for day-use or last-minute upsells?
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Spaces with potential: Rooftops, pool decks, and meeting rooms aren’t just for decoration. They can be repurposed for events, yoga sessions, or ticketed sunset cocktails.
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Food and beverage innovation: Think beyond the sad buffet. Experiential dining, curated packages, and community-facing events turn kitchens into cash machines.
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Vendor partnerships: From spa treatments to EV charging stations, the guide urges hotels to partner smartly and evaluate fees with a fine-tooth comb.
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Guest segmentation: Different travellers want different extras. Business groups may wish to transport, locals may want spa passes, and transient travellers will happily pay for pet amenities or late checkouts.
If you’ve ever wondered how to monetise a lobby armchair or turn a car park into a profit centre, this guide is a blueprint.
Industry Muscle Behind the Pages
The document isn’t just the work of clipboard academics. It was hammered into shape by HSMAI’s Sales, Marketing, and Revenue Optimisation Advisory Boards, with leadership from industry stalwarts Samir Bhatnagar of Ashford Inc. and Jeff Borman of Virgin Hotels. That’s credibility in spades — or in this case, in spreadsheets.
The guide also includes a curated vendor directory and a practical little black book featuring upselling platforms, spa services, EV charging providers, and more. In short, it provides hoteliers with the contacts and concepts.
Why It Matters Now
The timing is spot on. Inflation hasn’t been kind to the hospitality trade, and guest expectations are higher than ever. Hotels that rely purely on beds find the mattress springs uncomfortable. Ancillary revenue streams boost the bottom line and often enhance the guest experience. A rooftop cocktail party or pet-friendly package isn’t just an extra dollar; it’s a story the guest tells, a memory they carry, and a reason they return.
In this era of loyalty programs and online reviews, repeat customers are worth their weight in minibar Toblerones.
Where to Find It
The Ancillary Revenue Strategy Playbook is available now. HSMAI members receive it as part of their toolkit, while non-members can purchase it online via HSMAI’s official portal. For more background on HSMAI’s broader work, including events and training, visit americas.hsmai.org.
Final Word
The message is clear: stop thinking of hotels as places to sleep. They are mini-universes of opportunity. Every square metre, from the carpark to the cocktail shaker, can be monetised, provided hoteliers are willing to get creative.
In Hicks’s words, “adapt and diversify.” Because in today’s shifting landscape, standing still isn’t just risky, it’s a one-way ticket to obsolescence.
By Octavia Koo
