Ancillary Revenue In Hotels: 20+ Creative Ways To Boost Profits

“You’re not seeing the whole picture.” 

That’s the last thing you want to hear when trying to increase hotel revenue. 

If someone’s ever said that to you, you know it means you’re too focused on one thing and missing out on bigger opportunities.

For hotels, relying only on room bookings is limiting. The industry has shifted, and revenue now comes from more than just nightly stays. Hotels are no longer just about rooms—they’re about experiences. Guests expect more, and the smartest hoteliers are turning every touchpoint into a revenue opportunity.

The right approach to hotel ancillary revenue can make a huge difference. Hotels that personalize guest experiences and offer strategic upsells bring in more revenue without raising room rates. More importantly, they create memorable stays that keep guests coming back.

If you’re ready to maximize profits beyond room bookings, keep reading. You’ll find 20+ fresh hotel ancillary revenue ideas that boost earnings while making guests happier.

What is ancillary revenue in hotels?

Ancillary revenue is the extra income a hotel generates by selling services and items other than room bookings. It can come from food and beverage services, spa treatments, early check-ins, events, etc.

The type of ancillary revenue streams you adopt depends on your hotel’s location, facilities, and service level. While five-star resorts often have many options to explore, even airport hotels, boutique properties, and limited-service hotels can benefit from creative ways to generate extra income.

In other words, no matter what kind of hotel you run, there are plenty of hotel ancillary revenue ideas to consider. But before exploring those, it’s essential to ask: why should you put effort into increasing your ancillary revenue?

Why hotels should focus on ancillary revenue?

Travel demand keeps rising, and guests are booking more leisure trips each year. A study by Sabre predicts that in 2025, more travelers will take at least two leisure trips, a 6% jump from 2024. This opens the door for hotels to boost profits by introducing new revenue streams.

Increasing revenue from non-room services allows you to reinvest in your property. You can improve guest amenities, offer exclusive services, and create a positive cycle that feeds into itself. More revenue means more options for both you and your guests.

Here’s how an ancillary revenue strategy strengthens your hotel’s success:

• Higher profitability: Additional income increases revenue per available room (RevPAR), total revenue per available room (TRevPAR), and gross operating profit per available room (GOPPAR). Stronger financials mean more opportunities to grow
• Personalized experiences: Upselling and additional services provide guests with options to personalize their stay, which can lead to greater satisfaction
• Differentiation: Offering unique add-ons sets your hotel apart from the competition, and makes it easier for your marketing team to promote
• Lower seasonality impact: Diversifying your revenue streams helps reduce the impact of off-peak periods, making your business more resilient

20+ creative hotel ancillary revenue ideas

Now that we’ve gotten you excited about unlocking new revenue opportunities, here are 20+ high-impact ancillary revenue ideas designed to improve guest experiences while increasing profitability. 

A. Transform your F&B offerings

The food and beverage (F&B) sector is a goldmine for hotel ancillary revenue. Guests often look for unique, memorable dining experiences, so why not turn your restaurant or bar into a revenue-generating hotspot?

1. Install a private wine cellar: Create a wine-tasting lounge where guests can book private sessions led by a sommelier. Curate wine flights with regional selections and pair them with artisanal cheeses or gourmet tapas. 

You can also offer personalized wine bottle storage for future visits, creating an exclusive experience. Add interactive elements like combining workshops or personalized wine labels for a special touch.

2. Specialty coffee & tea lounge: Introduce a high-end lounge offering rare, single-origin coffees and loose-leaf teas, brewed using expert techniques like siphon or cold drip. Host barista-led workshops where guests learn latte art or matcha whisking. Offer limited-edition seasonal blends and exclusive tasting menus to drive repeat visits. Upsell premium beans, artisanal infusers, or custom-branded brewing kits as take-home souvenirs.

3. Rooftop mixology nights: Transform your rooftop bar into an experiential cocktail lab, where guests can book interactive mixology masterclasses. Have expert bartenders teach the art of crafting signature drinks, incorporating locally sourced ingredients. 

Offer VIP packages with a custom cocktail creation named after the guest, which they can order throughout their stay. Enhance the experience with live music, pairing menus, or a behind-the-scenes look at infused spirits and house-made bitters.

4. Dine anywhere experience: Move beyond traditional dining by allowing guests to book personalized meal experiences in unique locations like a candlelit garden, a private beachfront cabana, or their own suite with a personal chef. 

For an elevated touch, offer curated multi-course menus with wine pairings and tableside service. Seasonal themes like moonlit seafood feasts or picnic-style brunches can keep offerings fresh and exclusive. Monetize further with premium add-ons like live musicians, photography services, or surprise proposal setups.

B. Wellness & relaxation

Wellness is no longer a trend—it’s an expectation. From quick indulgences to immersive retreats, these offerings cater to guests seeking relaxation and rejuvenation.

1. Mini spa packages: Offer express spa treatments like 15-minute facials, neck massages, or jet-lag recovery sessions at check-in or in-room. Create a “spa-on-the-go” menu for busy travelers who want quick pampering before meetings or flights. 

Customize treatments with locally sourced essential oils, targeting relaxation, energy boosts, or hydration. Sell travel-sized skincare sets with branded amenities for an additional upsell.

2. Mindfulness & yoga retreats: Host meditation sessions or sunrise yoga classes with scenic views. Sell day passes to attract non-hotel guests, or partner with wellness coaches for multi-day retreats. Offer wellness dining options, including detox juice menus, for a complete experience.

3. Pillow & fragrance menus: Give guests control over their sleep experience by offering a menu of specialty pillows (memory foam, cooling gel, orthopedic, etc.) and custom room fragrances. Upsell personalized scent diffusers with lavender, sandalwood, or eucalyptus blends tailored for relaxation or focus. Offer a “dream concierge” package, where guests receive a curated combination of aromatherapy, herbal teas, and calming playlists. Let them purchase their favorite scents or pillows as a memento.

4. Luxury bath ritual kits: Provide premium in-room bath kits with mineral-rich salts, botanical oils, and handcrafted soaps. Create themed kits like ‘Detox & Rejuvenate’ or ‘Romantic Escape’ complete with champagne and rose petals. Partner with local artisans for exclusive hotel-branded products and offer optional add-ons like bath butler services.

C. Exclusive guest services

Guests expect convenience and exclusivity, especially when staying at a high-end hotel. These unique services add a personal touch while increasing revenue.

1. Secret itinerary experience: Curate exclusive mystery city tours for guests, offering a surprise itinerary that includes hidden gems, local eateries, and personalized stops. You can charge a premium for this tailored experience, and make it a sought-after option for guests looking for something new and exciting.

2. Personal shopping concierge: Provide a luxury shopping experience by offering guests personal shopping concierge services. Partner with high-end boutiques or malls, and guide guests on a bespoke shopping journey. Charge a commission or flat fee for this VIP service.

3. Luxury car & e-bike rentals: Offer premium car rentals with chauffeured or self-drive options, featuring luxury brands like Tesla, Mercedes, or Bentley. Introduce electric bike and scooter rentals for eco-conscious guests exploring the city. Create themed driving routes with curated stops, like a coastal road trip or a wine country tour. Upsell GPS-guided scenic tours with exclusive perks such as reserved parking or VIP access to attractions.

D. Business & events revenue

Modern travelers blend work and leisure, making business-friendly services a lucrative opportunity. Here’s how you can capitalize on this growing sector.

1. Co-working spaces & day passes: Transform unused lounges or conference rooms into stylish, tech-equipped co-working spaces. Offer daily, weekly, or monthly passes with high-speed Wi-Fi, ergonomic seating, and complimentary refreshments. Add soundproof phone booths, video conferencing facilities, and networking events to attract business travelers. Partner with corporate clients for exclusive membership plans.

2. Podcast & content creation room: Capitalize on the rise of digital content by offering soundproof recording studios for podcasters, YouTubers, and remote workers. Equip rooms with professional-grade microphones, ring lights, and green screens for high-quality production. Provide on-demand editing services or collaborations with local videographers. Monetize further by hosting social media workshops and influencer networking events.

3. On-demand personal stylist: Offer business travelers last-minute styling assistance with professional wardrobe consultations. Partner with local designers or tailors for custom suit fittings, express alterations, and rental options. Provide on-call hair and makeup artists for VIP guests attending events or photoshoots. Extend the service to leisure travelers by curating themed vacation wardrobes or honeymoon styling sessions.

E. Local & cultural immersion

Guests love experiences that connect them to the culture and community around them. These ideas allow you to tap into the local flavor of your destination while creating unique offerings.

1. Farm-to-table experiences: Partner with local farms and vineyards to arrange farm-to-table meals, wine tastings, or cooking classes. Market these experiences as an authentic taste of the region, where guests can learn about local food and traditions. Offer them as exclusive tours for guests willing to pay a premium.

2. Art & craft workshops: Collaborate with local artists or artisans to host craft workshops like pottery, painting, or traditional weaving. Charge a fee for guests to attend and create their own art to take home. This idea adds a cultural and hands-on experience that sets your hotel apart from others.

3. Pet-friendly packages: Offer gourmet meals and luxury pet services, such as dog walking or grooming, for guests traveling with pets. Charge extra for these premium pet services, ensuring a comfortable and memorable experience for both guests and their furry companions.

F. Adventure & outdoor experiences

Adventure tourism continues to grow, and hotels can profit by offering outdoor experiences that cater to active guests.

1. Guided hiking & outdoor tours: Partner with local guides to offer outdoor adventures like hiking, rock climbing, or even hot air balloon rides. Charge guests for guided tours that take them through scenic landscapes or unique local features.

2. Water Sports & Adventure Rentals: Rent out water sports equipment, like jet skis, paddleboards, or kayaks, to guests who want to explore nearby lakes or oceans. Offer packages that include lessons or guided excursions for an additional charge.

3. Private jet & helicopter experiences: Create premium, once-in-a-lifetime experiences by offering private jet or helicopter rides. These luxury transport options can be used for scenic tours, transfers to remote destinations, or even special events.

How to increase your hotel’s ancillary revenues

If you’re not used to leveraging ancillary revenue, the process can feel overwhelming. But the good news is that it doesn’t have to be.

Here are six actionable steps to help implement a successful hotel drive ancillary strategy.

Understand guest preferences

Your guests’ past behaviors hold the secret to what they’ll likely pay extra for. Are they business travelers who frequently book late check-outs? Do they celebrate special occasions with premium wine and room upgrades? 

You can use this information to offer tailored upsells before they even arrive. For instance, if a guest previously booked a spa treatment, send them an early offer for a similar service during their next stay.

Hotels like The Venetian in Las Vegas use guest preferences to offer tailored in-room dining and suite upgrades before guests even arrive. Using your hotel’s CRM and guest history, you can personalize experiences before check-in, at check-in, and even mid-stay via the hotel app.

Bundled packages & subscription models

Instead of offering single-item purchases, consider bundling services together to create attractive packages. Think beyond just a room and offer packages that include meals, activities, and spa treatments at a discount. A seasonal bundle for a weekend getaway or a loyalty-based package for long-term guests could be an excellent way to increase spending while also offering guests convenience.

Additionally, subscription models have grown in popularity. Consider offering guests access to premium services, like exclusive dining or spa memberships, where they pay in advance for a certain number of visits or experiences. This guarantees steady income and gives guests a reason to return for more.

Optimize your booking journey for upsells

Your booking process is an opportunity to offer guests relevant add-ons before they even step foot on your property. With the right hotel booking engine, you can suggest additional services like spa treatments, wine in the room, or a late check-out during the booking process itself. This improves the guest experience and boosts revenue from the moment they reserve their stay.

At InnQuest, our booking engine WebBook allows hotels to integrate upsell opportunities directly into the booking journey. Offering these add-ons at various stages—before, during, and even after booking—will enable you to maximize revenue and personalize each guest’s stay. You can also create exclusive offers for returning guests, increasing bookings and revenue without relying on third-party booking channels.

With WebBook, your guests are more likely to book directly through your website, reducing commission fees and increasing your overall profitability. Plus, it’s customizable, matching your hotel’s branding and seamlessly integrating with your channel manager.

Offer exclusive packages & bundles

Exclusive packages are a great way to combine ancillary services into one offering that appeals to different guest segments. You can design seasonal packages that highlight local attractions, or create loyalty-based offers for repeat visitors. 

For example, a “romantic getaway” package could include a candlelit dinner, a spa treatment, and a late checkout.

When you offer packages that cater to specific needs, whether a honeymoon, a family vacation, or a business trip, you can generate more revenue while enhancing the overall guest experience. Not only will guests appreciate the added value, but it also gives you the flexibility to price creatively.

Optimize digital booking & in-room tech

Your hotel’s technology should make it effortless for guests to upgrade their experience. One way to make ancillary purchases even easier is by enabling guests to book additional services through a mobile app or directly from their in-room TV.

InnQuest’s booking engine offers guests a tech-friendly way to book add-ons via mobile apps. From booking a massage to ordering room service or scheduling an airport transfer, guests can book anything they need right from their devices.

Plus, it’s mobile-responsive, making the booking experience seamless on smartphones, tablets, or desktops. The system is fully hosted, meaning you don’t need to worry about the tech side—InnQuest handles the heavy lifting for you. It’s secure, PCI-compliant, and customizable to match your brand. 

All these features work together to drive more bookings and encourage guests to purchase additional services.

The future of ancillary revenue in hotels

As guests seek more personalized experiences, hotels must evolve to meet these expectations. Ancillary revenue plays a crucial role in offering these customized services. However, to tap into this opportunity, your guests must be aware of the additional services available. One of the best moments to introduce these offerings is during the booking process.

Hotels must display relevant add-ons such as special packages or local experiences, during booking to increase revenue and guest satisfaction. Technology plays a central role in this shift, allowing hotels to personalize offerings using guest data.

AI, mobile apps, and integrated booking systems enable hotels to tailor their services in real time. For instance, mobile apps can push notifications for exclusive deals or offer last-minute upgrades based on guest data. The integration of booking platforms and guest preferences will make the upsell process much more efficient and natural.

Additionally, there is growing demand for unique and sustainable services. Guests are increasingly drawn to eco-friendly options, such as green spa treatments or locally sourced experiences. 

InnQuest’s suite of solutions, including the WebBook booking engine, makes it easy for hotels to offer personalized add-ons. These tools drive ancillary revenue and improve the guest experience, enabling hotels to stay ahead of trends and adapt to changing customer expectations.

Ready to boost your hotel’s ancillary revenue? Schedule a demo today and start personalizing your guest experiences!

FAQs

What is ancillary revenue in hotels, and why does it matter?

Ancillary revenue comes from non-room sources like dining, spa services, and premium Wi-Fi. It boosts profits, enhances guest experiences, and reduces reliance on room rates alone.

What are the best hotel ancillary revenue ideas to boost profit?

Offer spa treatments, room upgrades, food and beverage packages, early check-ins, guided tours, and loyalty-based perks. Digital upsells through booking platforms also drive higher revenue.

How to increase your hotel’s ancillary revenues without raising room rates?

Optimize booking journeys with add-ons, create bundled packages, promote mobile check-in upsells, and use guest data to offer personalized experiences.

What role does a hotel revenue management tool play in ancillary revenue?

It helps track guest behavior, adjust pricing, and recommend the right offers at the right time, maximizing revenue while improving guest satisfaction.