Revenue Expansion & Commercial Growth
Ancillary Revenue: The Performance Metric Most Hotels Track Last and Should Track First
TRevPAR — total revenue per available room — tells a more complete story than RevPAR. The hotels that manage ancillary revenue seriously outperform the ones that treat it as a bonus.
4 min read
Ancillary revenue — F&B, spa, parking, transfers, leisure activities — represents a significant and frequently underanalysed component of total hotel revenue. In full-service hotels, F&B alone can represent 30–40% of total revenue.
The challenge is that ancillary performance is often tracked separately from rooms revenue, making it difficult to understand the full commercial value of a guest or a segment. A corporate guest who stays three nights and spends €150 in the restaurant is worth more than the rooms-only ADR suggests.
Managing ancillary revenue requires connecting operational system data — POS, spa booking, parking — to the rooms data layer and analysing total guest spend by segment, channel, and season.