Hotel Ancillary Services: Unlock New Revenue Streams Beyond Room Nights

Vanshikha Dhar
Vanshikha Dhar

Table of Contents

Room bookings alone won’t grow your hotel’s bottom line anymore. The real opportunity lies in what guests are willing to spend beyond the room—upgrades, early check-ins, meals, spa access, and more.

These ancillary services not only boost revenue per guest but also improve their experience. And with the right tools, you can promote and manage them effortlessly.

This blog shows how to make it work—and how AxisRooms helps hoteliers turn these extras into everyday income.

What Are Hotel Ancillary Services?

Ancillary services are extra things your hotel offers besides the room. These services can be provided directly by the hotel (like spa or food) or through partners (like local tours or transport).

Here’s how ancillary services vary across hotel types:

Common Ancillary Services by Hotel Type

Hotel Type

Ancillary Services

Business Hotel

Meeting room rental, laundry, early check-in

Resort

Spa, yoga, sightseeing, romantic dinner

Boutique Hotel

Local snacks, walking tours, pet-friendly services

Airport Hotel

Hourly check-in, airport shuttle, luggage storage

These services give guests more comfort and choice—and help hotels earn more without adding more rooms.

Why Ancillary Services Matter in 2025

Today’s guests expect more than just a room. They want flexibility, convenience, and experiences. Meanwhile, room rates are under pressure, and OTA costs continue to rise.

Industry research shows that for some hotels, ancillary revenues can represent over 50% of total income, and global ancillary revenue is estimated between $80B–$130B in recent years . A McKinsey report found that ancillary sales typically contribute 10–15% of total revenue in hotels—a figure rising as personalization and automation grow Impact of Ancillary Revenue Strategy

Metric

Before Strategy

After Strategy

Revenue per Guest (RevPAG)

₹2,500

₹3,200

Direct Booking Revenue

20%

35%

Guest Satisfaction

3.8/5

4.5/5

Hotel Profit Margin

18%

28%

These improvements reflect the power of a strong hotel revenue strategy and focus on ancillary offerings.

How to Upsell Ancillary Services Successfully

Selling extras at the front desk isn’t enough anymore. Hotels now use automation and smart tools to offer the right service at the right time—before the guest even arrives.

1. Use a Channel Manager to List Add‑Ons Across OTAs

AxisRooms’ Channel Manager lets you bundle rooms with services (e.g., "Deluxe Room + Airport Pickup") and display them on OTAs like Booking.com or Agoda.

Why it helps:

  • No manual work
  • More visibility on OTA listings
  • Better control over rates and availability

You sell more, stay consistent across channels, and avoid overbooking issues. This aligns with best practices in efficient revenue management strategies for independent hotels.

2. Upsell Through Your Booking Engine

Your web booking engine is your most powerful direct sales tool. AxisRooms lets you offer extras like:

These offers show up during booking—when guests are ready to pay more for comfort or convenience.

3. Automate Upsells During Mobile Check-In

Many guests now check in before they arrive. This is the perfect time to offer:

  • Upgrades
  • Parking or luggage services
  • Same-day spa or meal packages

Mobile upselling works because it’s timely and low-pressure—guests are already engaged. According to FrontlinePG, ancillary allows hotels to sell even when “fully booked”—adding profit without overcrowding 

Personalization Makes a Big Difference

Guests are more likely to say yes when the offer matches their needs. That’s why personalization matters.

Guest Type

Personalized Offers

Business Traveler

Workspace access, fast check-out, car rental

Couple

Wine, spa, romantic dinner

Family

Extra bedding, kids’ meals, city tours

Long‑Stay Guest

Laundry, food packages, guided walks

Studies show that guests who engage in at least one ancillary service are 35% more likely to return—improving loyalty and reviews Using booking data or guest history, you can tailor these offers. This boosts both revenue and guest satisfaction.

Tools to Manage Ancillary Revenue Smoothly

Trying to do all this manually? Not practical. That’s where connected hotel tech helps.

Tools to Support Ancillary Revenue Strategy

Tool

What It Does

AxisRooms Channel Manager

Adds extras to OTA listings and keeps them updated

AxisRooms Web Booking Engine

Offers add-ons to guests booking on your website

CRM / GDS Connect

Helps create offers based on guest preferences

Revenue Management System

Helps you price services based on season or demand

Mobile Check-In Integration

Sends timely offers during pre-arrival or check-in

When combined with smart PMS integrations, these tools ensure your offers, pricing, and availability are always in sync across systems.

Real Hotel Use Cases

Here’s how different hotels use ancillary upsells:

  • Luxury Resorts offer spa + meal packages at booking—raising per guest spend by 25%
  • City Hotels sell early check‑in and upgrades via mobile check‑in
  • Airport Hotels charge for hourly check‑ins, shuttle rides, and luggage holding
  • Boutique Hotels promote local food hampers or bike rentals for a more personal experience

These examples reflect data from successful upsell automation strategies. In each case, automation and timing made the difference.

Take Full Control of Ancillary Revenue with AxisRooms

Start earning more from each booking by using AxisRooms to manage ancillary services. Our tools are built to help hotels sell extra services with ease and automation.

Upsell and cross-sell, effortlessly

With AxisRooms Booking Engine, you can offer add-ons like breakfast, early check‑in, romantic dinner, and tours. Guests can easily choose these during booking or pre-arrival—making your bookings more valuable.

Make it personal, make it profitable

AxisRooms lets you deliver targeted offers based on guest type, source, or stay details. Promote relevant upgrades, services, or amenities that fit your guests—from solo travelers to families.

Stay informed, stay in control

Track performance in real time. With insights from the AxisRooms Channel Manager and Booking Engine, you can monitor what guests are buying and improve offers accordingly.

This makes AxisRooms a vital part of any hotel revenue strategy focused on growing wallet share and guest satisfaction.

Final Thoughts

Room sales are just the beginning. Ancillary services help hotels earn more, serve better, and grow faster.

To summarize:

  • Add-ons like early check‑in, transfers, and meals boost revenue per guest
  • Personalization helps offers convert better
  • Automation tools save time and increase consistency
  • AxisRooms connects it all—Booking Engine, Channel Manager, guest data, and PMS integrations—so you can manage it easily

Start offering smarter. Turn every guest interaction into a revenue opportunity with AxisRooms.