Hotels could generate up to 2% additional income this summer by selling extras

Mirai shared that selling extras is a strategic way to enhance guest satisfaction and significantly boost hotel revenue. For instance, extras like show tickets or spa access, per room for something like late check-out, or per booking for parking or car rentals etc. The quantity could be per night for extras like an additional bed, or a one-time charge for things like a parking fee. By starting small, focusing on high-margin items, and ensuring proper integration and management, hotels can effectively implement and benefit from an extras strategy. With thoughtful execution, selling extras can transform hotel’s summer revenue potential.  Hotels have a prime opportunity to boost their revenue by offering add-ons to their guests. Enhancing the guest experience with thoughtfully curated extras not only increases satisfaction but can also significantly impact the hotel’s bottom line.

Hotels face several challenges when selling extras through their direct booking channels, but overcoming these can greatly enhance both revenue and guest satisfaction. Strategically, hotels must balance the desire to boost income with the complexities that come with managing additional services. Starting small and scaling gradually helps avoid overwhelming staff and guests. On the marketing front, it’s crucial to effectively promote these add-ons using enticing visuals, clear descriptions, and pricing that resonates with the hotel’s brand and customer expectations, ensuring the options enhance the guest experience without causing decision fatigue. Operationally, the focus should be on streamlining processes to ensure that offering extras doesn’t become a logistical burden. This involves integrating these offerings into existing systems, coordinating with suppliers, and aligning extras with the hotel’s policies and procedures. By addressing these challenges, hotels can create a more appealing and profitable direct booking.
Pablo Delgado, CEO America at Mirai, suggests hotels “to implement selling extras to generate up to 2% additional income for hotels, making it a profitable strategy. Furthermore, the average value of extras purchased is €15. However, a well-crafted value proposition can double this amount. Pablo emphasises the importance of strategic pricing when offering hotel extras. He believes that in today’s competitive hospitality market, it’s not just about providing a bed but delivering a memorable experience. According to Delgado,“getting the pricing right for extras can make all the difference in both guest satisfaction and revenue growth. 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 something like late check-out, or per booking for parking or car rentals. The quantity could be per night for extras like an additional bed, or a one-time charge for things like a parking fee.”
Pablo also recognises the value of offering more and better extras directly through the hotel’s website. He points out that this not only enhances the website’s value and sets it apart from intermediaries but also strengthens the hotel’s value proposition without breaching price parity. He adds: “Plus, selling extras hotels can significantly boost their income, just as with an effective room upselling strategy. Instead of only offering extras upon request, hotels now have the opportunity to automatically sell a wide range of extras to all guests booking through their website. Internal services directly increase revenue, while external ones might earn a commission, with no commission taken by Mirai for external extras.” Pablo stresses that offering unique extras can make a hotel stand out, urging hoteliers not to be just another bed provider but to offer something special.
Finally, Delgado advises hoteliers to start small and scale up strategically when introducing extras: “Begin with one to three simple extras that you know your guests will love. Once you’re comfortable, try adding more options. Hotels should ensure that all extras are accurately recorded in their PMS or use the comments field as an alternative. Focus on high-margin items, as low-margin ones may pose risks. Think long-term—avoid perishables unless you have an on-site restaurant to manage them.” To conclude, Pablo stresses the importance of regularly reviewing the performance of extras, keeping those that work and discontinuing those that don’t.