Unlocking ancillary revenue: The power of strategic marketing in hospitality

While room sales remain the primary revenue source for many hotels, ancillary services such as dining, spa treatments, local experiences, and event spaces provide significant opportunities to boost profitability. But to successfully tap into these additional revenue streams, hotels must employ strategic marketing efforts that go beyond the traditional approaches. From social media to influencer marketing, modern tactics can transform how hotels generate and maximize ancillary revenue, without becoming pushy in the eyes of their customers.

Good marketing is no longer just about creating awareness or visibility. it’s about building relationships with potential and existing guests and positioning a property as the ultimate destination for more than just a room to sleep in. personalized marketing strategies can highlight the unique experiences and services that differentiate a hotel from its competitors, offering value beyond the stay itself. the key is to showcase what guests can’t get at home and provide exclusive, memorable experiences that they can’t find elsewhere.

Social media marketing has become one of the most effective ways to promote ancillary services. platforms like instagram, facebook, and tiktok allow hotels to showcase their offerings visually and reach a global audience. Guests are more likely to book additional services when they are presented with high-quality content that reflects the hotel’s unique atmosphere and amenities. Whether it's a photo of a stunning spa with an ocean view or a story about a guest’s personalized wellness journey, social media allows for creative storytelling that directly influences purchasing behavior.

One notable example comes from Le Royal Monceau in Paris, where the hotel uses instagram to highlight its luxurious spa services. the hotel regularly posts high-quality images and videos showcasing the serene spa atmosphere, the treatments on offer, and the relaxation experience. By doing so, they’re not just advertising a hotel room; they’re promoting a full experience. potential guests see this content and start imagining themselves enjoying these services. This visual representation increases demand and contributes directly to higher ancillary revenue.

In addition to showcasing services on social media, user-generated content (ugc) plays an essential role in marketing.When guests share their positive experiences on their own social platforms, it acts as a form of digital word-of-mouth marketing. It builds credibility for the hotel and encourages others to book similar services. UGC is authentic and trustworthy, making it more influential than brand-created content. Hotels can encourage this by creating instagrammable spaces, unique experiences, or offering incentives like discounts in exchange for social media posts.

Influencer marketing is another critical element in driving ancillary revenue. Influencers have built dedicated followings based on trust and relatability, and they offer hotels a unique opportunity to reach potential guests who align with their brand values. When done correctly, influencer marketing goes beyond raising awareness; it can drive direct bookings for ancillary services.

The success of social media and influencer marketing comes down to personalization. Today's guests seek experiences tailored to their preferences, and marketing efforts need to reflect that. using data-driven insights, hotels can create personalized campaigns that target specific guest segments. For example, if a hotel knows that a particular segment of its audience is interested in wellness, it can use social media ads or email campaigns to promote spa packages, yoga retreats, or healthy dining options. Personalized marketing increases the likelihood of conversion and makes guests feel valued, which in turn fosters loyalty and repeat business.

Effective marketing also includes. Promoting exclusive tours, cultural experiences, or dining collaborations can set a hotel apart from its competitors. Many hotels have successfully increased ancillary revenue by partnering with local businesses to offer packages that appeal to both international and domestic guests. The Upper House in Hong Kong is a great example of this. the hotel partnered with local artists to offer personalized art tours, allowing guests to experience the city’s culture in a unique and exclusive way. That way, the Hotel successfully created demand for an ancillary service that differentiates them in the market.

Email marketing, while considered more traditional, remains a highly effective tool for promoting ancillary services. Pre-arrival emails are an excellent opportunity for hotels to showcase additional services such as room upgrades, dining reservations, or spa treatments. Strategically marketing these services ahead of a guest's arrival means that hotels can increase the likelihood of upsells.

Pricing strategies also play an important role in the marketing of ancillary services. Bundling services into packages often makes them more attractive to guests and increases the perceived value.

Lastly, tracking the performance of marketing efforts is crucial to understanding what works and what doesn't. With the advent of digital marketing, hotels have access to a wealth of data that allows them to measure the success of their campaigns in real time. Social media engagement rates, influencer conversion rates, and email open rates all provide valuable insights into what resonates with guests. Using this data, hotels can refine their marketing strategies to ensure they are driving as much ancillary revenue as possible.

As guests increasingly seek experiences that go beyond the ordinary, hotels that focus on showcasing their unique offerings through effective marketing will stand out in a crowded market. In the end, the key to success lies in crafting a marketing approach that is tailored, creative, and always focused on delivering exceptional value to the guest.