Sep 26, 2025
If you're working in hospitality, you've probably heard the term "ancillary revenue" tossed around in strategy meetings. And if you're anything like many hoteliers, you’ve probably asked yourself: Are we really doing enough to capture it?
Spoiler alert: not quite.
Let’s put it in perspective.
In the airline industry, ancillary services—think seat upgrades, baggage fees, priority boarding—make up 40% of total turnover.
Cruise lines aren't far behind, with 34% of their revenue coming from extras like excursions, drink packages, and spa treatments.
But hotels? We're still sitting at just 4%.
Yes, 4%. And that’s despite having more touchpoints and opportunities than most travel sectors to connect with guests and offer relevant services throughout their stay.
So, what’s causing the gap?
The Missed Opportunity in Hospitality
Hotels interact with guests at multiple stages:
🛎️ Booking
📧 Pre-check-in
🧳 Check-in
🛏️ And—most importantly—during their stay
That’s four different chances (at least!) to offer relevant, timely services that guests actually want. But too often, hotels are still relying on outdated methods—flyers, tent cards, or last-minute pitches at the front desk.
Let’s be honest: guests don’t travel to read brochures. They expect seamless, digital experiences that match the ease and personalization they encounter in the rest of their journey.
The In-Room TV: An Untapped Sales Channel
One of the most overlooked tools in the guest experience is something almost every hotel room already has: the TV.
With the right digital TV system, it becomes so much more than a screen. It becomes a powerful ancillary revenue channel.
Think about this:
A guest turns on the TV and sees a personalized offer for a late checkout. One click, and it’s added to their bill.
They browse room service menus visually, with real-time booking options.
A couple on a romantic weekend sees a “couples massage at 20% off—today only” pop up just after breakfast.
Local experiences—bike rentals, wine tastings, live concerts—appear where the guest is actually engaging instead of buried in emails they might ignore.
It’s non-intrusive, relevant, and incredibly effective.
Why Ancillary Revenue Matters More Than Ever
The global experiences market is projected to top $3.1 trillion by 2025. Yet only $1.3 trillion comes from tourist spend—and just 25% of that is structured and paid. The rest remains offline, unbooked, or unmonetized.
Meanwhile:
60% of global travelers now plan trips around live events and entertainment.
Gen Z spends twice as much as Boomers on experiences. They book online, prioritize shareability, and often choose destinations based on content, not geography.
In other words, guests are hungry for curated experiences—and hotels are sitting on a goldmine of unclaimed revenue. Platforms that enable event-led discovery and in-destination booking are positioned to win big.
Closing the Gap: From Entertainment to Engagement
Ancillary revenue is no longer optional. Rising operational costs, changing guest expectations, and the competitive landscape mean that upselling must be a strategic part of your revenue model.
Airlines and cruise lines have mastered the art of upselling. Hotels can too—and even surpass them—by leveraging in-room technology to:
Present personalized offers at the right moment.
Boost guest satisfaction through relevant, intuitive suggestions.
Drive incremental revenue without being pushy or intrusive.
The question is simple:
Are you still treating your in-room TV as just entertainment?
Or are you ready to turn it into a strategic revenue-generating asset?
The opportunity is enormous, and the tools are already in your rooms. It’s time hospitality caught up to the modern traveler—and the modern experience economy.
