One of the fastest-growing areas in hospitality today is ancillary revenue. Most accommodation providers now agree that additional services play an increasingly important role in overall profitability. Instead of focusing solely on attracting new guests or raising room rates, many hotels are looking at how they can generate more revenue from existing bookings. This has become especially relevant in today’s economic environment, where operational costs continue to rise while guests remain highly price-sensitive.
Ancillary revenue includes services such as breakfast, parking, late check-in or check-out, and room upgrades. One of the biggest advantages is that these are usually smaller individual purchases, meaning guests are often more willing to spend on them than accept a higher room rate. At the same time, these smaller add-ons can make a meaningful difference to a hotel’s total revenue and should not be overlooked in pricing strategies.
Internationally, ancillary services already account for a significant share of hotel revenue, particularly in higher-category properties. Some studies estimate the global opportunity to be worth tens of billions of dollars.¹
Another major advantage is that hotels do not necessarily need to attract more guests to increase revenue. A well-designed upsell strategy can improve revenue per booking while also enhancing the guest experience through added convenience and personalisation. The key is to focus on services guests genuinely value. According to a Qualtrics study²:
Ancillary revenue goes beyond traditional hotel services. According to SabeeApp experts, more accommodations are starting to rethink how their existing spaces can contribute to both the guest experience and revenue generation.
Internationally, hotels are increasingly:
These trends show that one of the hospitality industry’s most underused assets is often the property itself. Hotels that position themselves as multifunctional spaces rather than simply accommodation providers can unlock new revenue streams and appeal to broader audiences, including digital nomads and travellers looking for authentic local experiences.
Several hotels in Budapest have already successfully embraced this approach.
“The hotel building is multifunctional: alongside the hotel, we also operate a restaurant, cocktail bar, and coworking space. In addition to accommodation, we host weddings, birthdays, conferences, and other events. Variety is also important in the guest experience, which is why guests can choose additional services such as massages or personal training with certain room types,”
said Anita Unger.
“The original concept of the hotel was always about connecting people through different spaces. Everything gradually evolved around the accommodation itself: first the breakfast concept, then the restaurant inspired by Italian lifestyle, followed by the bar and later the spa. Guest feedback has been extremely positive because these experiences genuinely feel unique. In a four-star hotel environment, a spa of this quality is still relatively uncommon. Guests also have many opportunities to add services to their stay, whether that’s breakfast, champagne, flowers, or other in-room amenities,”
said Rita Pálvölgyi.
According to SabeeApp experts, ancillary revenue is still not approached strategically by many Hungarian accommodation providers. This is particularly true for smaller and mid-sized properties, where upselling opportunities are often not yet integrated into pricing strategies in a structured way.
Even a few simple changes can have a measurable impact on revenue:
Digital systems also play an important role. Well-timed offers, for example, during booking or shortly before arrival, can significantly improve conversion rates.
SabeeApp was founded in 2011 with the goal of simplifying administrative and sales processes for hospitality professionals. Today, the automation-focused PMS platform is used by accommodation providers in nearly 80 countries across three continents. Founded by Szabolcs Herman, the company works with more than a thousand partners worldwide and is supported by an international team of over 50 people.
The company has also gained international recognition within the hospitality industry, presenting its solutions at professional events and exhibitions in Bangkok, Istanbul, Amsterdam, and London. With headquarters in Budapest and Bangkok, SabeeApp’s mission is to help hospitality providers free up time and resources through localised, accessible, and people-focused software solutions so they can focus more on the guest experience.