The revenue distribution among different categories fluctuates based on the hotel’s target demographic and business model.
Various strategies can be implemented to enhance revenue across different streams. In terms of room stays, tactics such as dynamic pricing, targeted promotions, loyalty programs, and enticing packages can be employed.
In the food and beverage sector, initiatives like themed nights, happy hours, special menus highlighting local cuisine, and the use of high-quality ingredients can attract more patrons.
For conference and events services, investing in upgraded technology, offering flexible meeting spaces, providing personalized service, and innovating catering options can help boost revenue.
Ancillary services, including bundled packages such as airport transfers and laundry services, integrating with loyalty programs, and offering premium service options, can further contribute to overall revenue growth.
Traditionally, hotels categorize revenue into distinct segments: rooms, food and beverage (F&B), banquets, and other income sources. F&B revenue flourishes on innovation, with unique menus and targeted promotions that cater to evolving guest preferences. Benchmarking against competitors in terms of menu pricing and customer preferences allows for continuous improvement, ensuring F&B remains a significant revenue contributor.
Revenues are split among rooms, F&B, and catering services. Rooms have a business mix and are balanced mainly between retail, negotiated, groups, and GDS reservations, contributing to 40-45% of our revenue. F&B contributes to 30-35%, and catering covers the remaining overall revenue.
Hotels like Cygnett Hotels & Resorts have multiple streams to generate revenues. Room bookings are the primary revenue stream for hotels. In a hotel, there are different types of rooms offered at varying rates depending on factors like room size, amenities, and location. Food and beverage (F&B) services are another important segment for generating revenues. Many hotels have on-site restaurants, bars, cafes, and room service options. Revenue is generated through the sale of food, drinks, and sometimes catering services for events.
MICE venues including conference rooms, ballrooms, and other event spaces also contribute significantly to overall revenues of a hotel depending on its positioning. Wellness demand has grown over the years so some hotels offer spa treatments, massages, fitness facilities, and wellness programs, which generate additional revenue for them. Ancillary services such as parking fees, laundry services and valet services are a revenue generating stream too.
Many hotels are enhancing their revenue by offering packages that bundle meals, spa services, or local tours, thereby increasing attractiveness of bookings. Additionally, hosting themed dinners, happy hours, or seasonal events attracts both guests and locals, further boosting overall revenues.
Read the full story that first appeared in Hotelier India’s June issue here:
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