Hoteliers should be looking to airlines for inspiration when it comes to finding ancillary revenue, a panel leader at the Hotelier Middle East Great GM Debate said yesterday.
Raki Philips, area director of sales and marketing, Fairmont Hotels and Resorts, who was leading the panel session ‘Boosting Ancillary Revenue’, said: “If you look at the airline industry, the average airline gets anywhere from 5-20% [of its profits] from ancillary revenue.
“They do a very good job of selling every little item of their experience, whereas hoteliers tend to focus a lot more on service which is definitely the right approach to take, but the question is have we left any money on the table — and that is something we need to look at in a creative way.”
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Philips pointed to strategic partnerships with other companies — such as Fairmont’s successful coupling with Mercedes — as one of the ways to find additional revenue streams.
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