Hostel industry generating an average of €200 per bed per year in ancillary revenue - Insights

Hostel industry generating an average of €200 per bed per year in ancillary revenue

YHA Youth hostelSTAY WYSE, the global industry association representing the youth travel accommodation sector, has released their latest research report, Beyond the Bed, examining ancillary revenue in the youth travel accommodation market.

Ancillary revenue is an important and growing source of income in the airline and hospitality sector, and the youth travel accommodation industry is no exception. This new report considers the results of a survey completed by youth travel accommodation providers across the world, examining the major sources of ancillary revenue, how much is being generated and how the sales are being achieved.

The research found that while bed sales accounted for an average of 78% of total revenue, operators were making strides in other areas. On average the ancillary surveyed establishments were generating €200 per bed per year in ancillary sales, with the highest results being obtained in Africa and Oceania. Food and beverage sales amounted to nearly a quarter of total revenue for suburban establishments, and commission opportunities were generating up to nearly 20% of total revenue for some operators. Properties using revenue management systems generated higher per bed revenues, as well as higher beverage and ancillary service sales, than those not using such a system.

The report examines the trends in the airline and broader hospitality sectors, and offers a range of insights and strategies for youth travel accommodation operators on how to sell ancillary products and services by focusing on the study of customer data, targeted stay-cycle offers, and the harnessing technology to maximise results.

The report is available free of charge to STAY WYSE members. The report is otherwise available for purchase here on the STAY WYSE website.

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