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Hotels embrace ancillary revenue in 2023, reports Mews

Images by Mews

Revenue per available guest increased by almost 10% in the UK, according to the Mews data dive for 2023.  

The company reported that growing pressure on hotels had encouraged more flexible thinking in terms of revenue generation.

The number of properties selling additional bookable services (i.e. those that have more than a single space type) is rocketing. A quarter of hotels in the UK now diversify their revenue in this way, a 66% increase on 2022.

RevPag reached £199, with spaces such as parking being used to create much-needed additional revenue and help to offset ongoing cost increases and move properties towards profit.

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Mews reported that operations with parking made £2,102 more in 2023 than in the previous year, up from £10,304, an increase of over 20%.

The growth illustrated the benefit of assessing the whole of a hotel when generating revenue, not just bedrooms.

The group also highlighted the value of online check-in, with 23% of guests checking in online in 2023 and 3% of those guests upgrading during the process, with an average upsell value of £21. Top upsells were; breakfast, towel, late check-out, early check-in and parking. The proportion of guests upgrading their reservation during online check-in almost doubled year-on-year.

ADR was £177, up 13% on the year, with revpar of £95, growth of 10%. Occupancy was 62%, down 2.3% from 2022.

International travel has also stabilised, with an almost 50:50 split between domestic and international travel.

“With rising inflation across the world, it’s not surprising that the average daily rate has risen, but it didn’t deter reservations in 2023. The data is another proof point that occupancy levels have more than stabilized, making for a meaningful rise in RevPAR for our customers,” said Matt Welle, Mews CEO.

He added, “Hoteliers are becoming more creative with the amenities and spaces they offer their guests and in the last year alone, we’ve seen a significant increase in properties selling additional bookable services. While parking spots and meeting rooms have played a huge role in this, 2024 will be the year that more hoteliers revolutionize revenue management. We are beginning to see more hotels capitalizing on all available assets and offering additional spaces, from co-working desks to karaoke booths, providing remarkable guest experiences across the board.”

Tags: hotels, Mews, Revenue


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