Ancillary revenue generation is considered to be a relatively more complex task for hotel companies vis-a-vis airlines. This is down the high expectations that guests have of services provided by hotels. Against this backdrop, there are three major challenges to address: - Team work: Since ancillary revenue generation transcends departmental boundaries, it requires close cooperation of the various teams working together to achieve a common goal. The roles and responsibilities of the people involved have potential overlaps and this presents challenges for ownership, control and resource allocation. - Metrics: It is acknowledged that even though the industry is equipped with a strategy toolkit for optimising RevPASM, RevPASH and RevPATH, there is still a lack of a clear definition and understanding of how will the hotel team go about implementing these strategies. Clearly there is more work to be done in this regard. - Systems: As for those who expect ancillary revenue generation to make steady progress, certain developments are expected. For one, forecasting for ancillary revenue is set to become more automated with advanced RM software. As the practice of total RM gains prominence, metrics linked with ancillary RM would become routine, too. Finally hotel companies would get to grips with meeting guests’ expectations for ancillary offerings and customer experience would be at the heart of ancillary RM. Get the full story at EyeForTravel