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Hotel Profitability Squeeze: Why Ancillary Revenue Matters More Now

Season 10 Published 3 months ago
Description

Profitability keeps getting squeezed even after years of strong revenue growth, so hotels can't live on RevPAR alone.

I'm at Duetto PERFORM at Margaritaville Resort, and I talk with Michael Grove, CEO of HotStats, about what his data shows right now—and what hoteliers can actually do about it.

📉 Michael says cost pressure stays the story: labor, wage inflation, loyalty costs, and credit card costs don't go away
💰 He points to the opportunity: ancillary revenue grew 5.8% globally last year while RevPAR grew about 2.5%
🧠 He pushes a total revenue per customer mindset instead of obsessing over rooms revenue alone
🍽️ He says hotels need more creativity to help guests spend money on-property in ways they actually enjoy
🤝 He also talks the HotStats + Duetto connection: insight, tools to act, and measurement in one package

Want the weekly roundup of news, videos, and what you might've missed from hashtagNoVacancyNews? Text HOTEL to 66866.

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