RevPAR isn’t enough. Research has found that, on average, 68% of hotel revenue comes from rooms, while 32% comes from food & beverage, spas, activities, parking, and other services. How to maximize these additional revenue streams.
This month’s Spa Executive is about all the things RevPAG we could cram into one issue.
The hotel industry has long prioritized revenue per available room (RevPAR), with ancillary services often treated as secondary. But guest expectations have changed, and people are increasingly booking hotels and resorts for unique, immersive experiences. From dining to spa to curated activities, workshops and wellness, travelers want more than a place to lay their heads.
Hilton’s 2025 Trends Report predicted that 2025 would be the “Year of the Travel Maximizer.” Chris Nassetta, Hilton’s President and CEO said, “Our 2025 Trends Report uncovers what has been simmering for years – the intersection of work and play; of relaxation and adventure; of being alone but together. Travelers don’t just want to choose their own adventure – they want to maximize every moment of their time away.”
Recent research from diverse sources has also found that:
- 72% of affluent travelers around the world, are more likely to book a hotel if it has specialized wellness options, like salt rooms or ice baths (this rises to 93% among Chinese travelers). (Altiant & Hyatt)
- 62% of respondents prioritize spa experiences. (Altiant & Hyatt)
- 52% are drawn to nature immersions. (Altiant & Hyatt)
- 54% are interested in therapeutic interventions like acupuncture. (Altiant & Hyatt)
- 49% seek exercise classes. (Altiant & Hyatt)
- 59% of American travelers participated in outdoor adventure activities during trips taken in 2023. (Skift)
- 63% of luxury travelers say they are likely to seek out adventurous activities. (Skift)
- In the 12 weeks leading up to a trip, people searched for experiences three times more than they did for hotel bookings and eight times more than for flights. (Google)
Spas, activities, and premium add-ons remain underutilized revenue sources in many hotels and resorts. Meanwhile, rising labor and operational costs are increasing the pressure to find additional revenue streams beyond RevPAR.
Moving beyond RevPAR a total revenue perspective
Research by CoStar Group has found that, on average, 68% of hotel revenue comes from rooms, while 32% comes from food & beverage, spas, activities, parking, and other services. While rooms generate steady income, many hotels overlook high-margin opportunities in ancillary services. Instead of focusing solely on occupancy and average daily rate, hotels should be prioritizing total guest spend to maximize profitability. The metric that measures this total spend is RevPAG.
We know that guests are increasingly willing to pay for curated, exclusive experiences, and sometimes even small changes can turn these often already existing amenities into bigger profit drivers.
Easy ways to move beyone RevPAR and promote ancillary revenue offerings include taking simple actions like the following:
- Auto-prompt spa and activity booking with room reservation. Use hotel booking software to suggest a spa treatment or excursion immediately after guests book their stay.
- In-room and lobby QR Codes for instant booking. Place QR codes in guest rooms and in strategic locations throughout the property linking directly to the spa and activities booking page.
- Automated pre-arrival spa reminders. Send spa promotions via email or SMS before check-in.
- Smart spa and activity offers based on length of stay. Automatically offer spa perks to guests staying multiple nights. Example: “Staying 3+ nights? Enjoy a complimentary 15-minute foot massage when you book any service.”
- Effortless pool & gym cross-promotion. Use digital signage at the pool and gym to promote spa recovery services. Example: “Sore muscles? Recover with a massage—stop by the spa or book on your phone.”
Technology’s role in maximizing non-room revenue
Hotels can leverage technology to streamline and enhance ancillary revenue opportunities. Smart booking platforms and AI-driven personalization tools can help upsell spa treatments, adventure experiences, and wellness add-ons based on guest preferences and past behavior. Automated pre-arrival emails and in-app notifications can suggest relevant experiences, encouraging guests to book before they even set foot on the property.
Don’t forget your cabanas & day beds
Luxury hotels can optimize cabana and day bed rentals by integrating dynamic pricing models that adjust rates based on demand, weather conditions, and peak times. Mobile ordering for food and beverage service in these areas can drive additional revenue, while premium add-ons—such as exclusive cocktail menus, private spa treatments, or personalized concierge service—can increase guest spend. Smart cabana management systems can allow guests to reserve and customize their experience digitally, creating a seamless and enticing offering.
Leveraging AI & automation for upselling
Hotels and resorts can use a Generative AI-assisted spa concierge to guide guests through availability inquiries and booking experiences. T=This technology enables around-the-clock end-to-end live booking experiences without additional staff, elevating revenue by making it easy for guests to book whenever they are ready.
Integrated mobile payment solutions
Mobile payment solutions make it easier for guests to explore, book, and pay for ancillary services with just a few taps. Whether it’s reserving a premium cabana, adding a guided excursion, or ordering an in-room wellness package, a frictionless digital experience encourages greater participation and higher overall spend.
Expanding private and VIP offerings
Personalized VIP experiences — such as private chef dining, bespoke wellness journeys, or guided adventure tours — can become high-value revenue drivers when marketed effectively. Data-driven insights can help tailor exclusive packages that appeal to high-spending guests.
By fully embracing a tech-driven, guest-centric approach, hotels can move beyond traditional revenue models and create immersive, high-value experiences that drive total guest spend while enhancing satisfaction and loyalty.
Spa Executive is published by Book4Time, the leader in guest management, revenue and mobile solutions for the most exclusive spas, hotels, and resorts around the globe. Learn more at book4time.com.