Ancillary revenue

Revenue a guest generates beyond the room rate: food and beverage, spa treatments, parking, late checkout, activities, bike hire, pet fees and anything else charged during the stay.

It matters in a PMS context for two reasons.

First, reporting. Ancillary spend often lives in a point of sale or activity system rather than the PMS, so total revenue per booking is only visible if those systems post to the guest folio. Properties with disconnected systems tend to underestimate what a booking is actually worth.

Second, pricing. Most revenue management systems optimise room revenue because that is the number the PMS holds cleanly. A property with strong food and beverage volume may be willing to accept a lower room rate for a guest segment that spends heavily on site, but the RMS can only act on that if it is given an estimate of the ancillary spend.

Sometimes called ancillary spend, non-room revenue or on-property revenue. The related metric TRevPAR (total revenue per available room) captures it, where RevPAR does not.