In the vacation rental and short-term rental industry, property managers often focus on occupancy rates and nightly pricing to maximize revenue. However, there’s a hidden opportunity that can significantly boost profitability: ancillary services. These are additional offerings that go beyond the core rental experience, adding value for guests while opening new income streams for property managers and homeowners. From guided tours to premium amenities, ancillary services can transform your business model.
With platforms like Boom, integrating and managing these services becomes seamless, allowing you to enhance guest satisfaction and increase revenue without adding complexity to your operations.
What Are Ancillary Services in Property Management?
Ancillary services are supplementary offerings provided to guests in addition to their accommodation. They cater to various aspects of the guest experience, enhancing convenience, comfort, or enjoyment. These services may include:
- Cleaning and Housekeeping Services: Mid-stay cleanings or daily housekeeping.
- Transportation Options: Airport transfers, car rentals, or shuttle services.
- Local Experiences: Guided tours, cooking classes, or adventure activities.
- Premium Amenities: Early check-in, late check-out, or equipment rentals like bikes or paddleboards.
- Food and Beverage Add-Ons: Breakfast delivery, private chef services, or wine packages.
By offering ancillary services, property managers can cater to diverse guest preferences while generating additional income.
Why Ancillary Services Are a Hidden Revenue Opportunity
1. Guests Are Willing to Pay for Convenience
Modern travelers value experiences and convenience. Guests are often willing to pay a premium for services that save time or enhance their stay. For instance, a seamless airport transfer or a private wine tasting can turn a good vacation into an unforgettable one.
2. Higher Revenue Per Booking
Ancillary services allow you to increase the average revenue per booking without raising nightly rates. This strategy is particularly useful in competitive markets where price-sensitive travelers may be deterred by higher base rates.
3. Competitive Differentiation
In a crowded rental market, offering unique or exclusive services can help your properties stand out. When guests see options for curated experiences or premium add-ons, they’re more likely to choose your property over competitors.
4. Increased Guest Satisfaction and Loyalty
Happy guests are more likely to leave positive reviews and return in the future. Ancillary services provide a personalized touch, leaving guests with a lasting impression of exceptional service.
How Boom Makes It Easy to Manage Ancillary Services
While the potential of ancillary services is clear, managing them can be challenging without the right tools. Boom simplifies the process by:
Streamlining Add-On Management
Boom allows property managers to list, promote, and manage ancillary services alongside standard bookings. Guests can easily select add-ons during the reservation process, creating a seamless user experience.
Integrating with Third-Party Providers
For services like airport transfers or local tours, Boom integrates with trusted partners, eliminating the need for manual coordination. This ensures a smooth operation while maintaining high-quality standards.
Tracking Revenue from Ancillary Services
Boom’s reporting tools include detailed analytics, allowing property managers to track income from ancillary services and identify high-performing offerings. These insights help optimize strategies and grow revenue.
Automating Guest Communication
Boom automates the promotion of ancillary services through pre-arrival emails or in-app notifications. This ensures guests are aware of available options and can make decisions with minimal effort.
Examples of Successful Ancillary Services
1. Cleaning and Housekeeping
Offering mid-stay or daily cleaning services is a win-win. Guests enjoy the convenience of a tidy space, and property managers can earn additional income. This is particularly appealing for longer stays or high-end properties.
2. Transportation and Logistics
Airport transfers, local shuttles, or even car rentals are highly valued by guests unfamiliar with the area. Partnering with transportation providers ensures reliability while generating a steady revenue stream.
3. Local Experiences
Partnering with local businesses to offer curated experiences—like wine tours, cooking classes, or adventure sports—enhances the guest’s stay while supporting the local economy. These services often command a premium price, adding significant revenue.
4. Food and Beverage Packages
Guests appreciate convenience when it comes to meals. Breakfast delivery, welcome hampers, or even private chef services can elevate the guest experience while generating a healthy profit margin.
5. Equipment Rentals
For properties near beaches, lakes, or mountains, offering equipment rentals like bikes, kayaks, or ski gear is an excellent way to cater to guest needs while earning extra revenue.
Tips for Successfully Implementing Ancillary Services
Implementing ancillary services can elevate your vacation rental business, but success requires thoughtful planning and execution. By focusing on high-demand offerings, partnering with reliable providers, and using smart promotional strategies, you can seamlessly integrate these services into your operations while maximizing revenue and guest satisfaction. Here are practical tips to help you get started.
1. Start with High-Demand Offerings
Identify services that align with your property’s location and guest demographics. For instance, ski equipment rentals are ideal for mountain properties, while beach gear suits coastal rentals.
2. Partner with Reliable Providers
If you’re outsourcing services like transportation or tours, choose reputable local providers. Ensure they maintain high-quality standards to protect your reputation.
3. Promote Services Effectively
Make guests aware of your ancillary services through listing descriptions, pre-arrival emails, or in-app messaging. Highlight the benefits and convenience to encourage uptake.
4. Monitor Performance and Adapt
Use analytics to track revenue from ancillary services and gauge guest satisfaction. If a particular offering isn’t performing well, consider adjusting pricing or replacing it with a different option.
5. Maintain Transparency
Be clear about pricing and service details to avoid misunderstandings. Guests should know exactly what they’re paying for and what to expect.
Maximizing Revenue Through Strategic Pricing
The pricing of ancillary services is critical to their success. Here’s how you can optimize your pricing strategy:
- Competitive Benchmarking: Research what similar properties offer and price your services competitively.
- Value-Based Pricing: Highlight the convenience and unique value of your services to justify premium rates.
- Bundling Options: Offer discounted bundles, such as a package combining transportation, a guided tour, and breakfast delivery, to encourage higher spending.
- Dynamic Pricing: Use tools like Boom to adjust prices based on demand, seasonality, or booking trends.
Expand Your Revenue Horizons
Ancillary services present a powerful opportunity to increase revenue, improve guest satisfaction, and differentiate your properties in a competitive market. By offering tailored experiences and premium add-ons, you can elevate your vacation rental business beyond standard accommodation.
With Boom’s AI-powered platform, managing these services becomes effortless, from automated guest communication to revenue tracking. By incorporating ancillary services into your strategy, you’ll unlock new income streams while delivering an exceptional guest experience.
Ready to grow your property management business with ancillary services? Start using Boom today and see the difference it makes!
