A simple guide to ancillary revenue for small hotels and villas: what it is, extras guests want, how to price them, and how to offer them without being pushy.
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Hotel ancillary revenue is the money a property earns from anything other than the room itself. Think breakfast, airport transfers, laundry, tours, bike hire or a late check-out. For a small hotel or villa, it can add real income per stay, as long as each extra solves a problem the guest already has.
This guide explains what counts as ancillary revenue, which extras work best for small properties, how to price them with simple maths, and how to offer them in a way guests welcome.
"Ancillary" means extra, or on the side. So ancillary revenue is side income. The room is your main product. Everything else a guest can pay for is ancillary.
Big hotels have restaurants, spas and shops. Small properties have fewer options, but often a closer bond with the guest. That bond is an advantage. A guest who chats with you on WhatsApp before arrival will often ask, "Can you arrange a driver?" That question is a sale waiting to happen, if you have a clear answer and a clear price.
| Room revenue | Ancillary revenue | |
|---|---|---|
| What it is | Money from selling nights | Money from extras around the stay |
| Example | 3 nights in a Deluxe room | Breakfast, transfer, laundry |
| Who sets the price | You, often shown on OTAs | You, often agreed directly |
| Main metric | ADR, occupancy | Extra income per stay |
ADR means average daily rate, the average price you get per sold room per night. If these terms are new, our guide to occupancy, ADR and RevPAR (opens in new tab) explains them simply.
Room prices have limits. If you raise them too far, guests book somewhere else. Extras work differently. A guest who already chose you is not comparing ten hotels for a laundry service. They just want it done.
There are three good reasons to care:
There is also a good reason to be careful. Extras done badly hurt reviews. A late driver or a cold breakfast is worse than no offer at all. So start small and do each extra well.
Not every idea fits every property. Pick the ones your guests already ask about. Here are common ones, grouped by when in the stay they happen.
A good rule: write down every question guests asked you last month. The ones that came up three or more times are your best ideas.
Many owners guess the price of extras. A short calculation does better. For each extra, write down four numbers:
Here is a made-up example for an airport transfer in Bali:
| Item | Amount |
|---|---|
| Driver and car (partner price) | Rp250.000 |
| Staff time to arrange, 10 minutes | Rp10.000 |
| Water and cold towel | Rp15.000 |
| Total cost | Rp275.000 |
| Price to guest | Rp350.000 |
| Profit per transfer | Rp75.000 |
If 20 guests take the transfer in a month, that is Rp1.500.000 extra profit, from one simple service. The numbers are made up. Use your own costs.
Then check one more thing: is your price fair compared to what guests could find themselves? If it is far higher, guests feel tricked. A small premium for comfort and trust is fine. A big jump is not.
Write your final prices on one page and share it with every staff member. When a guest asks at the front desk, the answer should be the same as on WhatsApp. Mixed answers make guests feel unsure, even when the price is fair. Review the page every few months, because partner prices and fuel costs change over time.
The aim is to help, not to sell hard. Guests can tell the difference. Here is a simple approach that works for most small properties.
Timing matters more than wording. Match each offer to the moment the guest needs it.
| Moment | Good offer |
|---|---|
| Right after booking | Airport transfer |
| 3 days before arrival | Early check-in, grocery stock |
| At check-in | Breakfast, laundry, tours |
| Day before check-out | Late check-out, bag storage, drop-off |
Our guide to the hotel guest journey (opens in new tab) maps these moments in more detail.
One message, one or two offers, one clear price. For example:
"Hi Sarah, your room is booked for 12 March. Would you like a driver from the airport? It is Rp350.000 per car, up to 4 people. Just reply yes and your flight number."
That is helpful. It answers a question the guest was about to ask.
A simple printed or QR menu of services, with prices, lets guests choose on their own time. Put it in your welcome letter (opens in new tab) too.
Some owners raise the room price and then call extras "free." Guests notice when the room price looks high on OTAs. Keep room prices honest and show extras clearly.
Some extras can sit inside your rates. Breakfast is the common one.
On Booking.com, you can add breakfast in two ways. You can include it in a rate plan, so the room and breakfast are sold together. Or you can list it as an extra that guests pay for at the property. Booking.com explains both options in its partner help on adding and editing meal plan information (opens in new tab). Its guide to managing rate plans (opens in new tab) explains how separate rate plans work.
A simple setup for many small properties:
Then sell other extras directly, by message or at the property.
Keep one thing in mind. OTAs charge commission on what is sold through them. Direct sales may avoid OTA commission, but check your OTA agreement and supplier costs before counting the saving. Transfers, tours and laundry can be useful direct offers.
The best extras depend on the kind of property you run. A private villa and a ten-room guesthouse have different guests and different strengths.
Villa guests often travel as families or groups. They want privacy and comfort, and they cook or eat in more often. Good extras for villas are:
Guesthouse guests are often solo travellers or couples on a budget. They value local tips and simple help. Good extras here are:
Small hotels sit in between. They often have a small café or a front desk that is open long hours. Good extras are:
Here is how it can add up. Picture a made-up three-bedroom villa in Canggu with 8 stays in a month. Six groups take an airport pick-up. Four book a private dinner. Three ask for a late check-out. Each extra is priced with the simple maths above. None of it changes the room price, and guests get a smoother stay. Your numbers will be different, but the habit is the same: offer what guests need, at the moment they need it.
You cannot improve what you do not measure. Track three numbers each month:
A simple spreadsheet is fine at the start. Write the extra, the guest's booking number, the price and the date. After a few months you will see which extras are worth your time. For the bigger picture, our guide to hotel revenue management (opens in new tab) explains how extras fit with room prices.
Kiyo is a property management system (PMS) for small hotels, villas and guesthouses. It does not push extras on your guests. It helps you run the stay so that extras are easy to arrange and easy to record.
Each booking in Kiyo keeps the guest's details, notes and payments in one record. You can write "airport pick-up, flight GA 404, Rp350.000" in the booking notes, so every staff member sees it. Payments for the booking are listed on the same record.
Kiyo sends your rates and availability to 75+ OTAs from one calendar, so your room-only and breakfast rates stay in line across channels. The revenue and expenses dashboard shows how the month is going. The whole app works in Bahasa Indonesia and English.
Plans start from Rp40k per room per month (opens in new tab). Free setup, pay from go-live, 14-day money-back guarantee.
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