Non-room revenue is becoming a core performance driver for hotels

Why guest-centric technology and new KPIs are redefining how hotel value is created

Traditional room-focused metrics no longer reflect how many modern hotels create value. Lifestyle hotels and resorts increasingly generate a significant share of revenue from experiences, dining, wellness, and activities rather than rooms alone. By redesigning their technology stack around a single, unified guest profile, some hotel groups are unlocking higher ancillary spend and operational efficiency. This shift is also driving the adoption of new performance indicators, particularly revenue per available guest.

Key takeaways

• Room-centric metrics are incomplete: RevPAR remains important for investors, but it fails to capture the growing share of revenue generated outside guestrooms in experience-led hotels.
• Experiences drive a large share of revenue: Leisure-focused hotels and resorts can generate 40–60 percent of total revenue from dining, spa, events, childcare, and activities.
• Fragmented systems limit upsell potential: Siloed booking engines and incomplete guest profiles result in guests arriving with only room reservations and place pressure on on-property teams.
• Single guest profiles enable revenue growth: Fully integrated platforms that consolidate rooms, activities, dining, and services into one record create actionable insights and smoother operations.
• Pre-arrival engagement boosts secondary spend: Central visibility of guest itineraries allows teams to identify gaps and promote relevant experiences before arrival.
• RevPAG reflects guest value more accurately: Revenue per available guest provides a guest-centric view of total revenue contribution and supports internal optimisation and marketing decisions.
• TrevPAR remains investor-friendly: Because it is room-based, TrevPAR is better suited for portfolio comparisons, even though it is less useful for operational upselling strategies.
• Technology partnerships require transparency: Maximising non-room revenue depends on honest collaboration, clear system capabilities, and fully leveraging existing technology investments.

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