BUSINESSMANAGEMENTREVIEW.COMMARCH 20259WHEN WORKING TOGETHER, PASSIONATE HOSPITALITY INDUSTRY PROFESSIONALS CAN SOLVE THE CHALLENGING PROBLEM THAT ANCILLARY REVENUES PRESENTWhich leads us to the all-important search for a solution. Who will lead in this technology? How do we get the investment? For the likes of economy brands that rely on cost containment as a core to profitability, aggregating funds to explore limited ancillary revenue streams will be difficult for a short-to-medium term solution. Alternatively, if such R&D will lend itself to transaction fee-based funding, it will be hard to arrange significant funding at what would be expected to be a low price point. Alternatively, luxury brands would have to be willing to direct funds to explore a more complicated need, given their breadth of offerings. Exploring this would be costly, and leaving this to be transaction fee-based would be further complicated given the varied profitability of products (i.e. high profit for an early arrival vs. zero profit for a concert ticket resale). And, again, across these hotel types standardization to enable an easy to use approach for the booker ­ be it through a booking engine or agency booking tool ­ is a must that would require much consultation.In my opinion, the best solution would be for organizations such as HSMAI and HEDNA to team together with technology providers such as Sabre, Oracle, or Amadeus to identify a broad approach, initiate investment, and consult with hotels and their management, ownership, and representation companies, and, from there, work through standardization and development to the result of an industry-based solution. In this way, we can adapt to the needs of our customers and properties while using the resources these large technology providers offer, flattening the investment to the benefit of the industry as a whole.When working together, passionate hospitality industry professionals can solve the challenging problem that ancillary revenues present. I look forward to the day hoteliers are able to offer wide-ranging items at their properties to customers in a similar way that, today, airlines offer exit row seats and reserved luggage. Hotels are not airlines, true. But, also true is the reality that hotels can certainly match them with collective energy, focus, and passion. Change creates opportunity, and the future is now. Let's join together to spark the impactful action that will fuel indefinitely greater success for us all.
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