HotelsMag September 2024 | Page 20

SPECIAL REPORT

Supplemental Income

HOTELS FIGURED OUT THEY WERE LEAVING MONEY ON THE TABLE . ENTER THE PAYING NON-GUEST .
By HARVEY CHIPKIN

Hotels are finding new ways to generate revenue and it ’ s coming from customers without a room reservation .

A growing number of properties are aiming to entice non-guests , usually local residents , to take advantage of amenities like the pool , fitness center , meeting rooms and more . The goals : revenue generation , exposure to locals and closer connections to the community .
“ Multiple opportunities are available ,” said Zach Demuth , global head of hotel research for JLL , especially for underutilized city hotels . Though third-party providers have been around for years , offering daytime use of rooms and facilities , new technologies have made it possible to provide direct connections to PMS
systems , said Demuth , so that from the minute non-guests arrive , they are treated like guests without hotel staff having to deal with the technology themselves .
These non-guest options mainly involve two possibilities : day passes and memberships . The former involves use of some or all of a property ’ s facilities and services for a certain number of hours or for a day . The latter involves ongoing use of a specific facility on a weekly , monthly or longer basis .
The highest profile player in the day-pass segment is ResortPass which , according to CEO Michael Wolf , works with 1,500 hotels in 27 countries and controls 95 % of that market . He said the customer base includes families with children , single young adults , couples and anyone who wants to recharge
and rest . And Wolf said that it is not only locals who are targets , but travelers who might be staying with friends and family , or travelers on their way to or from a cruise .
The business model for ResortPass , Wolf said , is that his company gets a commission on the day-pass charge . ResortPass customers , he added , spend two to three times as much as guests on property because they ’ re coming to spend the entire day and want to enjoy themselves . He said that 70 % of hotels have day passes costing $ 65 or less . On the other end , luxury brands might offer passes “ north of $ 200 .”
ResortPass has partnerships with major brands like Hilton . Jessica Shea , VP of wellness , retail & leisure operations , Americas at Hilton , said , “ We see great opportunity to
WE SEE GREAT OPPORTUNITY TO CATER TO THE RAPIDLY EXPANDING SEGMENT OF INDIVIDUALS SEEKING DAYTIME HOTEL AND RESORT VISITS
– JESSICA SHEA , VP OF
WELLNESS , RETAIL & LEISURE
OPERATIONS , AMERICAS , HILTON
20 hotelsmag . com September 2024