Ancillary Revenue Opportunities

Within the travel industry, airlines have successfully developed ancillary revenues – from paid-for services, commission-based products, and frequent flyer programmes – to be a key component of their business models. InterContinental Hotels Group (IHG) wanted to understand how it, as a hotel management company, could also grow its ancillary revenue business across all its brands and geographies.

A Global iris Concise team was engaged to size the ancillary revenue opportunity for IHG and develop a strategic plan to deliver it. Our core analyses were to benchmark ancillary revenue performance within the hotel market and across the travel industry to understand the size and nature of available headroom; and then to map IHG customer journeys to isolate specific, actionable opportunities. These were then collaboratively evaluated and prioritised to create a 3-year roadmap of global initiatives.

Ancillary revenue has grown significantly as a result of the roadmap implementation, with iris Concise also going on to help IHG execute a number of these initiatives, including the roll-out of IHG Rewards Club’s online shopping portal, and the launch of co-brand credit cards in the UK and China.