Luxury hotels are offering exclusive packages to a new segment of high-spending day guests
A new guest segment has emerged that is transforming the way hoteliers think about ancillary revenue. And it is here to stay.
Consumer behaviors around travel and leisure have changed due to remote work, the rising vacation rental market, and a fluctuating economy. The new trend that’s on the rise? The “daycation”. It’s easy, convenient, and a way for people to enjoy vacation and wellness experiences near where they live or to explore while traveling. For luxury hotels and resorts, tapping into this new market of day guests maximizes pool, spa, fitness, and dining outlets on lower-occupancy times such as weekdays, off-peak season, or during large group buyouts. Offering premium day packages allows hotels to showcase their amenities and inviting new guests to experience them for the day increases brand awareness.
Hundreds of luxury hotels across upscale brands such as Fairmont, Four Seasons, Ritz-Carlton, Park Hyatt, and Waldorf Astoria are activating day guest programs to capture high-spending local guests and visitors. Premium day rates are consistent with overnight rates but without the overheads, labor, and costs associated with rooms. Properties are tapping into incredible new revenue opportunities by leveraging their existing assets.
“IMPLEMENTING A DAY GUEST PROGRAM HAS BEEN A GAME-CHANGER FOR OUR PROPERTY. NOT ONLY DO WE SEE SIGNIFICANT REVENUES, BUT IT’S A GREAT OPPORTUNITY FOR OUR COMMUNITY TO COME AND ENJOY WHAT SO MANY GUESTS TRAVEL TO INDIAN WELLS FOR. WE’VE EVEN SEEN A SIGNIFICANT INCREASE OF WORD OF MOUTH MARKETING FROM THIS PROGRAM.”
Matthew Shipp
Director of Outlets
Hyatt Regency Indian Wells Resort & Spa
While overnight guests’ agendas may vary, leisure day guests are committed to spending the day on property, typically spending an average of $250 on food and beverage per booking. Hoteliers are leveraging the exposure from day guest programs to boost revenue for all outlets of their property in creative ways.
Premium pool or beach offerings
Properties from large resorts with expansive pools to upscale downtown hotels with trendy rooftop pools are realizing the true potential of their pool areas, yielding them in the same way they do rooms. On top of offering general access on lower-occupancy days, filling available cabanas is a great way to maximize revenue. Cabana rates can be equivalent to the cost of a room ranging from $350 to $2,000 and they also bring high food and beverage spend. In this way, visiting day guests can be equal to or higher in value than overnight guests. The same yield and channel management for hotel rooms can be applied to these perishable spaces and amenities.
The Fairmont Austin offers four types of cabana experiences ranging from $250 to $1,200 on high-demand weekends. They charge a premium for the west side cabanas that have a view of the city skyline. One of the most popular upgrades, “The Tito’s Cure” promises to shake off the morning drags with cabana side bloody mary bar for an extra $350.
“The Fairmont pool was awesome. Great service and awesome vibes. We got the daybed that came with a server and a dedicated spot. It was a great way to spend the day during the week. Looking forward to doing it again soon!” – Molly S.
Monetizing space for group activities
The Omni La Costa Resort & Spa in Carlsbad, CA has transformed its fireplaces into a booming S’more rental package. Guests can invite friends and family to enjoy a private fire pit on Bar Traza Terrace overlooking the La Costa golf courses while roasting up gourmet marshmallows that are themed for each season. A once empty firepit is now grossing over $5K monthly in bookings.
Unique food and beverage experiences
The Ritz-Carlton Golf Resort, Naples transforms their cabanas into romantic dining experiences after dark. Their luxury “Travel With Us” dining experience includes a private tasting of South American dishes with a Latin al fresco tasting menu under the stars. This romantic dining experience starts at $500 with additional expenses for upgrades.
Customize spa offerings
Marketing wellness experiences and spa day packages to local guests and visitors nearby fills available appointment times. Luxury hotels and resorts are customizing spa packages to this large market for easy booking online.
The Miraval Austin Wellness Resort & Spa offers a spa day package that includes the Life in Balance Spa amenities, yoga classes, fitness center, and credit towards a wellness treatment. Other properties like The Ritz-Carlton Bal Harbour, Miami are offering a treatment package that includes a 60-minute fusion massage or 60-minute true facial along with access to the spa amenities.
Day guest programs are part of the new normal in the hospitality industry as every property has amenities and services they can maximize. This new trend is boosting bottom lines across the industry with properties generating up to a million per year in day guest bookings and on-site spend. As the leading day guest program, ResortPass provides the complete end-to-end solution for hotels to market and manage their customized offerings to the booming daycation market.
About the author
Christina Daly is the Director of Sales and Marketing at ResortPass, the leading marketplace and technology solution that maximizes hotels’ ancillary revenue. Christina has over 15 years in the hospitality industry, specializing in digital marketing and channel revenue management.
About ResortPass
Top luxury brands trust ResortPass as the #1 marketing and technology solution to maximize their property’s amenities.
From city-center hotels to destination resorts, properties of all types are generating up to $1M in new revenue by offering custom packages to high-spending local and visiting day guests. Utilizing the full suite of features, hotels can also upsell cabanas, events, and activities to overnight guests pre-arrival or during their stay through a beautifully branded white-label booking site.
With full control of availability and pricing in one centralized location, luxury hotels are boosting ancillary revenue beyond the room with ResortPass!
Over 1,000 hotels and resorts have partnered with ResortPass including top brands such as Hyatt Hotels, Marriott International, Fairmont Hotels, Omni Hotels & Resorts, Four Seasons, Hilton Hotels, Kimpton, Ritz-Carlton, St.Regis and many more.
Learn more at: https://zcu.io/21sG
