Ancillary Configuration

If you have ancillary spend data, G3 RMS can use this information for better evaluation results. See the Best Practices for the required data. If you have this data, define the values for each Ancillary revenues stream by market segment and to set their profit percentage.

If you are using Function Space rather than Group Pricing, see Function Space Ancillary setup.

What Are Ancillary Revenue Streams?

Ancillary Revenue Streams are additional sources of income that both transient guests and groups can generate, such as restaurant, golf, spa and entertainment. On the Ancillary tab in Group Pricing setup, you define the different Ancillary Revenue Streams and the percentage of profit that your property generates from each.

After you set up Ancillary Revenue Streams, you can create a year-round or seasonal assignment or a combination of both to associate the Ancillary Revenue Streams to specific market segments and dates. For example, a Transient Leisure Market Segment may spend $40 per night at the hotel bar during the two peak months of the year, but only $20 the rest of the year. In that case, set up a $20 year-round assignment and add a season with $40 for the two peak months.

How Does G3 RMS Use Ancillary Revenue Streams?

Ancillary Revenue Streams help G3 RMS generate more realistic evaluations, because they provide the system with a better picture of the overall value of a group versus the value of any displaced business. G3 RMS uses ancillary revenue and its associated profit margin to calculate the additional revenue and profit contribution from the group. For example, a group that has meal packages and meetings likely brings more profit than a group that has only accommodation. However, if this group business replaces an equal amount of room revenue from other market segments that generate higher combined profits at your restaurant, bar and spa, you might not want to accept the group

G3 RMS accounts for a group's ancillary revenue and its associated profit margin when calculating both the break-even and recommended rates in an evaluation. If a group brings in a higher ancillary profit, you might observe a lower required Break Even and Recommended Rate due to the overall contribution to revenue and profitability from the group.

Setup Steps

Accessing the Ancillary tab

1. Click , then Decisions, and then Group Pricing Configuration.
2. Click the Ancillary tab.

Adding Ancillary Revenue Streams

Use the Ancillary Revenue Streams pane to set up all your property's ancillary revenue streams. You must add these before you can add Ancillary Assignments.

1. Click to Add a revenue stream.
2. Enter a unique name for the Revenue Stream.
3. Enter the Profit % value for the stream. This value is the average percentage of profit that your property generates from the revenue stream. Its calculation varies, but, if needed, a finance department usually can provide you with this data.
4. Click Save .

Adding Ancillary Assignments by Season

After you set up Ancillary Revenue Streams, you create a year-round Ancillary Assignment and, if needed, seasonal exceptions of the year-round values. For example, a room from a Transient Leisure market segment spends $40 per night at the hotel bar during the two peak months of the year, but only $20 the rest of the year. In that case, set up a $20 year-round assignment and add a season with $40 for the two peak months.

Setting Up Year-Round Values

1. If you prefer not to see the revenue streams, close the Ancillary Revenue Streams pane by clicking the toggle icon . Doing so will enlarge the Ancillary Assignments by Season pane.
2. Click to open Year-round.
3. Click to Edit .
4. Select a Market Segment for the Ancillary Assignment.
5. Select a Revenue Stream for the Ancillary Assignment.
6. Click Add.
7. Enter the Revenue per Room Night that you expect a room from this Market Segment spends on this Revenue Stream per night.
8. Click Apply.
9. Repeat steps 3 - 10 to add more Ancillary Assignments.
10. Click Save.

Setting Up Seasonal Values

1. If you prefer not to see the revenue streams, close the Ancillary Revenue Streams pane by clicking the toggle icon . Doing so will enlarge the Ancillary Assignments by Season pane.
2. Click Add in the Seasons pane.
3. Type or select a Start Date for the season. The date must be greater than or equal to the System Date.
4. Type or select an End Date for the season. The End Date can be any future date and is not limited by the forecast window.
5. Select a Market Segment for the Ancillary Assignment.
6. Select the Revenue Stream for the Ancillary Assignment.
7. Click Add.
8. Enter the average Revenue per Room Night that you expect a room from this Market Segment spends on this Revenue Stream per night.
9. Repeat steps 5 - 8 to add more Market Segment and Revenue Stream combinations for the same season.
10. Click Apply.
11. Repeat steps 2 - 10 to add additional seasons.
12. Click Save.

Editing Ancillary Revenue Streams

Changes to the Profit % apply to new evaluations. You must re-evaluate saved evaluations if you want to incorporate these changes.

1. Click Edit following the revenue stream that you want to change.
2. Enter a new name for the Revenue Stream, if needed.
3. Enter a new Profit % value for the stream, if needed. This value is the average percentage of profit for each day of stay that your property generates from the revenue stream. Its calculation varies, but, if needed, a finance department usually can provide you with this data.
4. Click Save .

Deleting an Ancillary Revenue Stream

You cannot delete an Ancillary Revenue Stream if you use it in Ancillary Assignments by Season. To delete these streams, you must first remove them from the seasons. G3 RMS removes deleted Ancillary Revenue Streams from existing saved evaluations only if you re-evaluate the group.

1. Click Delete following the Revenue Stream that you want to delete. A confirmation window displays.
2. Click OK.

Editing Ancillary Assignments by Season

You can edit an Ancillary Revenue Season if the End Date for the season is in the future, or equal to or greater than the System Date. However, if you update a season in which the Start Date is in the past, G3 RMS splits it into two seasons. The first season includes all past dates, and the second season includes the System Date until the End Date. The past season retains its Market Segment and Revenue Stream information, and you can change the values in the new season. You cannot edit seasons that are completely in the past, where the End Date is less than the System Date.

1. If you prefer not to see the Revenue Streams, close the Ancillary Revenue Streams pane by clicking the toggle icon . Doing so will enlarge the Ancillary Assignments by Season pane.
2. Click to open the year-round or season that you want to edit.
3. Click Edit .
4. Type or select a new Start Date for a defined season, if needed. To be changed, the Start Date must be greater than or equal to the System Date
5. Type or select a new End Date for a defined season, if needed. The End Date can be any future date and is not limited by the forecast window.
6. If needed, create new Market Segment and Revenue Stream associations:
   1. Select a Market Segment to associate with the Revenue Stream.
   2. Select the Revenue Stream to associate with the Market Segment.
   3. Click Add.
   4. Enter the average Revenue per Room Night that you expect a room from this Market Segment spends on this Revenue Stream per night and in this season.
7. Edit the average Revenue per Room Night for existing assignments, if needed.
8. Click Apply.

Deleting an Ancillary Assignment by Season

You can delete a Market Segment and Revenue Stream assignment within a season, or delete an entire defined season, including all Market Segment and Revenue Stream assignments within it. You can't delete the Year-round season in its entirety.

1. If you prefer not to see the Revenue Streams, close the Ancillary Revenue Streams pane by clicking the toggle icon . Doing so will enlarge the Ancillary Assignments by Season pane.
2. Click to open the year-round or defined season.
3. Click Edit .
4. To delete a Market Segment and Revenue Stream association for the season, click Delete following in the appropriate row.
5. To delete an entire defined season, click Delete. A confirmation window displays. Click Yes.

Best Practices

Ensure You Have Data by Market Segment

Only set up Ancillary Revenue Streams if you have data on average spend by market segment for ancillary revenue streams. You need that data to set up Ancillary Assignments by Season. Without that data you can't give the system a balanced view of the total value of the displaced business. Therefore, if you don't have that spend data by market segment, we suggest you skip this setup altogether.

Set Up Ancillary Assignments by Season

Without Ancillary Assignments by Season setup by market segment, G3 RMS only uses room revenue when calculating the value of displaced transient business. Thus, the balance in an evaluation may be swayed in the group’s favor, particularly when it has a high ancillary contribution.

If you set up assignments for group market segments, G3 RMS uses those values as default entries when you enter an evaluation, so you only need to review and, if necessary, modify the value.