Ancillary revenue is everything a hotel earns beyond the room itself: food and beverage, minibar, parking, spa, meeting space, early check-in and late checkout, transfers, activities. For many hotels it carries a higher margin than room revenue, partly because it is usually not subject to OTA commission.
It is also the reason revenue managers increasingly look at TRevPAR (total revenue per available room) instead of RevPAR alone: a guest paying a slightly lower rate but spending heavily on site can be worth more than a higher-rated guest who spends nothing.
In practice: post ancillary charges to the folio by category, not as one generic "extras" line. It is the only way to see which services are worth promoting and which ones are just cost.
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