Making customizable Add-ons into "Amenities" to increase ADR

[Bryan Droll]

Background: My wife and I have managed 3 properties in N GA since 2021.

Has anyone ever included customizable add-ons within their STR listing as a way to differentiate their listing but also increase profit? This could make your ADR less competitive, but if marketed correctly I'm betting that people might perceive more value, which keeps occupancy at least the same.

I'm thinking of a model where you tell guests they have "add-ons included" like grocery delivery, prepared breakfast package, attraction tickets, inner tubes, etc. So after a booking, I automatically send them an email to customize their stay with an advertised amount (e.g., $150 coupon) then charge if they want more. The numbers should work out if I price those items correctly AND not everyone takes advantage of it. But I'm sure because it's given, more people will take advantage than add-ons and find it valuable. Unlike a hot tub, I have to invest little upfront but can say my properties have unique amenities. 

It seems too straightforward, which is why I'm curious what I missed. Has anyone else done something similar?

[Bryan Droll]

I appreciate all the feedback and experiences. @Lindsey Mannix I'll check out that podcast - thank you!

My thinking is to treat add-on services like an amenity, where it's included in the rate whether they use it or not. We list dozens of amenities today that are built into the daily rate but don't know if they are used. So why not advertise that their choice of grocery delivery, prepared meals, or fishing gear are included? 

My quick math is if I'm collecting $75 more per booking at a conservative 40 bookings per year that's $3000 in extra revenue. Then if 50% of bookings actually use the "included add-on" with a standard $100 coupon, that's $2000 in services I have to fulfill (for now I'm assuming they all use the full $100 but I'd set it up where it's a discount code and I charge for any extra amount). But if I've marked those up by 30% then it only costs $1400 to fulfill. So that's $1600 in extra net revenue per year for only 20 add-ons. There's definitely some risk in there that bookings remain flat and not everyone uses the coupon. But in terms of cash flow I like this more than an EV charger or renovation.