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

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

Bryan Droll
Member since 2024 · 2 posts · 2 votes

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?

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Miles HobsonPro Member
Toronto · Member since 2024 · 20 posts · 14 votes
2y

Sounds like a great idea - I'd recommend checking out something like The Host Co if you haven't already. You can use it to build a nice-looking store for your add-ons and it nicely integrates with most property management software, so that you can automate sending the store link to your guests

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  • Lindsey Mannix
    Real Estate Agent · Woodland Park, CO · Member since 2019 · 76 posts · 39 votes
    2y

    Hi Bryan,

    Love it! There is a podcast called "Thank you for visiting" and they've talked about this. In my STRs, I have a little store at one property with eggs, honey, soaps, etc and that has done extremely well. It is a community setup so may not work for a single family situation. We have tried the add-ons like grocery delivery, tube rentals for rafting nearby, charcuterie boards, etc and have gotten ZERO interest. We add it into our listing description ("ask us about...") as well as to the check-in message and again zero interest. It could be our clientele or market though. I vote to give it a try!

    ~ Lindsey

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  • Annie Seurer
    Investor · West Palm Beach, FL · Member since 2024 · 90 posts · 47 votes
    2y

    I built out ancillary revenue at my previous position and it was really hit or miss. If you have a luxury home I think this model could work quite well, but otherwise it's very hit or miss and I don't think you'll get substantial income from it. They items that did best for us were golf carts in certain markets and early/late checkin/out. We offered in-home massages, grocery delivery, professional photography, etc etc and it was very spotty. 

    I think this may be a lot of effort with little payoff. 

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  • Sarah KensingerPro Member
    Real Estate Consultant · OH · Member since 2023 · 2k+ posts · 1k+ votes
    2y

    I agree with the hit or miss of guests using this type of a service. We have offered a couple things, and it hasn't really been a go. We would offer it in the listing description and tell the guests if they're interested to let us know. After the booking is made, we can then charge the guest the add on fee within the platform. So, communication is kept within whatever platform the booking is made in. I have also heard this works better in luxury properties since that type of guest doesn't want to go shopping etc., but the average person would just do it on their own. 

    [email protected]330-557-3021
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  • Bryan Droll
    OP
    Member since 2024 · 2 posts · 2 votes
    2y

    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.

    1Reply
  • Account Closed
    Investor · FL · Member since 2016 · 332 posts · 388 votes
    2y

    Talk to your CPA as ias it may effect how all your income from the STR is taxed when you add substantially services. I would rather put more effort to higher ADR/Occupancy and scaling to get more juice from the squeeze.

    0Reply
  • Andrew SteffensBusiness Member
    Tampa, FL · Member since 2022 · 3k+ posts · 3k+ votes
    2y

    You 100% can have add on services.  Pool Heat, Early check in/late check out, Pet Fees, etc etc are all ala cart and available for a fee.  You can go further with mid stay cleans, grocery delivery, and more.

    [email protected]813-563-0877
    Vacation Rentals of Florida53 Reviews
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  • Miles HobsonPro Member
    Toronto · Member since 2024 · 20 posts · 14 votes
    2y

    Sounds like a great idea - I'd recommend checking out something like The Host Co if you haven't already. You can use it to build a nice-looking store for your add-ons and it nicely integrates with most property management software, so that you can automate sending the store link to your guests

    2Reply
  • KiKi ChaseBusiness Member
    Real Estate Agent · Indianapolis, IN · Member since 2022 · 184 posts · 75 votes
    2y

    This is something we have thought about adding onto our properties, specifically the grocery delivery! It's a great way to add that extra touch. We haven't worked through the logistics of the grocery delivery, but we have talked about asking for their grocery list at least 48 hours in advance, doing a mobile order at the grocery to pick up, and adding a 10% up charge for us, since we're delivering it. We would have it delivered same day before check in, and whomever is dropping it off would put it all away! It seems like it could work if you have a team of people who are available to do it. 

    Brentwood Collective54 Reviews
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