Reference no: EM132978665
Maximizing Revenue Streams
The Scottsdale Camelback Resort has come up with several programs to increase revenue for the operation. It runs a rental program for owners that accounts for 14 percent of the resort's total occupancy. For every room booked, the resort pays the owner 70 percent and keeps 30 percent to cover the program costs.
It provides a food and beverage outlet that is marketed solely to the guests in residence. It competes with restaurants in the Scottsdale area as well as the kitchens in the villas of their guests. Noticing that the pool is a gathering point for its guests, it put a restaurant and bar right at the pool. The menu reflects items that people would eat poolside.
Recognizing the growing importance of a spa, Camelback opened the new Running Water Spa. It offers ' 'massage, facials, body wraps,
aromatherapy and a variety of spa classes." The resort contracts with licensed massage therapists to keep its overhead low. The therapists pay the resort a commission for every treatment booked.
Many guests who stay a week want to visit Sedona but do not want to return the same day. Camelback partners with a company that runs three properties in Sedona to get a special midweek rate. The resort receives a commission for each package sold.
Source: "Beyond Maintenance Fees: Tips for Maximizing Revenue Streams," Clark Rowley. Developments. September 2007, pp. 40--41
QUESTION:
What other ideas do you have for a resort to make additional revenue beyond maintenance fees?