Ancillary Revenue In Accounting Meaning
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What Is Ancillary Revenue
Ancillary Revenue Definition Examples Types Of Ancillary Revenue
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What can you do in your hotel or resort to generate additional income.
Ancillary revenue in accounting meaning. There are several extra. Examples include concessions at sporting events baggage handling or seat selection revenue received by airlines restaurant revenue received by hotel owners and car wash services sold by gas stations. Ancillary revenue is revenue that is derived from goods or services other than a company s primary product offering. However ancillary revenue from wearables such as earphones and home accessories generated over 10 billion in 2019 up from 7 3 billion in 2018 highlighted in green.
For example a sporting arena whose primary business is selling tickets to events earns ancillary revenue from concessions sales. And then there is the next challenge with upselling and cross selling. We have been brainstorming and have come up with some great hotel management tips to sell extra services. It often sounds easier than it is in reality.
At times it may become the main revenue source. To give a very basic example a liquor store may receive ancillary revenue from the sale of cigarette lighters and magazines at the cash register.
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