💡 Key Takeaway
The most effective way to increase your average revenue per stay is by offering high-margin dog boarding add ons.
- Top 5 most profitable services: exit baths, one-on-one enrichment, premium treats, photo updates, and late checkout fees.
- Strategic upsells can increase average revenue per run by 30% without requiring physical expansion.
- Automated booking data helps identify well-suited times and customers to pitch premium packages.
Read on for our complete guide to maximizing kennel profitability.
The fastest way to increase average revenue per stay by 30% is by implementing high-margin dog boarding add ons. Facility owners often struggle with stagnant revenue per run, but upselling services allows for increased profitability without the overhead of building new kennels. The top five most profitable services—including exit baths, one-on-one enrichment, premium treats, photo updates, and late checkout fees—can contribute to this financial growth.
Based on data from over 500 pet businesses using modern software across 25+ countries, facilities that structure their offerings effectively often see immediate financial benefits. We will explore how to price these services, optimize your occupancy, and use booking data to automate the upsell process. Let's dive into the most profitable services you can start offering today to support your kennel revenue goals.
👤 Article by: Animalo Content Team Reviewed by: Animalo Pet Care Operations Expert Last updated: 10 April 2026
ℹ️ Transparency: This article explores kennel revenue strategies based on scientific research and industry data. Some links may lead to our products. All information is based on verified studies and reviewed by our Pet Care Operations Expert. Our goal is to inform you accurately.
The Most Profitable dog boarding add ons for Your Facility
The most profitable dog boarding add ons include exit baths, one-on-one enrichment sessions, premium treats, daily photo updates, and late checkout fees. Offering these services meets the growing demand from pet owners who want premium care, while expanding your dog daycare services. Enrichment activities have high margins because they rely on existing staff time rather than expensive materials. Grooming services provide convenience for owners picking up their pets. According to a decade-long economic analysis ending in 2017, researchers found sales of pet care services doubled to $5.8 billion, indicating strong consumer willingness to pay for premium pet care [1]. These unique pet boarding services and boarding upsells can significantly enhance your bottom line. Let's break down the two most popular categories.
- One-on-one enrichment (fetch, cuddle time)
- Exit baths and basic grooming
- Premium treat upgrades (stuffed Kongs, pup cups)
- Daily photo and video updates
- Late checkout or early drop-off fees
Enrichment and Playtime Upgrades
One-on-one enrichment sessions, puzzle toy rentals, and extra yard time are highly sought-after dog boarding enrichment activities. These activities may help reduce dog stress while increasing revenue, as human socialization is highly valued by pet owners. In a pilot study testing environmental enrichment over 15-minute sessions, researchers found that playhouse activities and conspecific play resulted in the greatest behavioral improvements and stress reduction in kenneled dogs [2]. Additional peer-reviewed studies indicate that even short periods of intensive human handling can significantly improve behaviors in kenneled dogs, making one-on-one time a highly valuable service [7]. Beyond playtime, hygiene services are a top performer.
Grooming and Spa Services (Exit Baths)
Offering "exit baths," nail trims, and brush-outs before pickup provides immense convenience to pet owners. These services typically have a high conversion rate because clients appreciate taking home a clean pet. A helpful tip is to pitch this at drop-off by asking owners if they would like their dog to go home smelling fresh, making pet boarding exit bath pricing feel like a natural investment. To maximize the adoption of these services, structuring your pricing correctly is essential.
Structuring pet daycare pricing and dog boarding packages
Structuring your pet daycare pricing and boarding packages into clear, tiered options is an effective way to upsell customers. Rather than overwhelming clients with a long a la carte list, bundling services into "Silver, Gold, and Platinum" tiers simplifies the buying decision. Tiered pricing often increases the perceived value of premium services and helps establish a higher baseline revenue per booking. In an economic study on animal boarding with 282 participants, researchers found that current baseline fees can influence a client's willingness-to-pay for additional services, highlighting the importance of strategic boarding pricing strategies [3]. Here is how to compare these two models.
| Package Tier | Included Services | Ideal Customer | Estimated Margin |
|---|---|---|---|
| Basic Boarding | Standard run, feeding, 2 walks | Budget-conscious | Standard |
| Silver Package | Standard run, 1 enrichment session, exit bath | Value-seekers | High |
| Gold Package | Premium suite, daily photos, 2 enrichment sessions, premium treats | Luxury buyers | Very High |
Tiered Pricing vs. A La Carte Services
Bundled dog boarding packages offer predictable revenue and simplified choices, while a la carte options provide flexibility but can contribute to decision fatigue. A recommended approach is a hybrid model: offer three distinct packages, but allow a la carte selections for niche services. Pricing should also fluctuate based on demand.
Implementing Peak Season and Holiday Rates
Implementing a surge in pet boarding peak season pricing during holidays and busy summer months can help manage capacity and increase revenue. Bundling premium add-ons into holiday packages can help justify the rate increase to clients. Managing these rates requires a solid understanding of your facility's data.
Optimizing kennel occupancy and Using kennel booking data
Optimizing your kennel occupancy requires actively tracking and analyzing your kennel booking data to predict slow periods and peak demand. You cannot maximize revenue if your runs are empty. Use historical data to identify seasonal dips, and deploy targeted promotions to fill those gaps before they happen. In a study of US pet owners from 2006-2018, researchers found that veterinary service users spend 84.2% more on total pet-related expenditures, suggesting that analyzing pet boarding booking analytics can identify high-value demographics for targeted promotions [4]. Follow these steps to leverage your data.
Identifying Trends to Target Off-Season Promotions
Step 1: Pull occupancy reports from the previous year. Step 2: Identify weeks where occupancy dropped below 60%. Step 3: Create targeted email campaigns offering discounted add-on packages to drive kennel off season promotions and boost bookings during those specific weeks. During peak times, the strategy shifts to waitlists.
Automating Waitlists to Prevent Empty Runs
Automated pet boarding waitlist management features instantly notify the next client when a cancellation occurs. This helps prevent lost revenue during high-demand periods like holidays. Utilizing effective boarding management tools can streamline this process. Let's address some common questions about facility profitability.
FAQ - Facility Profitability and Services
How much revenue does a dog boarding facility make?
A dog boarding facility can make anywhere from $50,000 to over $1,000,000 in annual revenue, depending on size, location, and service offerings. Facilities that actively promote upsells and premium packages typically see revenue on the higher end of the spectrum. Maximizing occupancy and average revenue per stay are primary drivers of financial success. Results may vary based on local market conditions.
What are the most profitable kennel services?
The most profitable kennel services are exit baths, one-on-one playtime, training refreshers, and premium treat offerings. Because these services primarily utilize existing staff time and low-cost materials, they offer exceptionally high profit margins. Implementing these options can significantly increase your average revenue per run. Consider consulting a business advisor to price these effectively for your market.
How do you upsell dog boarding customers?
You upsell dog boarding customers by bundling services into tiered packages and offering them during the digital booking process. Presenting options like a "Gold Package" with extra playtime before checkout makes the decision easy for pet owners. Automated software prompts can handle this without requiring staff to make a hard sales pitch. Individual customer responses differ.
Should I charge extra for dog medication administration?
Yes, you should generally charge extra for dog medication administration, as it requires specialized staff training, careful tracking, and assumes liability. Many facilities charge a per-dose or per-day fee for this service. However, some premium all-inclusive packages may bundle this cost. Always ensure your staff is properly trained to handle medical needs safely.
What is a good profit margin for a pet resort?
A good profit margin for a well-managed pet resort typically ranges between 15% and 25%. Facilities that optimize their labor costs and successfully sell high-margin extra services often achieve margins at the higher end of this range. Tracking your expenses and booking data closely is essential for maintaining profitability. Profitability can fluctuate based on seasonal demand.
How to calculate kennel occupancy rate?
To calculate your kennel occupancy rate, divide the number of occupied runs by your total available runs, then multiply by 100. For example, if you have 40 dogs in a 50-run facility, your occupancy rate is 80%. Tracking this metric daily helps you identify trends and plan off-season promotions effectively.
How to price holiday dog boarding?
To price holiday dog boarding, implement a peak season surcharge of 10% to 25% above your standard rates. Alternatively, you can require a minimum stay duration or mandate the purchase of a premium service package during high-demand periods. This ensures you maximize revenue when your facility is at full capacity. Communicate these policies clearly to clients in advance.
Limitations, Alternatives, and Professional Guidance
While upselling can increase revenue, there are limitations to how many services staff can realistically provide. Studies on pet owner spending habits often rely on self-reported data or broad national averages, which may not reflect local micro-economies. Pushing too many services can also lead to decision fatigue for the customer. The USDA's Animal Welfare Act sets strict federal minimum standards for housing, handling, sanitation, and veterinary care in licensed facilities, reminding facility owners that operational capacity must never compromise animal welfare standards for the sake of revenue [5]. Despite these limitations, there are alternative approaches to scaling revenue.
Alternative methods include expanding the physical facility or pivoting to a high-volume daycare model. Some facilities opt for an all-inclusive pricing model, charging one high flat rate rather than upselling individual items. The most effective approach depends on the facility's specific clientele and local competition. Industry data from the APPA shows that U.S. pet owners spent $14.3 billion on "Other Services" in 2024, indicating that multiple business models can succeed in this growing market [6]. Finding ways to streamline operations is key. Whatever approach you choose, professional guidance is valuable.
We recommend consulting with a veterinary professional or certified animal behaviorist when designing new enrichment programs or medication protocols. Speaking with a financial advisor can also help ensure your pricing models remain sustainable in the long term. Responsible growth prioritizes animal safety above all else, ensuring pet resort management practices align with the highest care standards. With this balanced perspective, let's summarize key insights.
Conclusion
Optimizing pricing tiers, tracking occupancy, and offering targeted services can significantly boost profitability. Implementing dog boarding add ons is an effective approach for increasing average revenue per stay without expanding your footprint. Success requires careful implementation and staff training, but these methods may help support your financial goals. To support your operational goals, modern tools can make a significant difference.
Consider exploring Animalo, an all-in-one management platform for pet businesses. Animalo's intelligent booking system automates upsells and provides the data analytics needed to optimize occupancy. Discover how our tools, trusted by over 500 businesses globally, can support your pet care software needs. Start your 30-day free trial today.
References
[1] U.S. Census Bureau. (2020). Spending on Pet Care Services Doubled in Last Decade. Retrieved from https://www.census.gov/library/stories/2020/02/spending-on-pet-care-services-doubled-in-last-decade.html
[2] National Institutes of Health (NIH). (2022). Environmental Enrichment for Kenneled Dogs. PMC8772568. Retrieved from https://pmc.ncbi.nlm.nih.gov/articles/PMC8772568/
[3] National Institutes of Health (NIH). (2023). Economic Study on Animal Boarding. PMC10112674. Retrieved from https://pmc.ncbi.nlm.nih.gov/articles/PMC10112674/
[4] National Institutes of Health (NIH). (2024). US Pet Owner Expenditure Analysis. PMC10966765. Retrieved from https://pmc.ncbi.nlm.nih.gov/articles/PMC10966765/
[5] USDA Animal and Plant Health Inspection Service (APHIS). Animal Welfare Act and Animal Welfare Regulations. Retrieved from https://www.aphis.usda.gov/animalwelfare/downloads/ACBlueBookAWA508compversion.pdf
[6] American Pet Products Association (APPA). Industry Trends and Stats. Retrieved from https://americanpetproducts.org/industry-trends-and-stats
[7] National Institutes of Health (NIH). (2025). The Effects of Human Interaction on Kenneled Dogs. PMC12897358. Retrieved from https://pmc.ncbi.nlm.nih.gov/articles/PMC12897358/


.webp&w=1920&q=75)
