4 Tips on Upselling at Your Hotel to Increase Revenue

Upselling services at a hotel is an art. Not everyone does it, and those who do it, don’t often do it well. However, as discussed in the article ‘ Fundamentals of Upselling’, upselling is a necessity that properties cannot ignore. This article covers some of the best ways to implement upselling at your hotel and increase revenue. We will also share unique approaches you can use for every guest, no matter the property's type.

1. Make it Up Close and Personal

A key factor in upselling is your relationship with your guests. Whenever guests book via OTAs or third parties you won’t get their email addresses, which means that it will be hard to reach out to them before arrival and upsell to them. This can be fixed by making sure that the content you create for social media platforms is targeted and informative.

Keep in mind that conversion is difficult to achieve – the average conversion rate is less than 2%. Hence you must ensure that the right content is presented to the right target audience. This does require that you invest some money upfront, but in the long run, it will save you a lot of commission fees. Whilst you promote, you can also offer tips about the location and create added value.

Apart from this, you should also ensure that your hotel has an easy-to-use website with a booking engine and includes all necessary information under Frequently Asked Questions (FAQs).

2. Learn to Upsell at the Right Time

The second most essential tip is awareness about the timing! If you’re able to upsell the right service at the right time, you’ll be able to increase your revenue without any additional effort.

Once a guest books a hotel room, they are open to customizing their stay and experience by adding a few extras to their trip. They might also be open to upgrading to a better room, getting transportation as an add-on, or choosing a few activities that the hotel offers.

Remember, the pre-arrival period is the key to upselling. The time between when the booking was made and the guests’ imminent arrival, is when people are most receptive to extra offers.

How to Reach Out to Your Guests?

There are two ways by which you can reach out to our guests:

• Direct message: Send an email to every guest a few days before arrival and include a few offers for extra services or paid upgrades. However, you should keep in mind that starting an email or direct messaging chain can be extremely time-consuming for your team.
• Automate outreach with your PMS or upselling platform: Automating messages allows you to scale upselling (and your ancillary revenue) without creating extra work for your  front office team.

How to Present the Offer?

When sending out the offer to your guests, there are several things that you need to take into consideration. Without these, driving conversion and guaranteeing value-add can be difficult.

• Be Clear in Your Messaging: Use brief, engaging descriptions paired with tempting images to show what guests get when they book your offer. Descriptions should include all the details like what the offer contains and who it can be customized to best suit the guests’ preference. Images with people enjoying the services you’re promoting work best.
• Present Offers in an Attractive Manner: Showcase the offer’s benefits and values. For example, when you’re promoting your airport pick-up, highlight the benefits of a quick, hassle-free transfer. Or if you’re offering a romantic dinner, paint a picture of unforgettable moments for two.
• Ensure Everything is Easy to Book: Whether you’re pitching upsells via an automated upselling platform or sending emails manually, ensure that the offers are easy to book. Remember, fewer clicks lead to better conversion rates.

3. Segment Your Guests and Create Tailor-Made Offers

When you know your guests, you’re able to target them with specific offers. Without understanding your customers’ preferences, targeted advertisements or offers won’t work. However, it isn’t always possible to get to know your guests in advance. In such scenarios, dividing guests into different segments works.

There are different ways in which you can segment guests. For instance, it could be couples, families, or businesses. Or you could segment guests by the location they’re coming from. Regardless, whenever you segment your guests, you should do it by using specific information within your PMS. You can also utilize guests’ data to help you tailor-make a pitch just for them. That will increase the conversion rate of upselling.

How to Segment Your Customers?

Dividing guests into groups based on different factors will help you evaluate their preferences and decide which offers might be most appealing to them. Knowing who your guests are and what they value will make the conversion rate of upselling higher. The following are different options for segmenting:

• Reason for Travel: Are they traveling for a special occasion (honeymoon, anniversary, birthday)?
• Domestic vs. International: Guests from your area may be more interested in off-the-beaten-path activities while international guests may want to focus on key attractions.
• Business vs. Leisure: Offer business travelers extra convenience (for example high-speed Wi-Fi, express check-in, business lounge) and offer leisure guests unique experiences in the area.
• Length of Stay: If the guest stays for more than a few nights a laundry offer or exchange of daily housekeeping for a voucher might be useful.
• Returning Guests: Based on the guests’ records, check what they enjoyed during their previous stay and offer it to them again. You can also find another service they might enjoy based on their historic data.

Based on the segments, ensure that you create tailor-made offers for your guests, with enough options. Remember, not to offer too many options or you might overwhelm your guests.

4. Increase Upselling Conversion with Packages

Another great way of upselling and increasing ancillary revenue is by packaging it up! Upselling can be as simple as a room upgrade, early check-in, or late check-out. These are the most basic offset guest book.

However, if you want to promote a service or cross-sell an offer, the best way to do it is by packaging it up and creating added value. Check out what are the most recently booked services and go from there.

Examples of Packaged Offers Based on Your Hotel’s Amenities

Use already existing products and services to create a value-add package for guests. Some examples could be:

• Spa Package: A complete spa day with massage, Ayurvedic therapies, steam room, etc.
• Restaurant Package: Create a two or three-course menu with wine, including a tour of the kitchen, and offer it to your guests.
• Activity Packages: Is there a lake, museum, golf, theme park, or anything interesting in the area that might be used? Package it up to create ancillary revenue for your hotel.

Furthermore, think of amenities/services already existing in the hotel that could provide added value to different types of customers.

Examples of Packaged Offers by Types of Customers

No matter the property type, you will always find different types of customers. Therefore, it’s good to identify them to make sure you can present them with the most value-add option in the form of a package.

Listed below are a couple of examples of customers and what might attract them to package up their stay.

• Couples: A romantic dinner with private butler service in your best suite or a view from the restaurant.
• Families: You can offer families swimming lessons, discos for kids, activities for children, and more.
• Business Travelers: Offering high-speed Wi-Fi, parking, business lounge access, and more to business travelers often goes a long way.
• Solo Travelers: You can partner with local guides to offer activities where solo travelers can meet others, host in-house movie nights, etc.
• Loyal Guests and VIPs: Private dining, a VIP tour of the wine cellar, or special amenities in the room can make your guest's stay so much better.

Next up in: Upselling Software