What is hotel upselling

Introduction

The advancement of the hotel industry is on the rise and hotel upsell is playing a crucial role in the growth scale. Upselling not only boosts revenue but also improves the overall guest experience. Digital marketing techniques and hotel upselling strategies such as website development, using guest experience software implementing digital concierge, room upselling techniques, and social media advertising have brought a major revolution to the industry. 

As per recent statistics, upselling can increase revenue by 43%, which results in increased customer retention. An automated upselling system for hotels offers personalized recommendations and promotions that allow hotels and resorts to tailor their stay and preferences. By delivering special offers to guests at key moments, customers are likely to enjoy the duration of their stay.

What is hotel upselling? 

Hotel upselling is the process of offering guests more services or products during or after booking. These services include room upgrades, indoor activities, and other facilities. Such benefits and upgrades provide access to exclusive amenities that make customers feel highly valued. 

“In the competitive hospitality industry, hotels must continuously explore innovative ways to generate additional income from their guests. By thinking outside the box and offering unique experiences and services, hotels can not only boost revenue but also enhance the overall guest experience,” said Barry Clemens. “Whether it's catering to remote workers, pet lovers, or art enthusiasts, hotels that embrace these unconventional opportunities will stand out and thrive in the ever-evolving market.”

The upselling process can be offered during the reservation process, before and at check-in, or throughout the guest's stay. This effective sales strategy benefits guests as well as the hotel. As per HubSpot, 88% of surveyed salespeople try to upsell their customers. About 49% of that group say that understanding customers’ needs and goals is a key strategy. 

What should you upsell at your hotel? 

Upselling is considered an effective approach in the hotel industry to boost revenue and enhance guest satisfaction. Hotels that aim to provide an exceptional guest experience implement proven upselling techniques that are divided into three parts, i.e., pre-arrival, during stay, and post-stay. Upselling products and services differ based on guest preferences and property types. Popular examples of upselling in the hospitality industry can be categorized as per the following phases of the guest journey:

1. Pre-arrival

The excitement of guests is at its peak and they are eagerly looking forward to their upcoming stay. Hoteliers can make use of emails and messages to offer exciting upselling activities and other personalized services.

• Early check-in and late check-out
• Room upgrades
• Pickup services
• Pet fees
• Spa and wellness services
• Breakfast buffet 

2. During stay

With effective upselling strategies, hotels can tempt guests with exclusive dining experiences or thrilling off-site excursions. The magic of upselling can be leveraged during the stay to offer products and services outside the property.

• Attractions and event tickets
• Club facilities
• Private dining room
• Extended stays
• Renting a bike/ car
• Spa and wellness services

3. Post stay

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While checking out, hotels can go the extra mile to impress guests with quality feedback. By offering them a cab hiring service to the airport or a selection of unique souvenirs, hotels can not only ensure that guests leave with a smile on their faces but also earn high ratings.

• Airport/city transport and transfers
• Discount vouchers for local businesses
• Luggage room

Upselling across property types

Statistics prove that more than 80% of senior executives consider upselling vital for their business. To extract the most out of the process, executives are suggested to follow a 4-step process for upselling.

Step 1: Facilitate the original purchase

• The initial step in upselling additional services to guests is to ensure that they are satisfied with their first interaction ie booking experience. With exceptional customer service and satisfaction, hoteliers can gain customer loyalty. A strong foundation further helps to make higher sales and boost revenue.

Step 2: Explain the add-on

• Once you are through with the initial purchase, guests will be more open to add-ons and upsell options. By now, they understand that the additional amenities will upgrade their stay and overall experience. Communicating the benefits and values of the add-on will help them understand how it will meet their needs. Guestara’s add-on feature will help you suggest common combinations to your guests. 

Step 3: Share the benefits

• For effective results, it is necessary to emphasize the benefits of the add-on. Tools such as Guestara will help you understand guest preferences and requirements. On the basis of the suggestions, personalized add-ons can be offered for better conversation rates.

Step 4: Close and fulfill

• The last and final step of the process is to close the sale. This involves resolving customer queries without any hesitation. Your reassurance will help them understand the value of the add-on. 
• While the sales process for upselling in a hotel remains the same for every situation, the offerings can alter as per the property type. 

Boutique hotels

A boutique hotel might not be able to offer premium options but it can offer its guests many upselling options. Boutique hotel owners are advised to take help from local bakeries and stores to come up with delightful add-ons:

• Room upgrades (a room with a view or balcony with a 30% extra fee), 
• Breakfast buffets 
• Meal options
• Early check-in 
• Late check-out
• Pickups & Drops
• Room decor with balloons, bouquets, roses, or rose petals 
• Local experiences 

Hotels

While the classic example of upselling rooms in hotels remains a primary mode to increase sales, you may stand out from others in the industry with the following options:

• Room upgrade packages
• Early check-in
• Late checkout
• Parking (if on-site parking is available)
• Discount vouchers for local businesses
• Daily housekeeping services 
• Food and beverage services (even without a restaurant)
• Pet fees

Guest houses

A guest house should be ready with basic as well as travel-friendly upsell options. As you can expect travelers on a budget, below are some examples of guest house upselling activities:

• Car hire
• Early check-in
• Late check-out
• Breakfast buffet
• Meal options
• Group tours
• Weekend events
• Express laundry services

Resorts

On the other hand, resorts can consider selling unique experiences. A resort has ample space and resources to offer various services to guests such as the following:

• Theme nights
• Chef tastings
• Special F&B packages
• On-site and off-site activities 
• Promoting local products 
• Banquet deals
• City tours

Best time to upsell to hotel guests

Hotels are always looking to offer their guests the best services in the most effective way. While it has been seen that social media marketing plays a significant role in promotional activities, many believe that hotel room upselling tactics and other sales strategies are best performed by the front office assistant. 

Why the Front Office Assistant?

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Hotels have noticed that the front office assistant is the ideal person to promote upselling tactics. The reason is that he or she is the first point of contact for the guests. This gives the front desk team the benefit of understanding their interests and preferences and suggesting the best activities and services. Moreover, guests are more likely to sign up for basic amenities and inquire about cab or tourist activities during check-in. For a more detailed explanation, upselling is divided into three phases of the guest journey.

1. Pre-Arrival: 

The pre-arrival phase is the best opportunity to make the most of the upselling in hotels. With pre-arrival stays, WhatsApp messages, and other online platforms, hotels can upsell room upgrades, F&B packages, and event passes. The best window is 3-4 days prior to the check-in date.

2. Check-In:

This is the best time for the hotel staff to execute upselling techniques. The front desk assistant is encouraged to introduce the premium amenities offered by the hotel and explain their benefits to the guests. 

3. During the Stay:

If you haven’t sold any upsell yet, don’t be disappointed, as you still have a chance. During the stay, the housekeeping staff can drop in tempting offers or call the guests to understand how else they can help them have a satisfactory stay. 

Now, you must be wondering how to keep up with so many activities. You can consider installing an upselling software tool to fulfill your requirements.

5 Tools that can help you increase your hotel upselling 

Now that we have understood that upselling plays a crucial role when running a hotel business, let us check out the best hotel upselling solutions that will help you maximize revenue.

Guestara

Guestara is a one-stop platform whose primary focus is to drive your business to the next level. The end-to-end guest management platform allows hoteliers to automate their operational tasks, which results in profit maximization and better performance.

The all-in-one platform includes a digital guest journey, contactless in, review boost, a reporting and analysis tool, digital authorizations, sentiment analysis and ancillary upsells. With easy setup and management​​, the tool allows the selection of personalized items, packages, and services that can be offered to guests. 

Oaky

Oaky is a hotel upselling platform specifically designed for hotels and resorts. The hotel upsell tool creates customized upsell packages and offers them directly to guests via SMS or email. Aiming to upgrade the entire guest journey, the software allows automation, segmentation, and dynamic pricing. The Personalized upselling software helps hotels boost revenue by maximizing the average spend per guest. 

Duve

The revenue-maximizing hotel upselling tool allows guests to buy upsells from their personal devices. From room upgrades to in-house services, personalized upselling offers customized packages as per different guest profiles. 

Duve Hotel upsell software also connects with third-party vendors to connect with the app’s marketplace and earn extra revenue. Duve’s specialty is learning about guests through OTA data and offering them tailored services and experiences. Apart from upselling services, hoteliers can also share digital keys and wifi passwords and inform guests about the range of amenities available.

Easyway

Easyway is a digital hotel upselling software that reaches out to guests with the right offers through their favorite messaging apps, including WhatsApp, WeChat, and iMessage. The built-in marketing techniques offer room upgrades and customized facilities. 

Its AI concierge feature effectively handles guest bookings and suggests personalized activities to enhance the overall guest journey. Apart from the implementation of room upselling techniques in hotels, it is also capable of greeting guests warmly and streamlining hotel operations. Its best feature is that it is a multilingual platform that can converse in 100+ languages. 

Oracle Hospitality 

Hoteliers aiming to capture guest demands often rely on Oracle hospitality software to offer guests room upgrades. With an array of services offered through digital marketing channels, hoteliers can manage their operational processes via the easy-to-use portal. 

It aims to maximize revenue by offering last-minute room upgrades to guests. The fully automated software empowers the front desk agents to provide an enhanced guest experience during check-in. Equipped with artificial intelligence, the upsell tool acts as an efficient operator through machine learning (ML).

Conclusion 

Our detailed guide to upselling will help you boost revenue, build customer loyalty, and smoothen operations. With tools such as Guestara and other guest experience software, it becomes extremely convenient to understand customer requirements and preferences. Remember, the right way to upsell is to utilize the right techniques and understand your customers. If you’re ready to empower your hotel with an with AI-driven personalized guest platform, contact us today.