9 UNIQUE Ways of Upselling in Hotels
Upselling is an excellent way of increasing a hotel’s revenue by encouraging customers to opt for higher-quality products or services. Let’s explore what upselling is, its benefits, and how to apply it effectively.
What is upselling in hotels?
Upselling involves promoting additional services, such as spa treatments, a breakfast buffet or room upgrades. Around 60% of consumers are willing to spend more if a service enhances their main purchase. This improves the guest experience while increasing revenue.
What are the benefits of upselling in hotels?
- Increased profitability
- Increased revenues
- Improved facility utilization
- Improved customer experience
- Higher occupancy rates
What is the difference between upselling and cross-selling?
Cross-selling is a widely confusing term with upselling. Although both are entirely different and upselling is interchangeably used with cross-selling. So, here we’re explaining to you its difference.
UPSELLING
Upselling is the process of selling a more expensive version of the service or product to your guests. Examples of upselling: room upgrade, indoor activities, any added service and so on. It can be done either when the guest searches for your hotel, during their purchase or once the booking is made.
CROSS-SELLING
Cross-selling involves offering additional products or services with an initial purchase to provide a complete experience. For example, when a guest arrives at a hotel, offering activities such as city tours or adventures is an example of cross-selling. This approach, combined with up-selling strategies, increases the company’s revenues by optimizing the use of facilities and personalizing offers for customers.
How can hotels upsell to their guests?
Up-selling needs to be treated with a certain sensitivity, as the timing, tone and regularity with which you up-sell are crucial to the success of your efforts.
1. Identify the target audience
Identify customers likely to be interested in an upsell, such as business travelers, newlyweds and vacationers. Avoid offering additional products or services to those who don’t need them. Focus on customers who have already made additional purchases to guide your future offers.
2. Determine the right time
To maximize additional sales, offer services at the right time, when customers really need them. Send effective emails during booking, after arrival or after departure. Good service can also lead to positive reviews, enhancing your online reputation.
3. Understand guest preferences
Send an email before guests arrive to find out their preferences and offer them tailored services. This helps you personalize offers and build a useful customer database for future interactions.
4. Use proper booking confirmation templates
Email marketing is crucial for attracting customers and promoting additional services. Send emails to inform your customers of special offers, confirm their bookings, and highlight facilities such as the spa or gym. Continue to contact them before, during and after their stay, highlighting important offers to maximize ROI.
5. Offer something local
Selling local offers in addition to accommodation is more likely to result in bookings. This will not only increase the number of bookings, but also encourage customers to buy your services.
6. Highlight upsells on your website and social media
Use social media to promote your additional services and attract customers. Highlight your offers and promotions on your website and social profiles, and publish carousel images to show your different offers. You can also sell services via your booking engine with plug and play widgets.
7. Use group bookings to your advantage
Group bookings, such as for weddings or conferences, create opportunities to sell additional services and increase your revenues, due to the increased need for rooms and amenities.
8. Run loyalty programs
Loyalty programs are an effective way to increase repeat guests at your hotel. They strengthen customer relationships and improve the use of additional services. To achieve this, you need an accurate database, transaction history, customer reports and the right loyalty management software.
9. Don’t miss out on obvious things
Treat guests to a relaxed arrival with extras such as a drink at the bar, fruit, chocolate or dessert, and celebrate special occasions with banquets. Also offer services such as upgrades, car or bike rentals. Present a variety of options to allow guests to choose according to their preferences.
Conclusion
To be successful in upselling, it’s crucial to know your customers’ needs and offer the right products at the right time. Make sure that additional offers are personalized, that communications are sent at the right time, and that the added value is clear to the customer. By understanding your customers’ desires and adapting your offers accordingly, hotels can rapidly increase their sales.
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