Upselling is not only a way for hotels to recover losses but also to generate additional revenue
As we saw during the covid-19 pandemic, the travel industry potentially froze. This caused many hoteliers to face the consequences of lower occupancy and booking cancellations. According to data, the Covid-19 pandemic has cost the hotel industry over Rs 1.3 trillion in 20-21 alone.
Putting in place successful upselling strategies can be a great resource to increase your revenue per booking, and mitigate losses. Extra packages and upgrades for current guests, as well as offers for future stays, are common upselling techniques used in these situations.
Upselling is the practice of offering a bundle of amenities such as spa, breakfast buffet, room upgrades, etc. to guests during their stay.It is an efficient choice for every property type, whether it is a small, medium, or large-sized hotel business. Moreover, it also contributes to raising a hotel’s average revenue per guest.
Most importantly, the only things you need to focus on when it comes to upselling are understanding your guest preferences and offering upsells at the right stage of the guest life cycle.
Hotels should avoid hard selling, this leads to a bad guest experience . Hotels should use technology to communicate and share upsells with guests.The benefit of up-selling through digitization is that it is one of the easiest and cost effective ways of increasing revenue. Some of its advantages are as follows:
- Higher profitability.
- Incremental Revenue
- Better access to Hotel facilities
- Increased Guest Engagement
- Improved hotel occupancy.
Upselling requires sensitivity, as the time, tone, and frequency with which you upsell are critical to the effectiveness of your efforts.
Make sure you don’t sound like a salesperson. Rather, provide it in such a way that your visitors understand what alternatives are open to them and how you ensure to provide the finest services possible.
Still confused? Continue reading to discover the ideal technique for increasing revenue through upselling.
Best 5 Strategies to Increase Revenue from Upselling
Every hotelier is interested in knowing how to increase revenue and profit without raising prices or overspending. While there are many ways to increase your hotel revenue depending on your property’s needs, here are the top 5 tactics to get you started.
Hotels may efficiently market their upsells by communicating with guests at various stages. Your involvement with your guests begins the moment they make a reservation with you. The most common mistake hotels make is communicating with their guests just once or twice. So, instead of waiting for them to arrive at your hotel, start serving them right away. The degree of involvement at the hotel should be consistent across all touchpoints. During the discovery process, the booking phase, pre-arrival, during checking in, during their stay, at check-out. Reaching out at least 4-5 times during the guest journey is great. Many upsells make sense at various phases of the guest experience. For example, they can reach out to them indirectly by attaching a few upsells while sending them a welcome email.
2. Persona-Based Upselling
Guests should be provided upselling depending on their persona and preferences. Reaching out to guests and creating upsells based on their personas and wants allows them to be more informed about the resort and services on offer, as well as allowing hotels to generate more revenue. It makes no sense to upsell without knowing the right persona, for example, to offer a romantic meal by the sea to guests who have come for a business tour.
Cross-selling is a wonderful idea in this case since hoteliers can use visitor personalization to give guests something they would need more, such as premium wifi. Upsells should be tailored to certain characteristics such as the duration of their trip, the type of trip, and the type of hotel in which they are staying—budget or luxurious.
3. Mode of Communication Matters
Make your guests feel heard. The platform that allows guests to openly ask questions, give feedback, and submit requests at any moment significantly improves their experience throughout the whole guest journey. The traditional methods of reaching out to guests via emails or SMS stands futile.
According to data, the average user opens the messaging apps 23–25 times each day, and reads roughly 80% of their WhatsApp messages in under five minutes making the most convenient platform and better alternative for hoteliers to communicate with their guests.
4. Have More Upsell Options
One of the most common mistakes hotels make is not providing a wide variety of upsells from which guests may choose. The potential of products and services that any hotel can provide is determined by its inventory. Several upsell alternatives may be provided without the need for extra inventory.
For example, premium internet, room upgrades, suites, whirlpools, saunas, kitchens, partnering with local companies, or a discounted extended stay. It’s a good idea to give as many upsells as possible to increase your chances of increasing your revenue.
5. Take Guest Inputs
One strategy that hotels may use to increase income from upselling is to ask a few questions regarding the different preferences of guests related to upselling before they arrive. This will provide hotels with a better understanding of what their guests desire. Moreover, this will also assist them in understanding their pain areas and developing an effective upselling approach.
With these five simple strategies, you can increase upselling at your hotel and create more revenue while maintaining a high standard of the guest experience.
Not to forget, Upselling now can be actively communicated via messaging apps like Whatsapp, Telegram too.