How To Upsell In Hotels – Tips and Techniques

How To Upsell In Hotels

Even though you might be a hotelier or non-hotelier, is a sure thing you heard about upselling. Anyhow, before we start talking about how to upsell in hotels, let’s get a better idea of what upselling in general is.

Meaning of Upselling

Upselling is a sales technique where a seller encourages or pushes a customer to purchase a more expensive or premium version of the product or to add on additional items or services. The main goal is to increase the total value of the sale by convincing the customer to spend more than they originally intended. Shortly, upselling is about maximizing revenue by offering customers options that upgrade their initial purchase. This can involve suggesting premium product versions, recommending complementary items, or proposing add-on services to increase the customer’s satisfaction and the seller’s profit.

How to Upsell in Hotels – Tips and Techniques

When it comes to upselling, we need to understand that upselling is effective when done correctly and when the additional value to the customer is clear. It requires a good understanding of the customer’s needs and preferences, as well as effective communication skills to convey the benefits of the upsell. When correctly done, upselling not only increases revenue for the seller but can also result in a more satisfied and loyal customer. Here are some effective upselling techniques for hotels:

Personalized Recommendations

Personalized recommendations can be a powerful step for effective upselling because they cater to the specific needs, preferences, and behaviors of individual customers. You can always use the guest database to understand preferences and change your upsell offers accordingly. For example, if a guest has a history of booking spa services, offer a discounted spa package during their stay.

Upgrade Packages

Upgrading packages while upselling refers to offering guests the opportunity to enhance their purchase or experience by choosing a higher-rank or a more premium package. For example you can offer guests the option to upgrade their room or suite for a discounted rate. Highlight the additional benefits, such as better views, larger space, or enhanced amenities.

Special Occasion Packages

Use guest data to identify special occasions such as anniversaries, birthdays, or romantic getaways and create packages for their special occasions. Also don’t forget to include amenities like champagne, flowers, or a spa treatment to make their stay more memorable.

Early Check-in/Late Check-out

Upselling early check-in and late check-out options is a common strategy in the hospitality industry to generate additional revenue and enhance the guest experience. Offer guests the option to check in earlier or check out later for a fee and emphasize the benefits of early check-in, such as the opportunity to relax and settle in sooner, especially after a long journey. Do not forget to clearly communicate the value of the early check-in or late check-out. This could include additional hours of use of hotel facilities, complimentary breakfast, or other perks.

Discounted Add-Ons

Upselling discounted add-ons involves offering additional products or services at a reduced price to customers who are already making a purchase. The goal is to encourage customers to spend more by taking advantage of special offers or discounts on supplementary items. For example, you can provide discounts on additional services like breakfast, parking, or spa treatments when guests book them in advance. Bundle these services together for a more attractive offer and provide a discounted package price for the combined items, making it more appealing for customers to choose the bundle rather than purchasing individual items.

Limited-Time Offers

The goal of using limited-time offers is to create a sense of urgency and encourage customers to make a purchasing decision quickly. When upselling with limited-time offers, hotels present additional products or services to guests who are already in the process of making a purchase. You can create a sense of urgency by offering limited-time promotions, for example “Upgrade to a suite for 20% off if you book within the next 24 hours.”

Frequent Guest Programs

Implement loyalty programs that reward guests for frequent stays or for spending more. Offer exclusive perks, such as free room upgrades or complimentary services, to loyal customers. For example, Hilton Hotels Worldwide has a Hilton Honors Program where all the members earn points with their stay. The more they stay at Hilton more points they earn, and they can use their points for additional benefits, discounts, and special rates in any Hilton Hotel around the globe.

Interactive In-Room Technology

Use in-room technology to showcase available upgrades and services. Interactive TV systems or mobile apps can provide a convenient way for guests to explore and purchase additional amenities. Or for suites, you can have an additional room for families with kids where you can place video games or any other kind of entertainment to push families purchasing the Suite.

Training Staff

Make sure the staff knows how to upsell in hotels, to do so you need to train your front-line team to identify upselling opportunities during check-in or interactions with guests and encourage them to mention available upgrades and amenities in a friendly and non-intrusive manner.

I hope you understand better now that we have covered all the tips and techniques on how to upsell in hotels.

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