Like all businesses, hotels and rentals exist to meet a need and generate revenue. Deploy the right strategy, which starts with pricing and revenue management, and you’ll make a profit; get it wrong and you’ll go out of business.
NB: This is an article from Lighthouse
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But profit comes in different shapes and sizes, is generated by different means, and the revenue and effort associated with it serve more than one purpose.
If you’ve cracked the most effective way to boost occupancy at the best price, the next step is upselling: the practice of selling additional goods and services that complement and improve the guest experience.
Effective upselling strategies enhance experiences, is tailored to the guest and doesn’t feel like a hard sell. Importantly, it should be conducted over the lifecycle of that guest and increase their likelihood of rebooking.
Let’s break down the strategy.
Promote add-ons during the discovery and booking phase
No one wants to feel pressured into making a purchase. But once a guest has cookies on their machine and has handed over their contact details as part of the booking transaction, there’s no harm in gently exploiting the exposure effect by subtly making them aware of add-ons that could improve their stay.
If they pre-order, that’s a bonus; the expectation is that it makes them more likely to buy when they check in or at some point during the rest of their stay.
And this digital activity can start before they’re booked; soft-sell references to what travelers can buy at your hotel beyond the basics can aid the discovery phase and make them more likely to choose your property, even if they delay making additional purchases.
Whether you’re a well-established chain or a small independent property, it’s all about going above and beyond, and creating a positive impression in comparison to your compset.
As a hotelier, you’ll have your own ideas as to what’s enticing specifically at this stage of a guest’s journey but here’s a non-exhaustive list of some of the potential add-ons you could offer:
