As stringent lockdown restrictions were imposed in several countries, the global hospitality market continued to register heavy losses in 2021.
NB: This is an article from Oaky
The hospitality industry bore the brunt of the pandemic more than any other industry. As per PwC, the lodging industry recovery is expected to remain uneven in the United States in 2022. Skift predicts that international business travel will not return to Europe before 2025. Nevertheless, it is not all gloom and doom.
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As the global economy bounces back to the pre-pandemic levels, the hospitality industry market is also steadily catching up. According to Reportlinker, the global hospitality industry is projected to grow from $3,952.87 billion in 2021 to $4,548.42 billion in 2022 at a CAGR of 15.1%.
But how exactly have hospitality businesses managed to keep afloat? This has been made possible because of creative hoteliers who tweaked their approaches to meet the new challenges. We’re proud to admit that here, at Oaky, we were able to help our customers transform their strategies and stay on track by introducing upselling as one of the revenue drivers.
Delve into our data to see how much our customers generated through upselling and learn about the guest favourite deals per market:
UK Hospitality Market: Upselling Insights and Bestseller Deals
Our hospitality report takes two figures into account:
- The highest revenue generated per customer through upselling
- The average revenue per pre-arrival email.
Together, both these numbers serve to inform us about the effectiveness of pre-arrival upselling.
The average revenue per pre-arrival email depends on the hotel’s inventory and upselling potential. Simply put, the fewer rooms (or services) a hotel provides, the lower its upselling potential will be.
Our analysis of the UK market has revealed the following findings:
- A City Hotel in London generated the highest total approved revenue in the UK hotel industry, with an average revenue per email sent of £20.4 during 2021. The total approved revenue for the hotel stood at £350K, the highest in the country.
- A City Hotel in Edinburgh generated £9.28 per email on average, coming second after The City Hotel in London. Its total approved revenue came to £52.1K, showing that the hotel revenue potential also depends on its inventory.
UK Best-Performing Upsell Deals and Upgrades
Various upsell deals are usually sent to guests in their pre-arrival emails. This may include special loyalty rewards, late check-outs, and other add-ons that the guests can use during their stay. Of these, the highest-selling deals are the ones that customers pick most often out at the pre-arrival stage.
Breakfast throughout the stay was the most popular upsell option in the UK. This was followed by late check-outs, English breakfast, becoming a loyalty member and getting a 15% discount, and early check-ins.
The top five best-performing upgrades in order of ranking include suite at the top floor, suite upgrade, garden or river view, deluxe double room, and a view of the London Eye or Cathedral.
DACH Hospitality Market: Upselling Insights and Bestseller Deals
DACH is a name given to the hospitality market in 3 major countries — Germany, Austria, and Switzerland.
- A hotel based in Reussen reported the highest total approved revenue at €194.1K. The average revenue per email sent for this hotel was €26.97.
- Based on the average revenue per email sent, one of our other customers ranked highest with €29.81. The apartments made a total approved revenue of €49.7K.
DACH Best-Performing Upsell Deals and Upgrades
Customers in the DACH market gravitated towards five enticing deals that included breakfast throughout the stay, early check-ins, late check-outs, discounted breakfast, and secure parking.
The top five best-performing upgrades included a superior room, business room, business room with executive lounge access, a mountain view, and deluxe room.
