different sizes of burgers showing different fillings like hotels can embrace upselling and cross-selling strategies

Hotels offer services that focus on soothing and keeping people comfortable.

NB: This is an article from Catala Consulting

There are numerous opportunities to boost their revenues and keep themselves on top of the competition table, and upselling and cross-selling techniques provide them with several. This article explains the importance of these techniques.

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What Is Upselling?

Upselling is a revenue-accruing strategy that involves advertising and selling an improved version of a product or service to users. A room upgrade is a perfect example. The idea is to make them spend more while they obtain added value. 

Upselling is an efficient way for hotels to raise their profits. For instance, a hotel can upsell its property by displaying comparisons of its apartments. This technique shows candidity to its customers by making them see what they get for every upgrade. 

What Is Cross-selling?

Cross-selling is a marketing technique that involves compelling a customer to buy a complementary service or product. It is an efficient strategy for businesses across several niches in many industries. For instance, a hotel can offer guests items or benefits to improve their stays, just like life insurance is often provided to customers who purchase car coverages.

Cross-selling is an effective strategy for building recurrent demands for a service product. Items reportedly purchased can also be displayed to customers to depict them as more complementary and valuable. It alerts customers about services they never knew were provided, boosts their confidence in the company, and makes the hotel their go-to spot. 

upselling online hotel

What Is The Difference Between Upselling And Cross-selling?

The upselling strategy and cross-selling technique are not the same. Although both are usually confused with each other, they have separate functions. They can work effectively as paired systems to provide premium value to products, services, and users and increase revenue without spending much on several sales channels. 

Upselling compares and contrasts products to sell higher-class products and services to clients. It shows users that other product versions or service models are better choices for solving their needs. This strategy increases the average order value and makes clients feel more advantaged in purchasing the suggested offers.

Cross-selling, on the other hand, selects products and services that meet different needs that the original cannot satisfy. 

The difference between both marketing strategies is the consumer’s motive. A buyer who purchases an extra cross-sold product did not initially have the motive to buy that product. The consumer was compelled to buy that item as a complementary need. However, upselling capitalizes on the buyer’s intention for an impressive service or product. In cross-selling, there is often no motive before the sales appeal, but in upselling, there is often a motive. 

When Is The Best Time To Upsell?

Upselling is done when there is a desire for extra features. It becomes a priority when an upgrade feels right to customers. The best time to upsell is when a customer attains a level of patronage that is logically appropriate to introduce an improvement. For hotels, a perfect instance is during the booking stage. While the guests are booking their reservations, the hotel can upsell their upgraded rooms and other add-ons, indicating that their upgrades are affordable.

Hotels can also upsell after visitors have made their bookings. However, this should immediately follow their booking. Check-in periods are also appropriate for hotel upsells. The guests can be shown special offers to improve their stays and only cost a little more money.

When Is The Best Time To Cross-sell?

Cross-selling is best introduced when customers purchase services that likely require complements. An appropriate time for hotels to cross-sell is after booking before they arrive. After customers have booked, the hotel marketer can cross-sell add-ons through emails. For instance, a visitor can be informed about a hotel’s extra services. When they indicate their interests in any service, the marketer can inform them about related available options. 

Another perfect time to cross-sell is during check-ins. Complementary products and services can be cross-sold to customers.

One can say, cross-sale is best done when sales make sense. For hotels, it is preferably after booking. All you need to do is suggest product or service complements at the right time.

Read rest of the article at Catala Consulting