Exceptional guest experience can elevate a hotel’s reputation and increase revenue and repeat stays.
NB: This is an article from innQuest
An effective strategy that can help is to upsell additional services or products relevant to customers. According to studies, it can cost five times more to attract new customers than to retain existing ones. Therefore, upselling in hotels is not only influential but cost-efficient as well.
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Even without COVID-19, profitability in the hotel industry is still a significant concern due to factors like:
- Increased dependence on web-based travel agencies
- The growth of tough competition
- Rising customer demands
Sit tight, for you will learn some of the essentials for upselling in hotels in this article!
Why is Upselling Important in the Hotel Industry?
Upselling in hotels could be beneficial since it enables hotels to generate additional revenue from every booking they receive. By doing this, hotels can increase their income since they won’t have to max out their occupancy to fulfill their profit goals consistently.
Upselling in hotels is crucial for several reasons:
- You can create stronger bonds with your clients.
- You can seamlessly increase revenue.
- Long-term, lucrative customer relationships are possible.
- Personalizing upselling increases the likelihood that the guest will return.
Most of the profits from upselling in hotels come from upgrading rooms or offering add-ons or packages to existing accommodation reservations. Many customers would be willing to pay more if an extra service enhanced or complemented their immediate stay.
A practical approach is asking about any requests or suggestions they might have in an email sent before the guests arrive. Room upgrades are a common upsell strategy because guests have already decided to stay at your hotel. It also becomes easier for the hotel staff as no significant preparations are required. As per a report, room upgrades can also offer the most considerable profit margins. As a result of being pleasantly delighted by the option of an upgrade offer and no longer being in the mindset of saving dollars as they were when booking their vacation, most guests are frequently amenable to accepting it.
Additionally, you can provide unique amenities in the accommodation. For example, if you know a guest has checked in for a romantic getaway, you can offer them a discount package on spa treatments for couples. Or if there is a group booking, your hotel staff can upgrade them to a room with more floor space overall.
Be sure to present these offers before the guest arrives. To evaluate if you can clinch the deal, communicate pre-stay emails on the day or up to a week before the guests’ predetermined arrival.
Upselling in Hotels: A Step-by-Step Guide
The time, tone, and consistency with which you upsell are crucial to the effectiveness of your efforts. You do not want to sound like you’re trying to sell something actively. Prioritize the guest experience and genuinely provide exceptional customer service. Forcing an upsell can leave a wrong impression and reduce repeat stays.
However, you can use multiple upselling techniques to provide a seamless guest experience without being too pushy. Let’s examine each of the following hotel upselling techniques.
