Upselling and cross selling is about generating additional revenue by offering extras, various upgrades or add-ons.
It can come in the form of a more expensive or personalised version of the same product (room upgrade) or offering a product that hadn’t been previously considered (massage, tour around the city, etc.).
Besides extra income for your hotel it provides additional benefits such as:
Don’t forget that the way you use upselling and cross selling techniques needs to follow basic rules and be handled in a subtle manner.
Aim to improve the customer experience over increasing your revenues.
Customers can get annoyed by aggressive upselling techniques. Focus on offering solutions rather than increasing your profits.
The Timing is everything
It is a thing of the past that upselling and cross selling only takes place at the hotel reception or via paper prospecting in the hotel rooms. By utilizing technology you can significantly widen the space and opportunities for upsell.
Now you can use every stage of the guest journey to pitch a service exactly at the time when your customer needs it the most. You can send your (additional) offers by emails or text messages during booking, before and after arrival, and even after they check-out.
Also, consider the fact that upselling at the front desk isn’t the most convenient for both parties. The guest wants to go to his room, and the receptionist needs to give quick service to other guests waiting in the line.
This is why focusing greatly on the pre-arrival phase combined with the digital approach is much better and more efficient. This can also be an advantage, especially during the pandemic.
It goes without saying that the most tempting offer won’t convert if the price is not set to an optimal level. Set it too low and you won’t earn anything (at best), set it too high and you may make it unattainable for most guests budgets.
No, you shouldn’t offer everything to everyone.
It is vital that you also identify your target audience and start by acknowledging at least the basic segments.
Also remember, not every guest is a good fit for upsell; so never try to push additional products or services on someone who doesn’t truly want or need them.
Stop showing irrelevant offers to irrelevant guests. Personalize!
Besides proper targeting and taking your segments into account, the easiest way to ensure you are hitting the right spot is simply by asking your guests about their in-stay preferences. You will learn about their needs immediately and can start offering relevant content – useful both for online tools but also for your receptionist.
For example, the MyStay personalisation feature allows you to collect guest preferences before their arrival, or during the online check-in process. That means you can cater to every guests’ specific needs, while also completely automating the whole process.