Upselling Techniques in Hotels: 10 Modern Upsell Tactics
The hotel industry is facing changes in its customers’ demographics and overall profiles. So it’s not surprising that many hoteliers are looking for modern upselling techniques in hotels and other venues.
Recently the hotel industry is facing many challenges with a high level of competition. So how do you upsell to your increasingly demanding customer base? And more importantly, how do you keep up with others who are looking to capture the interest of the modern consumer?
In our helpful article, we will find out the real answer! But first, let’s concentrate on the quick takeaway so you can get started right away.
Modern hotel upsell techniques include full use of the latest technology such as concierge apps, website plug-ins, banners, ensuring all business systems are integrated for accurate reporting and identifying trends, using non-manual systems to create successful campaigns, and utilizing social media.
So you can understand a little more easily how to compete with other hotels using modern upselling techniques. Let’s find out exactly what upselling is before we expand into some more detail. So what exactly is upselling?
What is upselling in the hotel industry?
Upselling in the hotel industry in its easiest terms is best explained as encouraging your guests to spend more than their initially considered purchase.
In the hotel industry, this usually means room upgrades, more rooms, longer stays, etc.,
Similar is cross-selling which involves selling ancillary products or services, such as spa treatment, room service, restaurant bookings, or local tours …alongside their room purchase.
Check out the way this works to increase food and beverage sales in a hotel.
These two terms are often used interchangeably within many industries including hospitality. So for the purpose of this article, we will too.
But why is it so important to keep up to date with modern upselling techniques?
Why do I need to upsell using modern tactics?
With a recent change in the whole way consumers purchase goods and experiences, those in the hotel industry need to make sure they are keeping up with the program!
Many hotel types are facing intense competition from rivals. Whether your venue is in the luxury, medium-priced hotel, with private airB&B’ers hot on their tail.
The hotel market can often be a ferocious battlefield as venues compete intensely to capture a similar type of guest.
Modern ways to maximize hotel room rate
A healthy profit can be difficult without looking into new and more modern ways to maximize daily room rates. While enticing and ensuring returning customers. especially if your business area is highly saturated with competitors working smartly to increase their bottom line.
Hoteliers need to ensure their offering is the best it can be, using the newest and innovative ways which compare or are superior to similar hotels in the area.
So what are some of the best ways to ensure your business has a competitive edge by upselling using the most modern strategies?
“A healthy profit can be very difficult without looking into new and more modern ways to maximize daily room rate”
Let’s get into the 10 best upselling techniques in hotels…
1. How technology impacts upsell
More than 300 million smartphone users are predicted to exist in the US alone during 2022. It’s not difficult to understand that consumers will be using this quick and convenient way of buying products and services.
With the advent of modern computer technologies, life has not only changed considerably for the consumer, but also for those in business. Especially those in the hotel industry.
Hospitality sector technology has evolved
Marketing, branding, outreach, and communication have evolved with those in the hospitality sector keeping up or falling by the wayside.
Recent times have seen those in the hotel industry introducing a wealth of modern methods for guests to interact with their venues.
Some offer virtual reality tours, augmented reality interactions alongside robotics for their customer’s needs.
By looking into more innovative options using technology you can ensure your venue’s upselling continues to grow.
2. Understand the needs of contemporary guests
With the huge change of guest demographic along with the rise of millennials and also the new cohort of Gen Z who are opting for hotel breaks and using hotels for business, it’s more important to understand their needs in order to upsell.
Custom profiles are ever-changing and expanding. And modern lifestyles are reflecting this, the modern venue needs to be aware of their different expectations and their lifestyle changes.
Hospitality industries need to think about new ways in which to engage with the younger generation. For instance climate change along with the types of food and how
Many of today’s potential guests are more aware of climate change, the way their food is produced, and not least, how wasted food is tackled.
Venues that are aware of these issues and making inroads to keep up to date will ensure a greater spend from their guests.
3. Previous customers who have spent on additional services
Although not breaking any traditions in terms of a modern tactic, customers who have spent on additional purchases in the past are still a great place to start with additional upsell.
This traditional way of encouraging guests to upgrade or buy more from you is still relevant even in today’s more technological era.
If your venue offers weddings you may look at ad campaigns. This can tempt customers into adding extra rooms for their guests. Or maybe offer a ‘menu’ of specially priced optional extras such as bottles of bubbly, a spa package, or low-priced cabs for wedding guests.
4. Identifying trends
Reporting on the types of extra services and products your guests previously purchased along with the rooms can give you a good idea of which upsells work best.
Maybe you have noticed that families are upgrading to larger rooms. Perhaps your business guests are looking for executive rooms with desk or wifi facilities.
Or maybe many of your guests booking in for celebrations are ordering champagne or higher-end wines as room service.
Offer more rooms to wedding parties, or extras such as champagne when you book a room for a special occasion. This can be both convenient and valuable for your guests and increase upsell.
5. Include upsell on your hotel website
A hotel can easily add upsells at the point of browsing. Your busy potential guests are then able to organize their stay quickly and will be more likely to purchase extras.
Even before your customer purchased a room, enticing offers which complement their stay will catch their eye.
By adding customized offers and other value-added features you can draw your customers in by using banners, and easily clickable buttons.
Don’t forget to run reports and other forms of analysis. This is crucial in finding out which offers are most successful and result in higher conversion.
6. Extra website enhancements
To take full advantage of technology and Wes sure features consider adding plug-ins, or slide shows.
Plug-ins can be added at the point of sale on the booking page to give your customers extra persuasion to add extras.
A pop-up including some of your best package offers or room upgrades may entice your already ‘sold’ customer to increase their spending.
7. Upsell emails
After your guest has made a booking, use a well-constructed and crafted pre-stay email in order to prompt your guest to add relevant extras.
For instance, if it’s for a group business stay, offer audiovisual equipment, a group restaurant booking offer, event set up assistance, and additional rooms.
Cover a guest’s expectations first and foremost. And then by offering extras informally at the planning stage, your guests will more likely opt for upgrades and other services.
8. Utilise social media
Facebook reports, nearly 3 billion users, and YouTube comes in at a close second. So advertising your upsell on these platforms is a modern upsell tactic that can help put your venue in the spotlight.
By showcasing your best offers, packages, and USPs on social platforms it’s a modern upselling tactic sure to deliver.
Posting carousel images on Facebook and also a YouTube short highlighting your offerings is a way of making sure your hotel has an edge over competitors.
9. Integrate systems
When it comes to upselling techniques in hotels, making sure all your business systems such as CRM’s and PMS are integrated with any offers automatically means data can flow without interruption.
This means your marketing staff will be more likely to hit on the right kind of campaigns. With the best conversion rate.
Manual data entry can significantly slow down processes with room for human error. By eliminating it, upselling will become more productive and profitable.
If your hotel systems are fully integrated your team will be able to capture, share and use data efficiently for upselling campaigns.
10. Use a concierge app
One of the most modern ways to ensure successful upsell is by using a concierge app for your venue.
The best concierge apps will allow you to:
- Use prebuilt pages to get started in minutes or customize styles to suit your brand.
- Helps to reduce staff requirements in service areas, and can allow you to consolidate kitchens and outlets.
- Get direct feedback from customers for reporting and creating the best upsell campaigns
- Order extras such as room service and other package items
- No downloads or signups are required by your guests
- Guests can order upgrades and other offers and services directly from the app.
Here are the benefits our app brings to its hoteliers and venue owners. Check out some further information here.
Upselling techniques in hotels … To finish up…
So concerning upselling techniques in hotels, we hope this has given you some suggestions for how to increase revenue and profit at your venue in terms of upselling.
Keeping up to date with new ideas and innovation in hospitality is crucial to offset the increasing competition.
Don’t forget to head over and discover more about how our concierge app. It can help you keep on target with modern upselling tactics.