The key strategies to hotel upselling and cross-selling
Hotel upselling and cross-selling are both good ways for you to increase incremental revenue on bookings. Both strategies revolve around a similar goal but it’s important to understand their differences. Upselling involves getting a customer to spend more on their current product consideration, such as upgrading their choice of room, while cross-selling involves selling ancillary products or services, such as a spa treatment or a local tour, on top of their room.
It’s necessary to let customers know about the great value upgrade options you have available during the booking process. For instance, look at how one hotel shows that a Deluxe Double/Twin Room can be easily upgraded to a Superior Room for just $10 or to a Junior Suite for $30 a night.
Advising guests when there’s a limited number of rooms left can also be a powerful tool to help boost conversions. Human behavior is such that we are likelier to purchase something if we’re informed that it’s the very last one. If people really believe that they’ll be missing out on something, they’ll be prompted to act more quickly to receive it.
Urgency is similar to scarcity in that it taps into our inner FOMO (fear of missing out). A limited time offer is a highly effective marketing strategy that can often turn a looker into a booker. Let's say, we run a 7 day sale and use a countdown clock to show the days and minutes left on the offer in real-time.
Adding an enhancement option to a room will enable a guest to add an extra like a bottle of wine or a box of chocolates before they complete their booking. Enhancements should be relevant to your target audience. If the hotel is famous for food why not add an enhancement to your Tasting Menu or Afternoon Tea?
A well-timed email prior to the guest’s arrival can be very useful in developing a relationship with the guest. You can provide directions to your property, call attention to dining times and showcase the attractions in the area. It’s also the perfect time to highlight various products or services that may enhance a guest’s stay. In this email you can both upsell and cross-sell. You can use the email to highlight your room upgrade options again and also any offers you may have in your spa or restaurant. By sending guests messages that are both personal and relevant you have a higher chance of establishing loyalty and recommendations.
If you have sister properties in a nearby location it’s worth setting up the cross-sell feature in your booking engine to promote these hotels when you have no availability for the user’s selected dates.
At the Hotel
Finally don’t forget that upselling and cross-selling continues when the guest arrives at the hotel. Your reception staff should be proactive in offering the guest the best experience by making them aware of upgrade options and rooms with special features such as sea views or large desk space for business visitors.
To sum up, note that people hate to be ‘sold’ to but they love to buy. Help your guests enhance their stay by offering them relevant products or services that will add value to their hotel experience, both during the hotel booking process and afterwards.