Cross-selling and Upselling are marketing techniques aimed at improving revenue. Cross-selling and upselling are well-established strategies in the service industry, particularly within the hospitality sector. The two concepts are revenue management strategies aimed at boosting room sales.
Cross-selling means selling related or complementary products to a customer. Cross-selling is an effective marketing strategy in the hospitality industry. For instance, selling a Spa package or guided city tour to a guest who books a standard room. Upselling is a sales effort where a customer is invited to purchase more expensive items, upgrades, or other add-ons to boost revenue. For instance, guests with initial room reservations are convinced to change their reservations for a higher or more expensive rooms. In a simpler term, a guest books a standard room online. After selecting the room, they are offered an upgrade to a deluxe room with a sea view for an additional fee. Upselling allows hotels to sell higher room categories which could have, otherwise, be empty.
One major advantage of cross-selling and upselling is that both strategies can be effectively implemented through online and offline channels, and can be done at any point during the guest onboarding cycle, including during the booking process, to check-in, and during the guest stay. For a long time, hoteliers have been leveraging on automated tools such as Oaky, Roomdex and Revinate upsell for cross-selling and upselling. These tools integrate with the hotel’s website to offer real-time upsell or cross-sell options.
In this post, I will explore how hotels can simplify cross-selling and upselling process so as to boost revenue and enhance guest experience.
Personalized Pre-Arrival Emails
This can be done by sending a welcome email 3–5 days before check-in by offering tailored suggestions such as spa appointment, room upgrade, airport pickup, etc. Use guest data from past stays or booking preferences to automate offers.
Integrated Booking Engine Add-ons
This is done by offering extras like breakfast, late checkout, or tours as checkbox options during booking. This is further achieved by showing average guest savings, e.g. stating that “Most guests save 20% with the Relaxation Package”.
Smart Mobile Check-In
Allow guests to check in via mobile app and offer in-app room upgrades or F and B reservations.
Front Desk Prompts
Ensure staff are trained to offer personalized upsells prompts such as asking guests questions like “Would you like to upgrade to a suite for $30 more tonight?”.
Automated Post-Booking Chatbot
Integrate chatbot to booking platforms to recommend extras or upgrades after booking, and use platforms like WhatsApp or Facebook Messenger. Chatbot allows guests to respond with simple “Yes” or “No” to accept offers.
QR Code Access
Place QR codes in rooms, lobbies or conspicuous places linking to digital menus or upgrade options. Simplify this by grouping services into into categories such as “Relax,” “Dine,” “Explore” for easy navigation.
Loyalty-Based Recommendations`
Offer exclusive upsells or rewards only for returning or loyalty members. Tiered incentives such as “premium members get 50% off spa upgrade” can be adopted. This article on Siteminder website provides insights into some techniques, strategies, and examples of upselling.
Successful upselling and cross-selling require essential skills in sales, marketing, and customer relationship management. Hotel practitioners and managers should have technical, analytical and interpersonal skills. These include but not limited to ability to assess and understand customer needs, preferences, and concerns, effective communication and persuasion skills, and comprehensive product knowledge (features and benefits). Hotel professionals can enhance guest experience and deliver personalized service through below approaches.
Understand guest types and profile them appropriately (business traveler, honeymoon couple, family, solo traveler) to suggest relevant services.
Amenities and experiences can be matched based on guest preferences. Data on past stays or preferences can be used to personalize offers.
Effective communication requires warm and polished language. Staff must maintain professional and friendly tone tailored to elicit responses from guests, and in line with hospitality standards. This also require subtle persuasion or soft-sales techniques, not necessarily a complex sales pitch. This can be done at booking or check-in stage. Build trust and service balance. Ensure recommendations are helpful, not pushy with emphasis on the guest experience.
Check out this article on ten key upselling techniques in hospitality industry
