10 Best Hotel Upselling Techniques to Maximize Hotel Revenue

Examples of hotel upselling include hotel room upgrades, rooms with better amenities, early check-in, late check-out, in-room extras, food and beverage deals, etc. 

Many people confuse upselling with cross-selling. Though both the terms are used interchangeably, they are entirely different. Upselling is more inclined to let a customer spend more on current products than the initially considered purchase, such as upgrading a basic room to a premium one. 

On the contrary, cross-selling relates to selling extra services that can add value to the guest's journey. For Instance – When booking a room, hoteliers can sell extra add Ons such as offering a sightseeing tour, giving access to a pool, etc. which falls under cross-selling.

When is the best time to upsell? 

Upselling is both an art and a science. To do successful upselling, the hotelier should have a crystal-clear understanding of his target customers and requires the right interval to offer those services.  

It is true that hoteliers can use upselling techniques at any point in time, from discovery to post-stay.  

The best time for a hotelier to upsell their services is when the search intent of the guest is higher. Usually, the perfect time to do this is when customers book the reservation; then, it becomes a great chance for hoteliers to offer to add Ons and room upgrade services to guests. 

1. Discovery  

Your website is the first-place potential guests learn about you. Don't take this space for granted. Consider providing add Ons and other packages you might have. 

In addition, make sure that these additional options are integrated into the booking engine, which makes it easy for customers to avail these services without any hassle.  

2. Pre-arrival  

This is an excellent opportunity for hoteliers to upsell hotel room services when the guests are already excited about the trip. Sending a link to the guests before they arrive intrigues them to demand more.

Here are a few examples of extras that you can sell to your guests – early check-in, a bottle of wine in the room before arrival, a city tour, airport pick-up, etc. 

3. Arrival

On the arrival date, hoteliers can send registration links to guests, saving the front desk staff time and allowing them to sell the last-minute extras. For Instance – Hoteliers can sell their services, including room upgrades, bike rentals, etc. 

4. In stay 

Once the guests get settled inside the rooms, hoteliers need to ensure that the customers' experiences match their expectations. Meanwhile, you can recommend various add Ons to your guests, including spa packages, airport transportation, offering a sightseeing tour, etc. 

5. Post stay 

Most hoteliers think that upselling ends after guests leave the property, but hoteliers can keep in touch with their guests by sending follow-up e-mails packed with discounted offers and loyalty programs. 

How can hotels benefit from Upselling? 

Let's walk through some of the benefits that hoteliers get from hotel room upselling- 

Provides an improved stay experience for guests 

No guest wants cookie-cutter deals anymore. People wish to have customized experiences from online shopping to travel to social media. Similarly, they want the same level of personalization from hotels. When it comes to hotel personalization, all it means is customizing your services per guest needs and preferences.  

Knowing about your customer inside out helps you tailor your service accordingly and makes it easy to upsell add-ons or upgrades on the go. 

Makes your brand stand out from competitors 

Using hotel upselling techniques is a lucrative way for your hotel to delight customers. When you offer additional services to the guests and make their stay memorable, you are creating an incredible experience for your guests.  

The more you upsell your services, the more 5-star reviews you get, thus boosting your hotel reputation. 

Boost your hotel revenue

Upselling is often considered a revenue-accruing strategy because your focus is to sell an improved product version and add more value to guests stay. 

When hoteliers offer upselling services at the right time, it can bring massive profits for your business and help you accomplish revenue goals.

Read this guide to know about how you can boost your hotel revenue using the power of data analytics

10 Hotel Upselling techniques to maximize hotel revenue 

Here are the 10 hotel upselling techniques you can use to increase your hotel revenue-

1. Know about your target customer 

Whether you are upselling or cross-selling, you need to choose the right customer. Remember! Only some customers fall under your bucket, and not every client needs your extras. If you are not clear about how extras/ add Ons would suffice client expectations, then it's not worth it. 

To find the right set of customers, you can check out the property management system to identify which guests spent on additional services and get insights about which type of customers you can pitch your products to.

For Instance – Do couples/honeymooners usually order champagne/wine from the hotel staff? Or business travelers tend to take advantage of last-minute offers, early check-in or airport transfer, etc.  

So, find that trend and offer that additional service to potential guests. 

2. Begin selling before arrival

The best times for upselling hotel services are during the pre-arrival time of guests. It is a good tactic for hoteliers as most travelers plan their trips before contacting the hotel.  

Doing pre-arrival communication is not only about asking a few questions from prospective clients but also more about taking advantage of upselling services even before they arrive.  

Just like airlines do charge for adding extra luggage, you too can offer add Ons (transportation, restaurant reservation, early check-in, late check-out) to your guests for a lower price during the time of pre-arrival.

There are various ways to upsell hotel services to guests- 

• Hoteliers can send sending personalized e-mails containing lucrative deals and offers to the guests
• Using the property management system, you can send automated outreach messages to the guests
• Using a contactless check-in solution that sells upsell offers at the time of check-in experience 

3. Upsell for group businesses 

Partnering with local businesses is another effective hotel upselling technique. Let's say you are trying to offer guests spa, restaurant, and gym services, but your hotel has some things. In that case, you can choose to collaborate with local businesses and offer them unique services.  

Partnering with local businesses provides multifold benefits to hoteliers, from walking tours to golf trips to mini roads.  

Undoubtedly, your hotel is there to enrich your customers and provide unforgettable experiences. At the same time, you cannot ignore the fact that most guests prefer to book a reservation based on the location of the hotel and local attractions.  

For Instance – If your hotel is located near a famous restaurant offering the best local dishes, you can offer an extra service to your guests, including a reservation at the restaurant. This way, you can charge a commission from a local restaurant each time guests' book from that outlet.  

In short, it brings pools of benefits for you and your guests. As a hotelier, you can increase your hotel revenue, and your guests can get a best-in-class experience.  

4. Determine the right time for upselling. 

When upselling your hotel services, the timing of upselling and cross-sell matters the most. The best time for hoteliers to pitch your services is when customers need them. Your hotel can boost its revenue if you find out the right time for upselling your services. 

The pre-arrival period is the best timeframe because people generally seek receptive offers such as upgradation to a better room, choosing a few activities, getting transportation, etc. 

It often happens when guests reach a hotel, and they feel so tired, and the receptionists do not have enough time to upsell services. In this case, sending upsell e-mails (room upgrades, packages, food & beverages) gets the highest clickthrough rates before guests arrive. 

Must know: Bed and breakfast software

5. Include upsells on your hotel website 

Before making a reservation at your hotel, guests check your website and find out whether your hotel can meet their expectations or not. So, this means that your website is the best space to capture more traffic from guests by showcasing combo packages, deals, and best offers. 

Showcasing targeted upsells on your website are more likely to find something that resonates the most. Make sure to display combo packages and deals near the product/service. 

You can upsell various products on your hotel website, including- 

• Room upgrades 
• Food and beverages 
• Packages 
• In-room extras/catering 
• Other activities such as pampering day, in-room spa, etc. 

6. Identifying trends 

You need to use customer relationship management (CRM) or a property management system (PMS) to strategize your upselling game. From there, you can gain various insights on trends, such as which offers worked better in summer vs. which performed well in the winter. Which specific age group of guests were looking for a local tour etc.?  

By knowing this, you can create an upselling strategy accordingly and consider those trends that worked effectively for your previous customers. 

For example – By checking reports, you know that families are upgrading to larger rooms and business executives intend to choose rooms with good Wi-Fi facilities. And there are some guests who made the reservation for wedding parties and are looking to order high-end wines. So, you would upsell services to the same kind of guests in future.

Thus, it can be a profitable way for you to increase your hotel revenue and, at the same time, enhance your guest experience. 

7. Explain the value of your marketing content

A cost-effective hotel upselling technique is convincing prospects about the product's value through marketing content. Using enticing words/phrases hooks the customer to spend some time and go with investing in this product. 

For example – Don't just write words - "buy a bottle of champagne." Instead, make it more compelling by describing the real flavors of champagne and how it originated.

Make your product descriptions enticing enough for someone to take immediate action. Don't just tell; add some emotional touch to your content that makes it easy to sell the product on the go.

8. Run loyalty programs 

One of the best hotel upselling techniques is to run loyalty programs. Conducting a loyalty program is the go-to option for you if your goal is to get loyal customers and, at the same time, increase hotel profits. 

Hoteliers can send personalized e-mails to customers, including discounts, incentives, and rewards, encouraging their guests to book a property.

When the hotelier provides loyalty programs in the form of free nights, room upgrades, or offering discounts on future stays, that will help them to convince your prospects and encourage them to make another purchase at your hotel.

For Instance – You can create various upsell packages tailored to your guest's needs and go the extra mile to keep them happy. Likewise, you can offer business travelers a package covering various things, including in-room breakfast, transportation from the airport, fitness class at the gym, etc. 

9. Taking advantage of group bookings

If you have not leveraged group bookings yet, you are two miles away from your competitors. Providing group bookings is a profitable alternative for hoteliers to increase their revenue, and you, too, can provide these bookings for weddings, family get-togethers, business meetings, etc.  

Probably, there might be additional requirements regarding rooms and beds due to an increase in the number of guests. Those are great ways for you to upsell hotel services. 

10. Use the Rate Framing technique

The rate framing technique is another powerful marketing weapon to upsell your services. The rate framing technique is when you offer hotel services at a higher price and then follow up with a lower price.  

So, by employing rate framing as the hotel upselling technique, hoteliers can lure guests by offering premium-priced products at discounted prices.

For Instance – When the front desk says to their guests – Deluxe room typically costs Rs $250; however, for your date, we can offer you the price of $200. It is called the rate framing technique.  

Wrapping up

So, once you start using upselling hotel techniques to get more sales and hit your revenue goals, you better understand what services work best for which set of customers. You only need to remember to present your extras/ add Ons at the right time and, more importantly, to the right customer. 

Thus, hotel upselling techniques can turn your hotel into a lead-generating engine, helping you attract more clients and get more sales.

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