Mastering the Art of Upselling: Setting Up a Successful Program

The world of hospitality is complex, and every guest's experience comprises a multitude of interactions, services, and amenities. Among all of these, there is a strategy that can make a significant impact: upselling. Essentially, upselling offers guests opportunities to upgrade their stay through a better room, a unique dining experience, or a spa package.

Upselling is often misunderstood as a revenue tool. However, it's more than just a way for hotels to earn more money. When done well, upselling can be a way to provide additional value to guests, enhancing their overall satisfaction. In this post, I will explore this strategy, looking at how it can benefit hotels and guests.

Understanding the Value of Upselling

For the Hotel

• Revenue Augmentation: At the forefront, upselling directly translates to an uptick in the average spend per guest. With each successful upsell, a room that might have stayed vacant or a spa slot that might have gone unused now contributes to the hotel's financial health.
• Optimized Resource Utilization: Every hotel has its array of premium offerings that might not be utilized to their fullest potential. Upselling serves as a mechanism to ensure these services – from suites with the best views to exclusive dining experiences – aren't left on the proverbial shelf gathering dust.
• Improved Guest Services: When the hotel actively understands guest preferences for upsells, it often leads to better overall service. The team becomes more adept at reading guest needs and anticipating desires, ensuring every guest feels valued and understood.

For the Guest

• Elevated Experiences: With upselling, a vacation or business trip is no longer just a stay; it's an elevated experience. Whether enjoying a suite with an unparalleled vista, a spa package that rejuvenates, or a private dining experience under the stars, upselling can transform ordinary stays into memorable adventures.
• Tailored Services: Personalization is the mantra of modern hospitality. When a hotel curates upsell offers based on a guest's preferences or past interactions, it sends a message: "We know what you love, and we're here to deliver."
• Perceived Value: A well-executed upsell often feels too good to pass up. The perception isn't just about the price but the value. A guest might be more than willing to pay a premium for an upgrade if they perceive the added benefits, like exclusive amenities or services, to significantly enhance their stay.

In essence, upselling is not a one-dimensional revenue strategy; it's a multifaceted approach that adds layers of value to the guest-hotel relationship, enriching both in the process.

When is the Right Time to Upsell?

Every interaction with a guest presents an opportunity. Yet, understanding the rhythm and flow of their journey is crucial in determining the ideal time to present an upsell.

Booking Phase: As guests book their stay, offering room upgrades or package deals is a prime moment. They're already in the decision-making mindset, and a slight nudge towards a better room view or an all-inclusive package can often sway choices.

Pre-Arrival Communications: As the anticipation for the trip builds, guests are receptive to offers that promise to enhance their upcoming stay. Think of sending tailored offers via email or text, introducing them to spa packages or exclusive dining experiences they might enjoy during their visit.

Check-In: The face-to-face interaction at the reception is a golden opportunity. The guest is excited, and offering them an upgrade or an exclusive amenity can start their stay on an even higher note. But it's crucial to gauge their mood. A guest in a hurry or showing signs of fatigue might not be the best approach with an upsell.

During the Stay: With the help of technology, like a hotel's app, guests can receive personalized offers in real-time. Maybe they've just returned from a tiring day of sightseeing? A proposal for a relaxing massage might be hard to resist.

Check-Out: While it might seem counterintuitive, check-out is an opportunity for future upsells. Offering deals for their next stay or introducing them to loyalty programs can seed future upgrades and add-ons.

Yet, amidst all these opportunities, there's a delicate dance to master. It balances between seizing the moment and respecting the guest's space. While the right offer at the right time can elevate a guest's experience, pushing too hard or too often can have the opposite effect. The key is always prioritizing the guest's comfort and needs, ensuring that every upsell feels like a genuine attempt to enhance their experience rather than a pushy sales tactic. In the world of upselling, timing isn't just everything; it's the only thing.

Avoiding Pitfalls: What Annoys Guests?

Hotels and guests can benefit from upselling, but it can quickly become annoying if not done correctly. Here are some potential pitfalls to avoid.

Potential Pitfalls

• Overzealousness: Being too aggressive is one of the quickest ways to turn a guest off. It's vital to understand that every guest is different; while some may appreciate multiple offers, others could see it as an intrusion.
• Irrelevant Offers: Offering a honeymoon package to a business traveler? Or a kids’ special to a solo adventurer? Irrelevant upsells don’t just miss the mark; they can be downright annoying.
• Hidden Costs: Nothing can sour a guest's experience faster than discovering hidden costs attached to an upsell they've accepted. Always ensure full transparency.
• Repetitiveness: If a guest has already declined an offer, repeatedly pushing the same deal can come off as pushy and inattentive.

Tips to Tread Carefully

• Train Staff: Equip your staff with the skills to read guest cues. They should be able to gauge when a guest might be receptive and when it's best to step back.
• Use Technology Wisely: Modern CRMs can track guest preferences and past interactions. Use this data to tailor offers, ensuring they're relevant and timely.
• Be Transparent: Provide precise details about the upsell, benefits, and associated costs.
• Personalize with Purpose: Remember, the ultimate aim is to enhance the guest's experience. Always ask, "How does this offer benefit the guest specifically?" rather than just considering the potential revenue.
• Seek Feedback: Encourage guests to share their thoughts about the upselling process. Their insights can help refine the approach, making it more guest-centric.

When upselling, it's essential to prioritize the guest's needs and experience. Rather than simply trying to sell more, upselling should be approached as a personalized service that enhances the guest's overall experience. Done correctly, upselling can create a sense of loyalty and trust between the guest and the hotel.

Before you start you own upselling program, read the rest of the blog post at https://www.demandcalendar.com/blog/mastering-the-art-of-upselling-setting-up-a-successful-program

Information is Key: What Do You Need to Know About Your Guest?

Incentivizing Your Team

Crafting the Perfect Upsell Offer

Best Practices for Upselling in Hotels

Steps to Set Up Your Upselling Program