Are You Unlocking the Full Potential of Upselling to Elevate Guest Experience?

In today’s fast-paced hospitality world, upselling has evolved far beyond just an opportunity for additional revenue.

It’s now about enhancing the guest experience, offering personalized choices that elevate satisfaction, and making convenience the ultimate luxury.

By strategically offering guests what they need, when they need it, hotels can create emotional connections that lead to lasting loyalty.

This week, I’m excited to introduce our guest contributor at Hospitality Labs , Erik Tengen, Co-Funder and CEO at Oaky , who explores this concept in depth.?

He highlights how upselling can empower guests with choices, turning everyday transactions into memorable experiences.

Discover how this strategy not only boosts revenue but also strengthens the emotional guest journey.

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Fernando Vives

Convenience is the New Luxury: Upselling Empowers Guests with Choice

The Power of Upselling in Enhancing the Emotional Guest Journey

Did you know that through upselling, you can boost your TrevPAR by up to 5% while simultaneously enhancing guest satisfaction and loyalty?

How? It’s all about influencing guests’ emotions.?

Once considered a mere sales tactic, upselling has evolved into a valuable tool for engaging guests at various touchpoints, evoking positive feelings and setting the stage for a memorable hotel experience.

Let's delve into the role of upselling in the guest journey and explore best practices from hotels around the world.

What is the Emotional Guest Journey and How Does Upselling Play a Part??

First things first, what sets the emotional guest journey apart from the traditional one?

The traditional guest journey follows a linear progression of interactions and touchpoints:

Active anticipation:?

• Awareness?
• Consideration
• Booking

• Passive anticipation:

• Pre-arrival stage

• Transit?
• Check-in
• Stay
• Post-checkout.

This approach focuses mainly on the logistical and functional aspects of a guest's stay, making it largely transactional.

The Shift to the Emotional Guest Journey

As guests become more tech-savvy and move away from traditional booking methods, the guest journey has evolved to be more scattered and emotion-driven. Moreover, modern guests seek more than a place to sleep.

They are unlikely to remember the bed in their hotel room but will remember the sunrise yoga session in your hotel garden.

Thus, the emotional guest journey emphasises the guest’s emotional and psychological experiences at every phase of their stay.

Key Differences and Opportunities

Understanding that guests experience different emotions at each touchpoint is crucial for timing upselling opportunities.

For example, during the passive anticipation stage, travellers are least stressed and most open to customising their stay.

Since guests enter the anticipation after having secured their flights and accommodation a few days, weeks or months ago, they become more receptive to spending more on extras.

This is the perfect moment to suggest enhancements, giving guests ample time to choose ancillary services and upgrades that elevate their experience.

On the other hand, upon arrival, front desk agents can leverage the rapport and human connection with guests to offer last-minute room upgrades or additional services that will improve their stay.

By tapping into guests' emotions and feelings at each stage, hoteliers can strategically present upselling options that resonate and add real value (e.g., a family suite with extra space and a tipi tent for the kids could be exactly what parents need after a long and exhausting journey).

This allows you to connect with guests on a deeper level, transforming transactional interactions into memorable experiences.?

Recognising the importance of engaging with guests before they even set foot on the property, Anantara Hotels & Resorts Siam Bangkok uses upselling to connect with guests and present their rich selection of add-ons and services pre-arrival.

Not only does it help to upsell their higher-tier room types, elevating guests’ stays, but it also helps make guests feel more welcome, shaping a positive impression even before guests arrive.

Thoughtful Upselling: Delivering Real Value to Guests

However, getting the timing right for upselling is not enough to fully connect with your guest. Another crucial element is knowing what to upsell.

Upselling should never be about nickel-and-diming your guests. The options you offer should provide real value, making their stay more enjoyable. To achieve this, ensure:

• Your room upgrades have distinguished differences from other room types (e.g., offering an additional 5m2 doesn’t add real value, while a room with a view over the Eiffel Tower does).?
• Ancillary services genuinely add value to your guests’ stay.
• Your upselling strategy is thoughtful and personalised, meeting and exceeding guests' needs.

This is where guest segmentation becomes invaluable.

By segmenting your guests, you can offer the most relevant upselling deals to the right people. Upselling is about understanding what your guest is looking for and proactively meeting these needs.

Anantara The Palm Dubai Resort skillfully customises offers to various guest segments, providing targeted value propositions.

With a range of villas, including luxurious options, and a variety of creative guest experiences, the hotel ensures that relevant deals are presented to different guest personas, tremendously enhancing the guest experience.

Convenience is the New Luxury: Upselling Empowers Guests with Choice

In today’s fast-paced world, convenience is synonymous with luxury. Modern travellers value seamless experiences and want to enhance their stay with the touch of a button.

If they cannot purchase these enhancements directly from your hotel, they will likely turn to other providers who offer the convenience and options they seek.

This not only risks losing potential revenue but also represents a missed opportunity for your hotel to be part of your guests' memorable experiences.

However, it’s also important to provide offline upselling options. A holistic and cohesive upselling strategy focused on empowering guests with choice is essential for enhancing the guest experience.??

When guests can personalise their stay in a simple and straightforward manner, their satisfaction soars. They feel valued and understood, which strengthens their connection to the hotel, builds loyalty, and generates positive word-of-mouth.

For instance, transitioning from manual to automated upselling has been a game-changer for Minor Hotels .

As guests began to expect a seamless digital experience, Minor Hotels adopted upsell technology that allows guests to book personalised upgrades at their convenience. From corporate guests to leisure travellers, guests can easily choose upgrades and add-ons from a diverse range of deals with just a few clicks.

Final Thoughts

Integrating upselling into your strategy can significantly enhance your guest experience. To ensure your efforts pay off, align your strategy with these three key pillars:

1. Timing: Suggest upselling options at the right stage of the emotional guest journey.
2. Value: Offer upgrades and add-on services that truly elevate the guest experience based on the needs and expectations of your target segments.
3. Convenience: Make the process of purchasing upgrades and services convenient so your guests feel empowered with choice.

With these pillars working in sync, you can ensure continuous ancillary revenue growth while consistently delighting your guests and facilitating loyalty.

Erik Tengen

About Erik Tengen

Erik Tengen is the CEO and Co-Founder of Oaky, a leading hotel upselling software designed to help hoteliers maximise revenue through personalized guest experiences. With a strong passion for public speaking, hotel technology, and entrepreneurship, Erik inspires others to embrace their visions and dare to give them a try. Known for his approachable style and deep industry knowledge, Erik is dedicated to pushing the boundaries of what’s possible in hotel upselling.

The views and opinions expressed in this newsletter are solely those of Fernando Vives and collaborators and do not necessarily reflect those of any company or organization he works for or is affiliated with, nor those of their partners or suppliers. The data sources used are mostly public, ChatGPT may have been used for research assistance, copywriting or editing. If you find any discrepancies or errors in the data or insights shared, please reach out via LinkedIn for necessary adjustments. Thank you for following and being a part of this community.