The OnRes Blog

How to Upsell Hotel Services & Unlock The Hidden Revenue?

By: Steve Behrisch , President & CEO

As a hotel owner or manager, you’re always looking for ways to improve your revenue and provide a better guest experience. One strategy that can help you achieve both is to upsell hotel services. 

Upselling is the practice of encouraging guests to purchase additional products or services that complement their original purchase. 

So, whether you’re a small boutique hotel or a large chain, these strategies can help you take your hotel business to the next level. 

Table of Contents

Before that let’s understand,

What are the benefits of upselling in hotels?

Upselling in hotels can provide several benefits for both the hotel and the guests. Some of the key benefits of upselling include:

1. Increased revenue

By encouraging guests to purchase additional products or services, hotels can boost their revenue and improve their bottom line.

2. Improved guest experience

By offering guests additional amenities or services that meet their specific needs and preferences can lead to increased guest satisfaction and loyalty.

3. Enhanced brand reputation

Offering compelling packages and exclusive experiences, hotels can build a strong brand reputation and stand out in the market.

This can help attract new guests and retain existing ones.

4. Competitive advantage

Upselling also provides a competitive advantage by offering guests something that other hotels may not. This can help differentiate your property and make it appealing to potential guests.

How to upsell hotel services?

Hence, one of the significant advantages of upselling is that it enables businesses to boost their profits without investing significant amounts of money into marketing efforts.

How to upsell hotel services?

Hotels can use various strategies to upsell services to their guests.

Here are some effective ways to do so:

1. Offer personalized room upgrades

One of the most effective ways to upsell your hotel services is to offer personalized room upgrades. Guests are often willing to pay extra for an upgraded room that meets their specific needs and preferences. 

For example, you can offer an upgrade to a room with a view, a larger room with a seating area, or a room with a balcony. You can also offer upgraded amenities such as a Jacuzzi or a spa bath.

To make the most of this opportunity,  it’s important for you to identify the needs and preferences of your guests during the booking process. Meaning, if you know that a guest is celebrating a special occasion, you can offer them an upgrade to a suite or a room with a bottle of champagne.

By taking the time to understand their requirements, hotels can effectively provide a memorable stay for their guests.

2. Create compelling packages

Creating compelling packages is another way to value additions.

For example, you can offer a romantic package that includes a bottle of wine, chocolates, and a spa treatment. Or, you can offer a family package that includes tickets to local attractions and a discount on meals.

When creating packages, it’s important to keep in mind the needs and preferences of your target audience. 

Let’s say, your hotel is located near a popular tourist attraction, you can create a package that includes tickets to that attraction.

If your hotel caters to business travelers, you can offer a package that includes access to a business center and complimentary Wi-Fi.

3. Promote exclusive experiences

Exclusive experiences are only for guests who are staying at your hotel.

For example, you can offer a private tour of the city with a local guide or a wine tasting experience at a local vineyard.

To make the most of this upselling opportunity, identify the unique experiences that your hotel can cater to. If your hotel is located near a beach, try offer a private surfing lesson or a sunset cruise. If your hotel is located in a historic district, you can offer a private tour of the historic sites.

It’s all about where you are and what best you can offer to your guests to grab their attention.

4. Leverage your digital channels

To make the most of your digital channels, focus on creating compelling content that showcases your hotel’s unique amenities, services, and experiences. 

This can include visually appealing videos showcasing your spa services or blog posts that highlight the best local attractions. By offering guests a glimpse into what makes your hotel stand out, you can increase the chances of them being interested in additional services.

Social media can be a powerful tool to promote exclusive offers and packages. Create eye-catching posts that highlight the benefits of upgrading or booking a package deal, and provide a clear call to action to entice guests to take advantage of the offer.

Tip: Read the best social media marketing strategies for hotels. 

5. Train your staff

Finally, to effectively upsell your hotel services, you need to train your staff. Your staff should be knowledgeable about your hotel’s amenities, services, and experiences so that they can recommend them to guests. 

They should also be trained on effective upselling techniques, such as how to identify upselling opportunities and how to present upsell options in a way that is persuasive but not pushy.

In addition to training, you should also incentivize them to upsell. For example, offer them a commission or a bonus for every upsell they make.

FAQs

Answering frequently asked questions about upselling in hotels.

How can technology aid in upselling hotel services?

A comprehensive hotel software like that of OnRes can help you keep track of guest preferences and upsell your services and products at the right time.

How can hotels train their staff in upselling techniques?

Conduct regular training sessions to teach your staff about the hotel’s services and how to identify upselling opportunities. Role-playing scenarios and highlighting successful examples can also be effective.

What role does timing play in successful upselling?

Timing is crucial in upselling. The best moments are when guests are making a booking, checking in, or experiencing the service.

Understanding the guest’s needs at these points can lead to more effective upselling.

How should hotels measure the success of their upselling efforts?

Success can be measured by tracking metrics like increased revenue per available room (RevPAR), upsell conversion rates, and overall guest satisfaction scores post-upsell.

What are the pitfalls to avoid in upselling hotel services?

Avoid being too aggressive in sales tactics, upselling irrelevant services, and neglecting the guest’s needs or preferences.

Upselling should enhance the guest’s experience, not detract from it.

Conclusion 

By implementing effective upselling strategies hotels can encourage their guests to spend more and enjoy more of what the hotel has to offer.

However, it’s important to remember that upselling should always be done in a subtle and non-intrusive way to avoid turning guests off. 

By focusing on providing value and enhancing the guest experience, hotels can create long-lasting relationships with their customers and create a positive reputation.

In the end, the key to successful upselling is to understand the needs and preferences of your guests. With the right approach and selling at the right time, hotels can turn upselling into a win-win situation for both. 

Steve Behrisch, President & CEO

Steve joined the OnRes Team as an account rep in 2008 and was promoted to VP of Operations a short time later. In 2011, Steve agreed to purchase OnRes and became President and CEO, and has been steering the ship since; achieving significant milestones such as rebuilding the reservation software from the bottom up, forging new partnerships, doubling the revenue, and much more…
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