Hotel Revenue

Upselling – Novel method to Increase Revenues

Priyanka Soni
  2021-11-26  5 min

Selling is simple but upselling is a challenge in and of itself!

Many businesses invest money in marketing to attract new customers and increase sales but often overlook the most crucial and profitable development opportunity of all: retaining existing customers. We can all agree that acquiring a new client is ten times more expensive than maintaining the ones we already have, and upselling is the most effective way to raise revenue from them. Let's take a look at what Upselling is and why it's important in the hotel industry:

What is Upselling?

Upselling is a sales strategy that enables customers to upgrade their purchases by selecting more premium services rather than the ones they already have. Upselling's major goal is to boost sales while also giving consumers optimal services that satisfy their wants and expectations, if not go above and beyond. Upselling not only helps you raise sales or money, but it also helps you create good relationships with your customers.

Upselling's main benefits include:

  1. Improving the customer's experience.

  2. Increasing profits

  3. Improving the service's functioning

  4. Extends the customer's lifetime value

Why Upselling is Important in Hotel Industry?

  • With the increasing competition day by day and with every new hotel opening every week, getting a new customer is not an easy task. It is also an important task to keep the ones we have attached to us, and upselling is one such powerful and persuasive tool that not only improves Guests' experience and relationships but also helps us increase our sales revenue.

  • The hotel business does not make a fool of its visitors by upselling; instead, it demonstrates that we genuinely care about them and are looking out for their best interests. Every guest visits a hotel to experience the comfort and is unaware of the services available. However, by upselling our services, we can better understand the needs of our customers and their expectations, and suggest which room would be best for their stay.

  • Upselling keeps our visitors aware and familiar with the diversity of services provided at our hotel, which are occasionally overlooked by guests due to a lack of understanding. For example, if someone is staying in a hotel suite and the hotel is offering them a flat 50% discount on Spa services, they will obviously be unaware of such offers and will miss out on these luxurious experiences. However, with upselling, your guests will be fully informed and will not hesitate to upgrade their services and opt for the recommended services because of the best prices and irresistible discounts.

  • Such experiences, as well as delivering honest suggestions that prioritize our guests' comfort above money, aid in developing far deeper connections with our guests, earning more customer loyalty, and eventually increasing revenues in significant amounts.

How to use upselling in Hotel Industry?

  1. Good Perception

    It's an art to upsell. Staff must have strong coordination and the ability to read consumers in order to perfect it. They should know how to read a guests mind and what signs to look for in visitors. These aid them in determining what to upsell to them and how to do so. 

  2. Educate Customers

    Whatever deals and discounts on services you provide, visitors should be familiar with them, and it should be a simple task for them to discover and understand how this offer is useful to them. So educate them about all of the offerings and provide them with comprehensive brochures so they may come up with their own logic.

  3. Use Comparison

    Comparing two distinct goods and creating pros and cons list is always the simplest approach to persuade someone that one is the best service for them and why the other isn't leading to an ideal image in front of them.

  4. Irresistible discounts

    If you're proposing an upsell to a guest, make sure you're also offering some discounts so that, although you're making a legitimate suggestion, it seems to be a fair bargain and that your customers are benefiting from it. It makes a lot stronger impact when it's presented in numbers.

  5. Keep the prices reasonable

    Make sure that when you're upselling a service, you're not keeping your pricing too high so that it appears to visitors that we're simply selling them to enhance our profits. Always make sure that the upselling service price is acceptable and in line with current market values.

  6. Product Relevancy

    Any upselling should be tailored to the customer's requirements. For this to happen, a company must have a solid grasp of what its consumers demand and what they can provide to meet that need.

Upselling programs and tools that are well-managed may benefit both the hotel and the customers if they are implemented correctly. To be competitive in the business, you must adapt to all new industry developments, maintain your services up to date, and continue to educate your consumers about new services and upgrade them through upselling. There's a fine line between providing a positive guest experience and making excellent sales, and getting it right may lead to a lot of success with your upselling programmes and a significant increase in hotel revenue. So, review your upselling tactics, make any necessary changes, and prepare to count your hotel's ever-increasing income. Also, if you need additional help with upselling tools, Swyftin offers a free Demo session where you may learn a lot more about upselling services.

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