Benefits of Upselling in Hotels

With the on-and-off lockdowns, the hotel industry finds it challenging to rebuild the business, and it’s no secret that the recovery period will be difficult for hoteliers. But with the right tools and well-thought-out strategies, hoteliers will get through this. One of the most effective ways to increase revenue is upselling in hotels. 

In the hotel industry, upselling is a technique that aims to sell upgrades on bookings or reservations, by encouraging guests to opt for superior services at slightly higher rates. Upselling is one of the best ways for a hotel to increase profits, and it shouldn’t be confused with cross-selling, another technique that has the scope to boost revenues, but selling complementary products and services.

However, upselling in hotels is a bit of a touch and go to generate more revenue especially if you start off on the wrong track. While its main purpose is to increase revenue, you should not think of it as your ultimate goal as it could lead you to more drawbacks rather than benefits. 

In this article, we will help you understand everything to know about upselling in hotels, especially on how you can upsell successfully to your guests.

Benefits of Upselling

Here are the main benefits of upselling in hotels that will convince you to do it right away.

  1. Boosts revenue, less operational expenses
  2. Helps you understand your guests better
  3. Increases guest’s satisfaction

What’s inside this blog?


Understanding Upselling in Hotels

Upselling in hotels is a technique that aims to offer upgrades on products or services that would enhance your guests’ experience and increase their satisfaction. 

It is a great way to increase hotel revenues especially if you do it the right way. As mentioned above, focusing on the idea of generating revenue through upselling could lead you to the wrong track, trying to manipulate and squeeze everything out of your guests. 


Benefits of Upselling

Upselling is a great way for you to showcase your services and product range, offering more options to your customers, who might not be aware of upgrading options. And, in the end, effective upselling can give you extra revenue streams.

1. Boosts revenue | Less operating expenses

Some guests are open to buying a more expensive product than they initially planned as long as it represents good value, it is adding convenience to their stay. The beauty of upselling in hotels is it allows you to boost your revenue without even having to spend huge amounts of money on marketing activities and other strategies. With upselling, there is a higher profitability through increased guest spending.

2. Helps you understand your guests better

Upselling pushes you to listen to your guests’ voices, from their wants to their needs. With this strategy, you would be able to identify what your guests’ preferences are through the offers you are pitching to them. And when you have that information, you would know the right offers to pitch them the next time they stay at your hotel. Understanding your guests improves their experience and increases the possibility of customer retention. 

3. Increases guest’s satisfaction

With upselling, you are not just selling to gain profits but to enhance your guests’ experience at your hotel. Some guests might not be aware of upgrading options at your hotel that they did not think they needed in the first place, but they actually do. Through this strategy, you can attend to your guests’ needs even if they are not asking for it. Every hotelier’s main goal should not just be about generating profits but satisfying guests. 


How Hotels Can Upsell to Their Guests

To upsell successfully, the first thing hoteliers must remember is that any action you take should benefit the guest first. If you increase guest satisfaction, positive reviews will come in and you will be able to build good relationships with your guests. Thus, more revenue will automatically come after that.

When it comes to upselling in hotels, timing, tone, and knowledge about your guests are everything. Here are ways how you can upsell to your guests effectively:

1. Identify the target audience

Not all guests fit for an upsell so don’t try to aggressively push selling additional products and services on someone who doesn’t really need them. That is why it is important to identify the right target audience for upselling. This could be business travelers, vacationers, family, or honeymooners. When you target the right audience, you can upsell the right products and services to them.

  • Couples: Upsell them with anything that improves their stays such as discounted dinner in the restaurants, bigger rooms with panoramic views, spas, etc. 
  • Family: Upsell additional rooms so they do not need to order extra beds. Offer rooms with connecting doors, late check outs, etc.
  • Business travelers: These travelers are less price sensitive since the company pays their stays. You can offer them food delivery to their rooms, especially during this pandemic, late check outs, or rooms with breakfast.

You can also check on the guests who have spent on additional purchases in the past as they are a great place to start upselling with.

2. Determine the right time

Timing matters when it comes to upselling in hotels. Offering a service or a product at the time when your guests are in need of it could definitely boost your business. You can do this by sending emails to them during booking, after arrival at the hotel or once they check-out. Upselling helps you to gain more revenue as well as utilize your additional hotel services.


Hotel services and products to upsell

What to upsell in hotels

Whether you’re a small or big hotel, there will be a lot of options to offer guests. Here are some of the things you must consider upselling:

  1. Room upgrades and rooms with special features (panoramic views, terraces, bath tub, saunas)
  2. Additional rooms at discount rates especially for family travelers
  3. Late check-out
  4. Prolonged stays at discounted rates
  5. Discounted rates for food and beverages in the hotel’s restaurant
  6. Spa services
  7. Transportation services

Upselling not only gives satisfaction to your guests but also helps you increase revenues. If you want to upsell more effectively, a Revenue Management Software (RMS) like ZEN eManager Express helps you understand your guests through the relevant data it provides like the booking patterns of the travelers and will give you data about the guests that are more likely to upgrade their bookings.

ZEN eManager Express features AI-backed intelligent pricing, real-time automated updates, and in-depth analytics for performance review. Not only does it give you the right prices for the right season, it also helps you monitor your competitors’ pricing, improves your listings and maximizes revenues.

Save time and increase your revenue. Book your free appointment now at www.zen-hs.com/book-a-meeting/.


Frequently Asked Questions About Upselling in Hotels

Q: What does upselling means in the hotel industry?
In the hotel industry, upselling is a technique that aims to sell upgrades on bookings or reservations, by encouraging guests to opt for superior services at slightly higher rates. Upselling is one of the best ways for a hotel to increase profits, and it shouldn’t be confused with cross-selling, another technique that has the scope to boost revenues, but selling complementary products and services.

Q: What are the benefits of upselling?
It helps you to understand your guests. Upselling is also a great way for you to showcase your services and product range, offering more options to your customers, who might not be aware of upgrading options. And, in the end, effective upselling can give you extra revenue streams

Q: What can I upsell in my hotels?
It depends on what products you have in your hotels. You can always upsell bigger rooms with extra amenities, i.e. balconies, terraces, panoramic views. Additional products include discounted dinner or food/beverages, spas, saunas, late check outs, discounted prolonged stays, etc

Q: When should I upsell the products in my hotels?
You should start as soon as the guests complete their bookings. The guest experience starts not when they come to your hotel, but when they finalize their bookings. You can always send them emails offering them additional products. But remember, do not offer everything at once. Offer them the products according to the cycle of their stays, as they are immersed in the whole experience of your hotel.

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