What is Upselling?

Upselling is a sales technique where a customer is encouraged to purchase a more expensive or additional product or service than the one they initially intended to purchase.

Some possible solutions to increase upselling in your hotel >

Are there any best practices that I can use to manage this problem?

Can you suggest some projects to address this problem? A possible road map?

Are there any hotel brands that have been able manage this problem? What do they do?

Can you suggest a questionnaire I can use to find out from guests if my upselling program is working? (Guest Intent)

Sample Training Program On Upselling In Hotels & Resorts

Some Examples Of Potential Selling Points For Different Room Categories In A Hotel or Resort

Types Of Incentive Programs For Upselling In Hotels & Resorts

Questions A Hotel Owner Can Ask To Determine Whether An Upselling Program Would Be Beneficial

Some possible solutions to increase upselling in your hotel:

• Train and incentivize your staff: Upselling requires persuasive and effective communication skills. Train your staff to identify opportunities for upselling and provide them with techniques to do it in a non-pushy and helpful way. Offer incentives for employees who are successful in upselling, such as bonuses or recognition programs.

• Package and promote upgrades: Develop packages that offer upgrades to rooms or additional services and promote them on your hotel's website and social media channels. Offer packages that appeal to different types of guests, such as families, couples, or business travelers.

• Provide excellent service and personalization: Guests are more likely to make additional purchases or upgrades if they feel that their needs are being met and they are receiving excellent service. Train your staff to offer personalized experiences to guests and go above and beyond to exceed their expectations.

• Use technology to upsell: Utilize technology to upsell, such as automated emails before check-in or in-room tablets that offer personalized upgrade options. Implement a customer relationship management (CRM) system to track guest preferences and offer targeted upsell options.

• Collaborate with other businesses: Partner with other businesses in the area, such as restaurants or attractions, to offer joint packages and promotions that encourage guests to upgrade their experiences.

Implementing one or a combination of these solutions can help increase upselling in your hotel, which can lead to increased revenue and customer satisfaction.

Are there any best practices that I can use to manage this problem?

Yes, there are several best practices that can be used to manage the problem of no upselling in your hotel. Here are some of them:

• Develop a clear strategy: Develop a clear strategy for upselling that is aligned with your hotel's overall business goals. This strategy should include identifying the most profitable upsell opportunities, developing packages and promotions, and setting goals and targets for upselling.

• Train and empower your staff: Upselling requires skilled and motivated staff. Train your staff to identify opportunities for upselling, and provide them with the tools and resources they need to be successful. Empower them to make decisions and offer personalized recommendations to guests.

• Create a positive guest experience: Guests are more likely to make additional purchases or upgrades if they have a positive experience at your hotel. Ensure that your hotel is clean, well-maintained, and offers excellent service. Make sure that your staff is responsive to guest needs and that they are trained to provide personalized experiences.

• Utilize technology: Use technology to identify upsell opportunities and to offer targeted promotions to guests. Implement a CRM system that tracks guest preferences and behavior, and use this information to offer personalized upsell options.

• Monitor and measure success: Monitor the success of your upselling strategy and measure progress against goals and targets. Use this information to make adjustments and improvements to your strategy over time.

  By implementing these best practices, you can manage the problem of no upselling in your hotel and increase revenue, customer satisfaction, and employee engagement.

Can you suggest some projects to address this problem? A possible road map?

Strategy: Implement an Upselling Program to Increase Revenue and Guest Satisfaction

• Define your goals: Set clear and measurable goals for your upselling program, such as increasing revenue, increasing the average guest spend, and improving guest satisfaction ratings.

• Conduct a market analysis: Analyze the market and identify the most profitable upsell opportunities for your hotel. Consider what types of services, experiences, or packages are in demand, and how you can position your hotel to capture those opportunities.

• Develop an upselling training program: Develop a comprehensive training program that teaches your staff how to identify upsell opportunities, how to effectively communicate the benefits of upgrades, and how to handle objections from guests.

• Create a list of upsell opportunities: Create a list of upsell opportunities for each touchpoint in the guest journey, such as during the reservation process, check-in, and in-room experience. Consider how you can package and promote upgrades to different types of guests, such as families, couples, or business travelers.

• Utilize technology to support upselling: Implement a customer relationship management (CRM) system to track guest preferences and purchase behavior, and use this information to offer targeted upsell options. Utilize in-room tablets, mobile apps, and email campaigns to offer guests personalized upgrade options.

• Monitor and measure success: Set up a system to monitor and measure the success of your upselling program against your goals. Use data and feedback from guests and staff to make improvements to the program over time.

Projects:

• Develop and deliver an upselling training program for staff

• Create a list of upsell opportunities for each touchpoint in the guest journey

• Implement a CRM system to track guest preferences and behavior

• Use technology to offer personalized upsell options

• Monitor and measure the success of the upselling program

Roadmap:

• Month 1-2:

  • Define goals and conduct a market analysis

  • Develop an upselling training program

  • Train staff on identifying upsell opportunities and effective communication techniques

• Month 3-4:

  • Create a list of upsell opportunities for each touchpoint in the guest journey

  • Develop upsell packages and promotions for different types of guests

  • Implement a CRM system to track guest preferences and behavior

• Month 5-6:

  • Utilize in-room tablets, mobile apps, and email campaigns to offer personalized upgrade options

  • Monitor and measure the success of the upselling program

  • Gather feedback from guests and staff and make improvements to the program as needed

  By implementing this strategy, with these projects and roadmap, you can establish an effective upselling program that can help increase revenue and guest satisfaction at your hotel.

Are there any hotel brands that have been able manage this problem? What do they do?

• Marriott International:

  Marriott has implemented an upselling program that utilizes technology to identify and offer targeted upsell options to guests. They use data from their CRM system to offer personalized recommendations for room upgrades, food and beverage packages, and other services. Marriott has also trained their front-line staff to identify upsell opportunities and offer personalized recommendations to guests.

• Hilton Worldwide:

  Hilton has developed an "upsell academy" to train its staff on upselling techniques and to incentivize them to sell more products and services. They have also implemented a program called "eMenu," which allows guests to browse and purchase additional amenities and services through a tablet in their hotel room.

• Four Seasons Hotels and Resorts:

  Four Seasons has implemented a program called "Enhance Your Stay," which offers guests a variety of add-on services and experiences, such as spa treatments, personalized fitness programs, and exclusive dining experiences. They also use their CRM system to offer targeted promotions to guests and to personalize the guest experience.

• AccorHotels:

  AccorHotels has implemented a program called "Upsell Marketplace," which allows guests to view and purchase additional services and experiences through a mobile app. They have also trained their staff to identify upsell opportunities and to offer personalized recommendations to guests.

Can you suggest a questionnaire I can use to find out from guests if my upselling program is working? (Guest Intent)

Certainly! Here is a sample questionnaire that you can use to gather information from a guest:

• Have you ever been offered an upgrade to your room or an additional service during your stay at this hotel?

  • Yes

  • No

• If yes, did you accept the offer?

  • Yes

  • No

  • N/A (if respondent answered no to question 1)

• If no, why not? (select all that apply)

  • The offer was not relevant to my needs

  • The offer was too expensive

  • I did not understand the offer

  • The staff member who made the offer was not persuasive

  • Other (please specify)

• How likely are you to purchase an upgrade or additional service during your stay at this hotel?

  • Very likely

  • Somewhat likely

  • Not very likely

  • Not at all likely

• If you are not likely to purchase an upgrade or additional service, why not? (select all that apply)

  • I am satisfied with my current room and services

  • I do not see the value in the upgrade or additional service

  • I do not have the budget for the upgrade or additional service

  • Other (please specify)

• How would you rate the quality of service at this hotel?

  • Excellent

  • Good

  • Fair

  • Poor

• How would you rate the value for money at this hotel?

  • Excellent

  • Good

  • Fair

  • Poor

• Have you stayed at this hotel before?

  • Yes

  • No

• If yes, have you been offered an upgrade or additional service during a previous stay?

  • Yes

  • No

  • N/A (if respondent answered no to question 8)

• If yes, did you accept the offer?

  • Yes

  • No

  By analyzing the responses to this questionnaire, you can identify gaps in the hotel's upselling program.

Sample Training Program On Upselling In Hotels & Resorts

 I. Introduction

• Overview of the problem of no upselling in the hotel

• Explanation of the importance of upselling for the hotel's revenue and guest satisfaction

• Objectives of the training program

II. Identifying Upsell Opportunities

• Understanding guest needs and preferences

• Identifying opportunities for upselling during the check-in process, in-room visits, and other guest interactions

• Using communication techniques to present upsell offers effectively

III. Effective Upsell Offerings

• Personalizing the upsell offer based on guest preferences

• Matching the upsell offer with the guest's needs and interests

• Ensuring the upsell offer is perceived as valuable by the guest

IV. Overcoming Objections

• Identifying potential objections to upselling

• Addressing objections with effective communication and persuasion techniques

• Turning objections into opportunities for upselling

V. Handling Rejection

• Dealing with guests who reject the upsell offer

• Understanding the reasons for rejection

• Offering alternative solutions or value-adds to maintain guest satisfaction

VI. Follow-Up

• Ensuring guest satisfaction after an upsell offer has been accepted

• Measuring the success of the upselling program

• Identifying areas for improvement and ongoing training

VII. Conclusion

• Recap of the importance of upselling and the key takeaways from the training program

• Encouragement to apply the skills and techniques learned in the training program to improve guest satisfaction and increase revenue

This training program can be delivered in a variety of formats, including classroom training, on-the-job training, e-learning modules, or a combination of these methods. It's important to ensure that the training is interactive and engaging, with opportunities for participants to practice the skills and receive feedback.

Ongoing support and coaching can also be provided to reinforce the skills and ensure the upselling program is effective in the long term.

Some Examples Of Potential Selling Points For Different Room Categories In A Hotel or Resort:

• Standard Rooms

  • Affordable option for budget-conscious travelers

  • Comfortable bedding and basic amenities for a comfortable stay

  • Convenient location within the hotel for easy access to amenities and services

• Deluxe Rooms

  • Spacious and luxurious accommodations for a more indulgent stay

  • High-quality bedding and upscale amenities for added comfort

  • Stunning views or upgraded location within the hotel for a more premium experience

• Suites

  • Ideal for guests seeking additional space, privacy, and comfort

  • Separate living and sleeping areas for added convenience and functionality

  • Premium amenities, such as Jacuzzi tubs or fireplace, for an extra special experience

• Executive Rooms

  • Designed for business travelers with additional workspace and connectivity options

  • Enhanced technology, such as high-speed internet and charging ports, for efficient work and communication

  • Access to exclusive lounge or meeting room facilities for added productivity and privacy

• Family Rooms

  • Ideal for families or groups traveling together with additional bedding options

  • Convenient location within the hotel for easy access to amenities and services

  • Kid-friendly amenities, such as games or toys, for added entertainment and comfort

These selling points can be used in marketing materials, on the hotel's website, or in conversations with guests to highlight the unique benefits of each room category and help guests make an informed decision when booking.

Types Of Incentive Programs For Upselling In Hotels & Resorts

• Commission-based incentives: This program rewards employees with a commission or bonus for each upsell they make. For example, a front desk agent might earn a commission for selling an upgraded room or a server might receive a bonus for selling a high-priced menu item.

• Recognition programs: This type of program rewards employees for reaching upselling targets, but instead of offering monetary incentives, they receive recognition for their achievement. This can include public recognition, certificates, or other rewards that don't have a monetary value.

• Prize-based incentives: In this program, employees are entered into a drawing or raffle when they make an upsell. The prize can be something small, like a gift card or a free meal, or something larger, like a weekend getaway or a spa treatment.

• Team-based incentives: This type of program rewards entire teams or departments for achieving upselling goals. For example, a hotel might offer a pizza party or a group outing for the department that makes the most upsells in a given month.

• Long-term incentives: These incentives are designed to motivate employees to consistently upsell over a longer period of time. For example, a hotel might offer a vacation package or a significant bonus to employees who achieve upselling targets for six months or a year.

  Incentive programs can be a powerful tool for encouraging upselling, but it's important to design them carefully to ensure they align with the hotel's overall goals and values, and that they are motivating to employees.

 Questions A Hotel Owner Can Ask To Determine Whether An Upselling Program Would Be Beneficial

• What percentage of our guests currently upgrade their room type or purchase additional services during their stay?

• Are our front desk staff trained to identify and offer upsell opportunities to guests?

• What types of upgrades or additional services are guests most commonly interested in?

• How would implementing an upselling program impact our guest satisfaction scores and online reviews?

• How much revenue could we reasonably expect to generate from an upselling program?

• What are our competitors doing in terms of upselling, and how successful are their programs?

• Do we have the necessary technology and resources to effectively manage an upselling program?

• Are there any potential downsides to implementing an upselling program, such as negative guest feedback or staff pushback?

  By answering these questions, you can determine whether an upselling program is a worthwhile investment for your property.