Most hotels these days use new revenue sources, especially ones that are generated with relatively little effort and cost. Yet many still overlook the opportunity to upsell guests to higher-priced options. With a little planning and effort, properties can easily turn-on the faucet to this revenue stream and reap the benefits immediately.
While upsell opportunities vary greatly according to a hotel’s inventory of accommodations, most all properties have some potential to upsell guests to:
- Special room types, such as junior suites, one bedroom suites, suites with special features such as whirlpool baths.
- Preferred views and resort locations.
- Special “exclusive” floors such concierge or executive level floors.
- Packages that include additional amenities, services, or activities.
There are generally two opportunities for upselling, with the most obvious being the chance to upsell in advance during reservations inquires. Increasingly these days it seems the best opportunity to upsell occurs during the registration because:
- Guests may not be aware of upgraded options, especially when the reservation was made by third party such as a travel agent, administrative assistant, or function planner.
- Voice reservations agents may have failed to convey the value of the upgraded options, or worse yet, failed to mention them at all.
- The guest’s needs might change while en route. Business travelers, for example, might have pop-up meetings or projects to work on, requiring additional workspace in their room.
Strategies and Tactics for Upselling
Whether upselling over the telephone or at registration, here are some strategies that your staff can use to optimize profits from this revenue stream:
When Upselling Over The Telephone:
1. Always offer a menu of options.
Whether starting from the top and working down, or using a bottom-up approach, the key is to always give guests a menu to choose from. If you don’t mention these options, they effectively don’t exist for the guest.
2. Adjust your upsell method according to clues provided.
When guests indicate price sensitivity by saying “what’s your cheapest rate?” use a “bottom-up” approach by mentioning the lower-rated option first, then referencing only the incremental difference for the next category such as “For only $25 more you will receive…” When callers convey a urgency and no price sensitivity, such as by saying “Hi, I want to make a reservation…,” use a top-down approach to mention the higher-rated categories first. With this method you can drop-down to the lower categories if necessary; just be sure to reinforce that even the lower-rated accommodations are still a good value.
3. Demonstrate the value received.
Be as specific as possible. Rather than saying “Deluxe rooms have a view,” say “In this room you can look out your window and see…” Rather than saying “The concierge floor has a lounge,” say “As a guest on this floor you’ll have 24-hour access to our executive lounge, which includes…” Rather than saying “This is a 600 square foot suite with a fully equipped kitchen,” say “Since you’re traveling with your family, you’ll love having all the extra space this suite provides. And the kitchen will be nice if you want to make breakfast or bring back take-out one evening.”
4. Avoid making lower-rated options sound undesirable.
This is especially important when using a top-down approach, or when guests decline the upsell offer. Be sure to reinforce the positives of the lower-tiered rooms with statements such as “With this option you will still receive all the same amenities and services…” or “Although this room is a little smaller, it still has…”
5. Use personal recommendations that tie into their stated needs.
“Since you’re traveling on business, I’d definitely recommend the executive level rooms…” “Since you are traveling with a family, our suites would be just perfect for you….”
When Upselling At Registration
1. Reconfirm the pre-reserved accommodation; reassure the guest that they already have a nice room.
Avoid making the options they’ve already selected sound undesirable and instead say “Mr. Johnson, we have you confirmed in one of our ______ rooms, which I’m sure you will find quite comfortable…
2.Probe to find out if the guest is aware of available upgrades with statements such as:
“Did your (travel agent or assistant) have a chance to tell you about our ____ rooms?” or “May I ask if you are familiar with our suites?”
3. Present the availability of upgrades as a unique opportunity by saying:
“We’ve had some of our ____ rooms open up this evening…” or “We’re offering a special rate to help familiarize our (repeat or first time) guests with our business suites…”
4. Utilize incremental sales techniques
Especially since in their minds the original room rate has already been paid. “For only $25 more, I can offer you one of our _____ rooms.”
5. Mention higher rates as a reference point to position lower rates as being a good value:
These rooms usually run _____, but because of (special circumstance) I can offer you a special rate of _____.”
If you know some other tactics please let us know in the comments bellow.