Upselling is not something new, for many years it has been a technique implemented mostly by the hotel sector, but today it is a technique applicable to all those who are part of the tourism sector, holiday homes, aparthotels, campsites, etc.
But many do not know what it is about or have not fully understood it until now. It is very simple, upselling is the fastest way to produce extra income based on an initial purchase. How does this translate into the field of tourist accommodation? Easy, let’s remember that in most hotels there was always a piece of paper (a rudimentary way) to indicate how much a better room should be offered to each guest who registered, it is applied to a sale already produced or to a sale that is going to occur. . That translates into the hospitality sector in managing to sell something better than what was initially reserved: extras, a better regime, a better rate or package, any additional that may interest the guest and that may be advantageous and attractive.
There are many benefits that upselling produces, both for the guest and for the host, it depends a lot on the perspective in which we see it. In the case of the guest, this has the possibility of improving their stay, and for the host it translates into three main points that we will analyze later, obviously an increase in their income, improve customer satisfaction and generate loyalty.
The Travel Hotel technology news platform has designed the great advantages of upselling and how we should handle it to obtain better results, here we reproduce some of them.
How to increase revenue, specifically the value of your reservation.
* If the upselling succeeds in transforming the reservation into a better room, or rate, it would be achieving an increase in the average price of the hotel.
* If the upselling consists of selling something extra or special, the increase in income would be a better one and will be measured on the total value of the reservation, and not on the average price of the room. Accounting classification aside, the important thing is that it always represents an increase in gross income.
How to know the true profit of the upselling?
In order to obtain a certain amount, it is necessary to know in detail the expenses incurred, previously this could be done manually or rudimentary, today, there are many platforms that include or provide this service. Therefore, special attention must be paid to the platform that is used.
* In the cases in which one of the innovative platforms in this field is chosen, the cost ratio should be analyzed, since most of these have a cost of 25%
* In many cases, the sales channels themselves promote upselling on their base product, the cost of the room.
At this point, there are two scenarios, if the sales channel is through an OTA or if it is through direct sales. In case of being through OTA the way by which the upselling will be offered, the commission costs are usually high, and in these cases many times the accommodations do not even know about the upselling, beyond receiving a modification in the reservation.
The ideal is upselling through direct sales, why? Simple, it not only directly increases your income, but also increases your value proposition and differentiates you from the middleman. A good online direct sales service, including upselling, will be seen as good service from the hotel. This does not happen in the case of intermediaries.
How to improve the experience of your guests?
Offering your clients a more pleasant and complete stay will generate loyalty, upselling should not focus only from the aspect of the monetary increase, but also involves other approaches that in the end were positive for the host. The added values are a way to generate upselling, if we offer discounts or extensions of free services, certainly we are not perceiving an increase in our income at the moment, but if we are generating comfort, loyalty and pleasure to the guest, which will translate into a customer fixed in the future.
What must the upselling system comply with in direct sales
When having a property management platform, you must have:
- A minimum cost, the ideal is that it is paid by base reservation.
- Simple for the customer, direct, attractive information and just one click away
- Upselling must be offered at the right time, which is the time of the guest’s arrival. It is the key moment when the guest can think about spending a little more money.
- It will have to solve the operation for you, starting by modifying the reservation and sending it to him. The operation includes many other aspects in which you must involve your hotel.
- The upselling platform you use should automate as much as possible the processes of detection of possibilities, calculation of the upselling price, communication with the client to offer the upselling, modification of the reservation if the upselling is accepted, etc.
In conclusion, implement an upselling system that has the characteristics described above, it is not a waste of time, on the contrary, it is to gain time, money and trust for the guest, if you still do not have one, study the early possibility of having it, we assure you not you will regret. If you want to know a little more about this, do not hesitate to visit our blog, click here and you will see more tips.
