Dear WuBookers, in this article we’ll discuss upselling and cross-selling, two concepts that property owners cannot afford to ignore. Let’s explore what they entail, the benefits they offer, and how to put these essential sales strategies into practice.

Upselling and Cross-Selling: Definitions and Differences

Upselling and cross-selling are sales strategies applicable to all industries with the goal of increasing revenue. Upselling involves offering customers a more expensive version of the product or service they’re interested in. Cross-selling, on the other hand, involves selling other supplementary products or services not included in the chosen package. Let’s look at a practical example.

If a guest has booked a double room, we could suggest a junior suite or another higher-tier room, which involves a higher cost: in this case, we’re upselling. Alternatively (or in addition), we could also suggest extra services, such as meals, spa treatments, or organized experiences, thereby engaging in cross-selling.

What are the benefits of upselling and cross-selling for properties and accommodations?

Upselling and cross-selling offer several advantages to hotels, and not just in terms of revenue.

Upselling and cross-selling increase revenue

Of course, the most important reason you should develop a cross-selling and upselling strategy is to increase revenue for your property. You can take advantage of all the services at your disposal, including options that few guests typically request, and thus maximize your earnings. Remember that an existing customer costs less to retain than a new one to acquire, and every reservation can be leveraged beyond its initial value.

Enhance the guest experience

Using these strategies doesn’t mean trying to sell just any service, it means adding more value to the guest experience. When the offer is tailored to the guest, they’re more likely to accept it because they feel understood and pampered. And we know just how much their satisfaction matters, especially when it comes to building customer loyalty over time. In this regard, upselling and cross-selling actually provide insights into guests’ preferences and expectations, which are also important for future stays.

Increase positive reviews and word-of-mouth

A satisfied guest is more likely to leave a positive review: an excellent calling card for future travelers and for the property’s reputation. Not only that, but a happy guest is also more likely to recommend the hotel to others, thereby boosting the property’s visibility and, indirectly, reservations.

Make the Most of the Property’s Amenities

An unsold room, an empty pool, or a nearly deserted dining room aren’t just synonymous with lost revenue, they’re also guaranteed sources of expense. Even unused spaces, in fact, require management, maintenance, cleaning, utilities, and so on. It’s better, then, to try to make the most of them to turn inevitable fixed costs into revenue opportunities.

What extra offerings can you provide to your guests?

There are many options, and much depends on the property’s features and amenities.

Classic examples of upselling and cross-selling include:

• a premium version of the accommodation or an increased quantity of services already included (for example, an extra night or board of a higher tier), at a competitive price, this is one of the most frequently used techniques: a compelling offer because it’s based on something the guest has already chosen (and purchased);
• meals are perfect for cross-selling. If your customers have booked only the stay, you can suggest adding breakfast. If breakfast is included, offer a dinner package at a discounted price. Finally, if the rate already paid includes breakfast, customers might be interested in half-board;
• additional supplements: from parking to room service, from pool access to guided tours… tailored to the target audience, they’re often a winning strategy;
• extra services like early check-in and late check-out, cleaning and extra supplies, and other small touches that could enhance guests’ comfort.

So far, we’ve only discussed accommodations, but the same logic can also be applied to vacation packages that have already been sold, which can be enhanced with additional experiences or upgrades. But when is the best time to upsell and cross-sell?

Upselling and Cross-Selling for Hotels: When to Do It

There are several moments when you can effectively upsell and cross-sell, and they often go hand in hand.

Before the Stay

The best time to offer an upgrade to the stay or the services provided generally coincides with the reservation phase. This is where you can show your customers extras that will make their stay even more enjoyable: an upgrade to the room type they’ve chosen, for example, or breakfast. This is a critical phase where it’s important to showcase the variety of services available to convince the user to complete the reservation and, perhaps, purchase a few additional options right away.

During online or in-person check-in

Another ideal time is during check-in. Through cross-selling, you can offer perks such as access to the sauna or spa, if available. Or perhaps a massage, local activities, meals not included in the rate, late check-out, or luggage storage. Online check-in allows guests to take their time evaluating the available options and add extra services on their own, something they might not feel like doing upon arrival at the property while waiting for their room keys. On the other hand, in-person check-in creates direct human contact and could provide an opportunity to get to know travelers better, allowing you to better target them with cross-selling and upselling offers.

During the Stay

The guest has arrived at the property and their vacation begins: is that the end of it? No, not at all. You can still work to increase revenue during their stay. There’s no shortage of opportunities, whether through a physical front desk or automated messages. Even the Wi-Fi login page can be a strategic moment to showcase additional products and services. These don’t necessarily have to be major extras: even just an extra drink or a special menu can boost revenue from the reservation.

Techniques and Strategies to Put into Practice

Cross-selling and upselling are valuable opportunities whether applied to new or repeat customers. Here are some techniques that hotels and properties can adopt.

Use the Information You Have

To get the most out of sales, it’s essential to carefully consider what to offer based on the information the guest has already shared during the reservation process or during their stay. A good way to gauge a guest’s interest is to look at special occasions: if the guest has specified that they’re traveling for an anniversary or to celebrate a special day, they’re likely to be willing to spend a bit more on a higher-end board.

The key, as is often the case in hospitality, is personalization. Not all guests respond to the same offers, and it’s very important to find out what they might be most interested in so you can make tailored recommendations.

Leverage the sense of scarcity

If you tell your customers that certain premium services are reserved for a limited number of people, you’ll create a sense of scarcity, which generates a stronger desire to take advantage of that service, even if it’s more expensive than initially anticipated. For example: even if your property has five suites available, at the time of reservation you could mention that only one remains and that upgrading to it will offer a great value.

Sell superior rooms and premium services outside of OTAs

If your hotel is listed on an Online Travel Agency (OTA), you could list only certain room types and services on the platform, offering the full range to customers after they’ve made a reservation, or exclusively on your own website. This way, you’ll be able to cut out the middleman and receive payment for the extras directly.

Don’t present multiple offers at the same time

Timing is essential in cross-selling. You may want to present customers with more products and services, but don’t do it all at once. In fact, multiple offers could confuse or annoy the customer, leading them to make no additional purchases.

Make the Most of All Touchpoints

From your website to in-person interactions at the property, from reservation (online or by phone) to check-in: there are countless touchpoints with guests, and it’s important to make the most of them all, but always in the right measure and in the right way. One of the most influential factors in a sale is how it’s presented. Instead of saying, “The suite costs only 180 euros per night,” you could say, “For just 30 euros more, you could enjoy a spacious suite with a panoramic view”: the substance remains the same, but the presentation changes, and often the result does too.

Showcase your services across all your channels

Many people search for a hotel on online channels, especially social media, before making a reservation. That’s why it’s important to showcase your rooms and services with photos, videos, and descriptions that highlight the quality and features of your property. This not only demonstrates transparency, and thus builds trust with potential guests, but also increases perceived value, thereby encouraging guests to purchase the extra services you offer.

Adopt a PMS to effectively manage your offers

The PMS (Property Management System) is an indispensable tool for managing your property, including when it comes to upselling and cross-selling. Thanks to software like Zak by WuBook, you can freely set up extra services and activities and display them on the guest’s dedicated page. This way, they’ll remain visible both at the time of reservation and during online check-in, and the guest can decide to purchase them at any time.

To understand which add-ons are performing well and improve your upselling and cross-selling strategies, simply consult the Statistics section of the PMS: this is where all sales data, including that for extras, is compiled. This makes it easy to get an overview of customer preferences and adjust your sales strategy accordingly. And for even more detailed analysis, you can access an individual guest’s profile to immediately view their special requests and purchased add-ons.
And for even more detailed analysis, you can go to the reservation page to immediately view special requests and purchased add-ons; while the individual customer’s profile will display their personal details and any additional information entered by the host (including tags such as “business,” “VIP,” and so on).
Finally, precisely because it’s designed to lighten the workload of hoteliers and property managers, Zak lets you create and schedule emails, SMS messages, and WhatsApp messages: this makes it easier to manage pre-stay and post-stay communications, including those aimed at encouraging upgrades and additional purchases.

Upselling and Cross-Selling for Hotels: Final Tips

These are strategies that any property can implement, with a few additional useful tips:

• First, identify the right customers to target with these offers. Where to start? With guests who have requested an upgrade in the past, for example: they’ll certainly be more likely to spend than other guests. Similarly, for cross-selling, you can check your database to see who has shown interest in extras: they’re likely to do so again on future stays;
• create an offer in collaboration with other local businesses to provide a variety of extras that are truly valuable;
• always stay within your price range: a 3-star hotel should base its offer on services that suit that type of clientele; it cannot offer something extremely expensive.
• Use feedback and reviews: social proof is a very effective marketing tool, especially on online channels;
• Create offers tailored to different target audiences: upselling and cross-selling can target people with varying spending power; they don’t have to involve only ultra-luxury services and products. The main criterion remains relevance to the target audience, not profit for you;
• also suggest add-ons in the confirmation email sent before the stay or use it to gather additional information: for example, you could ask guests if they have any preferences or special needs and use this information to enhance their reservation once they arrive at the property.

The benefits of upselling and cross-selling are therefore numerous: now that you know everything about these sales strategies, all you have to do is put them into practice and hone your sales skills.