Hotel Upselling and Cross-Selling: What Nobody Tells You

In the hospitality industry, Upselling and Cross Selling are two sales techniques used to increase revenue and enhance the guest experience. However, these techniques are often misunderstood and poorly applied, which can lead to conflicts with marketing, guest loyalty, online reputation and the guest experience. In this article, we will take an in-depth look at what you need to know about Upselling and Cross Selling in hotels, and how to apply these techniques effectively.

What is Upselling?

Upselling is a sales technique that involves offering the guest a product or service of greater value than the one they originally selected. For example, if a guest books a standard room, the hotel may offer them a superior room for an additional fee. The aim of Upselling is to increase hotel revenue and enhance the guest experience by offering a superior option. However, Upselling can be misunderstood and poorly applied. If it is offered too aggressively, it may appear that the hotel is trying to trick the guest into spending more money. In addition, if the guest feels pressured to buy something they do not want, they may have a negative experience and leave a poor online review. To apply Upselling effectively, it is important to bear the following in mind:

• Offer relevant options: Upselling must be relevant to the guest and aligned with their needs and preferences. For example, if a guest is looking for a romantic getaway, offering a room with sea views may be a relevant and appealing option.
• Be transparent: It is important to be transparent about pricing and the available options. The guest must know exactly what they are buying and how much it will cost. If the guest feels they are being misled, they are likely to have a negative experience.
• Offer value: Upselling must provide real value to the guest. If the guest feels they are paying more for something that is not worthwhile, they are likely to have a negative experience. For example, if the hotel offers a superior room with an uninspiring view, the guest may feel they have not received real value for their money.

What is Cross Selling?

Cross Selling is a sales technique that involves offering the guest additional products or services that complement their original purchase. For example, if a guest books a room, the hotel may offer them a spa package or dinner at the hotel restaurant. The aim of Cross Selling is to increase hotel revenue and enhance the guest experience by offering additional options that complement their stay. Like Upselling, Cross Selling can be misunderstood and poorly applied. If it is offered too aggressively, it may appear that the hotel is trying to sell the guest something they do not want. In addition, if the guest feels pressured to buy something they do not need, they may have a negative experience and leave a poor online review. To apply Cross Selling effectively, it is important to bear the following in mind:

• Offer relevant options: Cross Selling must be relevant to the guest and aligned with their needs and preferences. For example, if a guest is looking for a romantic getaway, offering a spa package may be a relevant and appealing option.
• Be transparent: It is important to be transparent about pricing and the available options. The guest must know exactly what they are buying and how much it will cost. If the guest feels they are being misled, they are likely to have a negative experience.
• Offer value: Cross Selling must provide real value to the guest. If the guest feels they are paying more for something that is not worthwhile, they are likely to have a negative experience. For example, if the hotel offers a spa package that does not include the services the guest is looking for, the guest may feel they have not received real value for their money.

Conflicts with marketing

Upselling and Cross Selling can conflict with the hotel's marketing if they are not applied correctly. If they are offered too aggressively, it may appear that the hotel is trying to trick the guest into spending more money. In addition, if the guest feels pressured to buy something they do not want, they may have a negative experience and leave a poor online review. To avoid conflicts with marketing, it is important to bear the following in mind:

Be consistent

Upselling and Cross Selling must be aligned with the hotel's brand and marketing strategy. If the hotel promotes itself as a destination for romantic getaways, offering a family spa package may be inconsistent and confusing for the guest.

Be subtle

Upselling and Cross Selling should be subtle rather than aggressive. The guest should feel they are being offered an additional option, not pressured to spend more money.

Be transparent

It is important to be transparent about pricing and the available options. The guest must know exactly what they are buying and how much it will cost. If the guest feels they are being misled, they are likely to have a negative experience.

Guest loyalty

Upselling and Cross Selling can be effective tools for building guest loyalty if they are applied correctly. If guests have a positive experience and feel they are being offered relevant and valuable options, they are more likely to return to the hotel in the future. To build guest loyalty, it is important to bear the following in mind:

Offer relevant options

Upselling and Cross Selling must be relevant to the guest and aligned with their needs and preferences. If the guest feels they are being offered something they do not need, they are less likely to return to the hotel in the future.

Offer value

Upselling and Cross Selling must provide real value to the guest. If the guest feels they are paying more for something that is not worthwhile, they are less likely to return to the hotel in the future.

Offer a positive experience

It is important to provide guests with a positive overall experience. If the guest has a negative experience at the hotel, they are less likely to return in the future, regardless of whether they have been offered Upselling or Cross Selling. It is important to ensure that the guest feels welcome and valued throughout their stay at the hotel. So, if you are told that everyone needs to sell more because a certain book making the rounds says that 'everyone has to sell', make sure you apply Upselling and Cross Selling techniques correctly to increase revenue and enhance the guest experience. Remember to be relevant, transparent and offer value to avoid conflicts with marketing and build guest loyalty. In doing so, your hotel can become the best place to stay. If you need it, contact me, and I will be happy to help.