Upselling Techniques
Upselling is a valuable technique for increasing a hotel’s
growth and profitability. However, it’s not just a tool for increasing profits,
but also a means of increasing customer satisfaction because you are suggesting
additional products or services that will enhance their stay. Upselling is
particularly effective when you have established trusting relationships with
existing clients. Because these customers know and trust your business
practices and service level, there’s an expectation of quality. These
techniques can be both simple and profitable.
Rooms
Upselling rooms at the front desk relates to room availability,
according to hospitality consulting agency HVS, and begins with a subtle
version of the simple question, “Would you like a better room?” One upselling
technique involves granting front desk staff the autonomy to adjust room rates
for empty premium rooms to secure the sale. For example, a guest who booked a
room for $400 a night might not pay $1,000 for a premium room, but may be
upsold to purchase an empty premium room for $750 — still netting a profit.
Food and Beverage
Some major hoteliers believe the key to a hotel’s financial
success lies in banquets and catering. Thus, upselling techniques should apply
to the hotel’s food and beverage division. For example, instead of merely
handing a standard menu to clients with questions about organizing events and
verbally offering upsells, create customized menus with specialized offerings
and pricing. Offer both “premium” and “deluxe” drink options on beverage
catering menus. Clients may choose premium, perceiving it’s a better value.
Specialized event bars might include a martini bar, vodka bar or mojito bar.
It’s also recommended that clients get the opportunity to “see, smell and
taste” their options. A physical understanding of the goods and services
increases the likelihood of an upsell, instead of mere words on a page.
Event Add-Ons
Clients seeking information about booking events are ideal
candidates for an upsell. Table centerpieces, audio-visual equipment, setup
fees, room rentals and coat check room are all viable upselling opportunities.
Training
The biggest obstacle to upselling in hotels is when sales people
or hotel staff neglect to ask whether customers are interested in upgrades or
additional goods. Training and education can help staff members understand the
value of products, services or solutions offered to guests. Staff members can
be trained to recognize “elite” credit cards, thus identifying more likely candidates
for upsells. These cards have high annual fees and high spending thresholds.
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