Sales methods are several, built on different fields. How many times have you heard about upselling, cross-selling and upgrade? In this article get to know more about “Menaing of upselling, cross-selling & upgrade” in the hospitality industry.
In the hospitality there are departments involved in sales, for example the reception desk has direct contact to guests, whereas meeting & events and reservation departments are daily selling utilities, F&B services and rooms.
How to improve revenue
Revenue generation can always be improved and there are different sales methods. There are some employees good in sales, other might have a lack in this requisite.
Nevertheless, the linchpin is the knowledge.
If you are in charge of revenue, take time to train your employees and inform them on all possible upsells and upgrades available at the property. Sometimes there are even external commissions, for example by selling excursions or by choosing a taxi company. Inform the involved employees and track all additional introits. Partnerships are advisable too.
Upselling
Upselling means to encourage future guests on buying supplementary services.
Room´s upgrades are included in the upsell, but we will talk about it specifically in the next paragraph.
Indeed, additional services are parking facilities, amenities, F&B or wellness services, excursions. There are many depending on the surrounded and internal hotel´s market.
The question is: which is the best way for upselling? There are some tools which are helping the upselling and the tool generate an automatic email after the main sale, offering all different options.
Moreover, employees have the possibility to sell further services during the guest´s stay.
Cross-selling
Another form of sale is the cross-selling: it means the during the main sale the employee is selling supplementary services or items.
For both methods, it is always important to inform guests on all possible additional sales.
Upgrade
The upgrade can be sold as a sort of cross-sale, directly during the main sale, or in a second moment. Normally, it is always recommended to propose all options directly during the main sale. In this case guests will have a look on all possibilities, with the related rates. If guests are contacting via email, the best sale´s practice is to send some pictures too or at least to send a link of the hotel website, with the description of all categories. In doing so, the percentage of cross-sell should be higher.
After the main sale, the above-mentioned upselling tool is an option too.
Sometimes, upon guest´s arrival, there are unsold higher categories available and this can be a good opportunity for an upgrade. The possibility to show the room on site can be an advantage. Furthermore, the fact of paying separately the upgraded room fee, based on sale´s psychology. It can motivate the sale, especially for prepaid rooms.
Regarding the upgrade, sometimes the room´s organization or appellatives are not clear for guests. Make sure to organize room´s category properly and always offer an appropriate overview online and offline.
Selling strategies and revenue
Upsell, cross-sell and upgrade can generate more revenue than expected and therefor the hotel should always consider to propose extra services. The property should create an interdependence relationship between services, while guests should be acquainted about all available services, items and upgrades.
There are a lot of ideas for extra services, which are not requesting always a huge investment: use creativity and take time for brainstorming.
Whoi should learn selling strategies?
Even an employee working indirectly with guests, for example housekeepers and technicians, can be able to suggest an upsell for a more comfortable stay, in the moment they are in contact with guests. It is always possible to inform guests on extra services available and to address them at the reception desk for the sale. Because of that, is always advisable to train the entire staff, letting them all understand the importance of communication with guests and inform them on all sales ‘possibilities.
Extra sales can be also encouraged by rewarding employees: there are different approaches, create your own strategy!
Written By
Knowess International
Knowess International helps business owners and department heads working in the hospitality and restaurant industries to develop the necessary skills with targeted consulting.
