Upselling and cross-selling are two consolidated sales techniques that have been employed by giants of e-commerce, such as Amazon and eBay, for many years now. In tourism, the air sector was the first to test these sales techniques. It all began after the emergence of low-cost airlines and these companies’ growing need to adapt to a new reality.
Upselling and cross-selling involve separating the product, removing the extra aspects and minimising costs as far as possible in order to offer a competitive price to clients who are more and more informed and demanding, thanks to internet access to opinion pages and forums.
The alternative way to increase tight margins, which is currently used in the hotel sector, is to offer improvements on the room and related or complementary products the client is free to choose, bearing in mind their preferences and needs.
Now, independent hotels and small chains are beginning to employ these sales techniques thanks to new technology solutions that enable any independent hotel to develop functions on its official website with the aim of increasing direct sales by offering upgrades or complementary products to clients, consequently increasing the amount paid for bookings.
The key in this whole sales process is that at no point does the client feel they are paying for something they don’t want or need. Seduction must be accompanied by subtlety and simplicity: at times a simple acceptance box on the website that needs just one click will be sufficient; at others, greater risks can be taken to turn upselling into your default option, for example, enabling the client to decide to choose a lesser room category or remove the services they don’t want to use. Every shopper enjoys seeing a price diminish in accordance with their needs!
The main function of the Revenue Manager is to optimise the hotel’s income, which is why a great deal of effort is spent on attracting new clients, often without realising it can be more costly than offering improvements or additional services to clients who have already formalised their booking.
Here are several intriguing upselling and cross-selling actions we recommend you use on your website:
- Additional services during the booking process: During their stay at your hotel, a client consumes many products or services, such as parking, spa entry or vouchers, massage sessions, late check-out, tickets to attractions and shows, etc. Offering an exclusive discount on these services during the purchase process will invite the client to acquire them in advance.
- Make the most of the confirmation email: The booking confirmation email is the perfect place to inform the client of possible improvements to their booking, as well as propose some products they may book in advance but at a later date.
- Pre-stay email: Send an email a few days in advance to your clients, showing information about their stay like a map, the hotel’s contact details, check-in times, restaurant opening times, etc. It’s the perfect excuse to offer your clients board plan or room upgrades in addition to informing them of special discounts on services available at your hotel.
- Satisfaction questionnaires: Even though the client has already enjoyed their stay with you, you can still win their loyalty through a promotional code or registration in a loyalty club that affords them the opportunity to enjoy an exclusive discount on their next stay when booking on your website.
What are you waiting for? Increasing the amount paid for your direct bookings is possible with Paraty Tech. Contact us on firstname.lastname@example.org