By Vivek Shukla, CEO, The Lalit Suri Hospitality Group.
When a guest walks into your hotel, a little care worn, a little tired, excited for their stay, you have a chance to turn their anticipation into an unforgettable experience while boosting revenue. In the hospitality industry, strategies like cross-selling and upselling are invaluable for achieving this balance. These approaches involve offering additional products or services to enhance the guest’s stay and drive revenue, with cross-selling introducing complementary options and upselling encouraging premium choices.
Enriching the guest experience
Cross-selling involves recommending related products or services that enrich the guest’s experience. For example, a guest booking a room could be offered a spa treatment, guided tours, or dining reservations. This not only increases transaction value for the hotel, but also provides a more holistic experience for the guest. Tailored suggestions based on guest preferences and behaviours make cross-selling effective. For instance, a couple on a romantic getaway may appreciate a discounted couples’ massage package, while a family may value suggestions for local attractions or childcare services.
Elevating guest choices.
Upselling offers guests upgraded options, such as suites, premium wine, or flexible check-in. Highlighting added value, like “a stunning ocean view,” boosts revenue and enhances the guest experience. Success relies on friendly, non-intrusive presentations that make upgrades feel effortless.
Both cross-selling and upselling bring significant benefits when implemented thoughtfully. For guests, they create a more tailored, satisfying experience, making them more likely to leave positive reviews and return in the future. For businesses, these strategies increase revenue per guest, and provide a competitive edge.
The success of these practices depends on a few key elements.
Personalization is essential. Using guest data to make recommendations ensures the offers feel relevant and meaningful.
Timing plays a crucial role—well-timed suggestions during the booking process, at check-in, or during meals can greatly enhance the chances of success. Poor timing, however, may annoy guests or feel intrusive.
Staff engagement is a critical component. Employees must recognize opportunities and present them naturally to enhance the guest experience. A deep understanding of the property’s offerings and strong interpersonal skills are key to success.
Digital tools can also support these efforts. AI-driven booking systems and mobile apps can analyse guest preferences and provide personalized recommendations, while kiosks can promote upgrades and add-ons at various touchpoints.
With a strategic approach and an optimal use of cross selling and upselling, these practices enhance both immediate returns and long-term guest loyalty. By focusing on personalized, well-timed recommendations and leveraging technology, hospitality businesses can create a seamless blend of value and experience and a memorable guest experiences while maximizing revenue opportunities, thus ensuring both immediate gains and long term guest loyalty.
