Upselling and cross selling are both fantastic ways for accommodation providers to increase incremental income on bookings.
A common misconception is that customers hate extras being sold to them; in fact, this is somewhat incorrect! Think of it this way: A customer doesn’t know about any extras on offer until you tell them therefore, if they don’t know about it how could they possible know if they want it or not? The point is really if you don’t ask you don’t know – That’s the case for both parties involved in the transaction!
Now you know you need to upsell and cross-sell to increase incremental income here’s the difference between the two:
Upselling is the practice of encouraging customers to upgrade to a higher-end product then the one in question. E.g. If a customer books a standard room, you might want to offer them an upgrade to a deluxe ocean view room. – By doing this, customers leave your accommodation building satisfied and are more likely to book the deluxe ocean view room next time they stay.
Cross-selling is slightly different to upselling, this practice invites customers to buy additional complementary or associated items to potentially better their stay. – In the accommodation industry, you might call these extras. E.g. A bottle of champagne on Arrival, airport transfers, 1 hour massage at the hotels spa etc. The booking engine on your hotels’ website should be equiped to advertise these items during the payment process.
Up selling and Cross-selling are both key money making features for any business and particularly in the accommodation industry. Both approaches are similar by adding value to your customers’ stay and informing them about new products they may not already know about, which in affect increase your revenue and profit.
Moreover, its time to train your staff on how to upsell and cross-sell to every guest that stays at your property.