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TRAVEL & HOSPITALITY
An In-Depth Guide to Upselling at the Front Desk (With Scripts + Examples)
Contents
Upselling and cross-selling opportunities are few and far between in the hospitality industry. The reality most hoteliers face can be bleak with the rise of vacation rentals like Airbnb and Vacasa. Upselling and cross-selling at the front desk can help hotels compete. Additionally, it enables modern hotels to thrive in this ever-evolving environment.
Consumer trends in the hotel industry are shifting steadily. In the past, most travelers viewed room upgrades as unnecessary. This could have made cross-selling and upselling hard to accomplish. But PWC’s research into the hotel industry found:
Moreover, younger travelers tend to be:
This means that customers are ready to improve their experiences at hotels when given the chance to do so. The vast majority of visitors don’t interact directly with hotel employees until they check in at the front desk. The first individual they talk to is a front desk operator.
Hotels recognized this as an avenue for upselling to increase revenue from occupancy. When your clients come to the front desk, you typically have the opportunity to:
A) upsell them to a more premium room, or
B) cross-sell them on extra services like spa visits or complimentary refreshments.
The best upsellers and cross-sellers understand their customer’s needs and the reasons behind their travels. But wait, what exactly constitutes cross-selling and upselling, and how are they different?
Cross-selling is a sales strategy focused on selling ancillary products to current clients. Front desk cross-selling is a strategy hotels utilize to increase revenue by advertising complimentary items.
For instance, if you go to a clothing store to buy a shirt, a sales rep may advise you to buy a complimentary product. It could be a tie, pants, or a blazer that matches the shirt’s color or fit. In the same train of thought, hotels generally cross-sell spa treatments, tourist guides, and access to drivers or rental cars.
Upselling, on the other hand, refers to when sales reps upgrade your product or services. It centers on convincing customers to purchase premium lodging and service upgrades. For instance, you may persuade your visitors to buy amenities like upgraded accommodation before they even check into your hotel.
You can integrate upselling into your sales cycle in several ways. But the best way for hotels to utilize this strategy is by implementing it at the front desk. The trick to upselling effectively lies in your employees’ ability to identify customers who will benefit from an upgrade.
So, how do we map customers to an upselling service or opportunity?
Businesses that employ tools like client journey mapping lower their service costs by 15% to 20%. A customer journey map is an illustration that shows how a customer interacts with a business.
It gives insight into the wants and anxieties of potential customers, which directly influence or hinder their actions. By improving customer experience, businesses may increase conversion rates and enhance client retention.
To maximize customer success, it is crucial to:
After all, your entire business strategy should revolve around assisting customers in resolving issues and achieving long-term satisfaction with your hotel and service. This brings us to the next question:
The customer journey map can consist of several elements depending on your hotel’s needs. In general, most customer journeys encompass:
Hotels most likely need to establish both digital and physical journeys for customers. Businesses should create a customer journey map according to their offerings. Customer journeys online for hotel bookings can be wildly different than in-person bookings.
For instance, imagine an online booking on a website that offers discounts. Customers booking rooms on this site may not wish to upgrade their rooms. Whereas, in-person guests will be more open to different options and upgrades when reserving rooms.
Another way of upselling using a customer journey is by creating landing pages. You can offer value-based deals on your landing page and successfully upsell. This is where omnichannel journey mapping comes into play.
So how do you map these different customer journeys?
Note: A critical component of mapping customer journeys is receiving ample feedback from existing clients. Find out what they want from your service and how you can improve their experience at your hotel.
Customer journey mapping can be tricky and time-consuming for all companies. But they ensure a stable route for success in upselling and increasing revenue.
There are several templates online for customer journeys. But these templates may not suit your situation. So create a map that is unique to your hotel’s needs and customers’ wishes. In the next section, we’ll explore the approaches we use when upselling at the front desk.
Customer profiling or finding your ideal customer persona is a must in current times. Excellent customer service is at the core of most successful businesses. Studies show that:
Using a tool that helps you figure out your ideal customer for upselling opportunities is vital. Buyer personas give your business direction and perspective. Buyer personas can assist marketers with content planning and curation. 2–5 client personas are the norm for most businesses.
Within this, you should create a persona that helps you identify people with upselling opportunities. This can help you circumvent any customers who are unwilling to spend more. Simultaneously, you can reach customers willing to pay more for upgraded experiences.
The hardest aspect of front desk upselling is accurately identifying opportunities. A CRM software that segments and categorizes your guests under specific personas helps your front-desk staff upsell to the right customer.
The top skill or quality that consumers expect from salespeople is active listening (42%). One effective method of communicating is active listening. It improves communication and rapport between the speaker and the listener. Typically, individuals either listen to what the speaker says passively or not at all. Active listening calls for you to pay close attention to the other person’s word choice, voice inflections, and nonverbal cues. This demonstrates to the speaker that the listener is listening. Active listening strategies include:
Active listening is an absolute necessity for front-desk upselling. For instance, when your guest arrives, ask them about their journey to the hotel.
While you may wish to skip right to asking whether they would like an upgrade, that may not be the best move. Always listen to your guests and figure out if they are open to upgrading or would like to rest immediately.
One of the best customer retention strategies to upsell and increase recurring sales at your hotel is to run loyalty programs. With the help of such initiatives, you can boost occupancy at your hotel. You can, in this way, leverage your extra offerings and forge closer ties with your clients.
You can:
Another way of increasing loyalty is by using the foot-in-the-door technique. This technique consists of using small requests as a way of building up to larger ones.
For instance, when you have a returning guest, you can offer them a minor room upgrade. If they agree, you know they are open to upgrading their rooms. The next time they visit, propose a more premium room upgrade.
This technique can help build loyalty. The guest is then likely to report a positive experience when they review your hotel. Moreover, approaching upselling in phases is more beneficial. In contrast to starting with a significant upgrade, smaller ones can instill a sense of understanding and reciprocity.
There are several benefits of implementing an upselling program at the front desk. The benefits given above are some of the many advantages of upselling. If you’re wondering how you can implement these practices, the next section delves into six stellar upselling techniques.
Early arrivals are the perfect upselling opportunity to sell a higher tier accommodation. When upselling early arrival visitors to a higher-rated tier the following strategy can be particularly beneficial. For instance,
“Mr. Diaz, we have a reservation for you in one of our standard guest rooms. Our stated check-in hour is 3 pm, though we’ll try to get it to you earlier if we can. We do have another premium room currently available if you’re interested. It costs only upwards of $25 of your current reservation. These are some features and facilities you can access in ______ rooms. Do let me know if you’re interested in upgrading to this suite!”
“Ms. Lucy, your room is currently occupied and will be available in an hour. In the meantime, would you like to browse some of our other options? These rooms are available and…..”
This technique is ideal for guests who arrive an hour or two before check-in time. Your guests will be open to upgrading when they realize they must wait to relax. You can supplement this technique with our third method, incremental sales.
Reassure the visitor that they currently have a wonderful room by confirming the previously reserved lodging. Try to avoid saying something like
“I noticed that you reserved one of our regular rooms,”
This statement makes the selections they’ve already chosen sound unsatisfactory. It can also undermine the image and expectations of your hotel.
Instead, state the following:
“We have allocated a classic suite for you, Ms. Hale, which I’m certain you will find quite pleasant. However, before you go ahead with your stay, we also wanted to inquire about your interest in..”
Continue by displaying pictures of the services and higher-tier suites.
This technique draws the attention of your guest’s choice positively. When you uplift their current room and ingratiate their choices, they will be more open to seeing other options.
Use an incremental sale tactic where you add a small amount to the existing room’s price. When a guest arrives at your hotel, there is a high chance they’ve already paid for their stay.
This is particularly true for people who made their reservations online within most OTA sites where they had already made a payment. If you can see that you can upgrade their room for a slight increase in payment, say the following:
“Hello, Mr.Stevenson! I was going through your booking and realized we have an opening for one of our deluxe rooms. You could upgrade your stay with just $15 and experience a higher level of comfort.”
Additionally, you can use questions like:
“When you booked your room, did your agent have an opportunity to inform you about our rooms?” to see if the customer is conscious of the higher tier options available.
You could also ask
“Did you have a chance to check out our top suite options when you made your online reservation?”
For instance, your guest books a room that costs $50 per night. Asking them to pay $65 upfront may inflate the amount in their mind.
Instead, by offering a $15 increase to their existing payment, you will prove to be more persuasive. This method employs the foot-in-the-door technique.
Show the value your deluxe rooms offer. Be as detailed as you can. These are some options you can use when giving your guests a better idea of your deluxe rooms.
Say
“In this room, you can gaze out your balcony and see,”
As opposed to
“Premium rooms offer a view.”
You can also say
“As a resident on this floor, you’ll enjoy 24-hour access to our executive salon, which features”
As opposed to saying,
“The executive floor offers a sitting room.”
You can also say,
“As you’re traveling with your children, you’ll love the extra room this suite delivers. It is a 650-square-foot room with a fully functional kitchen. It will also be wonderful to use the kitchen if you want to prepare breakfast or reheat takeout some day.”
The best way to further drive the point home is to show them pictures of the room or take them there. Images can change the game when it comes to upselling. So always have brochures or tabs on your screen for visual cues.
Your staff will need to practice the price-anchoring approach to upsell successfully. Price anchoring is when you first offer something at a hefty price before following it up with a significant discount.
Establishing a selling point is commonly referred to as price anchoring. Customers can use this pricing range as a reference while making decisions. Every time you see “$150 $125” in a discount, the $150 is the anchor price for the $125 sale price.
Rate anchoring helps create the idea of getting a valuable deal, which most of us can’t resist. For instance, your front desk personnel can provide a couples suite suggestion to new guests as follows:
“The couples premium suite typically costs $100. We decided to charge $75 for it this week. Would you and your partner be open to trying it out?”
The price anchoring technique internally justifies the purchase your guests make. The price makes people feel like they’re getting a better deal than other guests.
Always provide walk-in customers with a variety of choices when showing rooms. Without proper training, front desk staff members frequently give guests only one type of room.
Usually, this is the cheapest or most basic room. Instead, give walk-in visitors a choice of lodging options and prices. Walk-ins are more likely to be open to exploring all the alternatives than last-minute internet reservations.
This method does heavily rely on the listening abilities of your front desk representative. They must first ask the visitor if they have a certain room in mind. If a visitor does, they can point them in the direction of a room, if one is available. However, if the visitor has nothing specific in mind, this is the ideal time to upsell.
It intelligently classifies visitors to present customized offers at the most convenient times for each client. Improved ADR and frequently even higher occupancy are the results.
These solutions send pre-arrival notifications that are highly personalized. These emails empower customers to add upgrades and services they desire with just a single click.
The use of upsell solutions increases the incremental expenditure per guest when integrated into your hotel’s entire revenue management plan. By utilizing upsell software, visitors may plan their stay and define expectations before arriving.
These tools provide data that results in a more tailored visitor experience. Consumers these days demand this level of personalization and are ready to invest in better rooms. These are just some of the features upselling tools can offer. We’ll elaborate on more features in the next section.
Must have features of an upselling tool
Upselling and cross-selling at the front desk are effective strategies you should employ to open up additional revenue streams for your hotel. Front desk upselling will help you boost client contentment and improve your reputation.
And the LeadSquared CRM is one such platform that offers all these features that a front desk needs for upselling. Book a demo today to inspire your upselling strategies and elevate your guests’ experience!