The hospitality industry is no stranger to upselling. It’s one of the most effective ways to increase hotel revenue without needing to increase room rates. But while it sounds straightforward, upselling in hotels requires a well-thought-out approach. It’s not just about adding more services; it’s about offering personalised upsell offers that truly elevate the guest experience and drive significant profits.
Table of contents
What is upselling and why is it crucial?
Top hotel upselling strategies
Why upselling matters for hotel performance
How to employ digital menus for upselling
How it all works together
Table of contents
What is upselling and why is it crucial?
Top hotel upselling strategies
Why upselling matters for hotel performance
How to employ digital menus for upselling
How it all works together
What is upselling and why is it crucial?
Before diving into strategies, let’s first define what is upselling in the context of hotels. At its core, upselling refers to encouraging guests to spend more by offering them enhanced services or room upgrades. The aim? To increase revenue per available room (RevPAR) by maximising each guest’s spend, whether through room service hotel options, spa services, or higher-tier room categories.
Upselling is critical in today’s competitive market because it directly impacts the hotel's bottom line. According to recent studies, upselling can increase room revenue by 10-30% depending on how well it is executed. And with advanced hotel upselling software available, it’s never been easier to present tailored offers at the right time.
Upselling is critical in today’s competitive market because it directly impacts the hotel's bottom line. According to recent studies, upselling can increase room revenue by 10-30% depending on how well it is executed. And with advanced hotel upselling software available, it’s never been easier to present tailored offers at the right time.
Top hotel upselling strategies
So, how do you start upselling effectively? Here are the most impactful strategies that will help you increase hotel revenue and improve guest satisfaction.
1. Personalised upsell offers: know your guest
Personalisation is the magic word in today’s upselling world. Guests don’t want to feel like they’re receiving a generic pitch. Instead, tailor your offers to their preferences and habits. Research shows that 79% of travellers are more likely to buy when the offer is personalised.
How does it work? Well, let’s say you have a repeat guest who often books a room with a view. Your guest experience platform could prompt you to offer a premium suite with a panoramic view at a slight discount. Alternatively, a family guest could be offered in-room dining packages or discounted spa treatments for parents while kids enjoy hotel activities.
Use your hotel management system to segment guests based on their previous behaviour, booking patterns, and even preferences noted during their stay. This data-driven approach lets you offer precisely what they need, whether it’s a room upgrade, spa service, or exclusive access to amenities.
How does it work? Well, let’s say you have a repeat guest who often books a room with a view. Your guest experience platform could prompt you to offer a premium suite with a panoramic view at a slight discount. Alternatively, a family guest could be offered in-room dining packages or discounted spa treatments for parents while kids enjoy hotel activities.
Use your hotel management system to segment guests based on their previous behaviour, booking patterns, and even preferences noted during their stay. This data-driven approach lets you offer precisely what they need, whether it’s a room upgrade, spa service, or exclusive access to amenities.
2. Digital menus for upselling: more than food
Upselling isn’t just about the room. Food and beverage services represent a massive opportunity for how to increase room service revenue. The key? Digital menus. Modern guests don’t want to download apps to access room service. They want quick, convenient options, and hotel digital menu solutions offer just that.
A no app download required approach using QR codes that lead to digital menus on web pages is a game changer. Guests can browse through your restaurant offerings, complete with images of dishes and suggestions for drinks or sides, encouraging cross-selling. This method not only avoids human errors but also allows for dynamic pricing or special offers to be displayed in real-time, directly boosting room service hotel revenue.
A no app download required approach using QR codes that lead to digital menus on web pages is a game changer. Guests can browse through your restaurant offerings, complete with images of dishes and suggestions for drinks or sides, encouraging cross-selling. This method not only avoids human errors but also allows for dynamic pricing or special offers to be displayed in real-time, directly boosting room service hotel revenue.
3. Timing is everything: offer upsells at key moments
One of the smartest ways to upsell is through timing. Your guest’s booking journey offers several key touchpoints to introduce additional services. After booking but before arrival is the perfect window for digital upsell offers — whether it’s airport transfers, early check-ins, or special room amenities.
For example, a hotel in New York increased its RevPAR by 15% simply by sending out an automated email offering room upgrades and breakfast packages within 24 hours of booking. The hotel’s guest experience platform was able to send personalised offers, such as romantic dinners for couples or adventure tours for solo travellers.
During the stay, you can use hotel upselling software to trigger real-time notifications for guests, offering discounted spa sessions after they check into their rooms or room service deals for dinner.
For example, a hotel in New York increased its RevPAR by 15% simply by sending out an automated email offering room upgrades and breakfast packages within 24 hours of booking. The hotel’s guest experience platform was able to send personalised offers, such as romantic dinners for couples or adventure tours for solo travellers.
During the stay, you can use hotel upselling software to trigger real-time notifications for guests, offering discounted spa sessions after they check into their rooms or room service deals for dinner.
4. Leverage a guest experience platform for upselling
A guest experience platform not only improves communication but also helps in identifying upsell opportunities. By tracking guest behaviour and feedback in real time, these platforms can suggest upsell offers that align with what the guest truly values.
Imagine this scenario: a guest checks in and mentions during the booking process that they’re celebrating a special occasion. Your guest experience platform can automatically suggest a room upgrade, a bottle of champagne, or a late checkout. Such offers feel more natural because they’re based on the guest’s context, and they lead to higher conversion rates.
Imagine this scenario: a guest checks in and mentions during the booking process that they’re celebrating a special occasion. Your guest experience platform can automatically suggest a room upgrade, a bottle of champagne, or a late checkout. Such offers feel more natural because they’re based on the guest’s context, and they lead to higher conversion rates.
5. Offer room upgrades wisely
Room upgrades are a classic example of upselling. But not every guest wants a suite. For some, an upgrade might be as simple as offering a room with a better view or additional amenities like a balcony or a kitchenette.
Smart hotel management software will allow you to show these upgrade options at check-in, and digital room service can be included as part of the offer. Hotels that implement personalised upsell offers at check-in can experience a 20-40% increase in revenue from upgrades alone.
Smart hotel management software will allow you to show these upgrade options at check-in, and digital room service can be included as part of the offer. Hotels that implement personalised upsell offers at check-in can experience a 20-40% increase in revenue from upgrades alone.
6. Train your staff to upsell subtly
While technology plays a massive role in upselling, don’t forget the importance of your team. Hotel staff who are trained to suggest additional services in a subtle, non-intrusive way can significantly enhance upselling efforts. But the trick is making these suggestions feel like helpful advice rather than a sales pitch.
For instance, housekeeping staff can mention exclusive deals for in-room dining while guests are checking in, or the front desk can offer discounted late checkouts when guests are ready to leave. Equip your staff with the right tools and incentives, and you’ll see an increase in revenue with little added effort.
For instance, housekeeping staff can mention exclusive deals for in-room dining while guests are checking in, or the front desk can offer discounted late checkouts when guests are ready to leave. Equip your staff with the right tools and incentives, and you’ll see an increase in revenue with little added effort.
Why upselling matters for hotel performance
Upselling is no longer just an extra effort; it’s a crucial part of improving hotel performance. By using personalised upsell offers, utilising digital menus for upselling, and offering room upgrades at the right time, you can significantly increase RevPAR and enhance the guest experience.
Today’s guests expect a seamless stay, where everything is at their fingertips. Upselling isn’t about pushing services; it’s about providing guests with options that enhance their stay and feel like a natural extension of the experience. The key is doing it smartly, using data, timing, and the right tools — whether it’s hotel upselling software or a guest experience platform.
Today’s guests expect a seamless stay, where everything is at their fingertips. Upselling isn’t about pushing services; it’s about providing guests with options that enhance their stay and feel like a natural extension of the experience. The key is doing it smartly, using data, timing, and the right tools — whether it’s hotel upselling software or a guest experience platform.
How to employ digital menus for upselling
1. Personalised discounts and offers: tailored upselling in action
Using your guest experience platform, you can offer personalised discounts based on guest preferences and booking history. If a guest frequently books spa treatments, the system can generate a 10% discount for their next session as a personalised upsell offer. This builds loyalty and encourages higher spending, all without the need for the guest to leave their room. These offers could be sent in real-time through digital channels like pre-arrival letters or in-room notifications, making it easy for guests to engage with the offer at their convenience.
2. Offer packages: bundling for a better experience
Upselling packages is an excellent strategy, especially for guests looking for value. A hotel digital menu can automatically suggest a meal package that combines a dinner, a drink, and dessert at a discounted price. If a guest is booking a spa treatment, the system can upsell a package that includes a treatment and a wellness lunch, ensuring guests feel they are getting an exclusive deal while boosting your RevPAR.
3. Wine pairings: enhance the dining experience
One of the most effective ways to use a hotel digital menu for upselling is by offering wine pairings with meals. By integrating a digital menu into your hotel upselling software, you can prompt guests to pair certain wines with their meals automatically. For example, when a guest orders a steak from the room service menu, a personalised suggestion for a red wine with tasting notes could pop up, increasing the likelihood of cross-selling. The real-time nature of digital menus means these pairings can be dynamically updated, making it easier to customise offerings and adapt to your stock levels.
4. Blocking unavailable items: avoid guest dissatisfaction
One key feature of hotel upselling software is the ability to block items that are out of stock. No one likes ordering something, only to be told it’s unavailable. The software ensures that items on a stop list do not appear on the digital menu, avoiding any frustration. This small feature can significantly enhance the guest experience, reducing complaints and ensuring smooth operations.
5. Pre-arrival letters: Create excitement and anticipation
Pre-arrival emails or messages can be an important part of upselling. Using your guest experience platform, you can send personalised pre-arrival letters that offer guests the opportunity to book room upgrades, dining packages, or activities ahead of time. These digital letters can include special offers, like discounted room upgrades or exclusive dinner reservations, giving guests the chance to enhance their stay before they even arrive.
6. Storing guest preferences: Surprise and delight your guests
The ability to store and leverage guest preferences is a powerful tool for hotel management. By tracking dining choices, spa treatments, and room preferences, the hotel can offer relevant upsells on future stays. For example, if a guest has ordered vegan meals in the past, your system can offer them vegan dining packages before their next visit, or even surprise them with complimentary vegan snacks upon arrival. This level of personalisation not only boosts guest satisfaction but also encourages repeat bookings.
7. Easy booking of amenities and room service
Modern guests expect convenience. With digital room service menus, there’s no need for guests to call reception or the kitchen. They can browse, order, and pay for room service directly from their phones, with no app download required. The system can also upsell extras, like adding a dessert to a meal or offering a discounted breakfast for the next morning. Hotels that implement digital room service see an uptick in orders, as the process is frictionless and convenient.
8. Flexibility in updating offers: stay agile
The beauty of using hotel upselling software is the ease of adjusting offers. Whether it’s a seasonal promotion or responding to guest feedback, digital systems allow you to update your upsell offers in real time. Want to offer a Valentine’s Day special or reduce the price of a service that hasn’t been selling well? The system lets you adapt quickly, keeping your offers fresh and relevant.
How it all works together
1. Imagine a boutique hotel that uses an advanced guest experience platform integrated with digital menus.
2. Upon booking, guests receive a pre-arrival letter offering a room upgrade at a 20% discount.
3. Once they arrive, they’re presented with a digital room service menu, where they can not only order meals but also view personalised upsell offers like wine pairings or spa treatments, based on their previous stays.
4. The system tracks the guest’s preferences, so when they order, the menu offers tailored meal packages.
5. Meanwhile, items that are out of stock are automatically removed from the menu to avoid disappointment.
6. By the end of their stay, the hotel has maximised its revenue through subtle, personalised upsells, and the guest leaves with a memorable experience that will likely result in a positive review.
2. Upon booking, guests receive a pre-arrival letter offering a room upgrade at a 20% discount.
3. Once they arrive, they’re presented with a digital room service menu, where they can not only order meals but also view personalised upsell offers like wine pairings or spa treatments, based on their previous stays.
4. The system tracks the guest’s preferences, so when they order, the menu offers tailored meal packages.
5. Meanwhile, items that are out of stock are automatically removed from the menu to avoid disappointment.
6. By the end of their stay, the hotel has maximised its revenue through subtle, personalised upsells, and the guest leaves with a memorable experience that will likely result in a positive review.
