In the hotel business, administrators often have strategies and art to promote business development. We have learned through overbooking, minLOS, maxLOS, … In this article, Star Solutions introduces you to what is up-selling concept? What does up-selling in hotels mean? Attention to successful implementation of up-selling in hotels?
What is up-selling?
What is up-selling? Up-selling is temporarily translated as an increase in selling. This is a term used quite a lot in business. Up-selling means persuading customers to buy more goods and services that cost more than the original product or service. The core goal of up-selling implementation is to make customers spend more; from there, increase the sales revenue of the business.
In business, up-selling is often applied at the same time with cross-selling to maximize sales revenue.
What is up-selling in the hotel?
When conducting up-selling in the hotel, instead of directly selling to the guest service customers, hotel staff will recommend, advise customers one or several services with higher prices, more incentives. .
However, the introduction must be skillfully conducted; do not make guests feel offensive. Also, do not force customers to buy more expensive products and services to avoid losing customers. Up-selling hotels are only successful when customers voluntarily use more expensive services and are satisfied with their changes.
Up-selling example in a hotel
Guests book a standard room at the hotel for 1.5 million / night. However, during the conversation, the receptionist introduced Deluxe package to the guest for 2.2 million VND / night (being discounted 10% and including laundry, afternoon tea, free massage). After considering the cost, the customer agrees that the standard room has booked Deluxe room. Thus, instead of the 1.5 million room type, the hotel has sold 2.2 million rooms, increasing revenue 700,000 / night.
Guests arrive at the hotel restaurant and order 4 dishes for 2 people for a total cost of 2,000,000. However, the staff ordering in the restaurant introduces the restaurant’s promotion program: when spending 3,000,000 will become a VIP member of the restaurant and will be awarded a 300,000 voucher for the next meal. Guests agree to call for more wine and desserts, increasing the total amount to be paid to VND 3,200,000. At that time, the restaurant not only sold more products but also promised the next visit of customers.
Good tips for successful up-selling in hotel restaurants
For up-selling success in restaurants and hotels, in addition to up-selling practitioners need to be skillful; policies and regimes in restaurants also need to be scientific; can boost customers’ shopping needs as well as motivate employees.
Prepare full up-selling knowledge
The process of check-in , order, service selection when entering the hotel restaurant is the best opportunity for hotel staff to perform up-selling.
Up-selling operators (reception, reservation, bellman …) must be included in the policies, room rates, incentives attached to each service being applied in the hotel.
Carefully understand customer information and records before talking to guests. From there, offer services in the ability of each customer’s affordability.
Customers who book a room, book a table from businesses; travel agent; business travelers; … less likely to be up-selling by pre-defined spending plans. Instead, guests who book via OTA , walk-in guests, and retailers often have more up-selling ability because they often do not know the information about the room as well as the hotel services.
Conduct up-selling while chatting with customers skillfully
Always friendly, smiling while talking to customers.
Have eye contact with guests. However, do not stare at the guests, causing guests to be offensive.
While talking to customers, always use Mr, Mrs, Ms, Sir, Madam, … when talking to foreign guests. Also, know the name of the guest, use the guest’s name at least 3 times in the conversation.
When doing up-selling, introduce incentives, amenities and benefits before giving room rates.
Use open questions while communicating. From there, find out the needs, desires and affordability of guests when they arrive at the hotel. Limit the use of yes / no questions, negative questions with customers.
Find out their purpose when coming to the hotel to be able to upload-sell suitable products and services.
Building good policies and regimes for hotels
In order to increase revenue from up-selling, hotel management must have certain strategies. In it, can include:
Strengthen training courses, improve professional skills in selling and up-selling for hotel staff.
There are bonus and commission policies for departments and employees that bring revenue from up-selling well. Many bonus modes when hotel revenue rises to a certain landmark.
Design promotions, incentives in accordance with the services and products of the hotel.
Implementing up-selling in hotel restaurants not only helps increase revenue but also helps customers access more quality services and products in the hotel. Implementing an up-selling skillfully helps the hotel introduce its products to customers. At the same time, making customers appreciate, have a better impression of the quality of the hotel service.