Lessons from the airline industry to optimize upselling in hotels
Fitur LIVEConnect 2023
December 16, 2022
Hotel Upselling: Getting Started
January 1, 2023
With the airline industry being one of the most competitive markets in the world, it is no surprise that they have become experts in upselling and maximizing customer satisfaction.Â
In this article, we will explore how hotels can use the airline industry's successful upselling methods to optimize their own revenue. We will look at what strategies the airline industry has used to increase revenue, how these can be applied to the hospitality industry, and how hotels can use data to personalize their upsells.Â
Finally, we will examine how hotels and resorts can use the customer feedback to improve the upselling process. By taking a lesson from the airline industry, hospitality companies can maximize their upselling potential and increase customer satisfaction.
Upselling in the airline industry
Traditional upselling in the airline industry involves offering passengers additional services or amenities for an additional fee. Examples of traditional upselling include offering passengers priority boarding, additional legroom, checked baggage, meals, and other amenities. Airlines may also offer passengers the chance to upgrade to a higher-tier cabin class for a fee. Additionally, airlines may offer passengers the chance to purchase travel insurance, loyalty rewards programs, and other services.
A New Way to Fly: Airlines Embrace Bidding to Upsell Services
Airlines use bidding to upsell their services by offering customers the chance to bid on upgrades, seating options, and other additional services. This strategy allows customers to customize their flying experience and allows airlines to maximize their profits. Airlines typically set a minimum bid amount and allow customers to submit their bids online or over the phone. Customers can then track the progress of their bids and be notified of any changes in the auction process. Airlines often use an automated system to determine the winner of the bid and then finalize the transaction. The customer with the highest bid receives the upgrade or service they purchased. This strategy is beneficial for both customers and airlines, as it allows customers to customize their flying experience and airlines to maximize their profits.
Upselling in the hospitality industry
Upselling in the hospitality industry typically involves offering guests additional amenities or services that complement their stay. Common examples include room upgrades, late checkouts, spa packages, and restaurant reservations. Additionally, staff can also suggest add-on services such as tours, car rentals, and special event tickets. Upselling strategies can be tailored to the individual guests to create a more personalized experience and help them make the most of their stay.
5 Point plan to translate the lessons learned from the airline industry into hotel upselling
- Leverage Data - Airlines use data from past customer purchases to create personalized offers and upsells, and hotels can do the same. By collecting information on customer preferences and past booking history, hoteliers can create tailored offers and packages that are most likely to be accepted by customers.
- Automate Upsells - Airlines use automated systems to offer ancillary services like baggage fees, seat upgrades, and other add-ons. Hotels and resorts can implement similar systems to automatically suggest upgrades or add-ons when a customer is making a reservation.Â
- Offer Bundles - Airlines often offer discounted packages that bundle together several services. Hospitality companies can do the same, offering discounts when customers book multiple services at once.Â
- Offer Additional Services - Airlines offer a variety of services to travelers, such as travel insurance, car rental, and hotel bookings. Hoteliers can offer similar services to their customers to increase upsells.Â
- Use Loyalty Programs - Airlines use loyalty programs to reward customers for their loyalty and encourage them to book more flights. Hotels can do the same, offering rewards and discounts to loyal customers to increase their chances of upselling.
How can hoteliers use customer feedback to improve the upselling process?
Hotels and resorts can use customer feedback to identify opportunities to improve the upselling process. This could include gathering feedback from customers on their experience of the upselling process, what they found most helpful, and what they would like to see changed.Â
This can be done through surveys and online reviews, as well as gathering feedback from the front desk staff. With this information, hotels and resorts can identify areas for improvement, such as the types of upsells offered, the way in which they are presented, and the timing of the upsells. By taking customer feedback into consideration, hotels and resorts can ensure that the upselling process meets customer expectations and increases the chances of successful upsells.
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How UpsellGuru can help you optimize your hotel upselling efforts?
UpsellGuru is a powerful platform that can be used to optimize your hotel upselling efforts. With UpsellGuru, you can easily create personalized upsell campaigns that target customers who are likely to be interested in additional products and services. The platform also allows you to track the performance of your upsell campaigns, so you can quickly identify which ones are most successful. Additionally, UpsellGuru makes it easy to set up automated upsells, which can help you maximize your revenue without requiring any extra effort.
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A first to offer bidding for the hospitality upsellingÂ
UpsellGuru uses a proprietary bidding algorithm and interface to offer hoteliers a better way to upsell their services. By leveraging the power of bidding, hoteliers can make offers to their guests that are tailored to their specific needs and budgets. This allows them to optimize their upsells and maximize revenue. The bidding process allows hoteliers to quickly analyze the bids and determine which offers are most likely to result in a successful upsell. This provides hoteliers with an efficient and effective way to increase revenue from upsells. - The system can entirely automate the upselling process with an "auto-pilot" feature designed to intelligently accept bids based on floor and ceiling prices.
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How a bidding upselling system leverages the pseudo-endowment effect to maximize revenue for hotels
The pseudo-endowment effect is a psychological phenomenon that occurs when people place more value on items that they already own or are considering owning. Hotels can leverage this effect by implementing a bidding upselling system, which allows guests to bid on higher-end hotel rooms or add-ons, such as spa packages, room upgrades, and more. When guests are presented with an opportunity to bid on a higher-end room, they may perceive it as something they already own or are considering owning. As a result, they may be willing to pay more for the room than they would if they were presented with the same room at a fixed price. This increased willingness to pay is what allows hotels to maximize revenue through a bidding upselling system.
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