It is hard enough to get guests through the front door these days, so we don’t want to leave any money on the table once we have them on our property. Much of the potential to have a guest spend more money at the property during their stay lies with the front desk agent during check-in. A few timely questions and helpful suggestions could easily double or triple the guest’s spend every day they are on the property.
Upselling and Cross-Selling
First, your agents should know the difference between upselling and cross-selling.
Upselling – offering a guest an upgrade at a higher price point within the services he or she is purchasing at that time.
Cross-Selling – this would be offering a guest a service that is outside of their initial reservation but related to their stay.
How to Upsell and Cross-Sell During the Check-In Process
Front desk agents have ample opportunity to upsell, especially later in the day when inventory is clearer. For example, a family of four is checking in late at night. They have two connecting rooms booked at $99/night each. You have a two-bedroom suite available for $225/night that will not be rented, so offer the guest the suite in order to generate more income while at the same time keeping the two additional rooms available for possible single walk-in guests.
There is also a lot of potential for cross-selling in that same scenario. Agents should lightly probe guests when checking in. Agents should be engaging the guest during the check-in process anyway, so it might as well be productive. In the example above, the agent could be asking the guest what their plans are during their stay. If the hotel offers some type of babysitting service, that could be suggested so the parents could have a night out. If there are children-specific breaks available, suggest them. At one of my hotels, we had a movie package that we put together specifically for families. If they pre-purchased the package during check-in, they received a small discount.
Benefits and Pitfalls of Upselling and Cross-Selling
First, let’s look at some of the problems by not using the proper techniques. If agents are too forceful, they could come off like a used car salesman, and we all know the public’s perception of them! The idea here is to suggest relevant services rather than just reciting a laundry list of amenities and services the hotel is offering. Remember, every attempt at an upsell or cross-sell is not going to be successful, so don’t force it.
As far as the benefits, well, they are numerous…
Increase Profits – obviously, the more money that is captured per guest, the more profits are increased. Furthermore, going back to the room example, you are better utilizing your inventory, which could drive profits even more.
Increase ROI – yes, every captured guest IS an investment that has converted. The guest probably found you through an ad, social media, or an OTA site, all of which cost time and money. In order to make that investment more worthwhile, you need to convert at every possibility. If the guests plan on spending money on meals and entertainment, as much as possible should be spent at the hotel.
Increases Customer Loyalty – when done right, suggestive selling improves customer loyalty rather than hurting it (as long as you don’t come off like that used car salesman). Point being, you are being proactive in ensuring the guest has a more enjoyable stay, something that will be appreciated by the guest. This is why it is so important to ONLY suggest relevant services to the guests, which, as stated above, comes by interacting with the guest and lightly probing them as to their plans during the check-in process.
Are your front desk agents getting the most out of your guests at every check-in encounter? If not, your hotel managers may need to provide better training for your staff. If you are disappointed in your management team, it may be time to consult with Joseph David International. JDI is consistently ranked among the top hotel recruiters in the country because we don’t just find managers for our clients, we find the ideal fit for both the client and the candidate. For more information about our hotel management recruiting services, please click here.
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