Introduction
Are your own creative revenue-generating ideas for hotels being laid to waste? As a hotelier, did you know you can lose up to 30% of potential revenue by not maximising upselling opportunities? Despite the significant financial benefits, many hotels shy away from upselling due to its perceived complexity.
This is an area where the hotel industry can learn a thing or two from the airline industry, which more than doubled its ancillary revenue over 5 years. In fact, some airlines make as much as 40% of their overall revenue from auxiliary items such as extra leg-room and pre-booked seats.
In this article, we’ll demystify the upselling process, presenting some innovative ideas and easy-to-implement strategies to help your hotel boost its profits effortlessly.
Revenue-Generating Idea #1: Upselling with a Twist
Think beyond standard upsells like room upgrades or early check-ins. It’s time to get creative! Imagine offering a romance-themed room package complete with rose petals, candles, and soft music, transforming an ordinary stay into an unforgettable experience. Upgrade your minibar selections to cater to luxury or wellness-focused guests.
For example, when investing in a spa facility as a value add-on for a hotel, the most noticeable way that this generates additional income is through the increased length of stay and frequency of stay. Encourage guests to book unique experiences or tours, and offer signature hotel merchandise, such as luxury bed linens and hand soaps, for a touch of exclusivity.
Revenue-Generating Idea #2: Crafting Unique Experiences
Expanding on the point above, why not create bespoke experiences that highlight your hotel’s unique character? For example, a “Chef’s Table” dining experience can leave a lasting impression, as I experienced with my wife’s 30th birthday celebration at Serge Dansereau’s Chef’s Table – a memory that remains vivid years later. That sumptuous night included a tour of the kitchen. I recall eating chocolate souffles, as they were taken out of the oven.
Consider hosting cooking classes, sommelier-led wine tastings, or behind-the-scenes tours of your banquet facilities. I had the privilege of doing a back-of-house tour on the Celebrity Solstice cruise ship, and we got to ask questions of the F&B Manager & the Captain. It was brilliant. These experiences not only boost bookings but also lead guests to associate happy memories and positive feelings with your hotel brand.
Revenue-Generating Idea #3: Local Partnerships
Maximise your hotel’s location by partnering with local businesses and attractions. Offer guests exclusive local experiences, such as Bridge Climbs in Sydney or Penguin Tours on Phillip Island. Collaborate with nearby restaurants, galleries, and cultural venues to enhance your guests’ stays. These partnerships not only enrich guest experiences but also fill service gaps, like parking or gym facilities, through mutually beneficial arrangements.
Simplifying Upselling: The Role of Technology
The key to taking your revenue-generating ideas for hotels from concept to reality is simplification and consistency, achieved through technology. Forget about retraining staff or implementing complex reward systems. Instead, integrate technology to streamline the process and ensure consistent upselling. Here are some tech-driven ideas:
- Pre-Arrival Check-Ins: Implement pre-arrival check-ins with automatic upsell offers. These have shown a 25% acceptance rate, making it a highly effective strategy.
- Digital Compendiums: Introduce a digital compendium allowing guests to book external activities, like theatre visits or gallery tours, even before they arrive.
- Digital Ordering Systems: Use digital ordering systems that suggest upsells during the ordering process, such as recommending a wine to accompany a steak.
- Referral Partnerships: Collaborate with businesses specialising in referrals to streamline upselling and ensure mutual benefits.
Looking for more creative revenue-generating ideas for hotels? Download our White Paper that shares 7 Key Strategies to harness the right technology and improve your bottom line. Click here for your Complimentary Copy.
Conclusion
There are countless ways you can use your skills to enhance revenue-generating ideas for hotels. This can boost your bottom line through simple, smart, and thoughtful upselling. By harnessing technology, these strategies become not only feasible but also consistently effective. If you’re ready to explore these opportunities and unlock your hotel’s full potential, get in touch – let’s transform your hotel’s profitability together.
Need help considering or selecting the best technology for your Hotel and guests? Technology 4 Hotels can save you time and hassle, and help you increase your revenue. If you have feedback on this article or would like to connect, please get in touch via phone +61 2 8317 4000, or book a time for a complimentary 15-minute Tech Chat. Just click here.
Frequently Asked Questions
A: Creative upselling ideas include offering themed room packages, enhancing minibar selections with luxury or wellness options, providing unique experiences like cooking classes or wine tastings, and selling signature hotel merchandise. These strategies can transform a standard stay into a memorable experience and boost your hotel’s revenue.
A: Hotels can maximise upselling opportunities by integrating technology to streamline the process, offering personalised recommendations based on guest data, implementing pre-arrival check-ins with upsell offers, and training staff to recognise and suggest relevant upsell options. Simplifying the upselling process makes it easier and more consistent.
A: Technology simplifies and enhances the upselling process. Digital compendiums, pre-arrival check-ins with automatic upsell offers, and digital ordering systems can suggest relevant upgrades and add-ons. By using tech-driven solutions, hotels can ensure consistent upselling and provide guests with seamless, personalised experiences.
A: Local partnerships can enrich guest experiences by offering exclusive local activities and attractions. Collaborating with nearby restaurants, galleries, and cultural venues can fill service gaps and provide added value to guests. These partnerships are mutually beneficial, enhancing the guest experience and promoting local businesses.
A: Offering unique experiences, such as a “Chef’s Table” dining event or behind-the-scenes tours, can leave a lasting impression on guests. These bespoke experiences not only boost bookings but also create positive associations with your hotel brand. They can lead to increased guest satisfaction and repeat visits.