Upselling: selling guests the better room and the extras they want
Upselling is offering a guest something better than what they booked, for a little more: a larger room, a view, breakfast, a late check-out, an airport pick-up. Cross-selling is the same for something beside the room, such as a dinner or the spa. Done well it is a service: the guest gets what they would have wanted, and the hotel earns more from a guest it already has.
Also called: upsell, hotel upselling, upselling in hotel, room upgrade, cross-selling, value adds, add-ons, upselling techniques.
A OneHorizyn page. Updated .
The four moments to upsell
- At booking: rate plans with breakfast or meals, a better room shown beside the one chosen, packages.
- Before arrival: a message a few days ahead offering an upgrade, an airport pick-up or a table for dinner.
- At check-in: an upgrade to a room that is free tonight, at a price set in advance.
- During the stay: a late check-out, a meal, laundry, a tour, the spa.
Each moment suits different offers. Before arrival, the guest is planning and has time to read; at check-in, they are tired and want their room; during the stay, they want things made easy.
Upselling on the booking sites
Booking.com calls its version value adds: extras included in a rate plan's price and provided with the room, such as parking, an airport transfer, high-speed wifi, a food and drink credit, flexible check-in and check-out, or spa access.
The share of room nights Booking.com says go, on average, to rate plans with value adds when they are shown beside standard ones. It adds that partners have seen their average daily rate rise by up to 11%.
- 1Sign in to the extranet and go to “Rates and availability”, then “Value adds”.
- 2Under “Manage value adds”, click “Create new value adds”.
- 3Select the value adds you want to provide and name the offer.
- 4Link it to a rate plan, a new one or one or more existing ones, and set the amount you charge for the value adds.
- 5Review and save, then check the rate plan's availability and price in the calendar.
Booking.com says commission is based on the booking value shown to the guest: include a perk without raising the price and you pay for it; raise the price to include it and commission applies to the higher price.
On MakeMyTrip and Goibibo, packages bundle the stay with meals and inclusions such as sightseeing, spa, food and drink, transfers or activities. Go-MMT asks for at least three inclusions from two or more categories, and a package can't be built on a room-only EP plan. In the extranet, go to the “Property” tab, then “Inclusions & Packages”, then “Create a package”.
Room upgrades at check-in
An upgrade at check-in sells a better room that would otherwise stay empty tonight. Set the price for each step up the room ladder before guests arrive, so the front desk isn't inventing it at the counter.
- Offer one step up, not three: the next room type, with one plain reason it is better.
- Say the price per night, with tax, and the total for the stay.
- Offer it only when the better room is free and likely to stay free tonight.
- Don't upgrade free a guest who would have paid, and don't charge one who was promised it.
- Put the upgrade on the guest's folio straight away, so the bill matches what was agreed.
What upselling brings in: a worked example
A 40-room hotel has 25 arrivals a day. It offers a deluxe upgrade at ₹1,200 a night at check-in, and breakfast at ₹450 a person before arrival. If 3 of the 25 take the upgrade, for 2 nights on average, that is ₹7,200 a day. If 5 couples add breakfast for 2 nights, that is ₹9,000 a day, before the cost of the food. Over 30 days the upgrades alone bring ₹2.16 lakh, from deluxe rooms that would otherwise have stayed empty on those nights.
What makes an upsell feel like service
- It is something this guest would plausibly want: a quiet room for a business traveller, a cot and breakfast for a family.
- The price is clear before they say yes.
- Saying no is easy, and they are asked once.
- What was promised is delivered. Booking.com notes that perks offered at booking must still be honoured, even if you remove them from the rate plan later.
- Staff know the offers, the prices and why each room is better.
- Reviews tell you how it lands: a guest who felt pushed says so, and so does one who got the room they wanted.
How to measure it
- Upsell revenue each month, by kind: upgrades, meals, transfers, late check-outs.
- How many guests were offered something, and how many took it.
- Your average room rate before and after: upgrades sold raise it.
- What guests say in reviews about the offers and the rooms they were moved to.