We are living in strange times, and the hotel business is going through pains that it has never felt to this extent. When much of the world was on lockdown, people were not traveling. This meant that hotels were not getting much business, which put many properties under financial strain.
COVID-19 has had a serious effect on the hotel industry, but there are signs of recovery. Many places around the world have started to open up for travel, which has provided some relief for hotels.
Hotels face new challenges today
However, opening up for travel does not mean that we are going back to “normal”. The virus is still a threat, and this means that hotels need to do their part to help ensure safety for their guests and those who are employed by the hotel. Hotels today have a host of challenges they need to overcome in their operations and marketing to help get their business back to a level pre-COVID.
People want to travel for pleasure, and they may need to travel for work. However, this does not mean that they do not have concerns. People want to ensure that they are safe when they are traveling. They do not want to be infected, which could cause them to in-turn infect numerous other people. The hotels need to be conscious of this fear, and they need to have plans in place to ensure the health and safety of those who are on their premises.
Even though some people might be traveling, the numbers are less than what they were a year ago. While you might have excellent safety measures in place, the number of people traveling is still lower than it was. You do not have control over the number of people who decide to travel. This means that the revenue for the hotel could still be taking a hit unless the hotel works toward upselling. Fortunately, even in a pandemic, there are upselling methods that can work.
Why upselling is essential today
Upselling is a good way to increase the amount of revenue a hotel earns, and it is a good practice for small hotels as well as large multinational chains. Hotels can use a range of different services or features when upselling. In the past, upselling might include offering a session at a spa, a breakfast buffet, or all-inclusive meals. In the post COVID era, though, some of the typical upselling items might no longer be possible. For example, many people do not want to go to a spa during a pandemic.
You still need to upsell, though, to help make up for some of that lost revenue. Fortunately, there are methods you can use.
Upselling for new prospects
To find and bring in new guests, you will need to find ways to reach them through advertising, social media, etc., as well as when they are booking on your site. By offering various deals, it is often possible to upsell to these individuals or groups during their booking process.
- Offer to upgrade the room for a small charge
- Offer additions to the room, such as a bottle of wine
- Have restrictions, such as a minimum number of bookable nights or minimum bookable rooms
- Provide a timed discount
- Offer packages that make sense in the post-COVID -19 world
- Discounts or perks for booking multiple rooms
It’s true that getting new prospects into your hotel is more difficult than getting a previous guest to return. However, with the right upselling techniques, it is certainly possible. When creating upsells in today’s post COVID world, it is important to consider the types of features that customers want in terms of upsells. They want to feel like they are getting a good deal for starters. By offering deals and upgrades for a nominal charge, it entices those people to want to stay with your hotel.
Upselling to existing guests
There are many techniques that can be used to help upsell to guests who have stayed at your hotel in the past. You will find that some of the techniques for new prospects will also work with your previous guests. That’s because everyone likes a deal. Some of these include:
- Room upgrades for just a few dollars more than the rooms they’ve booked in the past or want to book now
- Entice the guest to stay longer with a long stay discount
- Provide discounts for staying at the hotel again, such as a rewards program – after a certain number of nights, they get a free night, for example
- Use the shoulder nights strategy to encourage longer stays
One of the benefits of having data on your previous guests is that you will know a lot more about them. You will know the types of rooms they prefer, the number of people who stayed in the room, whether they ordered room service, and whether they had any issues during their last stay. All of this information is valuable. It provides you with the knowledge you need to create upselling strategies that are geared to work for those people based on their preferences.
There are many ways that you can upsell to get more revenue while making your guests happy. With the pandemic, it is wise to make these upsells related to the rooms and discounts, as mentioned above.
