Special RepoRt : Upselling
“ We ’ ve found that upselling is more successful When you don ’ t limit or restrict your line of questioning by employing preconceived notions of Who is more or less likely to Want a certain type product or service .”
– Jeff Senior , fairmont raffleS HotelS international
Customer-relationship management comes into play here as well . A comprehensive CRM database should be able to tell the front-desk agent whether a repeat guest booked a higher room type in the past , as well as other historical profile information that could hint at the guest ’ s wants and needs .
Guests who booked through opaque channels are perhaps especially receptive to upsell offers . For one , they are almost certainly booked to receive run-of-house , and thus it is likelier they will not be staying in their optimal room choice . Moreover , they probably got a great rate discount , and so they may view an upsell opportunity as a justifiable indulgence . Guests who prepaid for reservations are similarly receptive to upselling , since the additional spend required is marginal compared to the sunk cost , says Doug Kennedy , president of a Florida-based hospitality training consultancy .
Guests arriving in advance of the posted check-in time are another class of prime upsell candidates . Rather than having to wait several hours for their booked room to be ready , a modest additional outlay for the right to settle in right away might be an attractive option .
The first rule of front-desk upselling is to avoid suggesting the room type booked is poor ; phrase the offer in a way that acknowledges the quality of the standard room but suggests the higher room type might be a better choice , whether because it has more space or a prettier view or enhanced amenities , Kennedy says .
How should the front-desk agent respond if the guest expresses interest in a higher room tier but then balks at the price ? First , understand resistance is a form of negotiation . Set a minimum price ahead of time and stick to it , explaining it is the lowest authorized rate . If the upsell offer includes value-added amenities , break down the cost of those items individually and demonstrate the value proposition of the enhanced room tier .
There are certain times when upselling might be considered in poor taste , like when dealing with guests representing nonprofit groups . Jordan Meisner , senior vice president of operations for Hyatt Hotels & Resorts in the Americas , instructs front-desk agents to keep the budgets of those travelers in mind .
Overeager upselling in general can prove to be a negative . “ If basic needs are all that a guest requires , it ’ s really counterproductive to offer a suite and spa ,” Mostad says . “ You can lose a sale by being too aggressive .”
Staff reSiStance
The key to building a workforce committed to an upselling program is helping hotel staff view the practice as an act of guest service , not merely as a revenuegenerating tool .
Indeed , some front-desk agents are reluctant upsellers . In some cases , it is a matter of shyness . More often , though , resistance to upselling is due to the belief that upselling equates to being pushy . In these cases , training is needed , not only to instruct staff on the proper tactics for upselling , but also to drive home the point that upselling is in fact a valuable guest service in its own right , says Stefania Picheca , a performance consultant with TSA Solutions , a Singapore firm that specializes in hotel upsell training .
That guest-service attitude must come from management . If revenue generation is motivating the upsell program , front-desk agents can quickly turn into
24 HOTELS April 2014 www . hotelsmag . com