The Art of the Upsell

The Art of the Upsell

Uncovering value to your advantage

Essential to the sustained profitability and growth of a hospitality business is the capacity to upsell. Otherwise known as suggestive selling, the ability to convince guests that a finer experience awaits for a few dollars more will have an impressive effect in the margins and on the bottom line. Salesmanship of this kind is often considered tasteless if it is presented in a pushy manner without integrity. Honesty with the guest on exactly what the intended benefit of a higher price tag is will enhance the service aptitude of the property ensuring repeat guests. Upselling is a no-cost activity because of the potential to boost dollars spent inside the business and increase revenue per available room (RevPAR). Hospitality marketing surveys indicate it costs as much as six times more to attract a new guest than to keep repeat guests, who typically will outspend their one-time counterparts five to one. The "client list" for a property or those guests the property has established relationships with can significantly impact the viability of long term success.

Benefits of the upsell include more than just higher profits. Consider that it has become more instinctive to our nature as everyday consumers to desire more choices. The front desk staff is then tasked with creating value propositions; not every customer necessarily wants what is cheapest. The challenge for the salesman becomes gauging the guest's perception of quality and how much value they individually place on add-ons, upgrades, or better amenities. Upselling has become such commonplace practice across the industry, that guests will probably expect some evocative spiel at the front desk upon arrival. A common mistake though, is the failure to at least ask, for fear of angering the guest and jeopardizing potential repeat business. There are increased opportunities to sell when equipped with a well-informed staff aware of room inventory, geographic location, demographic details and a good property management system. Incentivizing the upsell with a comprehensive employee reward program may also ensure maximized participation and greater potential for a more satisfied guest and employee. They must know the selling points, property highlights, room availability, and most importantly: how to carefully negotiate while still appealing to the guest's taste; guest satisfaction is always first and "Customers are not a face with a wallet attached," says Jim Sullivan, CEO of Sullivision.com, a popular consultant in hospitality leadership training. "Situational selling is the preferred method of upselling, as it combines timing, logic and customizing the experience to each patron's expectations...it's a difficult skill to teach so it's often left untaught." If the resources exist for