In this series of UP2 publications, we will cover a few rules around ‘upselling productively’ – and by that we mean:
converting upsells at exceptional ratios,
making your guests happy (because you offered them something they actually wanted)
helping your operations (because your staff now have time to prepare for the guest’s needs), and
ensuring your revenue increases tangibly and meaningfully through ancillary sales.
There are few golden rules we always follow. As there is a lot to say on the subject, we have broken this ruleset into several articles, giving you time to consume the ideas and ask questions as needed. We hope you will find this as useful as we have!
In the previous article (here) we spoke about the importance of timing. We proposed that through segmentation of messages to different timings, you can intuitively discern the most appropriate content for your communications.
Today we want to talk to you about minding the ‘why’ of each communication.
RULE 3 is all about the content of your offer. Specifically, it is about you structuring and wording your offer in such a way, that it is answering a very significant question on behalf of your guests:
‘WHY SHOULD I BUY THIS?’?
If we wanted to show we have already started thinking about the previous two rules (1. looking at numbers across our audience, and 2. Timing of the offer), we can even improve on this question and phrase it like this:
‘WHY SHOULD I BUY THIS HERE AND NOW?’.
In our experience, thinking in this way, before deciding what is going on the offers list, and making some cautious decisions on how the offer will be presented, works miracles. I cannot overstate the positive impact of answering this for your guests, before you have already made the offer.
We have experienced hotels that – when they come onboard UP2 – they literally produce ‘brochures’ of offers. Catalogues of goodies (usually very nice things) that they sell throughout their portfolio of rooms, spas, activities and F&B outlets. We know that putting forward a catalogue of goodies will not work anywhere near as well as it could. Why not? Well, catalogues don’t answer the ‘why here and now’ question!
So what are some good reasons for guests to buy here and now?
1. Clearly time-sensitive
These are the offers that make sense because of their timing. Remember, your guest will be arriving at your hotel. They know this as well as you do. Presenting them with a catalogue of ‘stuff’ they can simply do/buy when they are at the hotel make the offer pointless. If your guest cannot answer ‘why should I buy this now, and not when I am at the hotel’, they will simply not conver.
You can address this for them. Offering a late check-out round about the time that the guest is probably thinking about how on earth they will be able to do everything that needs to be squeezed in the departure date, is likely to be welcomed. And very likely to be booked, purely because of your good timing. Show your guests that the what you are offering is presented to them now for a good reason, and the chances of conversion go through the roof.
An entire category of well-timed offers is for ‘stay customisation’ elements (an entire product category within UP2). It makes sense for you to inform your guests well before they arrive that you have a pillow menu, or floor options, or views for them to choose. Guests get that, and understand why you are asking them to select something now.
Another good time-related statement is ‘last minute’ offers. ‘I am offering this as a last minute offer’ explains well why the guest should consider it now. Offering something last minute when it is likely to not be available later on, combines the timing and scarcity motivators (as also covered in point four below.
2. Discounts
Another good reason for your guests to buy now, is that they can have a better price than if they buy on the day of arrival. This is a straight-forward yielding act; something hoteliers get, because of our experience in yielding rooms based on lead in times. It is exactly the same principles that apply to ancillary products and services you are selling, and the price discount can work really well for overall revenues, as well as operationally.
We have a hotel in Asia that offers airport taxis/vans for guests who fly in (and only to guests who fly in), and they do so at a serious discount. The combination of sensible timing and discount for ‘early birds’, is proving incredibly popular. When I enquired why they are so aggressive with their discounts (up to 30%), their revenue manager explained that by monitoring the seats booked and getting as many people in as possible, they get to plan for the right vehicle, creating serious savings on petrol, and mitigating the previously difficult-to-manage situation of high demand, at short-notice, for taxi drivers.
3. Let us plan this for you
Express in your message the need for planning. Guests understand that. Experiencing local goods and services will obviously require you to do some planning, and booking with local providers. Be honest. ‘Dear guest, we would like to make sure that we get this right, so please indicate now that you would like to book ….’. The mentality of a booked guest is completely different to that of someone still choosing where they would like to stay. Most booked guests will want to have a good relationship with you, and that is especially true if you are simply asking to make their stay better, by planning for their stay. They will want to help you provide the best experience, and they will definitely undertand why you are asking them to book now.
4. Limited resources
Psychologically speaking, scarcity creates demand. There is a good reason for that. People do not want to miss out on something good, and if you do have something whichy is good and which is limited, you should make it absolutely clear.
Guests are much more likely to book restaurant reservations if they know your restaurant gets fully booked. So, tell them! ‘Our lovely restaurant gets very busy, so please book a table now, to guarantee you get in’. That is meaningful. You are clearly expressing a reason why they should book you now.
[Importantly, you must be honest. If your restaurant is not busy, and someone does book it and turn up for their meal in an empty space, they will feel like you trapped them. Our advice is to put forward offers that are genuinely useful for your guests.]
5. Thanks for booking ‘here’ (e.g. mobile only, direct only etc.)
Upselling is an interesting and productive way for you to show to guests that booking directly is good for them. This is a huge topic in itself, as ‘training for the direct channel’ is probably the most difficult task mature hoteliers face. This topic marries well with this fifth ‘justification’ behind an offer.
Irrespectively of where someone booked you (and we will talk about channels in the near future), you now have the opportunity to say ‘because you are booking direct’ (or ‘on mobile’, or even because ‘you are a bookings.com booker’), ‘we are offering you something good’. This channel or device related offer shows the guest that you understand them, and you want to give them something that not everyone else gets. Segment-specific ‘why here’ mean something and convey immediacy and personalisation of the offer. These sell well.
“Irrespectively of where someone booked, you now have the opportunity to say ‘because you are booking direct we are able to offer you something good”
Clear messaging that explains ‘why’ someone should ‘book here and now’ are essential for high-production ancillary conversions.
It is this detail, the clear explanation and value, which is the most significant predictor of high-volume ancillary conversions that will product happy guests, and improve your bottom line, as well as your ability to prepare and anticipate your guests’ wants and needs.
Thank you for reading,
Joy Killmar
Senior Product Director
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