Did you know that it’s 50% easier to sell to existing customers than to prospective customers and that the probability of selling to a prospective customer is 5-20%, yet to an existing customer – 60-70%?
As a hotelier this means that your booking engine should, without a doubt, offer guests add-ons. If that isn’t enough to convince you, keep reading to find out why add-ons will result in a more profitable sale for you.
Add-ons are essential to any booking engine in order to obtain the most profitable sale possible.
This strategy is known as upselling and cross-selling. Upselling is a strategy in which you are showing the customer different upgrades that they might be interested in. An example of this within the hospitality industry would be showing room upgrades when the traveler is about to check out.
By doing this, you are exposing the traveler to options they may not have considered before. This is an easy way to make an upsell and obtain a more profitable sale. Cross-selling is a strategy in which you are selling products that are different but still related to the purchase.
In the hospitality industry you can do this by offering tours, spa treatments, dinner, car rentals, and other travel accommodations. It is important to only offer these add-ons once the traveller has already made a commitment to a reservation so you don’t distract them from booking.
When upselling and cross-selling is done right it builds a stronger relationship with your customers. When using these tactics make sure to emphasize why these upgrades would benefit your customer and show how they would profit from it.
If the traveler feels like the upsell is genuinely helping them and bringing them value, they will feel a deeper connection with your brand which will result in a higher customer retention rate.
The main thing to remember here is to make the traveler feel like they are winning.
When the customer wins, you win too. Overall, you should look at upselling and cross-selling as a way to make your customers happy rather than a sales tactic.
It’s a no brainer that it is easier to sell things to people we already have a relationship with. Therefore, you should take the opportunity to sell more to a traveler that is booking with you. It will help you gain momentum and grow faster while also lowering your cost of sale.
While a lot of business owners are concerned about acquiring new customers, don’t forget about what is untouched and right in front of you. Add-ons give you the chance to make travelers happy and accelerate your path to profitability.