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Upselling solutions for the Hotel Industry

Upselling at the Front desk

Upselling at the Front desk

How to calculate room supplements  

How we organize room categories implementing Up-selling techniques at the front desk in your hotel are quite important, and different than organizing those room categories to show in your web page, and that is why there are three basic parameters that we should take into account. Although none of them is less than the other in Importance, and all should be linked.

Upselling projects from the front / A + B / Spa, should focus:

  1. to increase customer satisfaction as a main objective.
  2. to increase motivation of your team as a second.
  3. and generate more revenue from it as a third.

Rooms categories have be different from one to the other, and guest should see a clear adding value for their decision to upgrade their initial room, and those attributes to show difference between rooms could be:

  • The size of the room
  • Room views 
  • Room amenities
  • Room balconies, hidro, jacuzzis
  • VIP area

The supplements between rooms superiors must be calculated, today I will speak about it.

In regards to set up supplements accordingly to the superior rooms, I have observed that many hotels based this calculation as follows:

  • Room STD = 100 Euros
  • Room SUP = 150 Euros
  • Difference between room rates = 50 Euros
  • Then supplement for superior room = 50 Euros 

This calculation would be wrong.

There are three basic reasons why:

  1. Offering superior rooms from reception, looks for the optimization of the inventory of the superior rooms in the hotel, therefore taking into account that these are the last occupied rooms in the hotel, and cost of opportunity if they remain empty, instead of generate 100% of total revenue from them, we will go for a revenue between 40% or 60% of their potential incomes.
  2. This provides an incentive for your customer to decided if they want to change from the original room booked, to a superior one. 
  3. And last but not least, with this we provide with more sales tools to your team at reception, sis facilitated, so that in your script you can say "just for ... while it normally costs ..." as a commercial weapon, Something to add to their sales script, and you will increasing significantly your upselling KPI's and your conversion ratios.

Therefore the correct calculation would be:

  • Room STD = 100 Euros
  • Room SUP = 150 Euros
  • Difference between web rates = 50 Euros
  • Supplement for superior room = 25 -30 Euros 

Having said that, some hotels change their supplements almost in a daily basis, applying revenue technics, this is not good from my point of view, remember that we are setting up an in house sales program after all, so we have to do things easy for everyone, however supplements could vary between high and low season.

I hope This short article would help you, or at least clarify your doubts about it. However for any question, please do not hesitate to contact me

Best regards,

Alejandro Francino, CEO HBD Consulting

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