Article | May 17, 2023
Leverage upselling and cross-selling techniques to elevate hospitality & tourism businesses. Discover the strategies used to boost revenue by adapting upselling and cross selling techniques in hotels.
2. Cross-selling Vs Upselling: Which One Is More Optimal?
2.1. Defining the Two Techniques
2.2. The Key Differences
3. Combining Both the Techniques to Improve Revenue
4. Importance of Implementing the Techniques in Hotel Businesses
The hospitality industry is highly competitive, and hotels must find ways to boost revenue beyond room rates and taxes. The key to success in this field is to tailor offers to each customer and encourage them to spend more than they had planned. Cross-selling and up-selling are two effective methods of increasing sales.
This article explores these methods' nuances in the hospitality sector. By dissecting the advantages of cross-selling and upselling, we can better understand when it makes sense to implement these tactics for maximum profit. The potency of upselling and cross selling techniques in hotels to improve the business and offer enhances guest experiences.
Cross-selling Vs Upselling: Which One Is More Optimal?
In the hospitality industry , maximizing revenue and enhancing guest experiences are paramount, and whether to prioritize cross-selling or upselling is a question. While often used interchangeably, these sales techniques hold distinctive positions within the buyer journey.
2.1. Defining the Two Techniques
Upselling is a sales approach that offers customers a higher-priced or upgraded service or product that aligns with their interests and preferences. In the hospitality industry, it may encompass enticing guests to upgrade their room selection, such as transitioning from a standard room to a mini-suite, either during the booking process or afterward. Additionally, it may involve presenting guests with hotel packages that provide added value and amenities compared to standalone bookings. The aim is to elevate customers to a higher price category and ensure they enjoy an exceptional stay experience.
On the other hand, cross-selling entails encouraging guests to purchase supplementary products or services related to their existing purchases. For instance, this could involve offering a spa package or a romantic dinner to enhance their stay. Cross-selling opportunities in the hospitality industry can include add-on activities like city tours or bicycle rentals, in-room extras such as upgraded amenities or specialized equipment, on-site spa and fitness services, food and beverage options such as dining discounts or meal packages, and other hotel services like complimentary parking or transportation.
2.2. The Key Differences
1. Strategy: Upselling focuses on communicating value to customers, persuading them to opt for a higher-priced or upgraded service or product. The emphasis is on showcasing the benefits and added value of the upsell, ensuring customers see the value in paying extra for a superior experience. On the other hand, cross-selling aims to appeal to impulse buying by enticing customers to purchase additional, related products or services that complement their original purchase.
2. Timing: Timing is crucial in both upselling and cross-selling. With upselling, the timing is most effective when done pre-arrival, ideally a week or two before the guest arrives at the hotel. This allows customers to anticipate their upcoming stay and consider upgrading their room or adding extra amenities. Cross-selling can be implemented post-booking, such as during check-in or through targeted email campaigns when customers have already committed to their initial purchase and are more open to additional offers.
3. Value Perception: Upselling techniques relies on effectively communicating the value and benefits of the upgraded or higher-priced offering. Guests need to see the value in paying extra for the enhanced experience. In contrast, cross-selling often involves appealing to customers' desire for convenience or enjoyment by offering travel management services that enhance their stay without necessarily requiring a significant increase in expenditure.
3. Combining Both the Techniques to Improve Revenue
Cross-selling is the most effective post-booking and can be implemented in various ways. Firstly, it can be done at the hotel reception during check-in, where guests can be offered add-on items. Secondly, sending an informative email before arrival to highlight additional services is another compelling cross-selling opportunity. Lastly, when guests express interest in a particular service, it presents an opportunity to introduce them to other relevant options.
Upselling, however, is particularly effective when implemented pre-arrival, ideally a week or two before guests arrive at the hotel. This technique can be deployed during the browsing and booking, where customers can be presented with room upgrades and add-on items. It is also fruitful to inform customers about better room options at affordable prices before their arrival, tapping into their anticipation for their upcoming vacation. Furthermore, during check-in, providing guests with information on enhancing their stay by spending a little extra can generate additional revenue.
To combine the power of both techniques efficiently, companies must employ specialized software. This software automates room upgrades and the promotion of additional ancillaries, providing customers with the convenience and freedom to choose and bid on attractive upgrades before arrival. Advanced customer journey analytics, such as software offers, enable personalized product offers, increasing sales and hotel revenue.
4. Importance of Implementing the Techniques in Hotel Businesses
Implementing upselling and cross-selling techniques is vital for hotel businesses, apartment rentals, and hostels. Hotel upselling techniques and cross selling techniques establishments possess unique opportunities to capitalize on these strategies, similar to how airlines offer seat upgrades, meal additions, and car rental options. When choosing accommodations, travelers invest considerable time and thought into finding a place that aligns with the desired ambiance of their trip. As hosts, this presents an ideal opportunity to offer additional products and activities that complement the property's offerings.
Unlike airlines, hotel properties often indicate the activities that guests might be interested in, allowing hosts to select the most relevant products to offer. This could involve tailored offerings such as private guided tours to popular tourist attractions or unique underground graffiti tours based on the guests' preferences and digital travel persona.
By providing personalized offerings that cater to the customer's needs, hotel businesses enhance the overall guest experience and deliver excellent service. Activities constitute the third-largest segment of the travel industry and are continuously growing. With data revealing that 46% of travelers engage in sightseeing tours, it becomes evident that upselling and cross-selling will play an increasingly significant role in the hospitality industry.
In the incredibly competitive hospitality industry, implementing upselling and cross-selling techniques is crucial for hotel businesses. By understanding the nuances and distinctions between these strategies, hotels can target customers strategically and increase revenue streams beyond room rates and taxes. Cross selling techniques encourages impulse purchases by offering additional products or services related to the initial investment. By combining both techniques with specialized software, hotels can personalize their offerings, automate their promotions, and provide a seamless experience for their guests. This strategy not only increases revenue but also caters to guests' various preferences, resulting in increased satisfaction and loyalty. As the activities segment of the travel industry continues to expand, the importance of upselling and cross-selling in hospitality management is anticipated to continue rising. In addition, deploying innovative business travel technology solutions can improve hotel businesses in hospitality industry.
Article | June 20, 2023
Discover the future of travel at the Hospitality Management events. Upcoming hospitality conferences 2023 & 2024 will have experts share insights about the rapidly evolving hospitality industry.
Warehousing and distribution play crucial roles in the logistics industry. To enhance the expertise and gain a competitive edge, professionals must attend logistics conferences in 2023, including the Supply Chain Management and warehousing conferences and events. These gatherings offer a platform for industry leaders to exchange ideas, learn from experts, and explore the latest advancements.
The following warehousing conferences and events will provide tailored discussions on warehouse optimization, inventory management, and process improvement.
1. PRSA Travel and Tourism 2023 Section Conference
June 20-23, 2023 | Madison (Wisconsin)
The PRSA Travel and Tourism Conference, presented by the PRSA's Travel Media, the global media network, will be held in June this year at the Monona Terrace Community and Convention Center in Madison, WI. This annual conference will bring together industry professionals to address evolving media and public relations changes. With notable speakers like Amy Alipio and Kelly Barbrey, attendees can gather timely strategies, resources, and diverse perspectives to excel in hospitality, tourism, and event management. Media and professional development experts, including esteemed speakers such as Amy Alipio, Kelly Barbrey, Casey Barks, Andrea Braustein, and Tykesha S. Burton, will impart their insights and expertise, providing attendees with timely strategies, resources, and diverse perspectives.
2. HITEC: The Hospitality Industry Technology Exposition and Conference
June 26-29, 2023 | Toronto (Canada)
HITEC is one of the leading hospitality conferences for tourism and hospitality industry leaders. HITEC showcases cutting-edge technology tools that support the breadth of hospitality operations. With an unparalleled education program curated by top industry experts, attendees gain invaluable insights about the latest travel technology and solutions. Notable speakers such as Shawn Kanungo, Amandeep Sarna, Bharat Patel, Frank Wolfe, and Michael Levie will share their expertise, enhancing attendees' knowledge in hospitality management and tourism hospitality. HITEC 2023 promises to be a transformative experience for professionals seeking to stay at the forefront of the hospitality industry.
3. The Hospitality Show
June 27-29, 2023 | Las Vegas (US)
The Hospitality Show is an exciting new addition to hospitality conferences that aims to bring together the entire tourism and hospitality industry with a shared goal of optimizing hotel operations for efficiency and profitability. With a focus on networking opportunities, industry leaders, senior executives, hotel brands, owners, operators, management companies, developers, investors, and technology partners will convene at this one-stop shop for collaboration. The show boasts an impressive lineup of speakers, including Kat Cole, Adm. William H. McRaven, Anthony Capuano, and Larry Cuculic, who will provide valuable insights and expertise about hospitality management.
4. Hospitality Upgrade’s CIO Summit
September 6-8 2023 | Austin (Texas)
A hospitality management events’, CIO Summit is designed for tourism and hospitality industry leaders. Over two days, this exclusive event will offer a unique blend of networking opportunities, insightful programs, and immersive social events. Participation is limited to top technology leaders from major hotels, casinos, cruise lines, management companies, and timeshare companies, ensuring a small peer networking experience. With its successful track record since its launch in 2002, the CIO Summit has become a prominent gathering for over 400 hospitality CIOs. Notable speakers such as Greg Duff, Vaughn Davis, Kelly McGuire and others will share their expertise, providing industry leaders with valuable insights and innovative strategies. For professionals in the hospitality industry, the CIO Summit in 2023 promises will be an invaluable platform for networking, knowledge exchange, and to stay ahead of the curve in the ever-evolving world of technology and tourism hospitality.
5. Gartner IT Symposium|Xpo
September 11-13, 2023 | Gold Coast (Australia)
The Gartner IT Symposium/Xpo 2023 conference addresses the needs of CIOs and IT executives in the tourism and hospitality industry. In a time of intense economic and social volatility, organizations in the industry must find innovative ways to drive efficiency, scale productivity, and pioneer new business models. By participating in this global gathering of experts and peers, attendees will gain valuable insights, expert guidance, and real-world examples to shape the future direction of technology in the hospitality industry. Key topics to be covered include business transformation, cybersecurity, AI, customer experience, data analytics, and executive leadership. With esteemed speakers like Holly Ransom and Mathew Luhn, this event will equip industry leaders with the knowledge and tools to navigate the ever-changing technology landscape and drive success in the hospitality industry.
6. Hotel & Hospitality Expo Saudi Arabia
September 10-12, 2023 | Saudi Arabia
The Hotel & Hospitality Expo Saudi Arabia is a highly influential hospitality management events and trade conference that serves as a gateway to explore the future of Saudi Arabia's hospitality industry. With a comprehensive market report, this event will delve into the key trends, industry dynamics, and the development of giga-projects, offering invaluable insights for industry leaders in the tourism and hospitality sector. By attending this expo, professionals can network with leading experts, conduct businesses, and stay updated on the latest industry developments. The event will feature conferences where hospitality leaders can share their expertise and host the prestigious Saudi Hospitality Awards. With participation from numerous local and international brands, the expo will be a valuable platform for professionals to source relevant products and services to enhance their operations in the hospitality industry.
7. Digital Travel Summit
September 12-13, 2023 | South Carolina (US)
The hotel conference and trade event, Hotel & Hospitality Expo Saudi Arabia, plays a pivotal role in shaping the future of the hospitality industry in Saudi Arabia. Industry leaders in the tourism and hospitality sector can expect valuable insights from the event's comprehensive market report, which will explore key trends, industry dynamics, and the development of giga-projects. Attending this expo will allow professionals to network with top experts, engage in business opportunities, and stay up-to-date with industry advancements. Additionally, the conference will feature renowned speakers such as Kate Powell, Priya Rajagopal, Steven Paganelli, Derek Schoen, and Andrea Cole, who will share their expertise and contribute to the knowledge exchange. By participating in this event, industry leaders can get access to source relevant products and services to elevate their operations within the hospitality industry.
8. Skift Global Forum
September 26-28, 2023 | New York City (New York)
Skift Global Forum 2023, the flagship global conference on the business of travel, is set to make its return to New York City. This tourism and hospitality conference will offer invaluable insights into the future of the tourism hospitality industry. With a focus on the theme 'Connection in the Age of AI,' the conference will delve into the evolving relationship between generative AI and the travel industry. Notable speakers such as Ariel Cohen, Glenn Fogel, Christopher Nassetta, Jason Calacanis, and Gary Morrison will provide unique perspectives and inspire industry leaders to navigate the dynamic landscape of the hospitality and tourism industry.
9. The Phocuswright Conference
November 13-16, 2024 | Florida (US)
One of the renowned hospitality conferences, Phocuswright Conference, has catalyzed innovation and business growth for over 25 years. It will offer industry leaders an unparalleled platform to immerse themselves in professional development, advocate for innovation, and cultivate talent. The event will further foster valuable connections with an influential and elite group, providing inspiration and insights to drive success in the dynamic landscape of the hospitality and tourism industry. Notably, the conference prioritizes sustainability by fully offsetting the carbon footprint of the entire event, including every attendee. With esteemed speakers such as Timothy Hughes, Tania Platt, Nadim El Manawy, and Mary Li, industry leaders will be able to gain valuable knowledge, expand their networks, and stay ahead of the rapidly evolving hospitality industry.
10. 4th International Conference on Tourism Management and Hospitality
March 01-03, 2024 | Vienna (Austria)
The Hospitality Conference 2024 is known as the International Hospitality and Tourism Management Conference (ICTMH). It is the fourth edition of the conference this year and promises that it will be a gathering of industry leaders, academics, and professionals. Attendees can expect to engage with world-renowned experts who will present their groundbreaking research on critical topics such as customer experience, medical tourism, economic sustainability, ICT and tourism, social media marketing, and tourism law. Notable keynote speakers, including Dr. Hsuan Hsuan Chang, Dr. Kelly La Venture, Prof. Dheeraj Sharma, and Prof. Koustab Ghosh, will provide valuable insights and expertise, ensuring that industry leaders will return the conference equipped with fresh perspectives and ideas to elevate their organizations and shape the future of the hospitality industry.
The hospitality management events and conferences mentioned in the article provide a promising outlook for the future of the tourism and hospitality industry. These gatherings serve as crucial platforms for networking, knowledge sharing, and collaboration within the industry. By attending hospitality conferences and hotel conferences, businesses can gain insights into tourism and hospitality management, explore new trends, and learn about innovative strategies for success. These events also focus on tourism and event management, providing valuable opportunities to stay updated on industry developments and form partnerships.
Article | May 5, 2023
Technological advancements and the paradigm shift in the travel industry post COVID have altered the way we travel. Businesses have elevated their operations to a whole new level due to technological advances. The digital age has facilitated the travel industry's rapid recovery from the COVID crisis. Additionally, travel firms are embracing automation to save time and reallocate resources.
Business travel is resuming as restrictions ease. Companies spend a huge amount of money on travel. According to the York Journal, business travel has increased year after year and is expected to grow to be worth $1.7 trillion in 2022. It further states that businesses allocate around 10% of their revenue on business travel expenditure. So, now is the time for businesses to deploy travel software applications to automate some tasks.
According to the World Travel & Tourism Council (WTTC) corporate travel costs is expected to climb by 26% in 2021 and 34% in 2022, despite the slow recovery.
The Nelson Research suggests that travel industry experts anticipate that the global digital travel market will grow at a 3.8% annual rate to reach $11.4 trillion. With these rising numbers in mind, travel agencies must step up their efforts to make the most of the situation.
Travel agencies often require different types of travel agency software, each serving a unique purpose supporting efficient and seamless operation. However, businesses must strategically incorporate automation into your travel system.
B2B Travel System - Automate Intelligently
A holistic travel agency software solution includes a travel system that automates real-time operations and streamlines the travel process in less than an hour.
Consider the nature of your firm while deciding on a software package and determining which business procedures should or should not be automated. Automated travel industry software, for example, accelerates sales, increases staff productivity, centralizes information, improves accuracy, streamlines booking systems, and coordinates and explores customer data.
An automated travel software is mobile and tablet friendly, allowing travel agencies to book hotels, tours, transfers, and other related activities through mobile devices and websites. It improves efficiency and enables the agency to save money and time.
Businesses Now Prefer Adoption of Technology Drivers for Smoother Customer Experience (CX)
The travel industry is highly dependent on customer experience. Therefore, enhanced customer experience is the new loyalty currency for the travel and hospitality industry.
Travel agents and tour operators utilize travel agency software to automate their regular processes. Many predict that emerging technologies, ranging from AI-driven personal assistants to connected devices, will increase opportunities to serve travelers better.
33% of tourists use a virtual travel assistant to plan their trips, says hotelMize.
In a survey conducted by DMA, about 59% of participants stated that they choose a travel company based on its value for money, and 58% prefer a travel company based on customer service.
Software for travel agencies simplifies the process of online booking, inventory management, package customization, back-office administration, itinerary design, facilitating business leads, and accounting to assist travel agencies in increasing bookings and lowering costs.
Consumers demand a seamless experience that is personalized to their specific travel requirements. With cutting-edge technology in place, travel and hotel businesses can significantly enhances customer experience (CX) and foster loyalty that inspires future visits and recommendations. In addition, the travel experience will be driven forward by technology, as customers will rely on AI and other customer experience technologies to assist them in managing the obstacles associated with modern travel.
List of Travel Agency Software That Can Transform Your Travel Business
Travel agent software enables travel agencies and associated organizations to boost revenue and simplify reporting. Choose travel agency software that can be customized to meet your specific requirements. Here are some travel agency software options that can be considered.
“When I promote my services to my clients, Travefy itineraries are one of my selling points.”
Lene Minyard, Owner - Perfectly Planned Journeys
Travefy lets travel consultants, tour operators, and other travel professionals save time, provide good deals to consumers, and increase sales by utilizing simple tools. This software generates visually appealing client itineraries or proposals.
Over 100 supplier integrations over 625 city guides
Live flight database
ClientBase is a travel agent-specific customer relationship management (CRM) program. Its advanced and enriching features make it a standout in tour and travel operator software, providing solutions for enterprises and travel agencies. A marketing database, a travel planner, and a contact manager are all rolled into one. ClientBase also integrates with remote information systems and booking engines.
The core ClientBase features are listed below:
Travenza is a cloud-based travel booking software for travel companies, tour operators, agents, and consultants. The suite includes reservation administration, quota management, payment processing, and marketing functionality.
Rezdy is a cloud-based business-to-business technology that enables tour operators to sell their products online and through different distribution channels. The open platform enables customers to connect their internal systems and online apps to a supplied booking engine. In addition, it assists distribution channels such as online travel agencies, marketplaces, and hotel chains locate and acquiring additional clients' items.
According to Zippia, the business travel sector is expected to experience a CAGR of 13.2% between 2021 and 2028.Therefore, travel companies must integrate new and immersive technology to expedite the process and provide a seamless travel experience for tech-savvy travelers. Technology has the ability to act as a generational catalyst for customer loyalty.
What are the benefits of automation in the travel industry?
Data and documents can be centralized in an organization
Increases customer satisfaction and loyalty
What is B2B travel software?
B2B travel software streamlines various travel operations. It helps travel agents and agencies access real-time data.
What system do travel agents use?
Travel agencies use airline inventory from multiple GDS (Global Distribution Systems) to find seat fares and book tickets.
Article | June 2, 2022
The travel industry is reviving. Tourist spots across the globe are packed with excited explorers. Though it feels like everything is going back to normal, the way people travel has changed. The hospitality tech revolution is making mundane tasks easier and the customer experience richer.
Most travelers prefer self-service over waiting to be served. Online planning and bookings have picked up pace, so have contact-less check-in and 24/7 digital concierge. Hotels must swiftly meet these evolving demands or risk losing in the race. They must incorporate technology into their day-to-day operations to eliminate human error, increase their service efficiency, and, above all, offer an outstanding customer experience.
One of the technology trends reshaping the travel and hospitality industry is digital concierge—hotel chatbots that bring the concierge desk into the palm of a guest’s hand. Convenient, right?
A Sneak Peak into Hotel Chatbots
Hotel chatbots are software applications that communicate with your hotel’s website page visitors and resolve their queries. They are either programmed to behave a certain way or can be AI-powered. Programmed chatbots are configured to answer a limited set of questions. However, they can collect visitor information so your customer executives can get in touch with prospects to resolve their queries or provide them with booking assistance.
On the other hand, AI-powered chatbots use NLP (Natural Language Processing) and ML (Machine Learning) to analye human behaviour and accordingly answer questions.
Digital Concierge Brings in Conversions
Personalized communication forms the crux of customer experience. A desired, non-intrusive interaction between a guest and a chat bot can create strong engagement and help the guest to make a booking at your hotel. In such cases, the bot will forward the booking inquiries directly into the IBE (Internet Booking Engine) and strengthen your direct sales. 30-50% of the chatbot-prospect interactions result in IBE forwarding of booking inquiries. This statistic shows how accepting the guests are of the chatbot’s services. (Source: DialogShift, Olga Heuser)
Chatbots can also be integrated into social media platforms and instant messenger platforms so that guests can directly make bookings from a platform of their choice.
How are Hotel Chatbots Redefining CX?
Apart from bringing in revenue through direct sales, hotel chatbots also create a solid customer experience for the guests, so they don’t go home unsatisfied and give you a good review online.
Here are the ways in which they enhance the customer experience:
24/7 Availability- Chatbots promptly respond to guest queries round the clock
Multi-Lingual Support- Languages are not a barrier for them
Efficiency- They lighten your hotel staff’s load of answering guest queries
Customer Retention- They collect guest information, which helps in retention and follow-up
Brand Awareness- They are brand representatives and increase brand awareness through responsiveness
Additionally, AI- powered chatbots can also:
Highlight the hotel’s special features upon check-in
Recommend places and activities to do around the hotel with pictures and links
Request feedback from guests about services
Assist with table reservations or pool-side orders
The Cosmopolitan, Las Vegas Used Rose to Impress Guests
The introduction of Rose, a smart chatbot that converses with guests on The Cosmopolitan’s website, changed the game for the hotel. The bot’s playful personality wooed hotel guests. Those who made a booking directly from the website ended up spending 37% more than those who did not engage with her.
Let’s Wrap It Up
A hotel chatbot refines the concierge experience for guests through rapid response times and enhances your hotel’s AI marketing efforts. It can be an invaluable asset for hotel business owners looking to stay ahead in the race.