6 Ways AI Can Help You Upsell and Cross-sell Your Hotel Guests
Looking for ways to increase the overall customer spend at your hotel? To increase your revenue, you want to master ways to both upsell and cross-sell to your customers.
This requires a solid strategy to not only increase spending but also increase customer satisfaction at the same time. What’s more, according to the Hotel Marketing Network, hotel upselling is on the rise.
If you have a successful upselling strategy, your conversion rate may increase which leads to a certain increase in your overall revenue.
In this article, we look at six ways AI can help you upsell and cross-sell your hotel guests. First, let’s look at the difference between the two.
What’s the Difference Between Cross-Selling and Upselling in Hotels?
When you upsell, you are selling an upgraded version of what your guests first purchased. This might mean a room with a better view, a late checkout, a premium package, or breakfast or dinner included.
When you cross-sell, you are selling an additional service or product. This might mean selling taxi services or even spa services. This ultimately enriches your customer’s stay.
Both versions add to your revenue by boosting a customer’s average spend.
In addition to improving your hotel occupancy rate, both upselling and cross-selling activities can add a significant contribution to your revenue maximization strategy. They help boost average spending per guest, and incremental revenue per room.
To stay competitive in your market, you want to enhance the overall customer experience, and AI can help you do that with upselling and cross-selling. AI can help you personalize your offerings and enhance new bookings and customer retention.
It’s a powerful tool you can use to personalize your marketing strategy and increase revenue. Here are six ways AI helps you upsell and cross-sell.
#1: Personalized Recommendations
You can use AI software to analyze vast amounts of customer data. This includes their past behaviors, personal preferences, and their demographics. Using this, you can offer personalized recommendations to increase the amount they spend at your hotel.
For example, if you have a guest who likes to order room service when they stay with you, your software can suggest meal upgrades or offer special menu items that cater to their individual tastes. Because you personalized the offer, your guests are more likely to take advantage of it.
#2: Dynamic Pricing Strategies
Next, you want to use AI’s unique algorithms to implement dynamic pricing strategies. This means that your pricing adapts to demand, guest behavior, and seasonality.
Using your AI analytics, you can decide on the best times to offer customer upgrades or even when to offer promotions to encourage the booking. This is all based on your current occupancy levels and personalized guest profiles.
For example, you might offer a discounted room upgrade if you have a lot of empty rooms. This entices your guests to spend more by extending their stay or simply spending a little bit more on their room because you discounted the upgrade.
#3: Chatbots for Real-Time Assistance
Another perfect way to use AI is with the chatbot widget on your website or mobile app. If you don’t currently have one, this is a definite must for not only upsells and cross-sells but overall customer satisfaction.
Chatbots engage with your guests in real-time. They can answer questions from potential lodgers, and they can also answer questions for people currently staying at your hotel.
In addition, AI-powered chatbots can offer personalized upsell opportunities to people simply based on their questions and the overall conversation.
For example, if a guest asks about local attractions, the chatbot can suggest package deals that include accommodation and tickets along with their hotel stay. This offers a seamless cross-selling opportunity.
#4: Enhanced Targeted Marketing
As we mentioned, AI can analyze vast datasets and help you identify trends. This ultimately helps you predict guest behavior.
Because of this, you can craft targeted marketing campaigns. You can segment your audiences based on their behaviors and preferences. Then, you can send your current and potential customers tailored promotions via email, social media, or your mobile apps that highlight relevant upsell and cross-sell opportunities.
You’ll notice that this targeted approach significantly increases the chances of conversion.
#5: Predictive Analytics for Behavior Forecasting
You can also use predictive analytics with your AI software. This helps you anticipate just what your guests want even before they arrive at your hotel. (tweet this)
For instance, if you look at your historical data and notice that some of your guests often book spa treatments at your hotel spa or romantic dinners in your restaurant, you can proactively reach out to your guests with offers tailored to their interests.
When you use predictive analytics, not only do you increase the likelihood that people will purchase add-ons, but you also encourage repeat bookings. Finally, because you are predicting what customers want, you also enhance the overall guest experience.
#6: Streamlined Booking Platforms
Another way you can leverage AI to upsell and cross-sell your hotel guests is during the booking process.
You can embed these AI options right into your booking engine so you can offer room upgrades, activity cross-sells, dining options, spa reservations, and more. This creates a seamless experience for your hotel guests and makes it easy for them to book everything in one spot.
This integrated approach helps you offer your guests products and services at an additional value without pressuring them. Ultimately, this leads to higher conversion rates.
Final Thoughts on Upselling and Cross-Selling Your Hotel Guests
By integrating AI into your upselling and cross-selling strategies, you can transform your hotel’s revenue potential. In addition, you’ll enhance the overall guest experience, creating a hotel that guests return to again and again.
Through personalized recommendations, dynamic pricing, and data-driven insights, you will meet your guests’ needs while maximizing additional sales opportunities. As the hospitality landscape continues to evolve, embracing AI-driven solutions is key to helping you be competitive and relevant in your market.
Don’t forget to also focus on personal connections and offerings tailored to your guests’ personal tastes. This creates a memorable experience that people are willing to pay for while increasing guest satisfaction and brand loyalty.
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Images: Kelvin Zyteng and Maxim Berg on Unsplash
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