Understanding Hotel Upselling: How-to Techniques for Hotel Event and Group Sales

In the competitive world of hotel sales, finding ways to increase revenue is crucial which is where hotel upselling comes in! While attracting new clients is important, did you know that according to Forbes, the probability of selling to an existing customer is 60-70%, compared to just 5-20% for new prospects? By implementing smart upselling strategies throughout your sales cycle, particularly for event and group bookings, you can significantly boost your revenue, enhance customer relationships, and optimize your property’s resources.

What is Hotel Upselling?

Hotel upselling is the practice of offering guests additional services, amenities, or upgrades to enhance their stay while increasing the hotel’s revenue. This can include options like room upgrades, late check-out, breakfast packages, spa services, or exclusive experiences. For group bookings and events, this could mean upgrading to larger meeting spaces, adding audiovisual equipment, or including catering packages. By presenting these opportunities at various touchpoints—such as during booking, at check-in, or while at your property—hotels aim to create a more personalized guest experience and maximize profitability.

Upsells are different than cross-selling in that upsells are additional offerings or features within your property, whereas cross-sells are products or services that are available outside your property.

Why is Hotel Upselling Important?

They are frequently overlooked yet play a crucial role in enhancing a hotel’s revenue management and guest experience strategy. The benefits of effective upselling include:

Creates Stronger Client Relationships and Potential for Repeat Business

Engaged guests are also more likely to make repeat bookings, extend their stays, and recommend the property to others, further contributing to a hotel’s revenue growth

Increases Revenue Per Booking

Engaged guests, who feel valued and connected to a hotel through personalized interactions, exceptional service, and memorable experiences, tend to spend 46% more annually compared to actively disengaged guests.

Enhances Guest Satisfaction Through Personalized Experiences

By delivering personalized touches, hotels can significantly enhance the overall guest experience, leading to increased satisfaction, loyalty, and positive word-of-mouth referrals. In turn, this approach drives higher revenues and reinforces the hotel’s reputation for exceptional service.

Improves Utilization of Hotel Facilities and Services

When hotels proactively drive awareness and interest in their facilities, guests are more likely to take advantage of these offerings. This improves the property’s overall efficiency, generates additional revenue, and ensures guests leave with a memorable and well-rounded experience.

Upselling is an Effective Tool for Mitigating Revenue Losses

Upselling can mitigate external challenges, such as an economic downturn. It allows hotels to maximize revenue from existing bookings by offering guests opportunities to enhance their stay. Rather than relying solely on increasing occupancy rates, which can be challenging during periods of low demand, upselling focuses on boosting the value of each transaction.

Sets Your Property Apart

Upselling creates differentiation against competitors and elevates marketing practices by enabling hotels to offer unique, customized experiences that set them apart in a crowded marketplace. Through strategic upselling, hotels can showcase their ability to provide added value and personalized options that cater to guests’ preferences and elevate their overall experience.

Categories of Upsells in the Hotel Industry

1. Room-Based Upsells
   

   • Room Upgrades

     • Premium rooms (suites, high-floor rooms, scenic views)
     • Larger rooms or additional amenities (e.g., balcony, Jacuzzi)

   • In-Room Additions

     • Premium bedding or pillow options
     • Enhanced mini-bar selections
     • Special lighting or decor packages (e.g., romantic setups, themed rooms)

2. Service-Based Upsells
   

   • Dining and Beverage

     • In-room dining (breakfast, lunch, dinner options)
     • Fine dining or specialty restaurant reservations
     • Exclusive wine or cocktail packages

   • Spa and Wellness

     • Massages, facials, and other treatments
     • Wellness packages (e.g., yoga sessions, fitness classes)

   • Exclusive Activities or Experiences

     • Private tours (local sightseeing, guided excursions)
     • Custom experiences (e.g., private cooking class, adventure sports)

3. Amenities-Based Upsells
   

   • Upgraded Facilities

     • Access to VIP lounges or executive floors
     • Priority access to pools, spas, or fitness centers

   • Enhanced Services

     • Concierge services for personalized assistance
     • Premium Wi-Fi or tech upgrades (e.g., in-room streaming, device rentals)

4. Time-Based Upsells

• Extended Stays

  • Late check-out or early check-in options

• Time-Sensitive Packages

  • Weekend getaways, holiday specials, or seasonal offers

5. Group and Event-Based Upsells

• Meeting or Event Upgrades

  • Additional meeting room features (AV equipment, catering, décor)
  • VIP event access or exclusive venues for events (e.g., private dining or suites for groups)

• Event Add-Ons

  • Customized event packages (e.g., team-building activities, private chef services)

• Room Block Packages
• Food and Beverage Add-ons

6. Technology-Based Upsells

• Tech Enhancements

  • Premium in-room tech (e.g., smart room control, high-definition screens)
  • Digital concierge or mobile app services

• Online Additions

  • Online room or package upgrades (purchased in advance via booking platforms)

7. Seasonal or Promotional Upsells

• Holiday-Specific Packages

  • Christmas, New Year’s, or other holiday-themed experiences

• Seasonal Events

  • Special offers tied to local festivals, sports events, or cultural holidays

Strategies to Incorporate Upselling into Your Hotel’s Event and Group Sales Process Identify Prime Upselling Opportunities

Start by analyzing your Sales and Catering CRM data to identify patterns in group bookings and events. Look for trends such as:

• Corporate groups that often extend their stay for team-building activities
• Wedding parties that frequently add rehearsal dinner bookings
• Conference organizers who upgrade to larger spaces as attendee numbers grow

These insights will help you tailor your upselling approach to different client segments.

Optimize Your Website for Group and Event Upsells

Create dedicated landing pages for different types of events (conferences, weddings, corporate retreats) that showcase potential upgrades. Include:

• Virtual tours of different-sized meeting spaces
• Customizable catering menus
• Add-on options like team-building activities or spa packages for attendees

Use clear call-to-action buttons to make it easy for planners to inquire about these upgrades.

Leverage Pre-Event Communications

Once a group booking is confirmed, use pre-event emails to suggest relevant upgrades:

• Offer early check-in or late check-out options for attendees
• Promote exclusive dining experiences for VIP guests
• Suggest adding welcome receptions or farewell brunches to the itinerary

Frame these suggestions as ways to enhance the overall event experience rather than just additional sales.

Train Your Sales Team in Consultative Selling

Equip your sales team with the skills to identify client needs and suggest appropriate upgrades. For example:

• If a corporate client mentions team bonding, suggest adding a cooking class or mixology workshop to their agenda
• For wedding planners concerned about guest entertainment, propose adding a photo booth or live music options

The key is to position upgrades as solutions to the client’s specific needs or concerns.

Create Attractive Package Deals

Develop all-inclusive packages that bundle accommodations with event spaces and additional services. This approach can make upgrades more appealing and simplify the decision-making process for planners. Examples include:

• “Conference Plus” package: Meeting space, basic AV, coffee breaks, and lunch
• “Deluxe Wedding Weekend” package: Ceremony venue, reception space, guest rooms, and brunch

Utilize Technology for Personalized Upselling

Utilizing technology for personalized upselling allows hotels to deliver tailored recommendations to guests based on their preferences, booking history, and real-time behavior. Implement a CRM system that allows you to track client preferences and past bookings. Use this data to offer personalized upgrades:

• If a returning corporate client previously added team-building activities, proactively suggest new options for their upcoming event
• For repeat wedding planners, offer exclusive access to newly renovated spaces or special decor packages

With Tripleseat for Hotels, properties can easily manage and track guest interactions, offering targeted upsells like room upgrades, dining options, or exclusive experiences that enhance the guest’s stay while boosting revenue. By integrating these personalized offers into the guest experience, hotels can increase conversion rates and create lasting impressions.

Offer Last-Minute Upgrades

Even after the initial booking, continue to look for upselling opportunities:

• Contact the event organizer a week before the event to offer last-minute upgrades like enhanced AV equipment or additional breakout rooms
• Train your front desk staff to suggest room upgrades for individual attendees upon check-in

Implement a Loyalty Program for Event Planners

Create a loyalty program specifically for event planners and corporate clients:

• Offer points for every dollar spent on events, including upgrades
• Provide exclusive access to new event spaces or services for loyal clients
• Give complimentary upgrades after a certain number of bookings

Gather Feedback and Continuously Improve

After each event, solicit feedback on any upgrades or additional services provided:

• Use post-event surveys to understand the value perceived by clients
• Analyze which upgrades are most popular and why
• Refine your upselling strategies based on this feedback

Partner with Local Businesses for Unique Offerings

Collaborate with local vendors to offer unique cross-sell experiences that set your property apart:

• Partner with local tour companies to offer exclusive city tours for conference attendees
• Work with nearby golf courses to provide special rates for corporate groups
• Collaborate with local artisans to create custom welcome gifts for wedding guests

By implementing these strategies, you can create a robust upselling program that not only increases your revenue but also enhances the overall experience for your group and event clients. Remember, the key to successful upselling is to always focus on adding value for your customers. When done right, upselling can lead to happier clients, increased loyalty, and a stronger bottom line for your hotel.

Tripleseat for Hotels offers event management tools that support upselling opportunities. With Tripleseat, hotel event managers can upsell additional services, such as AV equipment, catering, or room upgrades, when managing event bookings. The platform allows for customizing event packages, adding optional add-ons, and tracking upsell opportunities within the system. This helps hotels maximize revenue while providing a more tailored experience for event clients. With Tripleseat for Hotels, you can increase and manage your hotel’s group sales, from hotel room blocks to booking event function spaces and growing banquet revenues, in one tool. Schedule a demo to learn more.

Heather Apse

Heather is a Content Specialist at Tripleseat. Connect with Heather on LinkedIn.