By
Doug Kennedy
October 6, 2011
Although 2011 has provided a quicker rebound
in terms of
hotel occupancy and overall RevPAR, most
hotels are still looking for ways to further increase their ADR. One great place to start looking is your
hotel’s front desk. Depending on your
hotel’s inventory of accommodation types, the potential impact of a
comprehensive, focused upselling program will vary greatly. However when you sit down to do the math on
the potential additional revenue to be generated even for hotels with
minimal
upsell opportunities, it becomes instantly clear that the effort can
easily
generate a significant ROI. Potential
upsell
opportunities include:
- Special room types, such as
junior or one bedroom suites,
- Rooms or suites with special features such as whirlpool baths and
kitchens.
- Preferred views or hotel locations.
- Special "exclusive" floors such concierge or executive level
floors.
- Packages that include additional amenities, services, or activities.
- Adding on a second room at registration for a significantly reduced
rate. (Such as offering the family of four a second room at 30% off.)
Of course one opportunity to upsell
is
when callers contact the reservations department or call center. Yet with so many guests booking online these
days, the front desk registration experience might present the best
opportunity
of all.
- Guests may not be aware of upgraded
options, especially when the reservation was made by third party such
as a travel agent, administrative assistant, or function planner.
- Voice reservations agents may have failed
to convey the value of the upgraded options, or worse yet, failed to
mention them at all.
- The guest's needs might change while en
route. Business travelers, for example, might have pop-up
meetings or projects to work on, requiring additional workspace in
their rom.
- The impulse of the moment might cause
guests to be more receptive to upgraded options, especially after a
stressful day of travel. For example, when mom and dad were
planning the trip it seemed like a good idea to share a room with the
two kids, since "all we're going to do is sleep there anyway."
Yet after 8 hours in the minivan the adjoining room or suite starts
looking like a great option.
Another great advantage of upselling
at registration is that it’s possible to be very specific about what is
offered
by particular rooms or suites, since the front desk knows exact
inventory.
Front
Desk Upselling Training Techniques
- Reconfirm the
pre-reserved accommodation; reassure the guest that they already have a
nice room. Avoid making the options they've already
selected sound undesirable with statements like "Right now we've just
got you in a standard room." Instead say "Mr. Johnson, we have
you confirmed in one of our traditional rooms, which I'm sure you will
find quite comfortable…"
- Probe to find out
if the guest is aware of available upgrades with statements such
as: "Did your (travel agent or assistant) have a chance to tell you
about our ____ rooms?" or "When you booked online did you happen to
notice our suite options?"
- Present the
availability of upgrades as a unique opportunity by saying:
"We've had some of our ____ rooms open up this evening..." or "We're
offering a special rate to help familiarize our (repeat or first time)
guests with our business suites. Does that sound like something you'd
be interested in?"
- Utilize
incremental sales techniques, especially since in their minds
the original room rate has already been paid. "For only $25 more,
I can offer you one of our _____ rooms."
- Demonstrate the
value received. Be as specific as possible. Rather than saying
"Deluxe rooms have a view," say "In this room you can look out your
window and see…" Rather than saying "The concierge floor has a
lounge," say "As a guest on this floor you'll have 24-hour access
to our executive lounge, which includes…" Rather than saying
"This is a 600 square foot suite with a fully equipped kitchen," say
"Since you're traveling with your family, you'll love having all the
extra space this suite provides. And the kitchen will be nice if
you want to make breakfast or bring back take-out one
evening."
- Mention higher
rates as a reference point to position lower rates as being a good value:
"These rooms usually run _____, but because of (special circumstance) I
can offer you a special rate of _____."
- When quoting
rates to walk-ins, always offer a menu of options. Without
training, front desk associates tend to offer only one room type to
walk-ins, which is typically the least expensive. Instead, offer
walk-in guests a range of accommodation types and rates. Offer to
show the rooms where possible.
- Provide Front
Desk Associates With Visual Aids. Many hotels are finding
it helpful to display digital picture frames showing photos (from the
website) of actual rooms and suites. You can also drop-in a slide
with copy reading "Ask us about suite upgrades" or similar.
Structuring Rates So That An Upgrade Is A Reasonable Value
Most properties market a range of rates to various market
segments.
However, groups, high-volume
accounts, or guests participating in special discount programs, are
only
offered their special rate for the
least expensive room type. Upgraded accommodations, if offered at all,
are at rack rates.
The end result is
that the additional cost to upgrade does not justify the value received.
For example, if the rack rates are $100 for a regular room
and $135 for deluxe, a $35 difference seems reasonable.
However, when a special corporate rate of $79
is offered for the regular room only, the upgrade fee, which is now
$56, is
effectively out of reach.
To work around this, many properties are
implementing a “flat rate” for upgrading.
In this scenario, the guest always has the option of upgrading for the
same fee, regardless of what rate they qualify for. So whether
it’s a corporate, group,
government, or promotional rate, the investment for the upgrade is
reasonable. Best of all, additional
revenue is created from rooms which might have been given away at lower
rates
anyway!
Recognition
And Incentive Programs
A key ingredient in any upsell
program is to measure the
results and to implement a recognition and/or incentive program. Front desk upsell incentives are especially
easy to justify, as the upsell can be documented. (Associates
simply do a print-out to document
the change.)
Most incentives reward the individual associate for each
upsell, with either a predetermined cash amount, with points that can
be
redeemed for prizes, or perhaps with days off with pay.
(Cash incentives should be paid separately to
help differentiate rewards from base salary.)
Alternatives are team incentives where everyone who works
during a given
time period (i.e. shift, day, or week) is rewarded equally for upsells
which
occurred during that period.
Regardless of which incentive program is selected, it is
important to post the results in a prominent area on a regular basis. This helps spark the competitive spirit, and
reminds all associates of the potential to achieve the same rewards
being
earned by the top performers.
By focusing your front desk team’s attention on
upselling,
by providing training tips for doing so, and by measuring and rewarding
the
results, your property can turn-on the faucet to this extra revenue
stream. Along the way, your guests will
enjoy utilizing the extra space, upgraded room features, and special
services
they might not have otherwise considered.
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Doug Kennedy is
President of the Kennedy Training Network, Inc. a leading
provider of customized training programs and telephone mystery shopping
services for the lodging and hospitality industry.
Doug continues to be a fixture on the
industry’s conference circuit for hotel companies, brands and
associations, as
he been for over two decades. Visit KTN
at: www.kennedytrainingnetwork.com Read his travel blog at ontheroad.kennedytrainingnetwork
or email him directly: [email protected] |
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