How Thinking Like a Retailer Can Help Your Hotel Drive Upsell Revenues

In today’s competitive hotel market, finding ways to boost revenue while enhancing guest experience can feel like an uphill battle. Yet, adopting a retail mindset might be the game-changer your hotel needs. 

Recently, our CEO Tony Barker (Chicostay), joined HotelOwner.co.uk for an indepth discussion on how leveraging modern technology and retail strategies can transform hotel operations and drive significant upsell revenue.

The conversation highlighted how adopting practices similar to retail (e-commerce) industries—where upselling and personalization are key—can help hotels better meet guest expectations and increase profit margins. In particular, Tony drew on his extensive experience in the airline industry, where ancillary services like seat upgrades, extra baggage, and onboard purchases account for up to 40% of total revenue.

Upselling Through Personalization and Timing

One of the central points in the discussion was how hotels can take a more proactive approach to upselling. Instead of waiting until the guest arrives to present services, hotels can engage guests ahead of time with personalized offers, ranging from early check-ins to spa packages and room upgrades. The idea is to mirror the way retail industries operate—targeting the guest at just the right moment in their booking journey to drive higher conversions.

By automating these interactions and providing more tailored choices, hotels can not only increase average order values but also enhance the overall guest experience. Tony mentioned that many guests, especially those on leisure trips, are more likely to spend on extra services when they’re reminded before they arrive. With a bit of planning, hotels can capture additional revenue that might otherwise be lost to competitors or alternative service providers.

Efficiency and Guest Experience Go Hand in Hand

During the podcast, the discussion also touched on how operational efficiency plays a vital role in improving guest satisfaction. With technology now allowing for automation in many areas—such as check-in, keyless entry, and payment processing—hotel staff can focus less on repetitive tasks and more on delivering meaningful, personalized service. This shift not only reduces operational costs but also creates a smoother, more enjoyable experience for guests.

When a guest’s first interaction at the hotel is free from the usual administrative burdens, staff can spend more time on value-added services that make guests feel welcome. This strategy mirrors successful retail businesses, where creating a seamless and enjoyable customer experience is critical to encouraging repeat purchases and brand loyalty.

A Proven Retail Strategy for Hotels

Tony noted that while the hotel industry has traditionally been slower to adopt these kinds of retail strategies, the potential benefits are enormous. By shifting focus from just selling a room to offering an entire experience, hotels can create new revenue streams from their existing assets. Whether it’s through additional services like spa treatments or meal packages, or even more creative offerings, hotels can make better use of what they already have.

For those interested in hearing more about how retail strategies can transform hotels, Tony Barker’s conversation offers plenty of actionable insights. Listen to the full episode on your preferred platform:

• Spotify: Listen Now
• Apple Podcasts: Listen Now

Explore how thinking like a retailer can enhance both guest satisfaction and your hotel’s bottom line.

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