Unlocking Revenue Potential: The Power of Effective Upselling

Amy Moore
Amy Moore
2 minute read
Unlocking Revenue Potential: The Power of Effective Upselling

In the hospitality landscape, leveraging effective upselling techniques can significantly enhance guest experiences while boosting revenue. By seamlessly encouraging additional spending and fostering long-term loyalty through your operational software, you can implement strategies that allow your team to focus on essential in-person interactions, pre-arrival communications, and post-service offers.

Upselling is crucial, but when done well, it goes beyond simple upgrades and transforms into a personalised experience for each guest. By customising recommendations during the booking process with data insights, upselling can feel organic, enticing, and effortless. The challenge is finding ways to generate additional revenue, whether during the in-person experience, throughout the booking phase, or even after the guest has checked out.

We’ve previously highlighted the importance of personalisation, and it remains vital for success. Utilise guest preferences and booking data to deliver tailored suggestions as guests finalise their selections; for example, if a guest is booking a single treatment, consider recommending a package that includes access to the wet facilities or an enticing dining option. Additionally, for returning guests, consider offering loyalty perks such as discounted upgrades or spa add-ons that they have enjoyed in the past.

Packages are an excellent way to bundle services at a slight discount compared to purchasing each aspect individually. For instance, think about offering guests a welcome drink or product, a spa treatment, lunch or afternoon tea, and access to the wet facilities. When guests book these packages, they perceive it as a great deal, while you also highlight services that may not be frequently booked on their own.

On top of packages, you can further enhance your offerings, whether in-person or prior to your guests' arrival. For instance, suggest an upgrade on products used—like offering a glass of fizz instead of a smoothie—things that won't add extra time to a guest's experience but can increase revenue.

These strategies not only drive immediate gains but also contribute to the broader revenue metric of your property. By increasing ancillary spend through personalised upselling, you directly boost TRevPAR, creating a more comprehensive picture of your property’s performance and profitability. It's a crucial KPI that reflects how well you're maximising revenue potential across the entire guest journey.

After your guests have made their bookings, how can you entice them before their arrival? Take advantage of your operational software to send exclusive offers available only for advance booking. By creating a sense of urgency with limited-time offers, you can motivate guests to act quickly.

And, once your guest is onsite, consider upselling extended access to facilities like the pool, gym, or spa for late-night use for an additional fee. After a guest enjoys their spa treatment, therapists can recommend products that extend their experience at home, enticing them further by offering a time-limited discount.

Finally, always follow up with a personalised message inviting them back for their next experience, such as a complimentary product, welcome drink, or discounted massage. This thoughtful approach not only enhances their overall experience but also builds loyalty encouraging repeat visits - in turn, further increasing your TrevPAR.

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