Search Results for: upselling

New rooms upselling: increasing revenues in a simple way

En españolen françaisem português.

After a long preparation time, we launch one of this year’s main improvements of our booking engine: upselling of rooms (or apartments, if that is your case). 

It is a tool:

  • Developed internally by our technical team
  • That works by itself and without maintenance on your part
  • At no additional cost to you
  • That can only improve your reservations, no risks involved

There are many advantages to an upselling system:

  • It increases your revenues (more specifically your average reservation value)
  • It improves the satisfaction of your customers and therefore the possibility of them returning to your hotel
  • It frees up cheaper rooms that, in case of being closed, gives you greater price competitiveness on peak dates
  • By doing it in your direct channel, it improves your value proposition and its differentiation versus the intermediation

We have written a more detailed article on the many advantages of upselling.

Room Mate upselling Mirai

What does it consist of

A better room : by email, we will offer the customer the type of superior room that you have preconfigured, if it is available and we have been able to calculate the price.

Shortly before arrival : a few days before the customer’s arrival we will send the email offering the upselling, which is when they will be most willing to accept an improvement in the upcoming stay since they are probably looking forward to it.

100 % automatic and simple: You don’t have to worry about anything: we will launch the invitation to the upselling, determine the price based on what you have on offer at that moment and we will modify the reservation.

It is also very simple for the customer: they receive the email with a clear, direct and visual message and they only have to accept or ignore it.

This is how it works. The five steps of the process

1.- You configure it once in the extranet (very straightforward) : you just have to mark which superior room to offer for each type of room that is reserved … and activate the upselling.

upselling extranet Mirai

2.- We will send an EMAIL to each reservation to which we can offer the upselling.

3.- The customer confirms the action on a PAGE that they are directed to by clicking on the email, if interested. We will provide that page (or you can tell us the address if outsourced).

4.- A reservation MODIFICATION is generated: Like any other modification, the guest will receive an email with the changes and so will the hotel.

Only the room type and the total amount of the reservation will have changed.

5.- You must charge the price difference directly at the hotel. You always have to be prepared to handle this charge. Even in the case of a fully prepaid reservation at the time it was made, the difference must be paid at the hotel. The customer will be informed.

Should you activate the Mirai upselling in your specific case?

Our recommendation is that you do, as long as you meet these requirements: 

  • You have superior room types. Obviously, it would not make sense if you only have one type of room or if the differences between the two do not add any value (for example it would not make sense to offer a “Double” and a “Double with extra bed”).
  • You are able to charge the difference. We avoid the obstacle that would entail charging again for the price difference: it would require re-entering the payment method. Instead, the customer will pay you directly. You just have to be aware and prepared. We will send the modification of each reservation, with the new total amount, both to the channel manager and by email.
  • You are able to manage reservation modifications.  Not all channel managers and PMS are efficient when it comes to sending you reservation modifications. In some cases there are fields that can be problematic such as the prepaid amount. Make sure you have no operational problems in this regard.
  • You understand and accept the upselling price, which we will have calculated. Depending on the reservation, this calculation could be straightforward and obvious or it could be complicated and difficult to decipher. We cannot give you details of what each calculation will have been. You will have to trust us.

How do we calculate the price to offer the upselling?

Unlike other upselling systems available on the market, we have the advantage of having access to your room prices, complete and always updated: it is all we need to calculate the upselling price.

Upselling Price = Difference in price currently for sale of the two types of rooms. The upselling price will be the difference of the sale price between the two types of rooms: the lower and the higher type. We will see what price they have loaded, we extract it and calculate the difference… that simple.  

Comparing prices… when? If both prices are available at the time of encouraging the upselling, great! That will be the price to pay for the upselling, based on that difference that day.

In the event that the lower rate is no longer available (which is common a few days prior to the arrival), we will compare the higher room at that time with the original room at the price at which it was reserved. It is not that precise but it will be better than giving up on offering upselling.

What rate-occupancy-board do you compare? We will always compare the same: that is, between the two types of room, we will use the same board, the same occupancy and the same rate-offer (preferably the reserved one; and if it is no longer available, another common one, available in both rooms).

In the rare cases when we cannot calculate the price or the result is negative, we will rule out offering upselling.

What do I have to do now?

Contact your account manager. They will explain what you have to take into account in your specific case and, if everything is clear, they can activate it almost instantly.

 

More about Mirai’s upselling system:

The many advantages of upselling (revenue, loyalty, satisfaction)

En españolen françaisem português.

In many hotels around the world, receptionists keep a post-it note behind the counter to remember the prices at which to offer guests a better room. This is what we call ‘upselling’. It has existed for decades in this rudimentary form, which gives us an inkling of its inherent value. Of late, upselling has become more sophisticated, though the basic idea remains the same.

Upselling Mirai

 

To upsell is to increase the revenue generated from a closed or upcoming sale. In the case of hotel bookings, this mostly means selling something worth more than what had initially been booked: extras, a better board type, a better rate/package or, especially, a better room.

The advantages for guests are obvious: the optional possibility of improving their stay.

And for the hotel? Let’s take a quick look at its advantages, which revolve around increasing revenue and improving customer satisfaction and loyalty:

Increased revenue (specifically, the average price per booking)

If upselling successfully transforms a booking into a better room, board type or rate, that automatically increases your hotel’s average price. Not the average price per TYPE of room, which remains the same, but the average booking price.

Even more so if the upselling consists in selling extras related to the stay at the hotel; the extra revenue would then increase the total price of the booking, and not just the average price of the room. Accounting aside, the bottom line is that it always involves an increase in gross revenue.

More precisely, we should also ask ourselves what expenses are involved to better calculate the net profit, the one that really matters, and that will depend on the upselling platform being used:

  • There are companies that specialise in hotel upselling with very good products and innovative approaches. They indeed provide hotels with the technical platform they need. The downside is that they tend to ask for about 25%.
  • On the other hand, sales channels can also add this extra layer of upselling onto their base product: the room booking. The cost may vary:
    • If an OTA offers its own upselling, the cost will be its commission, which tends to be high. What usually happens is that hotels play no part in this process and therefore do not even realise the OTA is running its own upselling system; all they see is a booking modification.
    • If it is the direct channel, two things could happen:
      • The tech provider (the booking engine) will charge the hotel an extra
      • or it will charge the usual rate, the same one it applies to basic bookings. The latter possibility is more interesting because these prices tend to be quite low as they don’t support extra investments in marketing, which is what truly makes prices go up in direct sales.
    • Funnily enough, neither OTA’s nor booking engines usually have upselling modules, which means the costs are zero… because the total number of upselling sales is zero.

Greater value proposition for the channel offering it

If the intermediary channel offers the upselling, it will take the credit in the eyes of the client.

If, however, your direct channel offers it, this improves your value proposition and gives you an edge on the intermediaries. Keep in mind that clients associate the direct channel with the hotel, which means a good online direct sales service, upselling included, will be seen as a good service on the part of the hotel. This does not happen with intermediaries.

Higher customer satisfaction and, therefore, more chances of them returning to your hotel

Customer loyalty is built on satisfaction. One possible approach to upselling would be to not focus on increasing revenue, but instead to offer upselling as a form of added value – at a discount or for free – aimed at all clients, direct channel clients or loyalty club clients. For instance, Booking.com tends to offer Genius clients a better room for free.

All hotel and chain direct sales should pursue the same goal: to make upselling a tool of their loyalty club to boost their distinctive value. This can lead to several scenarios, like offering upselling for free in specific circumstances (low occupancy, price drops, special guests, etc.). Using upselling to increase loyalty does not mean it cannot be used it for other ends, such as acquiring new clients.

Freeing up cheaper rooms

Upselling to a better room has happy consequences for your available stock: when a booking is upgraded to a better room type it frees up the original lower-category room, which is usually easier to sell.

Occupying rooms that are harder to sell

Another consequence of the previous point is that upselling helps occupy rooms that would otherwise be harder to occupy, especially a few days before the guest’s arrival. We have all looked for hotels at the eleventh hour in times of high occupancy only to find that the only rooms available are the superior ones.

In short, ensuring the availability of rooms that are easier to sell is an indirect way of improving your chances of increasing your revenue.

What should an upselling system applied to your direct sales include

Unlike with other channels, in the case of your booking engine, you, as a hotelier, are responsible for offering a good solution. There are certain features you should keep in mind:

  • To state the obvious: it must include an upselling module. Most booking engines for hotels do not include this option.
  • It must be as autonomous and automatic as possible, otherwise it will take up too much of your time – and time is money.
  • It must offer upselling to guests at the right moment to guarantee they will take it: that moment is shortly before their arrival, long after they made the booking or paid for it. At that point, guests will be thinking about their arrival, their stay, perhaps excitedly so, which makes it the time when they are most likely to spend some more money.
  • It should cost you as little as possible, ideally no more than what you pay for a basic booking.
  • It must be very simple for guests: clear, attractive information and the upselling should be available at a click
  • It must handle the operational side for you, from modifying the booking to letting you know about it. The operational side includes many other issues for which you will have to involve your hotel…

Mirai’s upselling tool fulfils all these requirements. 

The operational challenge

Does upselling only have advantages? Basically, yes. There are no downsides as such. But you will have to first work out one prerequisite: the operational side.

You should use an upselling platform that automates as many processes as possible: opportunity detection, upselling price calculation, informing the guest about upselling opportunities, modifying the booking when the upselling is accepted, etc. That way there should be next to no loose ends and the process should go smoothly. Will your channel manager and PMS be able to manage the modified booking without problem? Will your receptionists be aware of how much to charge for an upselling when the time comes to do so? Will your room inventory be updated every time a room category is changed? These and many other questions should be addressed if you are going to implement an upselling system.

Conclusion

Once you have accounted for all the operational processes, upselling is nothing but advantageous. Even in a worst-case scenario, you will not have anything to lose. The first step is to have an upselling system, which is not all that usual. If you do not have one, you should seriously consider it and research options, especially applied to your direct sales.

Hoteliers receive endless proposals to receive more bookings… in exchange for lowering rates or driving up costs. These ideas are meritless. What you really need are ways to increase your revenue or cut your costs: upselling is a rare gems that provides just that.

Booking Engine

Discover our best in class booking engine

Mirai Booking Engine

A modern look&feel combined with the simplest and user-oriented functionality to optimise your conversion rate and clients’ satisfaction. Discover how it looks both in desktop and in mobile.

actual

Easy, intuitive, usable

A process with a minimum of steps and complications so as not to lose reservations due to unnecessary obstacles.

Multi-device

Desktop, tablet or mobile. Screen size doesn’t matter. Our system is conceived for any device.

Constant updates

Our booking engine evolves in step with your needs. We regularly add new functionalities and improvements with no extra cost.

Styles that you can personalise

Your colours, your font, your style. Our booking engine adapts to your website’s general appearance so that your image is naturally portrayed.

business

Flexibility of prices, conditions, restrictions…

You decide what and how to sell: room, rate, etc. You can modify, as much as you want, conditions, price and these restrictions: closed for arrivals, closed for departures, release, minimum stay per arrival or minimum stay per stay.

Urban and vacation

We consider all the possibilities: adults or children of different ages? Do you only offer breakfast or is important for you to cater for different meals and diets? Do you apply fixed increments for short stay? Do you sell multiple packages?
Are you Adults Only?…
More on desktop version

Promotional code system

You can create and distribute codes assigning them different conditions so that they are reserved through your website. No one else will see them and they will be the basis for your loyalty system for regular customers.

Private access for agents/companies

Retail agencies, companies, event organisers… Redirect all these contributors to your website. They can then enter a code and access their specific non-public conditions. Exclusive rates, commissions, negotiated form of payment, general
discounts… Everything you give them in private, they will be able to find on your website.

Reports and statistics

You will receive a monthly report that reflects in updated form your hotel’s performance. In the extranet, you have sales and demand statistics available so you can analyse reservations and make decisions about revenue management.

Measurable

Thanks to integration with Google Analytics, Google Adwords and Google Tag Manager you will be able to analyse your users’ behaviour when they are navigating your website. This information will guide you when you have to make important
decisions that will help you in your website’s final conversion.

Intelligent for the user

This variety of options does not translate into a bigger complexity for the user. For example – we don’t show suitable offers if there are better ones available; if an offer is not available every day of a query, it is completed with
another offer, which allows for a lower price (rate mixing).

productive

Increase the average value of your orders

Offers and packages

Mirai’s system of offers and packages is the backbone of our reservation engine. For this reason, we offer infinite configuration options: price calculation, conditions, appealing visibility or flexibility. We allow so much content to
be available, that you will have a whole range of offers at your disposal for your website.

UPSELLING: System of extras

Our powerful system of extras allows you to increase the average booking value and offer your clients a unique value proposition. You will also increase the monetisation of your clients with our fully automated upselling system that allows
your clients to upgrade their roomtype improving their experience and satisfaction.

CROSSELLING: Complete your offer

Benefit from synergies and offer external service extras. Transfers, excursions, experiences, bike rental… You can also receive/send reservations to and from other associated hotels when there is no availability.

international

Languages available

Mirai’s extranet works in different languages: English, Spanish, French, Portuguese and Catalan.

Multi-currency and multi-tax

Configurable rates, included or not, depending on the country where your hotel operates: VAT, tourist rates for various calculations…

included

Business Intelligence

We have worked on the best and most comprehensive reporting and dashboard solution: Mirai BI.More on Mirai BI

Loyalty

Build customer loyalty with our contemporary and versatile loyalty programme.More on loyalty

Upselling

Out tool to improve satisfaction of your customers and increase your revenues. More on upselling

Integrations

Choose the best partner and connect it to your website and direct sales.More on integrations

related

Booking engine

Booking engine: easy, secure and multi-device

New Mirai booking engine

We present our new booking engine full of exciting details, functionality and new features.
This is accompanied by a modern look and feel and simple, user-friendly functionality to drive the optimisation of conversion rates.
Would you like to learn more? Discover the desktop version and  mobile version.

actual

Easy, intuitive, usable

A process with a minimum of steps and complications so as not to lose reservations due to unnecessary obstacles.

Multi-device

Desktop, tablet or mobile. Screen size doesn’t matter. Our system is conceived for any device.

Constant updates

Our booking engine evolves in step with your needs. We regularly add new functionalities and improvements with no extra cost.

Styles that you can personalise

Your colours, your font, your style. Our booking engine adapts to your website’s general appearance so that your image is naturally portrayed.

business

Flexibility of prices, conditions, restrictions…

You decide what and how to sell: room, rate, etc. You can modify, as much as you want, conditions, price and these restrictions: closed for arrivals, closed for departures, release, minimum stay per arrival or minimum stay per
stay.

Urban and vacation

We consider all the possibilities: adults or children of different ages? Do you only offer breakfast or is important for you to cater for different meals and diets? Do you apply fixed increments for short stay? Do you sell multiple
packages? Are you Adults Only?…
More on desktop version

Promotional code system

You can create and distribute codes assigning them different conditions so that they are reserved through your website. No one else will see them and they will be the basis for your loyalty system for regular customers.

Private access for agents/companies

Retail agencies, companies, event organisers… Redirect all these contributors to your website. They can then enter a code and access their specific non-public conditions. Exclusive rates, commissions, negotiated form of payment,
general discounts… Everything you give them in private, they will be able to find on your website.

Reports and statistics

You will receive a monthly report that reflects in updated form your hotel’s performance. In the extranet, you have sales and demand statistics available so you can analyse reservations and make decisions about revenue management.

Measurable

Thanks to integration with Google Analytics, Google Adwords and Google Tag Manager you will be able to analyse your users’ behaviour when they are navigating your website. This information will guide you when you have to make
important decisions that will help you in your website’s final conversion.

Intelligent for the user

This variety of options does not translate into a bigger complexity for the user. For example – we don’t show suitable offers if there are better ones available; if an offer is not available every day of a
query, it is completed with another offer, which allows for a lower price (rate mixing).

productive

Increase the average value of your orders

Offers and packages

Mirai’s system of offers and packages is the backbone of our reservation engine. For this reason, we offer infinite configuration options: price calculation, conditions, appealing visibility or flexibility. We allow so much content
to be available, that you will have a whole range of offers at your disposal for your website.

UPSELLING: System of extras

This gives you a more complete service at the same time as you increase the average value of your orders offering extras with every reservation: upgrade, hotel services (catering, spa…), late departure, fruit baskets.

CROSSELLING: Complete your offer

Benefit from synergies and offer external service extras. Transfers, excursions, experiences, bike rental… You can also receive/send reservations to and from other associated hotels when there is no availability.

international

Languages available

Mirai’s extranet works in different languages: English, Spanish, French, Portuguese and Catalan.

Multi-currency and multi-tax

Configurable rates, included or not, depending on the country where your hotel operates: VAT, tourist rates for various calculations…

related