Case Study: How UpsellGuru supercharged Incremental Revenue and increased hotel employee satisfaction at Travel Charme Hotels & ResortsĀ
Upselling vs. Cross-Selling: What’s the Difference and Why Does It Matter for Hotels?
August 28, 2023
Let's dive into the exciting world of boosting hotel revenue through upselling strategies!
Picture this: hotels not only earn increased revenue but also add a sprinkle of joy to their guests' before they even check in. Hotel upselling is like the secret ingredient that turns a stay into something truly memorable, giving guest satisfaction a lovely boost. And how do we measure the success of these upselling tips? Well, just keep an eye on that incremental revenue to see the magic happen.
We had a chat with Heiko Rieder, VP of Business Development at Travel Charme Hotels & Resorts. Under the umbrella of the Hirmer Group since 2018, Travel Charme is synonymous with unparalleled experiences and genuine hospitality, boasting a portfolio of 12 distinctive establishments across scenic locations. From the Kurhaus Binz on RĆ¼gen to the Badeschloss in Bad Gastein, each hotel not only captivates with its dreamy locale but also exemplifies a unique blend of personal service, a dash of adventure, and a profound passion for hospitality.Ā
As we delve into Travel Charme's success story with UpsellGuru, intertwined with the transformative power of upselling, we uncover the landscape of hospitality excellence and revenue optimization.Ā
Throughout this case study, we go through the transformative journey, detailing the process, outcomes, and insights gained by implementing UpsellGuru at Travel Charme.
Unlocking unprecedented ROI - the Journey to 18:1
Travel Charme Hotels & Resorts' Strategic decision in choosing UpsellGuru as a partner
In the dynamic and competitive landscape of the hospitality industry, Travel Charme Hotels & Resorts faced a critical need for an upselling partner who could seamlessly address multiple touchpoints along the guest journey. Specifically, they sought a solution that excelled in pre-arrival, on-arrival and in-stay upselling strategies. Recognizing the significance of effective communication with their German-speaking team, Heiko Rieder, VP of Business Development, prioritized a partner capable of providing on-site training in the German language. The quest for the right upsell solution extended beyond technology; Travel Charme sought a comprehensive package that offered not only a cutting-edge platform but also hands-on training for the entire team.
Furthermore, visibility into the performance of upselling initiatives was paramount. Travel Charme sought a partner that could provide real-time insights into upsell metrics, enabling them to measure success and make data-driven decisions. Lastly, seamless integration with their existing Property Management System (PMS), Sihot, was a non-negotiable criterion to ensure operational efficiency and cohesion across the hotel's systems. In light of these stringent criteria, UpsellGuru emerged as the preferred choice, offering a holistic solution that met all these pivotal requirements.
The beginning of a technological transformation
The implementation of UpsellGuru in early 2023 marked a turning point for Travel Charme. On-Arrival services went live in June 2023, following a successful Pre-Arrival pilot program.Ā
Before UpsellGuru, the pre-arrival approach involved manually sending emails to guests, lacking a direct sales focus and integration with the customer journey.Ā
Ā āFrom pre-registration to upselling, prepayment options, and membership enrollment, the list of interactions before the actual guest arrival can be extensive. Thanks to UpsellGuru, we streamline these processes to focus on the most relevant interactions,ā says Heiko.Ā
With UpsellGuru, the team streamlined processes, allowing guests themselves to determine the price value for the experience for bedroom upsells through their unique ābiddingā functionality which enables the guest to name their own price.Ā
From a technical standpoint, the integration of UpsellGuru into the existing IT landscape with the PMS Sihot has proven remarkably straightforward, setting it apart as a tool with an unparalleled impact on return on investment.Ā
Impressed by the remarkable results, Heiko found the return on investment with UpsellGuru to be unquestionably worthwhile. From the very first day of implementation, he witnessed a noticeable surge in revenue. UpsellGuru didnāt just provide a solution; it established itself as another pivotal revenue channel for hotels to unlock highly profitable incremental growth.
However, beyond the financial gains seen in Pre-Arrival, On-Arrival, and In-Stay upselling, what truly resonated with Heiko was the significant elevation in employee satisfaction. The comprehensive UpsellGuru solution not only captivated him but also won the hearts of the entire staff. This success can be attributed to the seamless fusion of cutting-edge technology and hands-on onsite training, creating a harmonious blend that resonates with the team's commitment.
UpsellGuru's unique blend of innovation and personal touch
The frontline teams at the reception desk found immense value in the preparatory work facilitated by the UpsellGuru platform and the dedicated Customer Success Teams. The UpsellGuru implementation team's responsiveness to specific requests, coupled with robust consulting and project management services, ensures a tailored and smooth approach. This support played a pivotal role in maintaining high employee motivation during the onboarding process for the hotels.
The comprehensive 2 to 3-day on-site training provided by UpsellGuru, featuring personalized sessions on effective upselling, contributed to a seamless kick-off phase marked by a collaborative approach. Heiko Rieder underscores the significance of ongoing engagement with the UpsellGuru dedicated Customer Success Consultant, emphasizing that their support has been instrumental in the overall success of the implementation. Regular review calls further enhance the process and provide valuable insights for continuous improvement.
āFrom the kick-off stage through on-site training to go-live, the UpsellGuru team has guided the entire process, ensuring that the engagement of stakeholders and hotel teams occurred in a timely and effective manner,ā says Heiko.
UpsellGuru introduces customized incentive schemes, acknowledging the unique needs of each property. Beyond prioritizing upselling of highly profitable Room & Suite experiences, UpsellGuru strategically promotes cross-selling of spa services and highlights food and beverage offerings. This tailored approach is rooted in understanding the diverse requirements of different hotels. The flexibility extends to factors such as early arrivals or extended stays, recognizing variations across different destinations.Ā
The result of motivating hotel teams and exceeding financial expectations: driving sustainable growth
The financial success achieved through UpsellGuru has exceeded expectations, particularly evident in hotels with pre-existing front desk upselling schemes. The platform has remarkably quadrupled revenue by effectively upselling room types, extended stays, and ancillary services. The return on investment, contingent on on-premises services, their rates, and the front desk team's engagement, is notable, with properties showcasing an impressive average return of gross revenues exceeding 18:1 in the initial year of implementation, encompassing one-off implementation and training costs.
Beyond the monetary gains, what resonates again is UpsellGuruās ability to motivate and inspire the teams which holds paramount significance.
āIn periods marked by elevated turnover rates, having UpsellGuru as a tool to bolster our employee retention strategy is a source of considerable satisfaction,ā comments Heiko.
Adaptive excellence: tailored solutions for Travel Charme Hotels & Resorts
Highlighting UpsellGuru's remarkable adaptability to the distinctive requirements of Travel Charme Hotels & Resorts, Heiko underscores the platform's ability to swiftly refine upselling strategies in response to feedback and ever-changing market dynamics. Addressing seasonal shifts and emerging trends, such as the āworkation" phenomenon, the platform stands out for its dynamic responsiveness. Heiko reflects, "UpsellGuru's flexibility has empowered us to navigate seasonal fluctuations and evolving guest preferences, significantly contributing to heightened guest satisfaction."
Moreover, UpsellGuru's commitment goes beyond adaptability; it delves into understanding and addressing the intricate operational needs of hotels.The platform uses a Performance Visibility tool enabling seamless reconciliation between UpsellGuru and the hotelās Property Management System (PMS). This tool provides real-time insights for employees into performance metrics, ensuring operational efficiency.
By not just being an upselling platform but a strategic partner, UpsellGuru enhances visibility, efficiency, and operational cohesion, becoming an integral component in optimizing hotel operations and unlocking maximum revenue potential.
Conclusion
The collaboration between Travel Charme Hotels & Resorts and UpsellGuru has proven to be not only driving substantial revenue growth but also reshaping the dynamics of employee satisfaction.Ā Ā
This case study serves as a testament to the holistic approach of UpsellGuru's comprehensive 360 solutions with pre-arrival, on-arrival and in-stay.Ā
What truly sets UpsellGuru apart, however, is the on-site training provided by UpsellGuru, coupled with the dedicated Customer Success Team, ensuring that hotel teams are not just users but empowered advocates of the platform. The unique blend of innovative technology and collaborative workflows demonstrates UpsellGuru's acute understanding of hotel pain points, contributing to streamlined operations. This emphasis on training and support creates a culture of continuous learning and performance excellence, fostering high motivation among hotel employee members.
About Heiko Rieder:
