Post-stay upselling for hotels: How to do it (well) and increase revenue and loyalty

Post-stay upselling is the term for the last meaningful time you can promote the sale of your services and/or products, i.e. at checkout and beyond, as we will see in a moment.

Post-stay upselling is the final stage of a process that should begin with the booking (pre-stay upselling) and continue during the stay (in-stay upselling).

Each stage has specific benefits that are important to understand.

This is the time between booking and check-in. By taking advantage of this period, you can:

• differentiate yourself in the marketplace,
• increase RevPAR
• improve inventory management
• and reduce the risk of no-shows and cancellations.

For a more in-depth discussion, we recommend reading our post on the benefits and techniques of pre-stay upselling.

Refers to the total length of the stay. It is particularly useful for:

• responding to guests' needs in real time,
• creating new needs and spending opportunities
• maximizing RevPAR during peak season and optimize it during periods of declining demand.

For a more detailed understanding of how to take advantage of this, please refer to our blog post on the benefits and techniques of in-stay upselling.

Post-stay upselling builds on the information and feedback gathered in the previous stages and aims to

• build loyalty by creating an ongoing relationship with the guest
• encourage word of mouth
• and incentivize future bookings by encouraging direct bookings.

Understanding when and how to engage guests in the final stages of their stay is the first step to ensuring a successful strategy. Here are the two key moments to take action:

Check-out is essentially your last direct contact with guests. To avoid wasting it, you need to have a prepared and personalized approach. Before the guest arrives at the front desk to drop off the keys, it is essential to review all the information you have gathered about them during their stay: preferences, requests, activities performed, and any feedback provided will be critical in guiding your up-sell proposal.

Front desk staff should be trained to present themselves in a friendly and non-intrusive manner, emphasizing how certain services or products could enhance future experiences or solve specific problems the guest has mentioned. For example, if a guest commented on the comfort of the room, they might be interested in an offer to upgrade to an even more comfortable room on their next visit.

Once the guest has returned home, upselling can continue with targeted email communications. If you choose to use this strategy, it is important to alternate between informational (newsletter) and more promotional emails to maintain a balance that does not overwhelm your customers with sales pitches, but at the same time keeps them informed of news and offers.

• Newsletters

Newsletters can be sent monthly to keep guests informed about upcoming events, hotel improvements or new services. Newsletters are also a great way to share useful tips or meaningful stories that can build loyalty to the property.

• Promotional emails

These should be sent less frequently, but always well in advance of strategic occasions, such as holidays or the start of the season. It is critical that these emails are tailored to the guest's preferences and past behavior to ensure that offers are relevant and attractive.

Post-stay upselling is a slippery slope because you are interacting with guests who are leaving or have left the property, making it harder to keep their interest. Here are three common mistakes hotels make during this delicate phase.

As mentioned at the beginning of this article, the most common mistake many hoteliers make is to focus their efforts on upselling during the pre-stay and in-stay phases and neglect the potential of post-stay upselling, often because they feel it is unnecessary or fear being pushy.

In reality, ensuring maximum attention to the customer at this time is an added value that complements the guest experience and is the best opportunity to thank them for their choice and strengthen the bond of trust.

Considering that the cost of acquiring a new customer is five times higher than the cost of retaining an existing one, failing to take advantage of even this last stage is tantamount to partially offsetting the important investment made up to that point.

The best approach to overcoming the apparent difficulty of post-stay upselling is to integrate it seamlessly into the hotel's processes so that it is as spontaneous and effective as possible. Leveraging technology is key to achieving this.

Key technologies in this area include customer relationship management (CRM) systems, which allow you to manage and analyze interactions with customers throughout their journey. With a CRM, you can easily gather data about guests' interests and preferences during their stay, which is critical for personalizing post-stay communications and offers. For example, if a guest frequented the hotel's restaurant, they may be interested in receiving special offers for future dining experiences or culinary events.

Another key feature is communication automation, which can be achieved within the CRM itself or through external software. This allows you to send personalized offers at the right time without having to manually handle each communication. This not only optimizes staff time, but also ensures that your guests receive relevant and timely messages that increase the likelihood of future return visits.

The final mistake is a direct result of not using technology. Those who are aware of the benefits of post-stay upselling, but do not know how to structure it consistently, often end up with a sloppy result, creating a single offer that is mechanically repeated to all customers without taking into account their individual experiences or preferences.

Not only can this approach drastically reduce the chances of a successful upsell, but it can also be perceived by guests as impersonal and uncaring.

As online reviews have become critical to a property's reputation, hoteliers have been running for cover - often with the opposite result.

As a result, one of the most common offers a customer hears at check-out (or receives via email once they get home) is also the most risky mistake you can make: asking for a review in exchange for a discount or freebie.

Tripadvisor's Trust & Safety team, which monitors the veracity of reviews, released alarming results for 2023: out of 31 million reviews, 6.3 percent were blocked, nearly double the number in 2022.

The most common type of review removed was what Tripadvisor calls "incentivized reviews", which are written by guests in exchange for a gift (upgrades, drinks, entry into a raffle, etc.): in 2023, this type of review accounted for 22% of the total, a record number.

So while offering a benefit in exchange for a review may seem like the quickest and easiest way to boost your reputation and guest satisfaction, the consequences for establishments that resort to these methods are significant and can go as far as penalizing their ranking on the platform.

In light of what we have just seen, it is clear that the only way to secure revenue, loyalty and reputation is to adopt post-stay upselling strategies that promote a personalized and genuine relationship with the guest.

But how do you move from theory to practice? To answer this question, we have created the perfect guide if you want to launch post-stay upselling but are starting from scratch.

Inside, you'll find the universal rule and 6 practical ideas you can copy in your own hospitality establishment to creatively and effectively take advantage of this important moment.

Download it now!