Hotel upselling: psychology and strategies
Upselling in the hotel industry is not merely a sales technique to boost revenue, but—if executed correctly—it becomes an opportunity to enhance the guest experience and build loyalty.
The primary goal should not only be to increase profits but to enrich the guest experience.
When guests feel their needs are a priority, they are more likely to return and recommend the property.
This strategy leads to an organic increase in positive reviews, satisfaction, and ultimately, loyalty.
Psychological techniques and presentation strategies are essential to turning a potential transaction into a valuable experience.
Understanding the guest: the psychological foundation
At the heart of effective upselling is a deep understanding of the customer.
Every interaction is an opportunity to hear the customer’s voice and understand their needs.
The more information you have about a customer, the better prepared you are to anticipate or meet their future needs.
Often, upselling happens simply by listening to the guest, who may unknowingly mention needs the hotel can fulfill.
Personalization: don’t offer the same to everyone
Modern travelers—especially Millennials and Gen Z—seek personalized experiences and value customization.
Upselling offers should not be “one-size-fits-all” but tailored to individual preferences.
Personalization increases the likelihood of offer acceptance and enhances perceived value.
According to a Skift survey, 74% of travelers are more likely to book with a brand that offers personalized recommendations.
AI is transforming upselling by making personalization scalable and precise.
By analyzing real-time behavior and data, AI systems can suggest highly relevant offers.
The concept of “hyper-contextual upselling” is based on offering what guests truly need—sometimes even before they ask—using data such as arrival time or weather.
This approach makes offers feel like thoughtful service rather than a mere sales pitch.
Effective presentation strategies
Highlight benefits, not features: A key technique is to focus on guest benefits rather than just listing product or service features.
Instead of saying “Upgrade to a poolside cabana,” emphasize “Enjoy your private space with dedicated service, shade, and refreshing drinks.”
Describe the experience guests can aspire to—like the comfort of linens or the peace of a private balcony.
Communicate the incremental price: When presenting a room upgrade, it’s more effective to mention the additional cost per night rather than the total price of the upgraded room.
This approach uses “anchoring”: if a guest booked a room at €140, an upgrade for €20 more won’t seem significant compared to the already-set base price.
Saying “for just €20 more per day, you can stay in a larger room with a balcony and sea view” shifts attention to the benefits.
Offer free extras: A small free incentive attached to the upselling offer can make it more appealing. Examples include a complimentary welcome drink, minibar access, or more flexible cancellation terms.
These small “gifts” increase perceived value and can positively influence the decision.
Strategic timing: The timing of an offer is crucial. Opportunities exist throughout the guest journey:
- Before the stay: via email or pre-arrival communication. Guests are often ready at this stage to “open their wallet” for extra experiences. Optimal timing varies by property type: 20 days before for resorts (CTR 57%), 7 days for city hotels (CTR 34%), 21 days for airport hotels (CTR 39%), and 21 days for non-city hotels (CTR 47%).
- At check-in: A golden moment for direct interaction.
Guests are often relaxed and ready to begin their stay.
However, it’s not always the best time if the guest is tired; sending offers before arrival may be more effective.
If done at the front desk, staff must be trained to assess guest mood and use open-ended questions.
Front desk upselling can generate 5–9 times more revenue than pre-arrival, but combining both approaches is the most profitable. - During the stay: Even after check-in, upgrades on services (in-room breakfast, spa, fine wines) can be offered. The key is offering something that enhances the experience at the right moment.
Use engaging images:
Using high-quality images is essential to showcase rooms, services, and common areas. Describing luxury and comfort through visuals makes guests more willing to spend more.
For room upgrades, it’s recommended to include at least 3 images per room type, including a bathroom photo, which helps boost conversions.
It’s important that the images are realistic to avoid creating false expectations.
Avoid pressure:
Aggressive or pushy techniques can annoy customers.
Upselling should be presented as an option and a solution.
If a guest declines, do not insist.
The crucial role of staff and training
Front desk staff and sales agents are the main actors in upselling.
The biggest barrier to upselling occurs when staff forget to ask about guest interest in upgrades or other offers.
Training is essential to help them understand the value of what they’re offering, recognize opportunities, handle objections, and feel empowered.
They can also be trained to recognize cues (e.g., “elite” credit cards) that indicate potential upselling candidates.
Upselling should be integrated into Standard Operating Procedures (SOPs) and daily briefings to make it a solid routine.
Incentivizing staff with bonuses or small percentages on additional sales is an effective technique to motivate them and boost sales.
Gamification and competitions among team members can also encourage efforts and make upselling more engaging.
Having an “upselling champion” on the team can serve as a role model and inspiration.
The support of technology
Upselling software automates the selection, pricing, and presentation of offers. Integration with the Property Management System (PMS) and Customer Relationship Management (CRM) is essential for a smooth process.
These systems allow you to:
- Use guest data to personalize offers.
- Manage room and service availability in real-time.
- Track offer and campaign performance.
- Automate the sending of personalized offers (e.g., pre-arrival emails).
- Enable dynamic pricing for upsells.
- Support upselling across multiple channels (email, app, web, front desk).
Successful upselling is not just about offering more—it’s about creating meaningful and personalized experiences.
This is achieved by combining deep psychological understanding of the guest with targeted presentation strategies, proper staff training, and the integration of technologies that automate and optimize the process.
In this way, upselling not only increases revenue but significantly enhances guest satisfaction and loyalty.