What does merchandising and upselling software actually do?

Upselling is the ability to get more spend from the same guest, by providing valuable services, offered at the right time and at the right price to the right guest. When done properly, upselling results in more incremental revenue and a better guest experience.

For info on upsell trends, questions that you should ask vendors and more download the 2020 Hoteliers Guide to Upsell Software

How can merchandising and upselling software improve profitability and efficiency?

Increase incremental spend per guest: By offering segmented Upselling before arrival, hoteliers manage to provide true flexibility to their guests, enabling them to choose from personalized offers at a time that’s right for them. Upselling as part of the overall Revenue Management strategy, achieves two goals: Higher ADR, Less Free Upgrades.
Save time and maximize outlets: Expectations are all set before the experience itself. By enabling guests to share their needs (and get inspired by what the hotel has to offer), Hotel Operations are able to anticipate special requests and save precious time in the communication with every single guest. 2
Personalize the guest experience: Consumers of today are used to controlling their experience. Gone are the times of fixed packages and one size fits all. Modern travelers crave freedom and personalization.

What are the most important features of merchandising and upselling software?

PMS Integration: Automated connection with database (PMS/Channel Manager/OTA). A 2-way integration with your property management system can dramatically increase efficiency but upsell software can be operated without it.
Exclusion Lists: Possibility to exclude guests from receiving the offering.
Easy to use and cross-device: Easy to use platform for guests to redeem offers on any device.
Real time reporting: Gain insights through analytics and reporting to improve over time.
Customizable CMS: Helps ensure that staff is able to update, customize and test offers in real time.
Multi-language: support Your guests come from all over, make sure you are able to reach all of them.
Email Automation: Automatic offer, redemption and confirmation emails.
GDPR Compliance: Make sure your provider meets EU data protection privacy standards.
Exclusion Lists: Possibility to exclude guests from receiving the offering.

What makes great merchandising and upselling software?

A good upsell provider is data-driven and laser focused to drive conversion. They also love to talk data, so ask away! What can I expect? How do other similar hotels perform? What are the best-selling deals today?

What is the typical pricing for merchandising and upselling software?

Some firms such as Nor1 operate on a commission model. While this in many cases requires no up-front cost due to contribution based on performance it often results in higher fees that can be as high as 25% of incremental sales. A fixed fee model such as that employed by firms such as Oaky may seem riskier in the short run; however, in many cases end up being dramatically more cost effective - especially as hotels get better and better at upselling.

For info on pricing models and trade-offs to fixed vs. commission pricing, download the 2020 Hoteliers Guide to Upsell Software

How long does it usually take for a hotel to implement new merchandising and upselling software?

A hotelier should expect to be live with any good upselling software provider within 7-30 days. Providers should make the implementation as simple as possible, and provide training accordingly. The connection to the PMS is usually the factor that cause this variance (depending on PMS providers, connection is immediate or takes longer).

How do I know when it’s time for my hotel to move onto new merchandising and upselling software?

As with most software purchases, start by thinking about your business’ strategic goals. If you are looking to increase tRevPaR (Total Revenue Per Available Room), upsell software can help by increasing the average spend of your existing guests ancillary sales such as F&B/experiential purchases. If you are looking to increase ADR, upsell software can decrease the amount of free upgrades and let your guests actually pay more to get to a higher category room. Upsell software can even increase occupancy by making sure that your highly demanded entry-level rooms are available for last minute purchases within a relatively short booking window. This way, no need to overbooking your standard rooms or give upgrades for free. Your standard rooms become available - again, even right before the checkin, allowing for last minute bookings to come in nicely.

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