ABS Performance Results Are In and Ready for Your Review
At ITB Berlin we announced our ROOMDEX ABS Upselling product for hoteliers. The initial results are in and we can’t wait any longer to tell you how it’s been performing. We are beyond excited – and we think you will be too.
Here are some highlights from our latest article on Hospitalitynet.org:
What exactly do we mean when we say “ABS”?
In its purest form, ABS is about selling individual room features that are immutable and attached to the room – not room services. ABS has been talked about much in the industry but has never been realized due to technological challenges.
Our approach has been to focus on the primary goals of ABS, namely improved hotel revenue and a better, more personalized user experience. The question was, can we achieve the benefits through the existing room category-centric hotel tech stack? The answer is yes.
ROOMDEX ABS Upsell Pilot: The results are in – and we are beyond excited
To achieve our goals, we had to create a proprietary means to calculate attribute availability and price.
The good news was that we had already established a way to determine True AvailabilityTM in our launch version of automated upselling. True AvailabilityTM is a determination and forecast of the real operational availability of specific rooms at any given time. With our deep, 2-way integration with the PMS, we can accurately determine which rooms are not only safe to upsell into, but also safe for early arrival or late departure. With this algorithm, we can now sell and place guests into specific rooms with ZERO operational conflicts.
Of course, with any new product, our ABS solution had to fly the nest, beyond the office walls and out into the real world. The number one burning question is, of course, revenue. Has ABS delivered? The simple answer is, yes. All five hotels showed a positive increase in revenue.
What was most interesting is that 32% of all ABS upsell revenue was directly attributed from upsells within the same room category. So, while 55% of guests upgraded to a higher room category via ABS, 45% of guests purchased an upsell within the same room category.
At the same time, the number of upsell purchases increased by 36%. Initial results reveal that 45% of all guests purchased two or more features or room attributes via ABS. 40% of guests selected “a nicer view” and 29% of guests’ purchases included a higher floor.
Hoteliers always try to guess what their guests want, and ABS does this for you. Guests have the opportunity to build their perfect room product for themselves and will happily pay for those features they want. For hoteliers, ABS improves upselling conversion and cart value and ultimately delivers more hotel revenue.
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