November 3, 2020
Improving the Digital Guest Experience with the Intelligent Digital Room Upsell
Paul Peddrick | ROOMDEX
Table of Contents
Consumer expectations around the digital experience are increasingly exacting, providing hotels the opportunity to earn guest loyalty through advantageous digital room upsell. Customers are used to doing pretty much everything online, from banking, shopping, and planning travel – you name it. Due to the transformative power of digital technology, consumer habits have changed forever.
What is so important about the digital guest experience and digital room upsell?
Your guests are booking online, have used rideshares like Uber & Lyft, and make their way through the airport with digital boarding passes. In the past, basic quality service and fair pricing met customer expectations. Today is different. Digitally enabled travelers expect interactions that are instantaneous, seamless, and personalized. So now what does this mean to hoteliers? Where does digital room upsell come into play?
Simply put, by choosing a digital-first strategy, hotels close the gap between what digital customers already expect and what many hotels deliver. In doing so, hotels make a considerable impact on customer lifetime value.
What is the digital experience and the power of digital room upsell?
As travelers, we are primed to buy things. There are seldom times when our purse strings are looser. Having said that, no one enjoys a sales pitch. For most guests, hotel upselling can come across as a pushy sales tactic. It often has little or no relevance to your price point or need.
For your staff, upselling is a tedious process that requires a lot of manual work for it to be efficient. Most upgrades are usually a case of trying to balance the house. Each day, your front desk team will decide which present and future arrivals that need to be moved from their overbooked category to an available superior room category. By the time an agent can successfully upsell a guest, dozens of reservations have already been moved, leaving a lot of money on the table. But, it doesn’t have to be this way.
With digital room upsell and the ROOMDEX hotel upsell tool, you can make upgrading as easy as possible. If executed successfully, digital room upsell can increase your average order value (AOV) and generate awareness about other products you sell. Long-term, it can increase customer lifetime value (CLV) and reduce churn.
How do you use email with digital room upsell?
Email marketing is still one of the most effective ways to reach your customers. Research shows that customers who buy products marketed through email spend 138% more than those who do not receive email offers. In fact, according to a study by Campaign Monitor for every $1 spent on email marketing, $44 is made in return, which equals a whopping 4400% ROI.
However, creating high-converting upsell emails requires you to find the perfect blend of:
- when to send a digital room upsell
- who to send the digital room upsell to
- and, what to suggest in your digital room upsell
While this may sound complex, at ROOMDEX, we help you do just that with an easy and integrable hotel upsell tool. With our Upgrade Optimizer digital room upsell software, we create and deliver a frictionless digital upsell experience that converts efficiently. Here’s how.
How do we create relevancy with a digital room upsell?
Matching expectations to experience has a considerable impact on customer value. Leveraging artificial intelligence and machine learning, ROOMDEX Upgrade Optimizer intelligently calculates the best price for a room, and it sends pre-arrival email offers tailored to guests’ specifics needs and persona. By providing more guests with the opportunity to upgrade to a room that is superior to the one they booked, the hotel can gain significant high margin revenue.
How do you upsell a room with our digital upsell tool?
- We keep it simple.
At ROOMDEX, we believe less is more. While many hotels may want to include a lengthy pre-arrival story or promote everything the hotel may have to offer – we know email digital room upsell communications should be short and simple.
- We time it right.
What you upsell depends greatly on when you upsell. When timed correctly, an upgrade offer meets buyers’ needs when trust is highest. With our UPGRADE OPTIMIZER hotel upsell tool, we consider multiple data points and send them at the right time before arrival.
Providing a room upgrade is the easiest way for a hotel to upsell. This strategy requires no additional arrangements, and empty rooms provide the highest margin. However, to maximize conversion among today’s tech-savvy travelers, hotels must effectively predict and prescribe actions for their customers. The best systems, like our digital room upsell tool, use machine learning algorithms to make such predictions.
At ROOMDEX, we help you significantly increase guest satisfaction as well as ADR, RevPAR, and profit. “The most immediate return for least input would probably be the upgrade software,” says Daniel Tennant, GM Aries Living. “There is no hardware investment and there are no integrations to manage and it provides another layer of service to our guests – completely contactless, great digital experience, allowed guests to check in early, provides room upgrade options.”