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July, 2019: RMS Cloud has launched an integration with Upsell Guru, an automated tool that enables property managers to engage with guests and offer them the opportunity to bid on room upgrades or pay for extras such as breakfast or spa services in the days leading up to their stay.
It’s a proven product with an impressive track record in generating extra revenue for participating properties, says co-founder Hans Schmidtner, who started Upsell Guru in 2015.
Schmidtner says Upsell Guru’s best-performing Australian hotel is making an additional $8000 a month from room upgrades alone, while average increased take per property ranges between $4000 to $5000.
He says the best time to target guests for an upgrade is three days before their stay when they are finalising travel plans. That is also when hotels have a good feel for which premium rooms will not be sold through traditional channels.
Targeted guests are contacted via email, given their upgrade options and bid using a slide (see below). On hitting the ‘next’ or ‘skip’ buttons, depending on whether a bid was made, guests are then offered various ancillary services or add-ons such as breakfast.
According to Schmidtner, the average hit rate from this email is 10% but can go to 15% if the offer is good enough. “The conversion rate very much depends on the type of upgrade being offered,” he says.
“For example, if a hotel has suites, they convert at a much higher rate than a slightly larger room.”
He says there’s nothing to lose and everything to gain for hoteliers having trouble shifting more expensive rooms.
“Higher category rooms are always harder to sell and it’s obviously better to try and sell an upgrade rather than give the room away or leave it empty.”
For more information, contact your RMS account manager or view the YouTube demo.
