Upsell meaning in hospitality

Upselling is a sales technique used in hospitality to encourage customers to purchase a higher-priced or premium version of what they initially intended to buy. This can include offering room upgrades, additional services, or more expensive menu items. The goal is to increase the value of the sale while also enhancing the guest's experience. Upselling is a key strategy in hospitality because it directly impacts revenue and profitability. By persuading guests to spend more, businesses can boost their average transaction value without necessarily increasing the number of customers. This technique also allows hospitality professionals to showcase premium offerings and provide guests with opportunities to enhance their stay or dining experience.

Here's how upselling might work in practice: You're a server at a high-end restaurant, and a couple orders a bottle of house wine. You might say, 'Excellent choice. If you're interested in trying something special, we have a limited edition reserve from the same vineyard. It's only £15 more per bottle and offers a more complex flavour profile that pairs beautifully with your selected main courses.' This approach gives the guests an opportunity to elevate their dining experience while potentially increasing the restaurant's revenue.