Revenue

							INCENTIVES TO RAISE
    REVENUES
   Incentives to Raise Revenue

Core to a culture where the whole hotel business
seeks to increase revenue generation throughout
the business is to incentivise the process of
up selling!
                    Up Selling
Up selling is a sales technique whereby a sales person
attempts to have the customer purchase more expensive
items, upgrades, or other add-ons in an attempt to make a
more profitable sale.

selling something additional, or selling something that is
more profitable or otherwise preferable for the seller instead
of the original sale
               ‘Room with a view’

    Up selling involves
   marketing more profitable services or products
   simply exposing the customer to other options he or she
    may not have considered previously
                        Examples
Examples

   recommending side dishes and/or hors d’œuvre to a food
    order

   suggesting a premium brand e.g. Jameson Irish Whiskey
    when a brand is not specified by a customer

   suggesting a deluxe room to a guest who has reserved a
    standard room

   selling luxury finishing on a vehicle
          Up Selling in Practice
Imagine you checking into a resort hotel. The counter staff
smiles at you, and enthusiastically tells you that if you were
to add an additional €10 per night, you can upgrade to a
bigger room.
           Up-selling and Up-sizing
Commonly used in Food & Beverage

-   the customer is asked to pay a little bit more for an ‘up-size’
    or a better brand of whisky.

    McDonald’s and Starbucks use this technique very
    successfully.
Reasons for their success:

   beverages usually command a very high margin (especially
    soft drinks and coffee) so even if the up-size is free, it would
    not hurt profits too much.
     Is up selling doomed to fail?
            NO! but modify the way it is implemented

Example:
The pricing policy of serviced apartments in Shanghai

 instead of reducing the prices for the bigger and better suites
 they increase the prices of the smaller (and less attractive)
  standard rooms
 so the price difference between the 2 types of rooms is still
  about €10 - 15
        The Exception to the Rule
This Shanghai pricing strategy works.

It is one of the few cases outside of the F&B industry
where the more expensive products consistently sold
much faster than the cheaper one.

Price is as psychological as it is emotional, but NEVER,
ever rational.
         Servers are Sellers
A good server is a sales person who should
be selling a product - your restaurant menu.
A good server gets a customer to spend more
than he was originally intending.

ORDER TAKERS versus ORDER MAKERS
Fast food outlets lead the way in server-seller
techniques
All servers should get training in the basics of up
selling, from offering top shelf liquor to knowing how
to give a tempting description of menu items.

Up selling

   increases sales
   can result in bigger tips for servers
   it shows customers that staff are knowledgeable as well as
    friendly
                    Cross-Selling

20% of McDonald’s revenue is from sales of French-
fries sales, counter staff are trained to say the 6
magical words “Would you like fries with that?”



McDonald’s is really successful in cross-selling
French-fries, apple pies and other products that you
didn’t think of buying, but bought just
because the counter staff suggested to you.
                Training to Up Sell

   Know your product (room types and descriptions)
   Know your consumer (who to up sell to)
   Know room inventory for the day (must be part of daily set-
    up routine)
   Appropriate methods of presentation (make the pitch
    without forcefulness)
   The interaction must be positive, creating a healthy feeling
    regardless of the result
   Know the rules, regulations and logistical issues (payouts,
    deadlines)
      WHAT OUR GUESTS WANT

                     Valued
                   Respected
Empowered          Recognised
                                   Secure
  Informed
                                    Safe
Given Choice
                                  Confident
                    FEEL LIKE
                       AN
Treated Honestly   INDIVIDUAL
     & Fairly                      Supported
       No                       & Taken Care Of
 Discrimination
    Up-Selling Techniques: always use

Your Ears….


      Eyes….


               Mouth….



                    Heart…..
    Survey Results Of the Most Powerful
       Words to Use in Up-Selling
 Fully equipped       Unique
 Magnificent          Tempting
 Exclusive            Irresistible
 Beautiful View       Exotic
 Superb               Amazing
 Genuine              Elegant
 Luxurious
THE END