According to Evelyn “The difference between upselling and cross-selling is more than just definition; it’s about strategy. When it comes to the upsell, communicating value is most important, while success in cross-selling comes from appealing to the impulse buy”.
Cross-selling is selling one or more products to the current customer who is already purchasing a product from the company. The cross selling and up selling method has been already used by the low-cost carriers such as Ryan Air. The hotel industry can use both methods to generate more revenue and build a good relationship with their potential customers (Peelen & Beltman, 2013). Up – selling means to involve customers to spend more on an existing purchase, such as upgrading their standard room to a more luxurious room (Evelyn, 2015).
According to Peelen & Beltman “ During the growth phase of a relationship, engaging in cross-selling is of considerable importance in guaranteeing the continuity and further development of the relationship ”. Thus, the cross selling phenomenon is significantly important for building relationship with current customers.
Within the CRM, the client point of view is important during cross selling. For the hotel industry, it means that if an existing customer will contact the company, it must be possible to establish, which products have the superlative chance of being cross-sold (Peelen & Beltman, 2013).
The hotel industry can use numerous ways to do cross selling. However, the greatest way is to do cross selling within the product range, customers can buy another product within the same product category or they can buy a another product from the company from another category.
Within the hotel industry, it´s about knowing the customer. Doing cross- selling or up- selling should be personalized to each customer, should appear on the moment when the customer wants it and the customer should see the value of the product for what they are paying for. If the hotel industry, will be able to understand their customers and can provide the service on the right time, they can generate more revenue and build a good relationship with their customers. Customers are in the centre of the hotel business. If the hotel business will sell the right service on the right time, this can be converted in a good relationship. This will result in loyal customers.
In conclusion, hotels should offer the right product to the right customer on the right time in order to generate revenue and build a good relationship.
Evelyn, J. (2015, Augustus 11). Upselling and cross-selling: the difference and why it matters for hotels. Opgehaald van Travel Tripper: http://www.traveltripper.com/blog/upselling-and-cross-selling-the-difference-and-why-it-matters-for-hotels/
Peelen, E., & Beltman, R. (2013). Customer Relationship Management (2nd edition)