Extend the Stay, Expand the Revenue: Smart Upsell Strategies for Hotels

Transforming the Booking Flow: The Power of a Thoughtful Upsell
Most hotel property management systems (PMS) still lag behind booking giants like Airbnb or Booking.com when it comes to user-friendly design and strategic upselling opportunities. For hotels looking to optimize revenue and guest experience, taking control of your PMS—or working with your PMS provider to integrate tailored solutions—can be transformative.

One standout example of smart upselling comes from Getaway, a hospitality startup with tiny house rentals across the U.S. Their booking process is seamless, intuitive, and strategic. Here’s their game-changer:

– Guests booking 2–3 nights are prompted mid-checkout to add an extra night at a steeply discounted rate.
– The offer is low-pressure, embedded naturally in the flow, and framed as a value-added option for guests.

The result? A frictionless upsell that feels like a bonus rather than a sales pitch—and a boost to both guest satisfaction and revenue.

Why It Works: Behavioral Psychology Meets Hospitality

This strategy capitalizes on key psychological principles:
– Perceived Value: Guests perceive the additional night as a deal they can’t pass up.
– Convenience: The offer appears during the booking flow, eliminating the need for guests to reach out or make a separate decision later.
– Anchoring: The original nightly rate sets a mental benchmark, making the discounted rate feel like a significant saving.

This approach also aligns with guest preferences for flexibility and value, particularly among leisure travelers.

How Hotels Can Apply This Upsell Strategy

1. Partner with Your PMS Provider
Developing a proprietary PMS is costly and complex. Instead, collaborate with your existing PMS provider to integrate upsell features into your booking system. Look for customizable workflows that allow for targeted offers.

2. Identify Ideal Opportunities for Upselling
Target stays that fall within a sweet spot—typically 2–3 nights—where guests are most likely to extend their visit. This works particularly well during shoulder seasons when occupancy is lower.

3. Automate and Personalize the Offer
Use data to tailor offers based on guest profiles. For example:
– Offer loyalty members an additional night at an even steeper discount.
– Provide families with free breakfast for the added night to sweeten the deal.

4. Highlight the Value
When presenting the offer, emphasize what the guest gains: more relaxation, more exploration, or simply more value. For instance, frame the extra night as a “weekend escape” or a chance to enjoy the property’s amenities.

Beyond the Upsell: Unlocking Incremental Revenue

Once you’ve mastered the art of the extra-night upsell, explore other opportunities:
– Late Check-Out Discounts: Offer discounted late check-outs during the upsell process for added flexibility.
– Exclusive Experiences: Bundle the extra night with experiences, such as a wine tasting or spa access.
– Seasonal Promotions: Use these strategies during off-peak times to drive longer stays and fill rooms.

A Message for PMS Developers

For those working in PMS development, this idea is ripe for implementation. Imagine a feature that allows hotels to effortlessly build dynamic upselling flows—complete with customizable discounts, guest segmentation, and automated analytics to measure success.

The Bottom Line

By strategically integrating a well-timed upsell for additional nights, hotels can achieve the trifecta of higher occupancy, increased revenue, and happier guests. What’s more, the simplicity of this approach ensures it enhances the guest experience rather than complicating it.

Are you ready to make “just one more night” your most profitable mantra?