Hotel front desk upselling: Ultimate guide to profitability
Oaky
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Hotel front desk upselling has been around for decades and gained even more traction with the introduction of PMS and CRM systems in the 1990s and early 2000s. Despite this, many hotels still rely on outdated manual methods and struggle to scale their upselling strategies. As a result, these efforts often yield minimal outcomes, frustrate teams, and cause many hoteliers to abandon upselling altogether.
But it doesn’t have to be this way. By shifting from traditional approaches and reframing front desk upselling as a “win-win-win” where it’s beneficial for staff, guests, and the hotel, it can become a rewarding and highly profitable practice. In fact, when done right, front desk upselling can generate a 2% - 5% TRevPAR contribution.
In this guide, we’ll cover everything you need to know about hotel front desk upselling:
How to implement a scalable upselling strategy
Techniques to motivate and train your team, ensuring engagement and retention
Setting goals and tracking key KPIs
Guest psychology and proven upselling tactics
How automation can supercharge your efforts.
What is hotel front desk upselling?
Hotel front desk upselling is a sales technique where a front desk agent suggests hotel extras (cross-selling), higher room category, and other supplementary services to guests during check-in. The goal of this technique is to generate additional (ancillary) revenue for the hotel and enhance the guest experience.
Why is front desk upselling important?
1. Boost ancillary revenue and TRevPAR
The check-in stage is one of the best opportunities to suggest additional services and upgrades to your guests. It allows you to sell ancillary products and add-ons to generate more upsell revenue and reduces customer acquisition costs by enabling you to capitalize on existing bookings.
There’s also a psychological aspect at play. Guests arriving at the hotel are already committed to their stay. This makes them more receptive to suggestions for enhancing their experience. When a front desk agent positions upsells as value-adding rather than making a hard sale, guests are more likely to accept them.
It’s no surprise that front desk upselling can generate 5–9 times more revenue than pre-arrival upselling thanks to the live interaction between front desk agents and guests.
2. Enhance guest satisfaction and loyalty
Personalization is key to helping guests feel valued. Front desk agents have the opportunity to engage with guests directly and tailor recommendations based on their preferences and needs. For instance, offering a hotel room upgrade or spa package based on guest segments and data can take their visit from ordinary to exceptional.
Thoughtful upselling can create a positive, memorable impression. If guests feel that the upsell genuinely caters to them, they are more likely to become loyal guests.
Convenience is another reason front desk upselling increases guest satisfaction. Guests often look for ways to elevate their stay but may be unaware of available hotel offerings. Personalized suggestions at check-in provide a convenient way for guests to access additional amenities without searching for them.
3. Drive team motivation and retention
Upselling in the hotel industry can—and should—be a motivating and fun activity for your team. Otherwise, your strategy is unlikely to be successful. Training and incentivizing your team to upsell at check-in can spark healthy competition and encourage them to achieve better results.
Hotels that have successfully implemented incentive programs alongside a front desk upselling strategy often highlight it as a competitive advantage for attracting and retaining talent.
On top of that, upselling creates opportunities for professional growth and career advancement. Agents who excel in this area are often seen as future leaders, which contributes to employee retention.
Traditional front desk upselling vs. next generation upselling
As mentioned before, many hoteliers still rely on old traditional upselling methods. But what does it exactly mean? And how is next-generation upselling different?
We spoke with Pablo Torres, a hospitality consultant, and Oaky’s Front Desk Upselling coach, to explain these differences and why it’s time to embrace next-generation upselling.
Traditional front desk upselling:
Manual process: Relies on the front desk agent's initiative and interpersonal skills. Offers are typically made on the spot without much prior information about the guest or strategy.
One-size-fits-all approach: Upsells are often not tailored to a guest persona (hard sells). Agents offer what the hotel wants to sell without considering the guest’s wants and needs.
Minimal or no guest data usage: Upsells are based on assumptions or limited knowledge of the guest’s preferences and history.
Inconsistent results: Success depends on the agent's skills and motivation, leading to inconsistent upselling outcomes.
Limited time to upsell: Front desk agents have a limited window during check-in to pitch upsell opportunities, which can be rushed or overlooked, especially during busy periods.
Next-generation upselling:
Automation: Uses technology, such as hotel upsell software, specifically designed to automate the upselling process. Technology can consolidate the process by letting you keep track of team performance, setting goals and providing rewards, fostering healthy competition and upselling culture.
Personalization: Leverages rich guest data, such as preferences, booking history, and purpose of stay, to tailor offers to individual needs and desires.
Data-driven insights: Provides agents with real-time analytics and insights, empowering them to make informed recommendations that align with guest needs.
Improved efficiency: Reduces pressure on front desk staff, as automated systems handle much of the work, allowing agents to focus on guest interaction.
Motivated teams: Thanks to incentive programs and rewards, agents feel motivated to excel at upselling.
Integrated into the entire guest journey: Goes beyond the front desk, offering upsells at multiple touchpoints, pre-arrival, during the stay and at check-in.
The goal of next-generation upselling is clear: to simplify the process, make it enjoyable and consistent for hotel teams, and boost hotel profitability.
Unlike traditional upselling, which often feels like "throwing spaghetti at the wall" with agents pitching random offers without insight, next-gen upselling focuses on personalization—offering the right upsell to the right guest with a clear strategy in place. In this guide, we’ll help you explore how to move away from outdated practices and transition to front desk upselling that benefits everyone—your hotel, your guests, and your team.
Establishing an effective hotel upselling program
The top 3 challenges holding hoteliers back from establishing a robust hotel upselling program
What stops you from establishing a viable hotel upselling program and getting your entire team on board? According to Pablo Torres, there are three major challenges standing in the way of realizing the full hotel's potential:
Feeling overconfident that you’re already excelling at upselling
Many hoteliers still using traditional upselling methods believe they’ve already hit their ceiling.. They’re content with their current results and may not realize there are more effective ways to upsell.
A wake-up call often comes when they compare themselves to the competition. Seeing the impressive results other hotels achieve with next-generation upselling often prompts hotel managers to rethink their approach. As Pablo Torres points out, when it comes to front desk upselling, the sky’s the limit. There’s always room for improvement, even when it seems otherwise.
Front desk upselling process feels too tedious and time-consuming
Traditional upselling methods can be overly time-consuming and stressful for front desk teams. Agents have to juggle multiple tasks:
Interacting with guests
Reading cues
Quickly brainstorming upsell ideas from a spreadsheet or PMS
Checking pricing
Pushing costly hotel room upgrades or services they’re told to sell
If successful, they must then update the guest folio in the PMS and ensure the spreadsheet is accurate to avoid overselling the same deal.
All this should happen while maintaining a warm smile and providing a welcoming experience.
To make matters worse, many agents aren't compensated for their efforts. This leaves them unmotivated to engage with guests or improve their upselling skills. This approach fails to drive meaningful upsell revenue and often leads hotels to abandon their upselling efforts.
Lack of training impacting revenue consistency
Thirdly, not every front desk agent is a natural salesperson. Most people don’t know how to guide a conversation toward an upsell or present options without making them feel like a hard sell.
As a result, hotels often rely on one or two team members who enjoy upselling, while the rest of the team remains unmotivated and untrained. Without proper training and incentives, many agents may think, “Why should I bother?” This reliance on luck or the initiative of a few individuals limits potential. With a fully trained, motivated, and engaged team, the results could be significantly better.
Developing an effective hotel upselling program for long-term success
So where do you start to tackle these challenges and create a winning program that delivers the benefits outlined earlier in this guide?
Building a hotel upsell program is a multi-step process that requires your entire team to work together to make it a success. Here you can do it by following the key 9 steps:
Know your guests: Understand what different guest segments want to create personalized offers that resonate with them.
Appoint an upselling champion: Find a passionate team member to lead upselling efforts and inspire the team to achieve more.
Gain a buy-in from the entire team and departments involved: Get everyone on board by showing how upselling benefits the whole team, and back it up with training and incentives.
Reward success: A good incentive program keeps the team motivated and helps upselling become second nature.
Integrate upselling into the guest journey: Look for upsell opportunities before and during a guest's stay as well as at check-in.
Make it routine: Include upselling in your standard procedures and daily team talks, so it's always top of mind.
Set clear goals: Track how everyone's doing and set personalized targets to keep things challenging and fair.
Keep improving: Review what's working and what's not. Offer support and feedback, and even add a bit of friendly competition to the mix.
Personalization is key: Remember that the best upsells are the ones that feel tailor-made for each guest. Use guest data to offer upgrades and services that truly enhance their stay.
Tech Can Help! Consider investing in hotel upsell software to automate the process and make it easier for your team to offer personalized experiences that guests will love.
Crafting irresistible offers for front desk upselling
One of the fears holding front desk agents back from upselling deals is the fear of rejection. However, with the right approach, rejections can be minimized. The secret sauce to successful upselling is making it feel like you’re adding value rather than just making “a transaction.” Here’s how to make it work:
1. Suggest offers that add real value to a guest's stay
An upsell offer should be seen as an opportunity to enhance the guest’s stay, not just a way to increase revenue. This means offering options that align with the guest's needs and desires.
For example, a business guest who needs a good night’s sleep after a long day of meetings will value a quiet corner room or a service that improves their efficiency (e.g., express ironing service). A family with kids might appreciate connecting rooms or the convenience of a babysitting service.
It’s crucial to seek a win-win scenario where both the hotel and the guest benefit. This way, a guest will perceive an upsell as an improvement to their stay, making them less likely to reject.
2. Focus on authenticity
With 74% of travelers seeking advice from locals, guests are looking for more than just a place to sleep. They want experiences that connect them to the destination. By positioning upsells as opportunities to immerse guests in local culture, unique activities, and experiences, front desk agents can frame these offers as authentic ways to enhance their stay.
3. Sell the experiences, not just the features
Focus on the emotional and experiential benefits of the offer, rather than just listing its features or technical details.
For example, instead of simply describing a deluxe room as having “a king-sized bed and extra space,” present it as “a private retreat with breathtaking city views where you can unwind after a day of exploring.” When promoting dining experiences, highlight the ambiance, the chef’s specialty, or how the meal creates a memorable moment, rather than just mentioning the menu. By painting a picture of the experience and the emotions it evokes, you connect with the guest's aspirations, making the offer far more enticing.
4. Promote exclusivity
Exclusivity creates a sense of value and appeal, making guests feel they are getting access to something special that not everyone can enjoy.
For instance, position an upgrade as “an exclusive package reserved for our most valued guests” or highlight that “only a few suites are available with these stunning ocean views.” Guests are drawn to the idea of experiencing something unique which makes it come across as a privilege rather than a routine upsell. This strategy taps into the desire for luxury, rarity, and status, making it an effective motivator for accepting an upsell.
5. Leverage limited-time offers
Scarcity and urgency are well-known psychological drivers. Present an upsell as a limited-time offer to create a sense of urgency to encourage guests to make a decision on the spot.
For example, you can frame it as, “This exclusive dining package is only available for tonight,” or “Upgrade now for just $50—it’s a special deal offered only at check-in.” By limiting the availability of an offer, you create an immediate need for action, reducing the likelihood of hesitation.
Another question we often hear from hoteliers is what to upsell at the front desk. While breakfast and parking might seem like the easiest options, going beyond these deals can help you generate higher profits. Use pre-arrival upselling to sell breakfast and parking deals, and leverage the check-in moment to sell higher-margin deals.
Discover the 7 top upselling offers
How to manage and motivate your hotel front desk team
Managing and motivating your front desk team
A motivated front desk team is a key factor in your upselling success.
Their motivation and the way they interact with guests directly impact guest satisfaction and your upselling results. Due to the demanding nature of front desk roles, and the fact that they are typically lower paid, employee turnover can be high, making your hotel upselling program a futile attempt. Therefore, it is important to incentivize and upskill your team to ensure job satisfaction and retention, transforming upselling into a fun and rewarding process.
Which hotel incentive program should you implement?
The most effective way to incentivize front desk staff is to provide monetary rewards. A sales-based commission system allows employees to earn a percentage of the revenue they generate through upselling and cross-selling. This motivates employees to promote hotel services and amenities and rewards them for their hard work.
Many hotel managers hesitate to offer monetary incentives for upsells, but hospitality expert Pablo Torres explains why they are important:
That said, monetary incentives don’t have to be limited to just commissions. To keep things fair and exciting, hotels can introduce bonus challenges such as:
Rewarding the employee who sells the most room upgrades
Giving a bonus for the highest total upsell amount
Offering a special prize for selling a Presidential Suite X times in one month.
You can also consider non-monetary incentives if offering monetary ones might cause complications for your hotel or your employees seek something other than financial rewards. Some non-monetary incentives include:
Extra time off
Wellness and health benefits
Recognition programs
Career growth opportunities.
All in all, by combining monetary and non-monetary benefits, you can create a work environment where front desk employees feel valued, motivated, and empowered to succeed. This ultimately leads to increased job satisfaction, improved performance, and reduced employee turnover.
How to implement a successful hotel incentive program in practice?
Once you’ve defined your incentive program structure, goals, and KPIs, the next step is putting it into action. However, many hoteliers face challenges when it comes to actual implementation. The most common issues include:
No system to track employee performance
No system to monitor upsold rooms and services
Lack of visibility for front desk teams on potential rewards for upselling
Inability to track distributed rewards, making it difficult to ensure fairness
Many hoteliers initially rely on spreadsheets, but as the program grows, managing it becomes cumbersome and inefficient. This manual approach is unsustainable and makes it difficult for front desk managers or upselling champions to fairly administer the program and distribute rewards.
That’s why to overcome these challenges, many hoteliers turn to automated upselling solutions. For example, with Oaky’s Front Desk Upsell module, you can:
Provide an easy-to-use system for front desk agents, enabling them to upsell in real time with smart prompt
Track employee performance
Manage commissions and rewards
Give front desk agents instant visibility into their potential earnings from successful upsells.
With these features combined, your team stays motivated, upselling becomes smoother, and managing the incentive program becomes much easier for front desk managers and upselling champions.
Our customer feedback speaks for itself. This is what Linus Svedberg, Front Office Manager at Quality Hotel Globe, highlighted in his success story about using Oaky for front desk upselling and successfully implementing an incentive program with the help of the software.
Final thoughts
Not only will upselling in the front office help you meet and exceed guest expectations, but it will also let you unlock another lucrative revenue stream. Making it a common practice at your hotel is easier when you have an automation solution.
While a big part of upselling success depends on communication skills, the knowledge about your current hotel offers, promotions, and access to the necessary information about your guests can work wonders for your financial results.
Curious to learn more about how upselling automation can save time and drive more revenue?
