Cross-Selling is a sales technique in which a hotel offers guests additional products or services that complement their original booking. The objective is to increase total guest spending while enhancing the guest experience.
How It Works
Hotels can use cross-selling to promote services such as breakfast, parking, airport transfers, spa treatments, restaurant reservations, or late check-out.
Offers may be presented during the booking process, before arrival, at check-in, or during the guest’s stay. Effective cross-selling focuses on services that are relevant to the guest’s needs and preferences.
Practical Example
A guest books a room for three nights at CAD 200 per night.
Room Revenue = 3 × CAD 200 = CAD 600
The hotel offers breakfast at CAD 25 per person per day. One guest accepts the offer for all three mornings.
Additional Breakfast Revenue = 3 × CAD 25 = CAD 75
Total Revenue from the Room and Breakfast = CAD 600 + CAD 75 = CAD 675
This calculation represents revenue before considering the costs of providing breakfast.
How to Interpret Cross-Selling
Cross-selling can increase total revenue per guest and introduce guests to more of the hotel’s services. However, additional revenue does not automatically translate into additional profit. Hotels should consider the cost of delivering each service and measure the incremental contribution generated.
Related Terms
Upselling · TRevPAR · GOPPAR · Contribution Margin · Market Segmentation · Revenue Management