GuestLabs

Guest automation with AI

How Airbnbs Can Boost Revenue with Upsells

The short-term rental market is becoming more competitive by the day, with new listings popping up everywhere and guests expecting unique, tailored experiences. With so many options, hosts are starting to notice slimmer profit margins and more frustrating gaps in their booking calendars. To stay ahead of the game, Airbnb hosts need more than just bookings; they need smart strategies to boost revenue, such as offering extended stays, early check-ins, late check-outs, and extra services that add real value.

Maximizing revenue not only increases profitability but also allows hosts to reinvest in their properties, improve guest satisfaction, and stay ahead of the competition. In this article, we’ll dive into how you, as a host, can use upselling as a game-changing strategy to bring in more revenue and increase your ROI.

How does upselling work for Airbnb hosts?

Upselling is a strategy used to encourage customers to purchase additional or upgraded services beyond the base offering. For Airbnb hosts, this means offering extras that enhance the guest experience, from practical add-ons like early check-ins, late check-outs, and extended stays to indulgent options like spa packages, guided tours, or private chef services.

By presenting well-timed, personalized upsell options, hosts can anticipate guests’ needs and create memorable stays. For example, a guest staying for a special occasion might appreciate the option to have a bottle of champagne waiting for them on arrival.

What are some of the most in-demand upsell options?

To identify upsell opportunities, hosts need to consider what additional needs their guests might have beyond just a place to stay. Anticipating when these needs arise during the guest journey helps in timing the upsell perfectly. Some of the most in-demand upsell options include:

  • Early Check-in/Late Check-out: Guests value flexibility, especially when navigating travel schedules. Offering early check-in or late check-out for an additional fee is a simple upsell that provides convenience with minimal effort from the host.
  • Local Experiences: Travelers increasingly seek authentic, local experiences. Hosts can partner with local tour guides, chefs, or artisans to offer curated experiences like cooking classes, guided hikes, or private tours, giving guests a deeper connection to the area.
  • Premium Amenities: Upgrading basic amenities is an excellent way to enhance the guest experience. This could include luxury bedding, high-end coffee machines, or access to premium streaming services. Offering packages like a “spa at home” with bath salts, robes, and essential oils can also create a more relaxing stay.
  • Pet-friendly Services: Many travelers bring their pets, and offering pet-related amenities can be a lucrative upsell. Options might include pet beds, bowls, treats, or even dog-walking services.
  • Transportation Services: For guests without transportation, offering airport transfers, bike rentals, or guided transportation services can be a valuable upsell. This not only provides convenience but also simplifies logistics for your guests.

How can Airbnb hosts automate upselling?

As times evolve, it’s becoming increasingly effective and efficient for hosts to leverage technology to streamline and scale their upselling efforts. Purpose-built tools offered on guest engagement platforms like GuestLabs make it easy for hosts to automatically suggest upsells at the most opportune moments, creating a seamless and personalized experience for guests without added manual effort. Some powerful technology tools hosts can use to enhance their upselling game include:

  • AI-driven Chatbots: Guest communication chatbots can be programmed to suggest relevant upsells based on guest behavior or preferences. For example, when a guest asks about check-in times, the chatbot can offer an early check-in for an additional fee or recommend local experiences during the stay.
  • Booking Platforms: Booking platforms can automatically offer upsells during the booking process or pre-arrival. When a guest books their stay, the system can present options for add-ons like airport transfers, welcome baskets, or upgraded amenities, making it easy for guests to enhance their stay with just a few clicks.
  • Automated Messaging: Automated messaging can be used to schedule upsell offers at key points in the guest journey. For example, a day before check-in, an automated message could offer early check-in or premium services like a stocked fridge upon arrival.

When is the best time to offer upsells to guests?

Timing is crucial when it comes to upselling. Offering the right upsell at the right moment can greatly boost your chances of success. Here are key moments during the guest journey when upsell offers are most effective:

  • During the Booking Process: When guests are already in the mindset of spending, it’s the perfect time to offer add-ons like premium room upgrades, early check-in, or special packages. Presenting these options as part of the booking flow makes it easy for guests to enhance their stay right from the start.
  • Pre-arrival: As the trip draws closer and excitement builds, guests are more open to offers that enhance their experience. This is an ideal moment to suggest local experiences, transportation services, or personalized amenities like a welcome package or fridge stocking.
  • Day of Check-in: On the day of arrival, convenience is key. Offering early check-in, baggage storage, or late check-out can be especially appealing. Guests may be willing to pay extra to make their travel day smoother and stress-free.
  • Mid-stay: Once guests are settled in, it’s a good time to suggest upsells that enrich their experience, such as additional cleaning services, in-house dining, or local tours. These mid-stay offers should focus on comfort and convenience to enhance their stay.
  • Before Check-out: Toward the end of their stay, offering a late check-out or an extended stay can give guests more time to relax. If they’ve had a great experience, they may be more inclined to spend a little extra to extend their visit.

How can hosts tailor upsells to different types of guests?

When guests feel that the offers are tailored specifically to their needs, they’re more likely to take advantage of them. Here are some different types of guests you may want to target as you embrace the upselling game:

  • Families: Families often look for convenience and comfort. Upsells like baby gear rentals (cribs, high chairs), child-friendly entertainment packages, or family-sized meal delivery services can make their stay easier. You could also offer discounts on local family attractions or tours tailored to children.
  • Couples: Couples, especially those on a romantic getaway, might be interested in premium services like couples’ spa treatments, private dining experiences, or romantic room setups with champagne or flowers. Personalizing these offers based on their special occasion (honeymoon, anniversary) can make the upsell more appealing.
  • Business Travelers: Business guests prioritize efficiency and productivity. Tailored upsell options for this group might include premium Wi-Fi packages, co-working spaces, airport transfers, or extended check-out to accommodate their meeting schedules. Offering laundry or dry-cleaning services is also a thoughtful upsell for business travelers on tight timelines.
  • Solo Travelers: Solo adventurers often seek unique experiences and convenience. Personalized upsells could include private tours, local meet-ups, or exclusive experiences like photography sessions or yoga classes. Additionally, solo travelers might appreciate transportation services or a stocked fridge to simplify their stay.
  • Luxury Travelers: For guests looking for a high-end experience, upsells should focus on luxury and exclusivity. Offering personalized concierge services, private chefs, or VIP access to local events can elevate their stay. Luxury guests may also appreciate premium amenities like top-tier bedding, gourmet coffee, or an in-house massage service.

What metrics measure the success of an upsell strategy?

To evaluate the effectiveness of your upsell strategy, focus on key performance metrics that provide insights into what’s working and where improvements can be made:

  • Upsell Conversion Rate: This metric indicates the percentage of guests who accept upsell offers compared to those who don’t. A high conversion rate suggests that the upsell is well-timed and relevant to guests.
  • Average Spend per Booking: Tracking how much guests spend on upsells alongside their base booking cost gives you a clear picture of revenue from these offers. An increase in this metric shows that guests find value in the additional services or experiences.
  • Revenue per Guest: This metric calculates the overall revenue generated per guest, including both the booking fee and any upsell purchases. By focusing on increasing revenue per guest, you can enhance profitability even during off-peak periods.
  • Guest Satisfaction Scores: Offering upsells should enhance the guest experience, not just boost revenue. Monitor guest feedback and satisfaction scores to ensure that your upsells meet expectations and contribute positively to their stay.
  • Upsell Offer Acceptance Timing: This measures when guests are most likely to accept upsell offers—whether during booking, pre-arrival, or mid-stay. Analyzing this data helps you optimize the timing of your offers to maximize conversions.
  • Repeat Guest Upsell Engagement: Track how often returning guests take advantage of upsell offers. If repeat guests frequently opt for upsells, it indicates that your offerings add value and foster loyalty.

Conclusion

In this article, we explored the concept of upselling and how it can not only enhance your guests’ experiences but also give you a competitive edge in the ever-evolving short-term rental market. As competition tightens and profit margins narrow, it’s crucial for vacation rental hosts to innovate and diversify their revenue streams beyond just bookings. Upselling presents a low-risk opportunity that doesn’t require a significant investment. With a well-crafted strategy tailored to the unique preferences of your guests, you can achieve higher conversion rates and significantly boost your revenue.

Timing is essential in the upselling game, and automating your guest engagement process can help you identify opportunities to present offers at just the right moment. Additionally, keep a close eye on key metrics such as upsell conversion rates and guest satisfaction to assess the effectiveness of your strategy and make necessary refinements over time.

Happy hosting!