The Missed Opportunity: How to Unlock Hidden Upsell Revenue in Your Hotel

For many hoteliers, the focus is squarely on RevPAR (Revenue Per Available Room). While room revenue is foundational, the real profit often lies in ancillary revenue—the spending that happens after the guest has booked their stay.

The problem is that most hotels rely on outdated upselling methods. A dusty pamphlet in the room or a scripted question during a busy check-in is rarely effective. To truly unlock hidden revenue, you need to reach guests when they are most receptive: on their terms and on their devices.

The Psychology of the Digital Upsell

When guests are relaxing in their rooms, they are in a "leisure mindset." This is the perfect moment to offer them enhancements to their stay.

1. The Power of "One-Tap" Convenience

If a guest has to call the front desk to book a spa treatment, half of them won't do it. If they can tap their phone on an NFC tag and see available slots on their Tagnovate hub, your conversion rate will skyrocket.

2. Timely and Relevant Prompts

Upselling is all about timing.

• Arrival: Offer a late check-out or a welcome drink.
• Afternoon: Promote a sunset cocktail hour or a spa special.
• Evening: Suggest a breakfast-in-bed upgrade for the following morning.

Implementing an Ancillary Sales Strategy

Step 1: Digitizing Your Offerings

Stop burying your services in a PDF. Every service—spa, tours, room upgrades—should be a clickable, visual element in your Tagnovate digital hub.

Step 2: Use Visual Storytelling

Luxury is sold through imagery. Link your digital guide to your MenuGo digital menu to showcase your food and beverage offerings with professional photography. A photo of a signature cocktail is a much more effective upsell than just a line of text on a list.

Step 3: Removing Friction

The easier it is to pay, the more guests will spend. Integrating your digital concierge with your PMS or a simple mobile payment gateway allows guests to make impulsive, high-margin purchases without picking up the phone.

Real-World Impact

Hotels using Tagnovate's digital concierge report an average 12-18% increase in non-room revenue. By simply making services discoverable and bookable in the palm of the guest's hand, you transform your guest hub from a directory into a revenue engine.

Conclusion

Every guest who walks through your door is an opportunity. Don't leave revenue on the table by relying on old-school methods. Use digital tools to bridge the gap between your services and your guests' desires.

Ready to start upselling smarter? Configure your digital concierge with Tagnovate today and watch your ancillary revenue grow.

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Looking to optimize more? Check out our guide to direct hotel bookings or learn how to reduce front desk calls by 40%.