Increase Earnings with Vacation Rental Upsells

Why Upselling in Vacation Rentals?

Upselling in vacation rentals means offering additional services at additional cost, such as airport transfers, guided tours, or premium amenities. These services can elevate the stay experience for guests and increase revenue for operators.

Let’s look into the numbers for short-term rental upsells. Typically, 30% of a traveler’s budget is allocated to accommodations, while the remaining 70% is spent on experiences. Integrating these experiences into their upselling strategy enables hospitality providers to tap into this piece of the budget pie.

While being a valuable strategy at all times, upselling is especially vital when traditional revenue sources are at risk.

The Benefits of Upselling in Short-term Rentals

The speakers agreed that short-term rental upselling not only boosts revenue but also elevates the guest experience and offers a competitive edge to operators. By strategically offering additional services or upgrades, hosts can create more personalized stays, catering to guests’ unique preferences and enhancing their overall satisfaction.

Upselling can range from simple add-ons like early check-ins, late check-outs, or premium welcome packages, to more curated experiences like local tours, private chefs, or spa services. These extras not only increase revenue but also make a property stand out in a crowded market. Guests appreciate the added convenience and customization, which can lead to higher reviews and repeat bookings.

Moreover, upselling allows operators to tap into untapped potential, especially during slower booking periods, maximizing the value of each guest’s stay. By anticipating guest needs and offering tailored options, operators can create memorable experiences while ensuring steady revenue streams. In a competitive industry, effective upselling becomes a key tool for differentiating one’s property and building stronger relationships with guests.

Increased Revenue

By offering additional services or amenities, you can increase the average transaction value of each booking, helping to maximize revenue even during periods of lower occupancy. These upsells might include premium features such as airport transfers, equipment rentals, guided tours, or even stocked fridges with local delicacies. Each of these extras not only adds value for your guests but also boosts your earnings per reservation.

This approach allows you to create more flexible pricing models, catering to different types of travelers and their preferences. For example, business travelers may value faster check-ins and workspace setups, while vacationing families may appreciate entertainment packages or child-friendly equipment. By thoughtfully curating these options, you can enhance the guest experience and give them more reasons to spend beyond the base rental fee.

Increasing the average transaction value through upselling also strengthens your competitive position in the market. It demonstrates your ability to provide a higher level of service, helping to build guest loyalty and encouraging repeat stays. Additionally, it helps mitigate the impact of fluctuating occupancy rates by ensuring that each booking contributes more significantly to your bottom line.

Enhanced Guest Experience

Providing additional services or amenities can significantly enhance the guest’s experience, leading to positive reviews and repeat bookings. When guests feel that their stay is personalized and exceeds expectations, they are more likely to leave glowing reviews, which in turn improves your property’s visibility and reputation on booking platforms. This word-of-mouth marketing is invaluable in attracting future guests and fostering trust.

Thoughtful extras such as arranging transportation, offering local experiences, or providing tailored amenities like welcome baskets or fitness equipment show that you are committed to making the stay special. These personalized touches not only elevate the guest experience but also demonstrate your attention to detail, creating a lasting impression that encourages guests to return.

Positive reviews are a key factor in boosting future bookings, as they reassure potential guests that your property offers a high level of service. Repeat bookings, on the other hand, indicate strong guest satisfaction and loyalty. By investing in additional services and amenities, you create an experience that guests will want to relive, strengthening your position in the competitive vacation rental market.

Competitive Advantage

Offering unique upsells can differentiate your property from competitors and make it more appealing to potential guests. In a crowded marketplace, standing out often comes down to the extra value you provide beyond the standard amenities. Whether it’s curated local experiences, premium services like a private chef or yoga instructor, or exclusive access to hidden gems in the area, these upsells offer a personalized touch that can make your property memorable.

Guests are increasingly seeking more than just a place to stay—they want experiences that align with their interests, lifestyles, and the purpose of their trip. By offering unique upsells tailored to these needs, you not only increase your revenue but also create an emotional connection with guests, making them more likely to choose your property over others. For example, you could offer a wine-tasting tour for couples, adventure packages for thrill-seekers, or family-friendly services like babysitting or children’s entertainment.

These distinctive offerings not only enhance the guest experience but also position your property as a destination in itself, rather than just another rental. This can help you command higher rates, attract more bookings, and encourage guests to share their experiences through positive reviews and social media, further boosting your property’s appeal.

Examples of vacation rental upsells

• Offering late check-outs option for guests who wish to extend their stay a little longer.

• Providing first-party services such as mid stay cleaning and equipment rental.

• Partnering with local vendors, for example, a local picnic company offering custom picnics exclusive to the property.

• Organizing events like bachelor parties and girls’ trips.

• Having local vendors promote the property, which serves as a mutual benefit.

• Using these partnerships as a great source of content for marketing purposes.

• Prompting guests to purchase early check-in when they attempt to complete an online check-in ahead of their official check-in time.

• Offering pool heating for guests who wish to enjoy the pool in cooler temperatures.

• Offering fridge stocking and restocking for guests who appreciate grocery delivery services.

• Using affiliate links (e.g., Uber) to provide transportation, luggage storage or other services while generating additional revenue.

Vacation Rental Upselling Gap

Despite the clear benefits of upselling in hospitality, not many vacation rental operators are actually doing it. The survey of webinar attendees reveals that, despite their interest in upsells, 40% of operators have not yet implemented any upselling strategies. There is a significant gap in upselling strategies implementation. The majority of respondents are either not utilizing upselling at all, or are generating only a small portion of their revenue from it.

Vacation Rental Upselling Challenges

Although hotels have been practicing upselling for some time and are even escalating their efforts now, vacation rentals remain reluctant. This slower adoption of upselling strategies in short-term rentals, compared to hotels, has a reason. Short term rental properties are unique and often scattered across various locations, making operations more complex. Additionally, there is a widespread belief that true hospitality involves including everything in the initial cost. Some view upselling as an attempt to extract every last penny from guests.

We asked the vacation rental professionals about their biggest challenges with upsells. One third of the respondents are struggling to convince guests to opt for upsells. 30% need help to identify upsell opportunities. 19% wish they could streamline the upsell process and 19% don’t know how to start implementing upselling strategies.

This just confirms the pressing need for comprehensive education and guidance on effectively implementing upselling strategies in vacation rentals.

Identifying Opportunities for Upselling

To effectively implement upselling strategies, it is important to identify the opportunities that are most likely to resonate with your target audience.

• Consider whether the upsell will integrate seamlessly and at scale as part of your existing operations. This involves assessing the feasibility and scalability of each potential upsell.

• Focusing more on basic services and less on experience-driven offerings (Enso Experiences will automatically populate those for you - no need to search for local recommendations).

• The most revenue will be driven from essential services that all guests may need or desire during their stay. Think of mid-stay cleaning, late check-out requests versus an affiliate Fishing Tour.

• Leverage historical booking data and information collected from your guests throughout the entire journey to identify trends and preferences.

How can vacation rental professionals offer upsells to guests ?

Offering upsells to guests can be done in various ways, each with its own advantages. Here are some methods property managers can use to offer upsells to their guests:

Email or Messaging

 Sending personalized emails or messages to guests before their arrival is an effective way to offer additional services or amenities. This can include information on airport transfers, equipment rentals, or unique local experiences. Be sure to include compelling descriptions and images to make the offerings as attractive as possible.

Guest App

A mobile app designed for your guests can be a convenient way for them to access and purchase upsell offerings during their stay. The app can include information on available services and amenities, as well as local experiences and attractions.

In-House Screen (boutique hotel focused)

Screens in the property, such as a smart TV or a tablet, can be used to display upsell offerings to guests during their stay. This can include information on available services and amenities, as well as recommendations for local experiences and attractions.

QR Codes

 Placing QR codes strategically around the property or in the welcome booklet can direct guests to a web page or app where they can view and purchase upsell offerings. This is a convenient way for guests to access the information at their own leisure.

Face-to-Face

Traditional face-to-face interaction can also be an effective way to offer upsells to guests. This can be done at check-in or during the guest’s stay by trained staff who can explain the benefits of the additional services or amenities.

Property Website

The property’s website is an ideal platform to showcase upsell offerings. Guests often visit the property’s website before their stay, making it a prime opportunity to present additional services, amenities, or experiences that may enhance their stay.

Remember, the key to successful upselling is to offer genuine value to your guests and to present the offerings in a way that enhances their experience. By utilizing a combination of these methods, hosts and managers can effectively offer upsells to their guests and maximize their revenue potential.

Conclusion

While the current climate presents numerous challenges for the vacation rental industry, strategic upselling presents an opportunity to optimize revenue streams and enhance the guest experience. By understanding your guests’ needs, offering genuine value, and leveraging technology, you can implement successful upselling strategies that will benefit both your business and your guests.