Top Upselling Examples for Vacation Rentals and Tourist Accommodations in California
A short-term rental upsell is a powerful tool which refers to the practice of offering guests additional products, services, or upgrades to enhance their stay, while increasing revenue. This strategy is commonly used in the short-term rental industry and can be either operational, or involve tours, activities, and experiences.
July 2, 2024
California’s vacation rental market is flourishing, with cities like Los Angeles and San Diego leading the charge. Los Angeles boasts over 20,916 vacation rentals, making it the fourth-largest market in the U.S., while San Diego offers around 11,689 rentals (Statista). In May, the state saw a 2% rise in vacation rental occupancy rates, reflecting growing traveler interest (Visit California).
From the beaches of Malibu to the cultural hubs in San Francisco, California’s diverse vacation rentals cater to a wide range of preferences. These cities offer everything from luxury stays to cozy cabins, ensuring an enriching experience for every visitor.
What are Short-Term Rental Upsells?
A short-term rental upsell is a powerful tool which refers to the practice of offering guests additional products, services, or upgrades to enhance their stay, while increasing revenue. This strategy is commonly used in the short-term rental industry and can be either operational, or involve tours, activities, and experiences. The key to successful upselling is understanding the guests’ needs and preferences and offering relevant and valuable additions that enhance their experience. Effective guest communication plays a crucial role in identifying these needs and suggesting suitable upsells. This approach not only boosts revenue but can also lead to higher guest satisfaction and loyalty. Implementing upselling strategies tailored to your rental property enhances the overall guest experience and strengthens your business’s competitiveness in the market.
The cornerstone of successful upselling lies in understanding the guests’ needs and preferences. Effective guest communication is crucial for identifying these preferences and suggesting relevant and valuable additions. This can be achieved through pre-arrival surveys, direct conversations, or analyzing guest profiles and past preferences. For example, a family with young children might appreciate offers for family-friendly activities or babysitting services, while a couple on a romantic getaway might be interested in private dining experiences or spa treatments.
Implementing upselling strategies tailored specifically to your rental property and its target market can significantly enhance the overall guest experience. A well-executed upsell not only boosts revenue but also contributes to higher guest satisfaction and loyalty. When guests perceive that their needs are understood and their experience is thoughtfully catered to, they are more likely to return for future stays and recommend the property to others.
Moreover, incorporating upselling into your business strategy can strengthen your competitive edge in the market. As travellers increasingly seek personalized and enhanced experiences, properties that effectively leverage upselling can stand out from the competition. By offering unique and well-considered additions, property managers can build a reputation for exceptional service and thoughtful hospitality.
Upsells in Hotels VS Vacation Rentals: What’s the Difference
Upsells in hotels typically revolve around concierge services and traditional amenities, such as room upgrades, spa treatments, or exclusive dining options. These services are often managed through centralized hotel systems and offer a standard level of luxury and convenience. However, in the short-term rental properties industry, the process of upselling has evolved to be more digitized, aiming to streamline operations and enhance the guest experience.
In contrast, vacation rental upsells are more personalized and adaptable to individual guest needs. Property managers can offer a range of tailored services such as grocery delivery, private chefs, or curated local tours. This level of customization allows vacation rentals to cater to specific interests and preferences, making each guest’s experience unique and memorable. For example, guests staying in a beachside villa might appreciate the option to arrange for a private surf instructor, while those in a city apartment might enjoy a guided culinary tour of local eateries.
The flexibility inherent in vacation rentals allows operators to innovate and design upsell opportunities that align with both the character of their property and the desires of their target market. This might include offering bespoke packages that combine accommodation with local experiences, or integrating tech-driven solutions such as mobile apps for booking additional services. The ability to tailor these upsells not only enhances the guest experience but also reinforces the property’s brand identity as one that offers personalized and exceptional service.
With the growing popularity of short-term rentals, travelers are increasingly choosing these accommodations over traditional hotels. This shift is accompanied by evolving guest expectations; travelers now anticipate hotel-like services and amenities in their vacation rental stays. Therefore, offering well-curated add-ons and enhancements is crucial for property managers looking to meet these expectations and stand out in a competitive market.
Effective integration of add-on amenities and personalized services is essential for hospitality professionals managing vacation rental property management systems. By utilizing advanced booking platforms and automated systems, property managers can streamline the upselling process, ensuring that guests are presented with relevant offers at the right moments. This not only maximizes revenue potential but also contributes to a seamless and enjoyable guest experience.
Why offer upsells in vacation rentals?
Offering upsells in vacation rentals brings multiple advantages. By enhancing the guest experience through added convenience and luxury, you can significantly increase guest satisfaction and tailor to your target audience’s specific needs. This not only boosts your revenue but also helps in building a strong and recognizable brand. Upselling also encourages repeat business, as guests are more likely to return to a place where they felt valued and pampered.
Moreover, satisfied guests are more inclined to leave positive reviews, further enhancing your property’s reputation and attracting new visitors. Understanding market trends and employing effective revenue management strategies are essential for maximizing these benefits, ensuring that upselling occurs at the best time to meet guest demand. Ultimately, vacation rentals play a similar role to hotels in the hospitality industry, providing memorable experiences and remarkable guest experiences. Incorporating local attractions into your upselling strategy can also enrich the guest experience by offering convenient access to nearby points of interest. Enhancing your profit margin through strategic upselling efforts can lead to sustainable business growth and increased profitability.
Generating great reviews from satisfied guests can further bolster your property’s reputation and attract more bookings, ensuring a seamless guest experience and additional income.
How much revenue per listing can I add with upsells in California?A well-executed upselling strategy, tailored to your guests’ needs and the capacity of your business, can substantially boost revenue. So how can you get the potential revenue increase from upsells in your vacation rental business in California?Factors like your property type, capacity, average stay length, and booking channels can impact your potential revenue uplift. Utilizing a dynamic pricing tool can help you optimize pricing based on demand and other factors. We can make a quick estimate, with a basic formula:Take the value of an experience or service to upsell and calculate your cut.
Different affiliate programs offer different rev share to partners. For example, Viator offers an 8% revenue share. In this case we’ll use this number, but you can insert the percentage of any affiliate partner you choose to work with. Take 8% out of an experience that costs USD $100. And just like that – you earn USD $8 every time one of your guests orders this experience through your link! In the business world, it is usually referred to as “free money”.
This is the revenue a property manager typically retains without sharing with the owners—your choice. In the STR industry, where margins are thin, these numbers can significantly impact your bottom line.Below you can see the real experiential packages in California you can offer your guests to make a hassle-free profit.
Learn more about the economics of vacation rental upselling.
WATCH HOW AN OPERATOR LIKE YOU UNLOCKED A NEW REVENUE STREAM WITH UPSELLS
When should you try to upsell services in your vacation rental?
To effectively upsell services in your vacation rental, timing is crucial. Key opportunities include during the booking confirmation, when guests are excited about their stay, and upon check-in, when they might be interested in enhancements like upgraded amenities. Additionally, mid-stay touchpoints are ideal for offering experiences or services that can improve their current stay. Tailoring your upsell strategies to these moments ensures relevance and increases the likelihood of conversion, thereby maximizing revenue without overwhelming guests.
Types of Vacation Rental Upsells
Operational Upsells
Service Upsells
Activities and Experiences
Operational Upsells
An operational upsell in the hospitality industry refers to offering guests additional services related to the operation and convenience of their stay. These services enhance the guest experience by providing added comfort, flexibility, and convenience, for an extra fee. Excellent customer service is crucial in effectively communicating and facilitating these upsells, ensuring guests perceive them as valuable additions to their stay. Below are some examples:
Early Check-in
An early check-in offers guests the possibility to access the accommodation before the standard check-in time. This would normally be between 3 p.m. and 4 p.m. The service is valuable for guests arriving early in the day who want to rest, unload the bags, relax or start exploring the destination. Our data (of over 7 million guest checkins) indicates that even offering a ONE HOUR earlier checkin for an additional $20 or so is worth it for many people.
Late Check-out
By providing guests with late check-out, you let them stay in the property after a standard checkout time. This is usually between 10 AM and 12 PM. When people have late departures, the possibility of enjoying the property for a little longer can add up to the vacation experience. Many guests are ready to pay a premium for convenience. A willingness to offer your guests the flexibility of a later stay can go a long way.
Stay Extension or Gap Nights
This type of upsell offering can be a golden opportunity for a rental operator to increase the occupancy rate. Fill short gaps between reservations by offering departing and arriving guests to extend their stays and fill gap nights. By automating this process, you can make sure to capture these rental income opportunities with a great value proposition.
Mid-stay Clean
A short-term rental housekeeping doesn’t include daily cleaning. However, travellers staying for longer periods, would appreciate mid-stay housekeeping service and would pay extra to pay for the cleaning team effort and cleaning fees.
Pool/Hot tub Maintenance
Offering this upsell requires knowing your audience and the market you are in very well. If it is something that makes sense, upselling pool or hot tub maintenance can boost profits while enhancing the guest experience.
Service Upsells
Service upsells focus on offering additional guest services that enhance their stay by providing extra convenience, luxury, or comfort. These can range from personalized concierge services to in-room amenities and private transportation, often available for an additional fee. Examples include:
Transportation Services
Offering airport pickup and drop-off services, car rentals, or shuttle services to nearby attractions.
Food and Beverage Delivery
Offer grocery delivery services where guests can pre-order groceries and have them delivered to their rental before or during their stay. You can also provide an option for guests to order ready-to-eat meals and beverages from nearby restaurants.
Equipment Rentals
Provide rental services for equipment that guests might need during their stay. Examples include bicycles, baby equipment (cribs, high chairs), or beach accessories (chairs, snorkelling gear).
Tours, Activities, Experiences as Vacation Rental Upsells in California
Experiential upsells involve offering guests unique tours, activities, and experiences to enrich their stay. These can include guided city tours, adventure activities, cultural experiences, or wellness sessions. By providing these curated experiences, you can create memorable moments for guests while generating additional revenue.
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What is Enso Experiences?
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How Does It Work?
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Tailored Recommendations: Local tours and activities are automatically displayed in your guests’ Boarding Pass after property-specific upsells. These recommendations are specific to your property location, tour ratings and popularity.
Revenue Generation: Earn a 2-6% commission every time a guest books an experience.
Conclusion
In conclusion, upselling in vacation rentals offers a compelling opportunity to enhance guest experiences and boost revenue. California, with its thriving vacation rental market, provides an ideal backdrop for implementing these strategies. From operational upsells like early check-ins and mid-stay cleanings to service upsells including concierge services and equipment rentals, the potential for adding value is significant.
Additionally, offering unique activities and experiences, such as guided tours and local adventures, can further enrich a guest’s stay. By understanding guest preferences and effectively timing these upsell offers, vacation rental operators can significantly enhance guest satisfaction, foster loyalty, and create memorable stays in the Golden State.
Whether you’re managing a luxury beachfront property in Malibu or a cozy mountain retreat in Lake Arrowhead, integrating a well-planned upsell strategy can set your rental apart and drive success in California’s competitive market. Building upon these offerings can lead to positive guest reviews from satisfied guests, further enhancing your property’s reputation and attracting new visitors. Utilizing the right tools and techniques is essential for optimizing your upselling efforts and maximizing guest satisfaction.
