Top Upselling Examples of Tourist Accommodations in Australia
Around 560,000 Australians (2.9% of the population) own a holiday home. According to Pricelabs, in 2023 Airbnb had around 166,000 listings in Australia, making it the 10th largest market globally. With high competition from hotels and other Australian vacation rental operators, there’s a need to stand out in the market. The good news is that the right upselling strategy provides a competitive edge, regardless of business size.
June 17, 2024
Around 560,000 Australians (2.9% of the population) own a holiday home.
According to Pricelabs, in 2023 Airbnb had around 166,000 listings in Australia, making it the 10th largest market globally.
With high competition from hotels and other Australian vacation rental operators, there’s a need to stand out in the market. The good news is that the right upselling strategy provides a competitive edge, regardless of business size.
Discover how Samson Waters, a vacation rental company managing 250+ properties increased upsells by 61% and transformed their guest experience using Enso Connect.
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, adapting to modern expectations and providing exceptional, personalized experiences.
How much revenue per listing can I add with upsells in Mexico?
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 Mexico?
Factors like your property type, capacity, average stay length, and booking channels can impact your potential revenue uplift. We can make a quick estimate, with a basic formula:
Take the value of an experience or service upsell and calculate your cut. Different affiliate programs offer different rev share to partners.
Affiliate Program is Bundled in our Boarding Pass
What is Enso Experiences?
We connect your guests to thousands of curated local tours, activities, and experiences directly through your guest portal. From guide tours and wellness packages to live music and outdoor adventures, your property becomes the gateway to long-lasting memories. NO ADDITIONAL CHARGE TO YOU.
How Does It Work?
Instant Setup, Zero Hassle: Enable Enso Experiences with one click and watch the revenue flow in – no management required!
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.
Consider Offering 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 additional fee. 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 10am and 12PM. When people have late departures, the possibility to enjoy 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 an upsell offering can be a golden opportunity for a rental operator to increase 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 of time, would appreciate mid-stay housekeeping service and would pay extra to pay for the cleaning team effort.
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.
Consider Offering 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. 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, snorkeling gear).
Conclusion
Upselling in Australia’s tourist accommodation market is not just a way to boost revenue—it’s an essential strategy for standing out in a competitive landscape. By offering guests unique experiences, such as tickets to the iconic Sydney Opera House, snorkeling adventures at the Great Barrier Reef, or exploring the dramatic Great Ocean Road, property managers can significantly enhance guest satisfaction. These tailored upsells not only meet the diverse interests of travelers but also transform a simple stay into a memorable journey. As the short-term rental market continues to evolve, leveraging local experiences and innovative upselling techniques will be key for Australian hosts to thrive, ensuring they provide value that goes beyond just a place to stay.
