How to improve your vacation rental profits
Running a vacation rental can be time-consuming and costly. As an owner or manager of a vacation rental, it is vital to regularly look into solutions to improve your vacation rental profits – solutions such as upsells. However, according to recent research by Rentals United, a company providing software in the short-term rental ecosystem, a third of vacation rentals do not offer any upsells to their guests. That means one in three property managers is missing out on potential profits.
The upside to this? An incredible opportunity for vacation rental owners to increase their profits by offering upsells to their guests. So, what exactly are upsells, what do you need to consider and how can you best implement upsells for your vacation rental? Learn all about it below.
What are upsells?
Upselling involves providing customers with extra services or goods in order to improve their experience as a guest. Many travelers are willing to pay more for upgrades and extras that bring value and improve their experience. Within the guest experience journey, the experience is one of the most valuable parts of the stay. And did you know that accommodation costs usually account for 30% of a total vacation budget, while 70% of the budget goes on experiences?
What types of upsells exist?
There are many different kinds of upsells, but each will fit into one (or more) of four categories:
Product upsells – a particular product you can buy, keep, or consume, such as a bottle of champagne or a welcome pack.
Rentable upsells – items available for rent like sports equipment or bicycles.
Service upsells – services in and around the property like extra cleaning, early check-in, or babysitting.
Experience upsells – experiences at the holiday location such as boat tours, surfing or yoga instruction, or cooking classes.
What type of upsells should I offer?
Now you know what upsells are, it’s time to think about what type of upsells you should offer. It is important to understand your guests’ needs before you make this decision. What do guests ask for during their stay at your vacation rental? These questions already tell you a lot about your guests’ needs and what they are looking for.
Next, it is important to look at the guest journey and which stages you can tap into to offer particular upsells. Ask yourself the following questions:
What time do your guests arrive at the property? Would they like an early check-in?
When they arrive, would they like a full fridge or a meal waiting for them?
What do your guests like to do during their stay? Would they be interested in booking a private chef, a day tour, or a bike rental?
Do your guests have children? Would childcare be helpful?
Do you have time between the booking and the next booking? Can you offer your guests to extend their stay?
Looking at the guest journey critically gives you a great amount of information to shape your vacation rental upsells and decide on what kind of upsells will benefit your business.
Benefits go beyond rental profits
The great thing about implementing upsells in your vacation rental business is that the benefits go way beyond simply increasing your profits. After all, by offering upsells you enhance your guests’ stay and increase their satisfaction. By delivering useful upsells that improve their overall stay, guests will feel that you are taking care of them.
Furthermore, with the right upsells you drive repeat business because you are offering a one-of-a-kind service that other vacation rentals can’t compete with. As a consequence, guests are happier, reviews are better, and guests will be more likely to return to your property.
Finally, when you implement upsells effectively you build your brand. This is thanks to the way people look at you and your vacation rental. Create the impression that you do the very best you can to ensure that your guests enjoy their stay, and live up to it by providing pertinent upsells.
How to implement upsells into your vacation rental business
You might think: Great, upsells improve my overall guest experience and satisfaction and will increase profits. But how do I introduce upsells to my guests, and where do I find the time to do it?
If you want to implement upsells for your vacation rental, guest experience platform can give a valuable helping hand. A guest experience software lets you add upsells to showcase to your guests via the guest app. Guests can view, request, and pay for upsells at any time without any host involvement. You hardly need to spend any time on the implementation, as the guest experience platform will take care of it.
It is clear that offering upsells has many benefits. Next to increasing your profits, effective upsells help improve your guest satisfaction, build your brand, and encourage repeat business. Are you ready to start using upsells with your vacation rental? Or maybe you already use upsells but want a tech solution to help you easily offer the best upsells to your guests.