It's a sanctuary where guests dream of unwinding year-round. Dozens of restaurants, bars, services, spa treatments… a world condensed within hundreds of square meters.
Typically, these properties offer all-inclusive packages, meaning most services, restaurants, and bars are included in the guest's reservation.
Consequently, while the scope for upselling may be limited, it exists.
Upselling encompasses premium services that significantly enhance a hotel's revenue. For example, spa treatments and romantic dinners are frequently instrumental in generating additional income.
In this post, we'll delve into three testimonials from renowned hoteliers who explain how enhancing the visibility of their services through a guest app has propelled their revenue streams.
The Importance of Visibility: What Isn't Seen, Isn't Sold
Enhancing the visibility of your services through a guest app is crucial to driving upsells in your hotel.
This concept is easy to grasp; let's consider any other industry.
What good is it to craft the perfect cookie—delicious, with an irresistible texture and eye-catching packaging—if you can't make potential customers aware of its existence?
Indeed, that's the fundamental reason advertising exists. Because a great product without visibility is like a car without wheels; regardless of the chassis, engine, or aerodynamics, it won't move forward.
The same principle applies to high-end resorts.
Premium services often come at an additional cost and significantly boost a hotel's revenue. Therefore, generating awareness is crucial.
Guests relish exploring additional services that can elevate their stay to extraordinary levels. Hence, it's essential to make these offerings easily accessible.
This is where a hotel's guest app comes into play.
By bringing the resort's complete catalog to the guest's smartphone screen, allowing them to browse and book with just a few taps, and facilitating direct communication between staff and guests, a guest app becomes the ultimate showcase for the hotel.
This increased visibility invariably leads to higher revenues, as testified by Abel Torres, Assistant Manager at Haven Resort in Cancun.
"The enhanced visibility of our premium services, such as spa treatments and exclusive dining experiences, has resulted in a significant revenue increase. Guests are more inclined to utilize these services when they know their availability.”
He also argued:
“Previously, we would inform guests of our extensive range of services at check-in, but only about 20% of the information would stick. Now, they can access this information on their smartphones anytime. As the saying goes, 'Out of sight, out of mind.' By making these services more accessible and visible to our guests, we've stimulated demand and significantly boosted our revenue."
Elimination of queues leads to higher profits
The world's premier resorts are embracing digital transformation through guest apps.
Reducing queues is crucial for their online reputation.
Simplifying the guest experience - allowing guests to book any service, premium or otherwise, via their smartphones - fosters operational efficiency and reduces wait times, leading to an increase in repeat customers.
Additionally, it enables hotels to justify premium pricing, as a higher online reputation correlates with a willingness among guests to pay more.
Jonathan Iriarite, General Manager of Planet Hollywood, illustrates this point vividly as he explains how implementing a guest app with STAY led to a significant revenue increase, akin to the experience of Abel Torres at Haven Resort.
"Four months after implementing STAY, our revenue had already increased by 15%. The enhanced visibility of our services and the convenience of booking them were pivotal”.
Complaints and queues result in negative reviews. Negative reviews, in turn, decrease occupancy rates and, consequently, revenue. Planet Hollywood knew it and acted accordingly.
"It was chaotic before. The first-come, first-served system led to long restaurant queues, which opened at 5:30 PM, forcing guests to line up. Now, guests can make reservations from anywhere using our smartphone app without disrupting their relaxation by the pool.”
Additionally, he notes:
“After implementing STAY's guest app, we went from occasionally receiving 200 complaints daily about restaurant reservation queues to none at all a day. Our staff is delighted with the ease, freedom, and flexibility the app provides."
Planet Hollywood recorded nearly 50,000 transactions through its app in four months. It now handles up to 77 concierge services, 59 sports bookings, 19 spa reservations, and 37 cabana bookings daily, all through the app. STAY facilitates upselling, such as romantic dinners and beverage packages, resulting in a 15% increase in sales. Booking spa packages directly from smartphones has also become much easier for guests.
This combination of increased visibility, convenience, reduced queues, and digitalization has led to a surge in revenue for Planet Hollywood.
“We’ve reached a 15% increase in revenue, and we expect to achieve a 30% increase in the coming months.”
Maximize Your Spa's Potential: A Hidden Upselling Treasure
The spa is a significant driver of upselling in a resort.
Even if included in an All-Inclusive reservation, it often offers premium beauty treatments, wellness experiences, or massages. This is where the guest app comes into play.
On one hand, there's the increased visibility discussed above. On the other hand, it's common for these centers to open to the general public, not just hotel guests. A digital tool is essential to manage reservations effectively and refrain from constantly dedicating staff to this task.
Besides, shifting from manual on-demand systems to automated ones is crucial for avoiding confusion and ensuring availability detection.
This was the case at Barceló Fuerteventura, located in Spain.
Their Thalasso Center delighted guests, but the management team aimed to optimize resort operations and attract more local customers. However, when they implemented an app, they could launch a campaign to attract more clients and increase revenue at the resort's wellness center.
Thanks to digitalization, Vanessa Díaz Barrer, Director of Wellness & Fitness & Sports at Barceló Fuerteventura, through STAY, has not only made the center's services available to guests but also accessible to residents seeking a healthier lifestyle, tennis or paddle tennis enthusiasts, or those simply looking to maximize their gym and spa experience.
"Revenue has increased due to better staff control and eliminating the need for staff approval for guest reservations. Being more visible on the home screen and integrated into the Barceló App, which offers an enhanced guest experience, clients are more aware of the quantity and quality of treatments available in our spa.”
She continues:
“Revenue has increased due to reduced cancellations, as reservations are instantly confirmed, avoiding confusion. Nonguests can also use the spa, attracting more demand and income sources. Operational efficiency has improved because Spa PRO is designed to understand the specific needs of a resort spa like ours. And the tool is integrated into the Barceló App, with all the remaining functionalities."
In Conclusion
The power of guest apps in resort hospitality cannot be overstated.
From enhancing visibility to streamlining operations and maximizing revenue potential, these digital tools have revolutionized the way hotels interact with their guests and manage their services.
Through the testimonials of renowned hoteliers like Abel Torres, Jonathan Iriarite, and Vanessa Díaz Barrer, we've seen firsthand how digitization, convenience, and eliminating queues lead to higher profits and a superior guest experience. As the hospitality industry continues to evolve, embracing technology and innovation will be essential for hotels to stay ahead and unlock new levels of success in the competitive market.
