Tour operators constantly seek ways to enhance their offerings and increase revenue in the ever-competitive travel industry. Upselling and cross-selling are two powerful tactics that can significantly boost your bottom line
What is upselling for tour operators?
Upselling entices customers to purchase a more expensive or premium version of the product they’re already considering. In the context of tours, this could involve:
- Upgrading from a basic walking tour to a VIP tour with exclusive access or a skip-the-line feature
- Extending the duration of a tour package from 24 hours to 48 or 72 hours
What is cross-selling for tour operators?
Cross-selling involves recommending additional products or services that complement the customer’s initial purchase. For instance, a customer booking a city tour might be interested in purchasing:
- Tickets to a popular museum or attraction
- An airport transfer or shuttle service
- A cultural experience or dining package
The benefits of upselling and cross-selling
- Increased revenue: Upselling and cross-selling tours and products can significantly boost your average order value by encouraging customers to spend more.
- Enhanced customer experience: When done thoughtfully, upselling and cross-selling can provide additional value to your customers and cater to their interests.
- Improved customer satisfaction: Satisfied customers are more likely to become repeat customers and recommend your services to others.
The rise of digital upselling and cross-selling in tourism
The travel industry has significantly shifted towards online bookings in recent years. This has led to a rise in digital upselling and cross-selling techniques. Many tour operators now leverage their websites and online booking platforms to suggest upgrades and add-on services during the checkout process strategically
A modern approach to upselling and cross-selling
While upselling and cross-selling can be powerful tools, it’s crucial to implement them strategically and ethically. Here are some key considerations:
- Personalisation: Tailor your upsell and cross-sell recommendations to the customer’s specific needs and preferences
- Transparency: Communicate the value proposition of each upgrade or add-on service
- Non-intrusiveness: Avoid overwhelming customers with too many options or pressure them to purchase additional services.
By effectively implementing upselling and cross-selling strategies, tour operators can elevate the customer experience, increase their revenue potential, and stay ahead of the competitive travel landscape.
“It’s not just about the initial sale anymore. By strategically suggesting upgrades or add-ons during the booking process, we can help create a truly memorable travel experience tailored to the customers interests.”
Josef Birchler, CPO at Palisis
Are you looking to enhance your tour operator webshop and boost your average basket size? Consider incorporating upselling and cross-selling functionalities to provide customers with a seamless and convenient way to explore additional tour options and experiences. Contact us now to learn more