Upselling is a sales technique when a seller asks the customer to buy a more expensive upgrade or a premium version of the chosen item. In the travel industry, the ultimate objective of this strategy is to get the most revenue per booking by convincing travelers to choose better accommodations, higher service classes, or better views during or after the booking flow.
While these terms are often used interchangeably, they are different revenue strategies employed in the travel tech ecosystem.
Upselling in travel is a vertical shift in value. It is a process of stepping the customer up the ladder of the same product category.
Cross-selling is horizontal expansion. It is done by selling ancillary products attached to the core product.
Modern travel upselling is not only a front desk script. It is an automated and data-driven process built into the entire guest journey through the IBE (Internet Booking Engine) and CRM (Customer Relationship Management) systems.
During the first time booking on the website, the IBE employs psychological triggers such as “anchoring.” It shows the “Standard” price alongside a slightly increased “Premium” price, showing the high value add (e.g., “Includes Breakfast” or “Refundable”) for a slight cost increase.
Between booking and arrival, CRM systems send automated emails (e.g., “Upgrade your stay”). Specialized software (like Oracle’s Nor 1) enables guests to reserve a paid upgrade at a reduced rate (given only if the inventory is not sold the day of arrival). This monetizes what would otherwise be premium inventory that goes to waste (spoilage) or is given away for free.
This is the frontier of upselling travel. Instead of selling fixed room types (such as “Junior Suite”), ABS technology enables guests to select specific features for incremental costs, such as “High Floor,” “Balcony” or “Late Check-out.” This granular approach unbundles the product, which in turn allows the system to monetize every desirable attribute of the inventory.
Data suggests there are two peaks — at the point of purchase (to lock in comfort) and 24–48 hours prior to arrival (when the traveler is excited and “budget fatigue” from the initial booking has faded).
It can if done aggressively. If the checkout flow is clogged with too many pop-ups, the users may abandon the cart. The best tech uses “gentle” upselling, which is presenting options as helpful choices rather than roadblocks.
A standby upgrade is a conditional upsell. The guest agrees to pay for an upgrade only if this is available at check-in. It creates a win-win situation, as the guest gets a reduced price for the upgrade, while the supplier gets some revenue from a room that would have been left empty.
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