The term “linked products” can be of significant importance to hotels as it encompasses a range of strategies that can help to increase revenue, enhance customer satisfaction and improve efficiency.
Linked products in pricing refers to the pricing of products that are connected or linked to each other. This linking can be done in various ways, such as bundling, cross-selling or up-selling.
Here are some forms of linked products and their benefits:
1. bundled offers (packages):
Definition: various services and amenities are combined into one package and offered at a reduced price.
Example: Overnight stay, breakfast, spa treatment and dinner in one package.
2. up-selling:
Definition: guests are offered higher room categories or additional services during the booking process or at check-in.
Example: A guest who has booked a standard room is offered an upgrade to a suite with a sea view.
3. cross-selling:
Definition: guests are offered additional products and services that enhance their experience.
Example: After booking a room, the guest is offered a city tour, an airport transfer or dinner at the hotel restaurant.
Advantages of linked products for hotels
- Increase average revenue per guest: Through bundling and cross-selling, hotels can increase revenue per guest by selling additional services and amenities.
- Increase customer satisfaction and loyalty: Guests appreciate customised offers and the opportunity to enhance their stay with additional services. This leads to higher satisfaction and re-booking rates.
- More efficient utilisation of resources: Bundled offers can help maximise the use of hotel resources such as spa facilities, restaurants and leisure facilities.
- Competitive advantage: Attractive and unique bundled offers can set a hotel apart from its competitors and attract new target groups.
- Promote seasonal offers: Hotels can create seasonal packages to increase demand during periods of low occupancy. For example, a winter wellness package or a summer adventure package.
- Targeted marketing strategies: By analysing booking behaviour, hotels can create personalised offers and packages that address specific customer needs.
- Improved online presence and booking experience: By integrating linked products into online booking systems, guests can easily select packages and additional services, improving the booking experience and increasing revenue.
Linked products are of key importance for hotels as they not only increase revenue, but also boost guest satisfaction and loyalty. Through strategic bundling, cross-selling and up-selling, hotels can offer their guests customised experiences and at the same time set themselves apart from the competition.
