New research clearly demonstrates the benefits of a professionally implemented front desk upselling program versus a hotel’s own internal initiatives
SINGAPORE – APRIL 22, 2015 – TSA Solutions, a leading global provider of measurable and sustainable revenue performance enhancing solutions for the hotel industry, has released the results of a recent study, which demonstrates the significant influence its front desk upsell program has on property revenue performance. Although TSA boasts an impressive 85% contract renewal rate annually, 15% of hotel partners opt to discontinue upselling initiatives or implement their own upselling programs. The study shows that the majority of these non-renewing hotel partners noted a substantial drop in revenue within the first four months of termination alone.
The comprehensive six-month analysis into the effects of withdrawal from a professionally run upselling program was conducted during the last six months of 2014 at premium hotel destinations located in various regions, such as Singapore, Dubai and Madrid. Key performance indicators were analyzed for properties that had discontinued TSA’s front desk upselling program and implemented their own internal upselling initiatives. The statistics consistently demonstrated that each of these properties began to suffer a drop in the monthly number of successful upsell attempts by an average of 51%, regardless of geographic location.
The compiled data further reflects that upselling revenue for the former TSA partnership hotels decreased by over USD 106,000 in a 12-month period, representing an average 30% drop. Statistics for the number of successful upsells also showed a decrease of 27% over the same time period, similar to RevPAR value.
“The continued success of any front desk upselling program is largely dependent on consistent performance measurement and management in order for it to remain effective, and in order to offset any number of inevitable changes that typically occur within a property’s workforce,” said Alexander Singh, Group Director of Performance at TSA Solutions. “The recent study serves to confirm this fact by quantifying and demonstrating a significant reduction in hotel revenue performance, once a professional upselling performance program is discontinued.”
As the leading specialist in front desk upselling solutions for the global hospitality market, TSA Solutions is widely recognized for its unrivaled ability to offer measureable and sustainable revenue performance enhancement solutions.
For more information on TSA Solutions, please visit www.tsa-solutions.com.
