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How to Increase Your Hotel Revenue? 3 Effective Upselling Strategies for Moroccan Riads and Hotels
upselling

How to Increase Your Hotel Revenue? 3 Effective Upselling Strategies for Moroccan Riads and Hotels

Hotelia Teamβ€’2024-01-22β€’12 min read

Introduction: The Real Profit Isn't Just in the Room

If you manage a hotel or riad in Morocco, you know competition has become fierce. Most hoteliers focus 90% of their efforts on filling rooms and increasing occupancy rates. But there's an important truth many overlook: real profit doesn't only come from selling rooms, but from additional services.

Studies show that 73% of guests expect personalized services during their stay, yet less than 30% of hotels effectively capitalize on this opportunity. Why?

The problem is that traditional upselling methods - like the front desk employee asking "Would you like to upgrade your room?" - have become annoying and ineffective. Their acceptance rate rarely exceeds 8% at best.

In this article, we'll reveal 3 smart, proven strategies designed specifically for the Moroccan market to increase your revenue through upselling without annoying your guests. These strategies can increase your revenue per customer by 15% to 25% without requiring massive investments.

Strategy #1: Smart Local Partnerships - Turn Culture into a Paid Experience

Why is this strategy crucial in Morocco?

Today's tourist, especially foreigners, isn't just looking for a clean room and a nice view. What they're really seeking is an authentic experience. And this is where Moroccan riads and hotels have power - you have a massive cultural and heritage treasure that can be turned into an additional revenue source.

Traditional hotels offer generic services: spa, pool, restaurant. But these services exist everywhere. What sets you apart is the local culture that can't be replicated at any other hotel.

How to implement this strategy? Practical examples from the Moroccan market

Example #1: Exclusive Moroccan Cooking Workshops

Instead of offering a traditional dinner, partner with a local chef specializing in traditional cooking. Offer your guests a tagine cooking workshop or authentic Moroccan couscous.

  • Cost: Relatively low (local ingredients + chef fee for a few hours)
  • Guest Price: 300-500 MAD per person
  • Profit Margin: Can reach up to 200%

In Marrakech, for example, a small riad offering this service achieved an 18% revenue increase in the first quarter of implementation.

Example #2: Traditional Craft Workshops

Partner with a local artisan (pottery, leather, textiles) to organize special workshops at the hotel or at the artisan's workshop itself. Your guests won't just buy a product - they'll create it with their own hands.

  • Added Value: Unique experience + handmade product they take home as a souvenir
  • Suggested Price: 250-400 MAD per person
  • Commission: 30-40% of the price

Example #3: Private, Customized Tours

Stop sending your guests on generic tourist tours. Partner with local tour guides to offer:

  • Private tours of traditional markets with a translator/guide
  • Trips to Berber villages in the Atlas Mountains
  • Photography tours with a professional photographer

End result: You transform from "just a place to sleep" into a gateway to exclusive local experiences, and you significantly increase each guest's average spending.

Strategy #2: Dynamic Pricing for Additional Services

The common mistake: Fixed pricing all year long

Most hotels and riads in Morocco apply dynamic pricing to rooms (high prices in peak season, low in off-season), but they forget to apply the same logic to additional services.

For example:

  • Spa session price: Fixed all year
  • Room upgrade price: Fixed whether the hotel is full or nearly empty
  • Dinner price at the restaurant: Same price all the time

This is a strategic mistake that makes you miss a big opportunity to increase revenue.

How to apply dynamic pricing smartly?

Practical example #1: Room Upgrades

  • In peak season (summer, holidays, events): Raise the upgrade price. Demand is high and luxury rooms are limited.
  • In low season: Offer upgrades at a symbolic price (50-100 MAD only). This achieves:
    • Fills luxury rooms that would remain empty
    • Improves guest experience (increases likelihood of positive reviews)
    • Additional revenue instead of zero

Practical example #2: Spa Services

Apply different pricing based on time:

  • Early morning (8am - 12pm): 20-30% discount (because demand is lower)
  • Afternoon and evening: Full price (higher demand)
  • Weekdays: Lower price than weekends

Practical example #3: Restaurant and Food Services

  • Happy Hour for cocktail menu: 30% discount from 5-7pm
  • Special offers on quiet days (Monday-Wednesday)

Proven result

Studies in the hospitality sector showed that hotels applying dynamic pricing to their additional services achieved a 25% revenue increase from these services, without any additional costs.

The secret here is simple: Selling at a low price is better than not selling at all.

Strategy #3: Automated Personalized Offers at the Right Time

Why is automation the key?

The harsh truth: Most upselling opportunities are lost because your team doesn't remember to offer them at the right time.

Imagine this scenario:

  • A guest is sitting by the pool on a hot day
  • Your team is busy at reception
  • No one goes to offer them the cocktail menu or drinks
  • The guest leaves the pool after an hour... opportunity lost

The problem isn't your team, but the impossibility of manually remembering every detail. This is where smart automation comes in.

Examples of smart upselling automation

Example #1: Location and context-based offers

When a guest is by the pool at noon, they automatically receive a WhatsApp message:

"Hello [Guest Name]! 🌞 Enjoying your time by the pool? We offer you our special menu of refreshing cocktails and light meals. Click here to view the menu and order what you want directly."

Result: Acceptance rate reaches 35-40% because the offer came at:

  • The right time (guest is by the pool)
  • The right context (hot day, relaxation time)
  • In a non-intrusive way (simple message)

Example #2: Customized offers based on visit reason

The system knows from booking data why the guest booked:

  • Business guest ← Automatic offer: meeting room, airport transfer, quick business meals
  • Family with children ← Automatic offer: children's activity program, family rooms, children's menu
  • Honeymoon couple ← Automatic offer: romantic dinner, couples spa package, romantic room arrangement

Example #3: Timing-based offers

  • Arrival day: Welcome message + airport transfer service offer
  • Day two: After breakfast, offer of available activities (workshops, tours)
  • Day before departure: Offer to extend stay or Late Check-out

The difference between automation and traditional offers

Traditional offers:

  • Generic for all guests
  • At random times
  • Acceptance rate: 8%
  • Requires significant manual effort

Automated personalized offers:

  • Customized for each guest based on behavior
  • At optimal timing
  • Acceptance rate: 40%
  • Works automatically 24/7

Result: 18-23% revenue increase from additional services, while improving guest experience at the same time.

How to turn these strategies into reality? Hotelia provides the solution

Upselling isn't luck, it's a tight system

After reading these strategies, you might say: "This is great, but how do I implement it in my small hotel? I don't have a large technical team or huge budget."

Here's the good news: You don't need that.

The real challenge in upselling isn't ideas (ideas are plenty), but in smart, consistent execution. And this requires automation.

Hotelia Professional Package: From mere "management" to "profit increase"

If you manage a small to medium-sized riad or hotel (11-50 rooms) and want to implement these strategies without continuous manual effort, then Hotelia Professional Package is designed specifically for you.

Smart Upselling Engine feature

This feature implements exactly the third strategy we explained:

  • When a guest orders a meal, the system automatically suggests adding a drink
  • When a guest is by the pool, it sends them the cocktail menu
  • When a guest books for a special occasion, it suggests customized packages

All this happens automatically, 24/7, without your team having to remember anything.

Advanced Travel Consultant feature

This feature makes it easy to implement the first strategy (local partnerships):

  • The system suggests customized travel plans to your guests based on their interests and length of stay
  • Displays available local activities and workshops
  • Manages bookings and coordination with partners

Result: Seamless experience for the guest, and additional revenue for you from each activity.

Managing Direct Bookings feature

Instead of paying 15-20% commissions to booking sites, the system helps you:

  • Handle booking inquiries via WhatsApp
  • Automatically check room availability
  • Direct guests to complete booking directly with you

Saving 15-20% commission = direct increase in profit margin

Conclusion: 3 Steps to increase your hotel revenue today

  1. Review your local partnerships: Are you leveraging the cultural treasure around you? Start with one partnership this month
  2. Apply dynamic pricing: Don't leave luxury rooms empty and services underutilized
  3. Automate your offers: Stop relying on human memory, use smart automation

These three strategies, when properly implemented, can raise your revenue per guest by 15-25% without requiring massive investments. The only difference between a hotel earning 50,000 MAD monthly and another earning 65,000 MAD is: a smart upselling system.

Are you ready to transform your hotel from an "operations center" to a "profit center"?

If you're serious about increasing your profits and improving your guest experience at the same time, discover how the Smart Upselling Engine in Hotelia Professional Package can turn these strategies into automatic reality in your hotel.

Start today: Book a free demo and discover how Hotelia can help you achieve tangible results in less than 30 days.

H

Hotelia Team

Revenue & Strategy Expert

Experienced professional sharing insights to help hotels succeed in the modern market.

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