Why guest experience is the strategy
In 2025, hotel guests expect more than a room - they want control over their stay. Like airlines and cruise lines, hotels now have the opportunity to turn personalized, well-timed offers into a key revenue driver. Just as airlines and cruise lines have mastered dynamic upselling, hotels now have an opportunity to turn personalized offers into a key revenue driver. The demand is already there: travelers are willing to pay more for the right experience—if it’s presented at the right time.
For hotels, capturing that demand isn’t about offering more. It’s about offering the right upgrade at the right moment to the right guest. Airlines and cruise lines have been refining this model for years, using automation, dynamic pricing, and personalization to drive revenue and enhance the guest experience. These are the strategies we help our travel partners execute every day—monetizing experience through smarter upselling.
The Future of Upselling: Seamless, Smart, and Guest-Centric
The best travel brands don’t wait for customers to ask about upgrades. They anticipate demand and present premium experiences in a way that feels natural and effortless:
● Airlines use Plusgrade-powered upselling to offer premium seating, priority boarding, and lounge access at key moments—booking, check-in, and even at the gate.
● Cruise lines make it easy to upgrade cabins, book dining, add on drinks packages, and reserve excursions before a guest even boards.
● Passenger rail integrates upsell opportunities directly into mobile booking, surfacing the right offers at the right time.
These industries don’t just sell extras. They create seamless, data-driven opportunities for customers to enhance their journey. Hotels have the same opportunity, and we work with partners worldwide to make it happen.
Loyalty: A Revenue Engine to Optimize
Hotels recognize that loyalty drives retention—but it’s also one of the highest-margin revenue streams.
● 83% of active loyalty members have purchased ancillary products recently—and 88% say they’d do so again.¹
● Loyal guests travel more. Nearly 4 out of 5 say travel is an essential part of their life.²
● 75% of loyalty program members consider ancillaries an essential part of travel.³
Loyalty members aren’t just repeat guests - they’re your most engaged, highest-spending guests. With the right redemption options, such as Pay with Points and personalized upgrade offers, hotels can turn loyalty programs into a powerful ancillary revenue channel.
How hotels can unlock loyalty-driven revenue:
- Expand redemption options. Free nights are great, but guests want more flexibility. Allowing them to Pay with Points—or a combination of cash and points—for perks like early check-in, room selection, dining, and spa services boosts engagement and encourages additional spend.
- Make upgrading effortless. While travelers consistently express interest in premium experiences, their willingness to pay for upgrades varies based on factors like timing, perceived value, and convenience. Offering the right upgrade at the right moment increases conversion rates and enhances guest satisfaction.
- Move beyond static pricing. Airlines, cruise lines and rail operators dynamically price nearly every aspect of the journey. Hotels can take the same approach, adjusting loyalty redemption rates and pricing for premium amenities based on demand.
Why it matters: loyalty isn’t just about recognition - it’s a high-margin revenue stream waiting to be optimized.
Personalization: The New Standard in Guest Experience
Upselling works best when it’s personalized. The more relevant an offer, the higher the likelihood of conversion. Data-driven strategies ensure that every offer is timely, relevant, and designed to maximize guest engagement.
● 75% of loyalty travelers are willing to pay more for a better experience.³ This demonstrates a clear opportunity for hotels to present premium options that align with guest preferences.
● 51% of travelers prefer personalized offers via email.⁴ Email remains a highly effective channel for upselling, but messaging must be tailored and well-timed.
● 41% of younger travelers engage more with app notifications and SMS.⁵ A mobile-first approach ensures hotels reach guests where they are most likely to interact.
● Time-sensitive offers drive higher conversions.³ For example, an early check-in offer when a guest lands or a spa service promotion after a long day of travel increases uptake.
Hotels don’t just sell rooms. They sell an experience. Yet, too often, upselling is treated as a single, pre-arrival email or a last-minute front desk pitch. A strategic, integrated approach ensures guests receive the right offers at the right time.
Dynamic Pricing: Not Just for Rooms
Airlines price everything dynamically—seats, baggage, upgrades. Hotels can apply similar pricing strategies to early check-in, late checkout, and premium amenities, unlocking new revenue opportunities at every stage of the guest journey.
The Competitive Edge for 2025
The most successful travel brands turn strategy into execution. For hotels, success in 2025 won’t come from overhauling operations. It will come from precise, strategic refinements that drive measurable impact.
● Automating the right offers at the right moments to maximize revenue and guest experience.
● Monetizing loyalty currency as a dynamic revenue stream, not just a retention tool.
● Applying real-time pricing strategies to room attributes, premium services, and upsells.
The hotels that lead in 2025 won’t be the ones offering more—they’ll be the ones offering smarter. Guest-led upselling, loyalty monetization, and dynamic pricing aren’t just revenue tactics—they’re how hospitality grows from here plusgrade.com.
Sources:
- Plusgrade Global Traveler Segmentation Study, 2024
- Plusgrade Global Traveler Segmentation Study, 2024
- Plusgrade Global Traveler Segmentation Study, 2024
- Skift State of Travel Report, 2024
- Plusgrade Hospitality & Rail Study, 2024