Great upsell programs don’t happen by accident—they’re built on one simple truth: people come first. When frontline teams feel heard and guests feel genuinely valued, everyone wins. With 30+ years of hospitality expertise, FPG has mastered the art of designing programs, so you don’t have to. In this article, FPG’s experts Tom Diaz and Mark Norfolk share everything you need to know.
The secret to a successful upsell program? Start with your staff. The most successful managers treat upsell programs as collaborations, not corporate mandates. They tap into their team’s daily guest interactions—because nobody knows what works better than those doing the work. The payoff? You get buy in from your staff, guests appreciate the added value, and results that speak for themselves. In this article you will learn:
- The value FPG brings
- The most common upsell program pitfalls (and how to avoid them!)
- How to create a program that works for your team, your guests and your bottom line
Start With Your Teams: Get Their Buy In
A recurring challenge in many organizations is the disconnect between those with authority and those with firsthand operational knowledge.
Tom Diaz says, “As highlighted in the book Unreasonable Hospitality, the people in leadership often have the least amount of ground knowledge. Whereas front-line employees have the most knowledge but the least authority. So bridge that gap, involve the frontline to get their buy in.”
When rolling out an upsell program, senior leaders should actively involve the front-line team and ask for their input. Diaz explains that leaders gain real knowledge by listening to employees.
He says, “As a GM, you’re going to gain knowledge that maybe you didn’t have before. The people who are actually working with guests face-to-face are going to tell you what the pitfalls are, their concerns, maybe some of their fears.” He also stresses the importance of seeking middle management’s input early, arguing that when everyone feels heard, they support the program from the start.
Diaz warns that without early involvement, employees often resist new initiatives. “We have seen when a new program gets put on a team and they don’t see it coming, their initial reaction is to keep it at arm’s length,” he says. “Fear drives much of this hesitation—some might even say, “Well, I was hired for service, not sales.” But when teams have a voice, resistance fades. “You automatically get their buy-in if they felt they had a voice,” Diaz notes, emphasizing that inclusion leads to ownership.
This joint approach has many benefits:
- Understand the Real Challenges: Employees interacting directly with guests day-to-day understand the issues and opportunities better than anyone else. Their input can highlight potential pitfalls before they arise.
- Building Trust and Buy-in: When employees feel their voices are heard, they are more likely to embrace the initiative rather than resist it.
- Mitigating Resistance to Change: Involve those leading the program at the frontline from the start. Sudden changes imposed from above often lead to scepticism and fear, particularly around performance expectations and job roles. Employees might worry about shifting from a service mindset to a sales-driven role. When staff feel involved from beginning, they'll champion the new approach with confidence and pride.
No More Guesswork: Set Expectations That Stick
Another pitfall to avoid? Forgetting that incremental revenue should be generated through service. As Mark Norfolk puts it: “Remember that incremental revenue should be generated through service, not at the detriment of service, don’t think that they are mutually exclusive.’
Diaz backs this up with a story, “Sometimes people get real creative in generating revenue, but it wasn't the way a manager may have intended them to achieve it. Someone once told me, ‘I’d rather my front desk lose a sale the right way than win it the wrong way.’ That stuck with me—they’re absolutely right. Because if your front desk gets the sale the wrong way, it leads to service issues. And then what? Managers end up bogged down handling complaints."
Avoid these pitfalls by:
- Clearly Defining Goals: If the expectation is to generate $20,000 in upsell revenue, employees must understand how that number is tracked and achieved.
- Providing Guidance: Leaving employees to figure things out on their own can lead to creative, yet potentially problematic, strategies.
- Balancing Revenue and Service: An upsell program should enhance guest experience, not compromise it. Avoid transactional sales tactics that may lead to negative service outcomes, eg., Forcing early check-ins for an upgrade fee when standard rooms are available later.
Set Realistic Goals and Support Your Teams
Another challenge in upsell programs is setting unrealistic revenue targets without considering historical performance or providing adequate support. And don’t forget to spell out what success looks like. Nothing kills motivation faster than holding someone accountable for goals they didn’t even know existed. If a GM mandates a $30,000 revenue goal, yet the team has never exceeded $10,000, being sceptical is natural.
Instead of dismissing concerns, leaders should ask:
- Why do we believe this target is unattainable?
- What barriers exist, and how can leadership help remove them?
- What tools, training, or support can we provide to make success achievable?
Diaz says, “When we’re setting goals with agents, they may say, ‘Wow I've never hit that target before. A great response is, ‘Yes, because we’ve never had this kind of training before. We've never had the software IN-Gauge before. We never had this level of focus before.” Rather than expecting instant results, view implementation as a journey. “Reward progress over perfection. Progress should be recognized and rewarded, reinforcing positive behaviors and momentum toward long-term success.”
Remember That Recognition and Incentives Are Vital
“Recognition, especially from a leader, is a powerful motivator,” explains Norfolk. Employees need to feel appreciated for their efforts, even if they are still working toward hitting ultimate targets. Celebrating incremental wins creates a culture of achievement and sustained motivation. Likewise, effective incentive programs align employee efforts with company objectives. Upsell programs thrive when incentives are structured to reward both conversion rates and revenue impact rather than encouraging low-value upgrades that deplete inventory.
Diaz says, “Reward progress, not perfection. Celebrate the wins—big and small. Maybe you haven’t hit $20,000 yet, but going from $5,000 to $10,000? That’s huge! Throw a party. Pump up those endorphins. When people feel like winners, they’ll keep pushing until they reach that next goal."
The Pitfall of Skipping Incentives
Diaz explains, "If you think, ‘We don’t need incentives—it’s their job to sell,’ think again. Without motivation, even great employees disengage and if you want to keep them around, give them reasons not to join the competition. A well-structured incentive program isn’t a burden—it’s fuel for performance. Set clear tiers (e.g., 5% bonus at $1K, 10% beyond) so progress pays off. And don’t forget managers: tie their rewards to team performance to align coaching with results. No incentives? No ownership. No ownership? No growth."
Measure the Right KPIs
It’s also important to ensure, you’re not measuring the wrong KPIs. Norfolk explains, “Don’t forget about conversion but it’s not the be all and end all.” While conversion is important, focusing solely on it can lead to counterproductive behaviors, such as under-pricing upgrades to boost numbers.
Diaz explains, “I was working with a client, and they were so focused on conversion—just conversion, conversion, conversion. Every call was about conversion. The incentive programs were built on conversion. And then they were sitting around, scratching their heads, saying, ‘Gosh, how come we’re not making the revenue we expected?’
“So I said to the revenue director, ‘Look, if it’s just about conversion, I could walk down to your front desk right now and get 100% conversion for the day. Every upsell would be $5 a night? And I’d look like a rock star because I hit the conversion number. But what about the other side of that coin—average upsell price? What are we really measuring? Zero value. There’s zero value. Are you measuring all the things that will get you to your true goal?
“In fact, you’re hurting the operation. When you’re doing low upsells just to chase high conversion, what happens? You’re depleting your inventory. If you and I are front desk agents and I’m going, ‘$10, $10, $10,’ eventually, you’re going to elbow me in the ribs and say, ‘Tom, you just got rid of all our great suites!’ And I’m going to walk away saying, “Yeah, but I hit my conversion.”
Instead, balance your KPIs by tracking:
- Conversion Rate: The percentage of guests who accept an upsell offer. Consider breaking this down by specific nights of the week to establish when peak upsell rates occur (e.g., weekends vs. weekdays).
- Average Upsell Price: Ensuring meaningful revenue contribution per transaction.
- Guest Satisfaction Scores: Monitoring service impact to prevent negative guest experiences.
- Revenue Per Available Room (RevPAR) Impact: Measuring overall revenue impact beyond just upsell figures.
Use the Right Tools for Success
Tracking and measuring success manually can be time consuming but not with FPG’s IN-Gauge. This powerful tool connects to a hotel’s PMS to provide real-time insights, enabling leadership to make informed decisions. Investing in the right technology streamlines reporting and ensures data-driven adjustments can be made swiftly. With IN-Gauge, managers can instantly check KPIs, get the right insights, and use that to tell a clear performance story. No guesswork, just results-driven tracking.
Final Thoughts
The success of an upsell program hinges on leadership’s ability to engage employees, set realistic expectations, measure the right metrics, and create a culture of recognition. At FPG , we consider this to be the Right Fit, the Right Actions and the Right Environment. By avoiding the common pitfalls of poor communication, lack of buy-in, and misguided measurement, senior leaders can drive both revenue growth and exceptional guest experiences. Ultimately, when employees feel supported, valued, and equipped for success, the program and the entire organization thrives.
Could your property be leaving money on the table? Let FPG help you find out.
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