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New Online Service – Upgradus – Could Add
$1 Billion to Global Hotel Market
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Designed to act as the communicator between the consumer and the hotel, Upgradus allows guests, staying at any hotel in the world, to show an interest in purchasing an upgrade to an existing room booking in advance but at a discounted rate. Given there’s an estimated 187,0002 hotels in the world, this new tool could add US$1bn+ to the US$570bn3 hotel market by selling what would otherwise be vacant rooms.

Currently it only seems to be the airline industry that’s capitalising on this advance online upgrade lost revenue stream, offering potential paid upgrades after customers’ initial booking period to ensure business and first-class cabins are sold where possible. For hotels it’s a different story though. Most don’t offer a paid upgrade predominately due to processes and communication:

• The time between booking and arrival sees little or no communication with guests as efforts are concentrated on promotion to get the room booked, and then delivering a service when the guests arrive.
• At check-in hotels want to process guests quickly and efficiently. Discussing an upgrade requires information to be supplied to the guest regarding benefits and costs, taking time which often neither guest nor hotel staff have. The reception staff are also not generally trained, authorised or incentivised to offer upgrades, so it doesn’t happen.
• Hotels are understandably concerned that a stay could be tarnished by creating a ‘sales pitch and negotiation’ at a point that should be welcoming, smooth and enjoyable.

Free to join for the consumer and hotels alike, customers simply log on, type in where and when they are staying and then Upgradus gets to work. It contacts the hotel directly, lets them know a customer is interested, and if the hotel would like to offer a discounted upgrade because a room is still empty, they can. The customer can choose to accept or decline the offer before they arrive, paying at the hotel as normal, so the process remains the same and everyone is happy. Upgradus will simply take a 15% commission from the sale of the upgrade direct from the hotel.

Since Upgradus does not sell hotel rooms, working only on upgrades to existing bookings (made direct with the hotel or via an agency/online travel agent), the service exists to complement rather than compete with the hotels.

Guy Ratcliffe, CEO and Founder of Upgradus, said:

“I have travelled regularly for business and with family and, when the budget allows, I like to stay in interesting hotels with great rooms, especially when on vacation. However, I often found myself thinking that there were even better rooms or suites above my budget that were empty, sometimes even the room next door. An offer for a discounted upgrade to a better room or suite would have been appreciated and likely taken if the price was right.

“After researching and realising just how many hotels around the world have empty premium rooms for most of the year, I built the technology in Upgradus to help. The system is a ‘win-win’ for both consumer and hotel. It removes the work for the hotel, they are only contacted by guests who are willing to pay extra and the hotel can decide when and what fee they want to charge if their premium rooms are still empty. If the guest accepts the offered rate then their stay exceeds expectations and the hotel receives additional income they hadn’t accounted for. If they don’t, no one has lost out.”

For more information or to register a hotel’s interest in becoming a member visit www.Upgradus.com.
 
 
 

th an estimated 187,000 hotels in the world, and 53,000+ in the US alone, there are various top tips when it comes to securing a hotel upgrade, but most of the time it’s just pure luck if you succeed. Many of us stay in hotel rooms knowing that the premium rooms and suites down the corridor remain vacant and just out of reach. What if there was an option to upgrade to one of those rooms at a fraction of its original cost? Today a new online system - Upgradus - has been launched in the US and is providing the answer to our hotel dreams.

Designed to act as the communicator between the customer and hotel, Upgradus is a free online service that allows hotel stayers, at any hotel in the world, to show an interest in an upgraded room at a heavily discounted rate.

Most hotels currently don’t offer a paid upgrade at the moment for many reasons:

• There’s not much communication with guests between booking and check-in. Efforts are concentrated on promotion to get the room booked, and then delivering a service when the guests arrive. The time in between booking and arrival is almost always inactive, with little or no communication.
• At the check-in the hotel wants to process guests quickly and efficiently, so they often don’t have time to discuss an upgrade and even so, an upgrade requires a significant decision by the guest as to the benefits and costs. That takes time for explanation and a decision, which often neither the guest nor hotel staff have. The reception staff are also not generally trained, authorised or incentivised to offer upgrades, so it doesn’t happen.
• Hotels are also understandably concerned that it could tarnish a stay by creating a ‘sales pitch and negotiation’ at a point that should be welcoming, smooth and enjoyable.

Upgradus allows hotels to offer upgrades direct to their guests in advance, during the ‘silent period’ between booking and arrival. This allows the customer to spend time on a full consideration of the offer in private, without the embarrassment of a public discussion at check-in.

Customers simply log on, type in where and when they are staying and then Upgradus gets to work. It contacts the hotel, lets them know a customer is interested, and if the hotel wants to offer a heavily discounted upgrade just before the stay because the room is still empty, they can. The customer can then choose to accept or decline the offer before they arrive, paying at the hotel as normal, so the process remains the same and everyone is happy.

Guy Ratcliffe, CEO and Founder of Upgradus, said:

“I have travelled regularly for both business and with family and, when the budget allows, I like to stay in interesting hotels with great rooms, especially when on vacation. However, I often found myself thinking that there were even better rooms or suites above my budget that were empty, sometimes even the room next door. An offer for a discounted upgrade to a better room or suite would have been appreciated and likely taken if the price was right.”

“Globally hotel occupancy is around 67%. Occupancy for premium rooms and suites is generally much lower, with some suites having occupancy rates of less than 25%. This means that most hotels have empty premium rooms for most of the year. Selling discounted upgrades to these rooms could easily add US$1bn+ to the US$570bn hotel market, so I thought resolving this problem is surely a ‘win-win’. I built the technology in Upgradus to make it happen and I’m now inviting other people who like to travel in comfort and luxury to join me.”

For more information visit www.Upgradus.com.

Interviews with Guy Ratcliffe, CEO and Founder of Upgradus, are available - please register your interest with the media contact below.

Media Contact:
PMW Communications Ltd
Gemma Hook
T: +44 (0)7920 820018