Colorado’s short-term rental market booms as tourists seek unique stays in the state’s beautiful scenery. With Colorado drawing millions of visitors annually, there is an opportunity for vacation rental operators to grow and drive revenue. Effective upselling strategies can accelerate growth and revenue for hospitality professionals in the area.
What does an effective upselling strategy look like in Colorado? Guests visiting for mountain and nature experiences are likely to be interested in outdoor adventure packages and personalized services. By offering these experiences, lodging operators can earn a share of the revenue, while immersing visitors in the local attractions.
This guide will explore top upselling examples in Colorado that work for local hospitality operators. Elevate your Colorado hospitality business with ideas from local pros, offering guided mountain tours, luxurious in-home services and more.
Table of Contents
- Colorado Short-Term Rental Market: Finding the Competitive Edge and Increasing Revenue
- What are Short-Term Rental Upsells?
- Upsells in Hotels VS Vacation Rentals: What’s the Difference
- Why offer Upsells in Vacation Rentals
- How much Revenue per Listing Can I Add with Upsells in Colorado?
- When should you try to upsell services in your vacation rental?
- Types of Vacation Rental Upsells
- Tours, Activities, and Experiences as Vacation Rental Upsells in Colorado
- Conclusion
Colorado Short-Term Rental Market: Finding the Competitive Edge and Increasing Revenue
By CLARA’s count there are 47,876 short-term rental properties in Colorado as of 2023. Other sources mention 90,000 properties, classified as “vacation” homes, reflecting the state’s booming short-term rental market. The short-term rental market in Colorado has seen significant growth, particularly in mountain towns. Changes are being made to STR regulations in these areas to control the housing availability and impact on local economy.
Denver, in particular, stands out, ranking 17th among 115 U.S. cities with 445 Airbnb rental listings per 100,000 residents. These numbers highlight Denver’s prominence as a top destination for travelers and a profitable market for vacation rentals.
With high competition on one side and increasing cost of doing business on the other, short-term rental professionals in Colorado can benefit from an upselling strategy as a way to stand out from competition and increase revenue. In this article we’ll provide ideas on how to elevate
What are Short-Term Rental Upsells?
A short-term rental upsell is a powerful tool which refers to the practice of offering guests additional products, services, or upgrades to enhance their stay, while increasing the revenue. This strategy is commonly used in the short-term rental industry and can be either operational, or involve tours, activities, and experiences.
The key to successful upselling is understanding the guests’ needs and preferences and offering relevant and valuable additions that enhance their experience. Effective guest communication plays a crucial role in identifying these needs and suggesting suitable upsells.This approach not only boosts revenue but can also lead to higher guest satisfaction and loyalty.
Upsells in Hotels VS Vacation Rentals: What’s the Difference
Upsells in hotels typically involve concierge services and traditional amenities, whereas in the short-term rental properties industry, this process is digitized to streamline operations. In contrast, vacation rental upsells are more personalized, catering to individual guest needs like grocery delivery, private chefs, and local tours. Vacation rentals offer operators flexibility to innovate, tailoring unique experiences to their property and target market. This personalized approach is integral to the business model of vacation rentals, allowing them to provide an exceptional guest experience. With the growing popularity of short-term rentals, more travelers are choosing them for accommodation. These guests now expect a hotel-like service during their stays. Therefore, offering add-on amenities and other enhancements is crucial for hospitality professionals managing vacation rentals.
Why offer upsells in vacation rentals?
By enhancing the overall guest experience through added convenience and luxury, you can significantly increase guest satisfaction and tailor to your target audience’s specific needs. This not only boosts your revenue but also helps in building a strong and recognizable brand. Upselling also encourages repeat business, as guests are more likely to return to a place where they felt valued and pampered. Moreover, satisfied guests are more inclined to leave positive reviews, further enhancing your property’s reputation and attracting new visitors. This will bring more repeat guests and direct bookings, which every rental company is aiming for. Understanding your market and your guests is essential for maximizing these benefits. Make sure to offer add-ons when guests need them and only the offers are relevant to them. Upsells in vacation rentals help operators create a hotel-like personalized experience, adapting to modern guest expectations.
How much revenue per listing can I add with upsells in Colorado?
A well-executed upselling strategy, tailored to your guests needs and the capacity of your business, can substantially boost revenue. So how can you get the potential revenue increase from upsells in your vacation rental business in Colorado?
Factors like your property type, capacity, average stay length, and booking channels can impact your potential revenue uplift. We can make a quick estimate, with a basic formula:
Take the value of an experience or service upsell and calculate your cut. Different affiliate programs offer different rev share to partners. For example, Viator offers 8% revenue share. In this case we’ll use this number, but you can insert the percentage of any affiliate partner you choose to work with. Take 8% out of an experience that costs USD $100. And just like that – you earn USD $8 every time one of your guests orders this experience through your link! In the business world it is usually referred to as “free money”.
This is the revenue a property manager typically retains without sharing with the owners—your choice. In the STR industry, where profit margins are thin, these numbers can significantly impact your bottom line.
Below you can see the real experiential packages in Colorado you can offer your guests to make a hassle-free profit.
Learn more about the economics of vacation rental upselling.
Conducting analysis based on your data, continuously testing and optimizing the upsell process are recommended to maximize the revenue uplift. The best way to do this is to have a guest experience dashboard, where you and your team can track the performance.
When should you try to upsell services in your vacation rental?
To effectively upsell services in your vacation rental, timing is crucial. Key opportunities include during the booking confirmation, when guests are excited about their stay, and upon check-in, when they might be interested in enhancements like upgraded amenities. Additionally, mid-stay touchpoints are ideal for offering experiences or services that can improve their current stay. Tailoring your upsell strategies to these moments ensures relevance and increases the likelihood of conversion, thereby maximizing revenue without overwhelming guests. Read more about when to upsell services in your short-term rental.
Types of Vacation Rental Upsells
Operational Upsells
Includes everything that requires operational resources from property managers. This includes flexible access, like early check-in, late checkouts, in-property extras, like mid-stay cleaning or pool heating and gap nights. These higher offers are best ways to make sure your guests have a successful vacation and you maximize revenue. The downside of this strategy is that it can raise operational costs, adding pressure on your cleaning and guest relations teams. By automating processes and enhancing efficiency with AI and condition-based workflows, this can be mitigated, making it worth your while.
Service Upsells
Service upsells aim to enhance the guest experience by providing additional services that add convenience, luxury, or comfort. These services can include personalized concierge assistance, in-room amenities, and private transportation options. In most cases these offers can be implemented by third party service providers.
Activities and Experiences
These include experiential offering that doesn’t involve operational efforts from the property manager. The best way to offer these upsells are through partnerships or affiliate programs, like Viator or Holibob.
Operational Upsells
An operational upsell in the hospitality industry refers to offering guests additional services related to the operation and convenience of their stay to create a memorable experience. These services enhance the guest experience by providing added comfort, flexibility, and convenience, for an additional fee. Below are some examples:
Early Check-in
An early check-in offers guests the possibility to access the accommodation before the standard check-in time. This would normally be between 3 p.m. and 4 p.m. The service is valuable for guests arriving early in the day who want to rest, unload the bags, relax or start exploring the destination.
Late Check-out
By providing guests with late check-out, you let them stay in the property after a standard checkout time. This is usually between 10am and 12PM. When people have late departures, the possibility to enjoy the property for a little longer can add-up to the vacation experience. Many guests are ready to pay a premium for convenience. A willingness to offer your guests the flexibility of a later stay can go a long way.
Stay Extension or Gap Nights
This type of an upsell offering can be a golden opportunity for a rental operator to increase occupancy rate. Fill short gaps between reservations by offering departing and arriving guests to extend their stays. By automating this process, you can make sure to capture these rental income opportunities with a great value proposition.
Mid-stay Clean
A short-term rental housekeeping doesn’t include daily cleaning. However, travelers staying for longer periods of time, would appreciate mid-stay housekeeping service and would pay extra to pay for the cleaning team effort.
Pool/Hot tub Maintenance
Offering this upsell requires knowing your audience and the market you are in. Pool heating fees are pretty common in places, where heating of an outdoor pool affects energy bills dramatically. This extra fee is often charged in rental businesses in Florida, South Carolina, the North Carolina Mountains, Colorado, etc.
Service Upsells
Service upsells focus on offering additional guest services that enhance their stay by providing extra convenience, luxury, or comfort. These can range from personalized concierge services to in-room amenities and private transportation. Examples include:
Transportation Services: Offering airport pickup and drop-off services, car rentals, or shuttle services to nearby attractions.
Food and Beverage Delivery: Offer grocery delivery services where guests can pre-order groceries and have them delivered to their rental before or during their stay. You can also provide an option for guests to order ready-to-eat meals and beverages from nearby restaurants.
Equipment Rentals: Provide rental services for equipment that guests might need during their stay. Examples include bicycles, baby equipment (cribs, high chairs), or beach accessories (chairs, snorkeling gear).
Tours, Activities, Experiences as Vacation Rental Upsells in Colorado
Experiential upsells involve offering guests unique tours, activities, and experiences to enrich their stay. These can include guided city tours, adventure activities, cultural experiences, or wellness sessions. By providing these curated adventures, you can create memorable expereince for guests while generating additional revenue.
Top Experiential Offerings in Colorado You Can Profit From
We’ve made the research of the most revenue generating experiential packages short-term property managers in Colorado offer to their guests. You might find more ideas and partners to be a part of your upselling strategy. We will be happy to hear about it and add them to our list.
Tours, Activities, Experiences to Upsell in Top Tourist Accommodations in Colorado
Denver, Colorado
Explore the Colorado Rockies with an Adventure Photographer
Our custom-arranged hikes are tailored to your needs and fitness level. We take care of all the planning, transportation, gear, and, of course, the photos. We also take care of the little things, like water and snacks. The day starts one or two hours before sunrise so we can get to the trailhead early for some peace and quiet and to catch a sunrise Colorado is so famous for. After we’re done hiking, we’ll take you back to your place and you’ll have the rest of the day to reflect on the fact that you were so adventurous before lunch!
Price: CA$221.13
Your Cut: CA$17.69
LoHi Denver Food Tour
Discover the culinary treasures of Denver’s LoHi neighborhood on a guided walking food tour that captures the essence of the city’s diverse culinary scene. This tour is perfect for those seeking a food tour in Denver, Colorado, featuring stops that highlight Italian and Latino heritage, farm-to-table cuisine, and innovative culinary creations. As you wander the lively streets of LoHi, you’ll enjoy a curated selection of dishes that showcase the rich cultural tapestry of this trendy area.
Price: CA$66.80
Your Cut: CA$5.34
1/2 Day Intro to Outdoor Climbing near Denver, Colorado
Get a foothold on one of Colorado’s most popular outdoor sports with an introductory rock climbing experience in the foothills of the Rocky Mountains. An expert guide shows you the ropes, from selecting the right gear to safety practices and basic climbing and descending techniques. After clipping into a harness, put your new skills into practice and gain confidence on real outdoor rock terrain.
Price: CA$139.08
Your Cut: CA$11.13
Colorado Gold Rush Mountain and Mine Half-Day Tour from Denver
Immerse yourself in the exciting history of the Colorado Gold Rush, and enjoy the intimacy of a small-group tour. Stroll through the historic town of Central City and follow the steps of the miners as you learn about their lifestyle. Visit an authentic ghost town, tour a real gold mine, and learn about the mine’s history and modern-day mining techniques. Get an opportunity to strike it rich by panning for gold and silver before your return trip to Denver.
Price: CA$137.69
Your Cut: CA$11.02
Breckenridge, Colorado
Visit Red Rocks Park, Continental Divide & Breckenridge
Venture beyond Denver, and discover what Colorado has to offer: on this small-group tour, visit Red Rocks Amphitheatre, the Continental Divide, and the ski resort town of Breckenridge, all in one day. Depart in the morning via comfortable vehicle: you’ll explore Red Rocks before taking Loveland Pass along the Continental Divide, and stopping for photos along the way. At Breckenridge, enjoy free time to wander, shop, and eat lunch.
Price: CA$207.23
Your Cut: CA$16.58
Breckenridge Gold Mine Outdoor Escape Room
Test your puzzling skills and solve a mining mystery in this outdoor escape room in Breckenridge. Hike in the summer or strap on snowshoes in the winter to explore the woods around a real historic gold mine, where clues and a metal detector will lead you to the buried treasure. It’s a great family activity that combines old west legends, brain power, and the outdoor beauty of Breckenridge.
Price: CA$68.15
Your Cut: CA$5.45
Ridden E-Bike Rentals Breckenridge To Frisco
Pedal your way along the Blue River Recreation Path and Discover Frisco, Colorado. . This 148 year old mining town boasts one of the most charming Main Streets in Colorado. It’s just 9 miles away from downtown Breckenridge. Riding our Electric Bikes are easy to learn and great for all abilities. E-bikes allow you to cover large distances without expending any excess energy. Along the Bike Path enjoy spectacular views of the Ten Mile Range and adjacent Blue River. Travel along Lake Dillon and enjoy watching the clouds reflect in the lake. Check out the Frisco Bay Marina . Explore the local vendors to find fun souvenirs, treasures, clothing, jewelry.
Price: CA$118.22
Your Cut: CA$9.46
Boulder, Colorado
Discover Rocky Mountain National Park – Picnic Lunch Included
Climb from the streets of the “Mile High City” to Rocky Mountain National Park, on a day trip that showcases the rugged beauty of Colorado’s mountains. Weave through small, historic towns and drive over alpine passes, as you scan the horizon for mountain wildlife like elk, black bears, or moose.
Price: $219.38
Your Cut: $17.56
Original Electric Cruiser Fat Tire Bike Tour – Best of Boulder
Get a comprehensive tour of Boulder on this excursion astride an electric bike. Riding an e-bike means you can work as hard as you like, using the pedal assist to get you up the hills. Pedal through the charming neighborhoods, NCAR, University of Colorado, Chautauqua, the historic downtown areas, and along Boulder Creek. Snacks, water, and guided commentary are all included.
Price: $144.87
Your Cut: $11.59
Private Outdoor Rock Climbing with a Pro Climbing Guide
Just minutes from downtown Boulder is a world class climbing area where this experience offers outdoor climbing with a climbing guide. Whether you are new to climbing or looking for a refresher, our team of guides is ready to put you at ease, keep you safe, have fun, and take in the view. Every climbing challenge allows you to stretch yourself, gain confidence, and make new memories.
Price: $275.95
Your Cut: $22.08
Telluride, Colorado
Half-Day Ice Climbing – Telluride
Try a different winter sport: ice climbing in Telluride! Challenge yourself to scale the heights of Telluride’s majestic mountains. Take on this fun challenge solo or with your family ice climbing in the Telluride area. Climb the ice-filled big routes of San Juans and other easy routes and complete the challenge. This sport is safe for children and adults between ages five and 75, and all safety gear will be provided.
Price: $357.36
Your Cut: $28.59
Park City, Colorado
2 Day Rental of Park City Basic Ski Rental Package
We know that every moment here in Park City is precious, which is why it’s nice to save the time of waiting in line at the shop. Our knowledgeable outfitters can bring all-mountain skis directly to you at your lodging, and get you fitted with skis that are best for standard technique and performance. Experience the confidence of using gear that’s customized just for your style, with boots, poles, and skis that are fitted without ever leaving your door. Gear is available for both men and women, and delivery is available in the Park City area from 7:30am-10pm.
Price: $247.65
Your Cut: $19.81
Hiking and Yoga On Top Of A Mountain in Park City
We will start by meeting at the trial head. From there we hike up a mountain that with every switchback gives you a new amazing view of Park City. The higher we climb the more you can see. The hike lasts for about 30 to 45 minutes. Once we get to the top the 360 degree views of Park City and the surrounding area is breathtaking. We will roll out our yoga mats and enjoy a yoga practice on top of a mountain. Every side of your yoga mat holds a new and spectacular view. This yoga practice is created for all levels of yogi, from beginner to advanced you will get the right practice for you. After our yoga practice we will hike back down to the base of the mountain.
Price: $213.86
Your Cut: $17.11
Conclusion
By offering local experiences, you can earn $5, $20 and even more, depending on the service, whenever guests book through your link. And the best part is that you don’t have to do anything extra to get your revenue share. Simply offer these add-ons to your guests in your local recommendations digital guidebook or your guest app. They came to Colorado for the mountains and nature. They’ll be doing these activities anyway. So, why not save them time by offering your recommendations? People will appreciate your local expertise and the convenience of purchasing the experiences. Colorado and its mountain towns have countless amazing options for visitors. You’ll find the perfect ones to make their stay unforgettable. Plus, you’ll enjoy watching your upsell revenue grow.
Want to learn more best practices for unlocking revenue in your guest journey? Sign up for our upselling course.
Interested in seeing how easily upsells work with Enso Connect? Book a demo today.
