How Cross-Selling Boosts DMC Revenue

malysddm
May 29
13 min read

Updated: May 30

Cross-selling can increase revenue by 20% and profits by 30%. It’s a simple way for Destination Management Companies (DMCs) to offer extra services - like airport transfers, private tours, or travel insurance - that complement a customer's booking. This strategy not only raises the average booking value (up to 25% more per trip) but also improves customer satisfaction and loyalty by offering tailored experiences.

Key Takeaways:

Boost Revenue: Cross-selling adds value to bookings without needing new customers.
Popular Add-Ons: Airport transfers, VIP access, custom itineraries, and photography packages.
Personalization Works: 75% of customers prefer recommendations based on their preferences.
Timing Matters: Offer extras during booking, pre-departure, or in follow-ups.
Use Technology: Platforms like Odys automate cross-selling and track profitability.

By combining personalized offers, smart timing, and tools like CRM systems, DMCs can maximize profits and build stronger client relationships.

The Cross Selling Strategy Every Business Needs to Increase Revenue Effortlessly

How Cross-Selling Increases DMC Revenue

Cross-selling is a game-changer for maximizing client value. It allows businesses to boost revenue without the added expense of acquiring new customers.

The numbers speak for themselves: cross-selling can drive sales up by 20% and increase profits by roughly 30%. Even more impressive, personalized cross-selling - though it may only impact 7% of visits - can contribute a whopping 26% of total revenue. Done right, cross-selling isn't just an add-on; it becomes a major profit driver.

This strategy also lays the groundwork for increasing the average order value by offering carefully selected add-on services.

Raising Average Order Value with Add-On Services

Increasing the average order value is one of the simplest ways to grow revenue. For instance, if a client books a basic city tour priced at $150, offering appealing add-ons can significantly raise that total.

Take a whitewater rafting company as an example. They offer optional extras like waterproof GoPro rentals to capture the adventure, a riverside BBQ lunch, and trip insurance for added peace of mind. These add-ons not only enhance the experience but also boost revenue.

"It's not just about the initial sale anymore. By strategically suggesting upgrades or add-ons during the booking process, we can help create a truly memorable travel experience tailored to the customer's interests." - Josef Birchler, CPO at Palisis

The impact is substantial: effective cross-selling can add up to 25% to the value of a trip. For a Destination Management Company (DMC) managing 100 bookings per month at an average of $500 each, that 25% translates to an extra $12,500 in monthly revenue - or $150,000 annually.

Some of the most popular add-ons that consistently drive revenue include:

Airport transfers
Private chauffeur services
VIP event access
Professional photography packages
Custom itineraries with extra activities
Specialized gear rentals

Modern booking systems, like those offered by Odys, make it easy for clients to add these extras during the proposal signing process. With online signing and upselling options built in, these tools eliminate barriers and ensure every revenue opportunity is captured.

But cross-selling isn’t just about boosting the bottom line - it’s also a powerful way to build client loyalty.

Building Client Loyalty with Targeted Offers

Cross-selling goes beyond immediate profits; it’s also a tool for fostering long-term relationships with clients.

Even a small 5% increase in customer retention can lead to a profit jump of 25% to 95%. Offering tailored add-ons shows clients that you understand their needs, which strengthens trust and loyalty.

Personalization is key here. Studies show that 75% of consumers are more likely to buy from a business that recognizes them by name, offers recommendations based on past purchases, or understands their history. By using client data to suggest relevant services, you not only increase revenue but also position yourself as their go-to provider for future trips.

For example, in 2019, Club Family Hotel ran a personalized email campaign with engaging videos tailored to recipients’ preferences and past behaviors. The result? A 5% boost in conversion rates and an 81% increase in click-through rates.

Loyal customers are more likely to book premium services, refer others, and become less sensitive to price changes. In fact, cross-selling contributes to an average of 21% of total revenue for B2B organizations. By leveraging technology platforms that track customer preferences and booking patterns, businesses can automatically suggest the right add-ons - ensuring no opportunity is missed.

Cross-Selling Strategies That Work

To make cross-selling truly effective, it’s not just about throwing in random add-ons. It’s about crafting a thoughtful strategy that matches additional services to what your clients actually need. By focusing on timing, personalization, and value, you can refine your approach and boost results.

Learning Client Needs and Preferences

The first step to successful cross-selling is knowing your clients inside and out. Tools like CRM systems can help you track key details - birthdays, travel habits, and personal preferences. But it’s not just about collecting data; it’s about using it wisely.

80% of consumers are more likely to buy when brands provide personalized experiences. This goes beyond addressing someone by name. It’s about recognizing their favorite travel destinations, understanding their spending patterns, or knowing if they prefer luxury accommodations over budget options.

For example, if your CRM shows that a client frequently books upscale hotels and loves spa treatments, you can confidently recommend a premium wellness package for their next trip. This kind of tailored offer feels natural and relevant, not pushy.

Businesses that use advanced CRM systems often see customer retention rates jump by up to 27%. By centralizing customer data and analyzing it, your team can deliver offers that resonate and build trust.

Once you’ve got these insights, the next step is choosing the right moment to present your cross-sell offers.

When to Present Cross-Sell Offers

Timing can make or break a cross-sell. If you pitch too early, it might come across as aggressive. But wait too long, and you risk missing the chance altogether. The sweet spot is typically after a customer has shown clear purchase intent - like adding a primary service to their cart.

Here are a few ideal moments to introduce cross-sell options:

Booking confirmation: Once a client has committed to their main purchase, they’re more open to hearing about add-ons that enhance their experience.
Pre-departure communication: Sending a personalized email 2–3 weeks before their trip is a great way to suggest extras like airport transfers or exclusive local tours.
Follow-up sequences: Automated reminders can gently nudge clients to consider additional services without feeling intrusive.

Take Vacasa, a vacation rental platform in North America, as an example. They analyzed customer behavior and sent personalized email recommendations based on browsing history. This strategy tripled their guest bookings. And in the travel industry, targeted communications work wonders - email marketing boasts a 44% open rate, while 98% of SMS messages are read within five minutes.

Creating Service Packages

Once you’ve nailed down client preferences and timing, the next step is designing service packages that make sense. Bundling complementary services into clear, value-packed offers simplifies decision-making for clients and increases revenue. Instead of overwhelming customers with a long list of add-ons, a well-crafted package highlights the value in a way that’s easy to understand.

Position these packages as exclusive deals tied to the main purchase. This creates a sense of urgency and makes them feel special. Joel Popoff, CEO of Axwell Wallet, used automated bundling strategies to present packages during the sales process, boosting average order value by 27%.

The best packages combine services that naturally go together, such as:

Airport transfer + city tour + restaurant reservation for first-time visitors who need a seamless introduction to their destination.
Photography package + special access tours + luxury transportation for clients celebrating special occasions like anniversaries or honeymoons.
Adventure activities + equipment rental + insurance coverage for thrill-seekers planning outdoor excursions.

To maximize bookings, offer tiered pricing based on group size and adjust rates for peak, shoulder, and off-peak seasons. This flexibility ensures you cater to a variety of clients while maintaining profitability.

"If the cross-sell products/services bring additional value and enrich the customer outcomes, then it is less 'selling' and more 'solving.' The focus should be on what the customer benefits from, not what the salesperson needs to sell." - Natalie Hogg, President and Head of Marketing at Method Q

Every element in your service package should genuinely enhance the client’s experience. When you focus on solving their problems or making their trip more enjoyable, cross-selling stops feeling like a sales tactic and starts feeling like a smart investment in their journey.

Using Technology to Scale Cross-Selling

Relying on manual cross-selling might work for small businesses, but it simply doesn’t hold up when you’re trying to scale. That’s where smart technology comes in. It’s the driving force that turns basic cross-selling tactics into high-performing strategies that can handle growth. Consider this: cold calling has a conversion rate of about 2%, while cross-selling can reach nearly 25%. But hitting those numbers consistently requires tools that can analyze customer data and deliver the right offers at just the right time. This is where automated service recommendations shine.

Automated Service Recommendations

Timing and personalization are everything when it comes to cross-selling, and technology takes these elements to the next level. AI-powered tools dig into customer data - like preferences and booking history - to deliver highly customized travel suggestions.

Take Odys, for example. This platform weaves cross-selling right into the sales journey. When a customer reviews their travel proposal, Odys can automatically suggest add-ons tailored to their preferences, destination, and travel dates. Let’s say someone books a luxury hotel package in Paris. The system might recommend extras like a private wine tour or exclusive dining reservations to match their upscale tastes.

What’s more, Odys streamlines the process by letting clients add these extras while signing their main contract online. This eliminates the need for follow-ups and captures their interest while they’re already in a buying mood.

The secret sauce here is relevance and timing. Studies show that 90% of customers who experience seamless service are likely to return, compared to just 4% who face service issues. By automating data analysis and timing, technology frees up your team to focus on building relationships instead of crunching numbers.

Monitoring Cross-Sell Results and Profits

Automated recommendations are just the start. To truly succeed, you need to monitor how your cross-sell offers are performing in real time. This is what separates effective strategies from wasted efforts. According to McKinsey, cross-selling can boost sales by 20% and profits by 30% - but only if companies track and refine their approach based on actual results.

Real-time dashboards make this process seamless. They give you instant insights into sales, profit margins, and team performance, helping you identify what’s working and what’s not. For example, you can see which add-ons bring in the highest margins, which team members excel at upselling, and which client segments respond best to specific offers.

Odys takes this further by providing real-time profitability tracking. This means you can continuously evaluate the margin for each trip and pinpoint areas for improvement. Key Performance Indicators (KPIs) like conversion rates, average order value increases, and customer retention rates offer a clear picture of how well your cross-sell strategies are working.

One standout example comes from Spotlight Federal Bank, which used a data-driven marketing solution to automate personalized offers. In just six months, they increased cross-sell revenue by 25% and product adoption by 30%. While this success story comes from banking, the same principles apply to destination management companies (DMCs): when you let data guide your cross-selling, the results speak for themselves.

The beauty of platforms like Odys is how they tie cross-selling performance directly to your overall business goals. You can see how add-ons impact customer lifetime value, seasonal revenue trends, and team productivity. This big-picture view helps you make smarter decisions about which services to prioritize and how to structure your packages for maximum impact.

As Odys collects more data, its recommendations become sharper, creating a feedback loop of continuous improvement. Over time, this leads to better performance, higher conversion rates, and a more profitable cross-selling strategy. It’s all about refining your approach and letting data guide the way.

Training Staff for Cross-Selling

While technology can streamline cross-selling, it’s the human touch that seals the deal. Even the most advanced tools rely on skilled staff to connect with customers and close sales. In fact, sales professionals who use cross-selling techniques can boost overall revenue by 30%. Yet, fewer than 20% of organizations hit their cross-selling targets. The key difference? It often comes down to how well employees are trained to spot opportunities and present them in a way that feels natural.

To succeed, your team needs more than product knowledge. They must excel in communication, ensuring their suggestions feel like helpful advice rather than a hard sell.

Making Service Suggestions Feel Natural

The secret to effective cross-selling lies in delivering recommendations as enhancements to the customer’s experience, not as pushy sales tactics. Your team should perfect the art of subtle selling, presenting suggestions as friendly guidance.

"Subtlety is key in cross-selling. Your team should approach suggestions as friendly advice, not a hard sell." - Chowbus

Start by equipping your staff with a thorough understanding of all available services. When they can see how different offerings complement each other, they’ll feel more confident suggesting add-ons that genuinely enrich the client’s experience. For instance, if a client books a cultural tour in Rome, your team might suggest a cooking class to round out the trip.

Role-playing exercises are a great way to sharpen these skills. Create scenarios where team members practice responding to real-life situations - like suggesting anniversary upgrades or pairing luxury bookings with complementary experiences. Scripts can also help. Provide templates with effective phrasing, but encourage staff to personalize their approach based on previous client interactions. For example, if a client mentions a love of photography, the team could suggest a scenic helicopter tour or a sunrise excursion.

Timing is everything. Teach your team to position additional services as natural extensions of the client’s plans. A soft-sell approach works best. Instead of saying, "Would you like to add a spa day for $300?" they could frame it as, "Since you mentioned wanting to relax, we have a beautiful spa experience that pairs perfectly with your beachfront hotel. Many guests tell us it’s the perfect way to unwind after arrival."

Training shouldn’t stop after the basics. Regular sessions keep staff updated on new services, seasonal offerings, and fresh cross-selling techniques. And while training helps refine their approach, clear incentives can further drive success.

Motivating Staff with Cross-Sell Incentives

Even the most skilled teams need motivation to consistently pursue cross-selling opportunities. A well-designed compensation plan can encourage staff to seize these chances.

Commission structures are a great starting point. Reward employees for successful cross-sells by offering tiered commissions - those who consistently add services to bookings can earn higher rates on their overall sales. Bonuses can also make a difference, especially when commission increases are modest. For example, you could offer a $50 bonus for every private guide booking or $25 for each restaurant reservation package added to a trip.

Sales contests are another way to energize your team. Host competitions with prizes like gift cards, additional bonuses, or even paid time off for top performers. Non-monetary incentives, such as recognition programs, can also be effective. Acknowledging achievements with awards or admission to an exclusive “president’s club” can motivate employees who value career growth.

Short-term incentives, like sales promotion incentive funds (SPIFs), are useful for drawing attention to specific services - especially new or seasonal offerings with high profit margins.

If multiple team members contribute to a sale, ensure the commission is split fairly to avoid disputes over credit.

"The stronger the relationship, the more successful the cross-sell." - M&A Executive

Ultimately, relationship-building is at the heart of cross-selling success. Incentivize your team not just for immediate sales but for fostering long-term client relationships that lead to repeat business and referrals. Consider tying bonuses to client satisfaction scores or repeat booking rates, not just revenue from cross-sells.

Finally, keep your incentive structure simple and transparent. Complicated calculations or vague criteria can frustrate your team and undermine motivation. By combining focused training with clear rewards, you’ll ensure every automated recommendation is supported by a personal, thoughtful touch - maximizing the potential of every cross-sell opportunity.

Conclusion: Growing Revenue with Cross-Selling

Cross-selling achieves conversion rates of nearly 25%, far surpassing traditional sales methods. This striking difference highlights why many successful DMCs are shifting their focus from acquiring new customers to maximizing the value of their existing client base.

By incorporating cross-selling strategies, businesses can see a 20% boost in revenue and a 30% increase in profitability. For DMCs navigating competitive markets with slim margins, these gains can be transformative - turning survival into growth and long-term success.

The secret to effective cross-selling lies in enhancing the client experience, not just pushing extra services. For instance, suggesting a cooking class to complement a cultural tour or offering travel insurance for an adventure package adds real value to the customer’s journey. These thoughtful recommendations not only improve the travel experience but also foster loyalty and encourage repeat bookings and referrals.

Technology plays a crucial role in amplifying cross-selling efforts. Platforms like Odys integrate cross-selling opportunities seamlessly into the sales process. Features such as online signing and instant upselling make it easy for clients to add services, increasing the average booking value without creating additional sales pressure. Real-time profitability tracking ensures you can identify the most lucrative cross-sell opportunities and refine your strategy for maximum impact.

Of course, technology alone isn’t enough - human expertise remains essential. Well-trained staff can make service suggestions feel natural and personalized. Clear incentive structures help teams focus on both immediate sales and nurturing long-term client relationships. When paired with automated tools and data-driven insights, the human touch becomes even more effective.

Cross-selling creates a win-win outcome for DMCs and their clients. Customers enjoy more tailored, enriching experiences, while companies benefit from higher revenue per booking, stronger customer loyalty, and a sharper competitive edge. With product recommendations driving 10-30% of eCommerce revenues, mastering cross-selling is a proven path to sustained growth and profitability.

FAQs

How can DMCs personalize cross-selling to boost customer satisfaction and revenue?

Destination Management Companies (DMCs) have a unique opportunity to make cross-selling more meaningful by tapping into customer data to create tailored offers. By examining past bookings or noting specific interests, they can suggest add-ons that truly resonate. For instance, a client who prioritizes comfort might appreciate an upgrade to luxury transportation, while someone with a taste for adventure could be intrigued by an exciting tour package.

The matters just as much as the . Offering these recommendations at the right moment - like during an initial consultation or when confirming a booking - makes the suggestions feel seamless and relevant. This approach not only enhances the overall experience but also strengthens customer loyalty and boosts revenue. It’s all about making clients feel seen, understood, and valued.

How can technology help Destination Management Companies (DMCs) improve cross-selling strategies?

Technology has become a game-changer for Destination Management Companies (DMCs) looking to refine their cross-selling strategies. It simplifies processes and helps create more personalized client experiences, making it easier to boost revenue and strengthen customer relationships.

Take Customer Relationship Management (CRM) systems, for example. These tools let DMCs keep track of client preferences and past behaviors. The result? Tailored recommendations that feel more relevant and aligned with what customers actually want.

Automation tools also play a key role. They enable timely and targeted communication, making it easier to suggest upgrades or additional services when clients are most likely to consider them. On top of that, integrated booking systems streamline the upselling process. Whether it’s offering premium options or enticing add-ons during the booking journey, these systems make it seamless for clients to say “yes” to more.

By embracing these technologies, DMCs can not only boost their revenue but also improve efficiency and deliver a more engaging, customer-focused experience.

How can staff make cross-selling suggestions feel natural and enhance the customer experience?

To make cross-selling feel organic and helpful, it's essential for staff to focus on truly understanding what the customer needs and offering services that align with those needs. This starts with comprehensive training on the company’s products and services, so employees can confidently suggest options that match the customer’s preferences. Incorporating role-playing exercises can also be a game-changer, helping employees sharpen their skills in active listening and delivering personalized recommendations.

Promote a customer-first approach, where the primary goal is to act as a trusted advisor rather than just pushing sales. When employees genuinely prioritize the customer’s interests, cross-selling naturally integrates into the conversation, enhancing the overall experience and building long-term loyalty.