Journal of Applied Sciences in Travel and Hospitality Volume 4 Issue 1 Year 2021 Pages 9-17 DOI: http://dx.doi.org/10.31940/jasth.v4i1.2049 URL: http://ojs.pnb.ac.id/index.php/JASTH 9 Implementation of upselling as a strategy in increasing room sales by guest relation host at Alila Seminyak Hotel Putu Risky Meliarini 1*, Made Sudiarta 2, Lien Darlina 3 1,2,3 Tourism Department, Politeknik Negeri Bali, Indonesia *Corresponding Author: riskymeliarini98@gmail.com Abstract: The purpose of this research is to determine the implementation of upselling as a strategy in increas- ing room sales at Alila Seminyak hotels and to find out alternative upselling strategies that should be imple- mented by Guest Relations Hosts in increasing room sales at Alila Seminyak hotels. The analysis technique used is the Sequential Exploratory mixed method design; Internal Factor Summary (IFAS) Matrix, External Factor Analysis Summary (EFAS) Matrix, Internal-External (IE) Matrix, SWOT analysis, and Quantitative Strategic Plan- ning Matrix (QSPM). The analysis result of the IFAS matrix with the main strength is that the Alila Seminyak ho- tel has ten types of rooms that can support upselling activities to guests and can increase room sales, while the main weakness is the lack of providing special prices for guests who upselling. The analysis result of the EFAS matrix is that the main opportunity is the friendliness of the community, environment, and culture around the Alila Seminyak hotel, while the main threat is the tax policy that applies to tourists who are taken into consider- ation when wanting to upselling. Based on the results of the IE matrix analysis, the Alila Seminyak hotel is in the position of Growth Strategy (Cell II). The results of the SWOT analysis resulted in nine alternative upselling strategies, where three alternative upselling strategies were prioritized which were calculated by the QSPM matrix with a total TAS 232.64, 225.55, and 216.54. Keywords: upselling, marketing mix, alternative strategies, room sales History Article: Submitted 02 September 2020 | Revised 25 January 2021 | Accepted 10 February 2021 How to Cite: Meliarini, P. R., Sudiarta, M., & Darlina, L. (2021). Implementation of upselling as a strategy at Alila Seminyak Hotel. Journal of Applied Sciences in Travel and Hospitality, 4(1), 9–17. Introduction The development of tourism in Bali causes the number of tourist visits to increase every year. The increasing number of tourists visiting Bali encourages the government and the private sector to build accommodation and supporting facilities for tourists. One of the accommodations that can support tourist activities is a hotel. According to (Tarmoezi, 2000:13) a hotel is an ef- fort to provide accommodation in the form of rooms in a building, which can be equipped with food and beverage services, entertainment activities, and other facilities on a daily basis with the aim of making a profit. The development of hotel in Bali continues to increase from year to year, with several types of hotels based on stars or classes ranging from one-star hotels to five- star hotels. According to (Chandra, 2015:960) hotel facilities are usually adjusted to the star number of the hotel. The more the number of stars in a hotel, the more facilities it will provide to people staying at the hotel. One of the five-star hotels in Bali is the Alila Seminyak Hotel which is located in the Seminyak area. The Alila Seminyak Hotel has a strategic location because it is close to the shopping center and beach area behind the hotel, has 240 rooms with ten types of rooms pro- vided and offered to tourists, a restaurant, bar, and facilities that support the activities of tour- ists who visit and stay. Data on room occupancy and room sales at the Alila Seminyak Hotel in the last three years can been in Table 1 and Table 2 below. Journal of Applied Sciences in Travel and Hospitality 10 Table 1. Room Occupancy Data of Alila Seminyak Hotel in 2017-2019 No Month Year 2017 2018 2019 1 January 64.42% 68.46% 60.26% 2 February 60.73% 63.16% 59.02% 3 March 56.25% 74.46% 57.05% 4 April 67.95% 80.45% 81.55% 5 May 78.56% 79.76% 74.97% 6 June 82.52% 85.63% 86.33% 7 July 85.50% 82.40% 83.36% 8 August 88.16% 82.84% 79.00% 9 September 83.20% 79.87% 77.30% 10 October 80.52% 81.59% 84.46% 11 November 70.27% 64.61% 69.80% 12 December 48.24% 60.97% 71.90% Total 72.19% 75.35% 73.75% (Source: Alila Seminyak Hotels, 2020) Table 2. Data on Room Sales of Alila Seminyak Hotel in 2017-2019 Month Year 2017 2018 2019 1 January 11,121,072,941 10,664,908,560 13,116,654,641 2 February 7,165,816,308 8,300,153,326 9,522,599,008 3 March 8,961,945,816 11,562,767,293 9,888,217,164 4 April 12,336,932,424 17,728,531,235 14,658,093,526 5 May 12,123,067,595 16,981,158,517 13,931,392,517 6 June 13,661,287,047 19,366,266,025 17,218,919,142 7 July 14,526,178,523 19,970,529,651 20,150,270,819 8 August 17,382,196,090 23,928,802,277 19,659,003,603 9 September 15,725,788,643 20,339,897,879 16,069,371,755 10 October 12,605,228,061 21,769,910,890 20,030,536,318 11 November 9,692,556,221 10,401,538,284 13,310,708,453 12 December 8,040,948,337 13,894,578,610 16,756,794,804 TOTAL 143,343,018,006 194,909,042,547 184,312,561,750 Table 1 shows the percentage of room occupancy at the Alila Seminyak hotel in the last three years which has experienced fluctuation, of course, having an impact on sales of rooms at the Alila Seminyak hotel. Table 2 shows the data on room sales at the Alila Seminyak hotel in- creased in 2017 to 2018 by 35.9% than in 2019 decreased by 5.4%. Therefore, to increase room sales at the Alila Seminyak hotel with the fluctuating percentage of room occupancy con- ditions, the management needs a marketing strategy that can be implemented and increase room sales at the Alila Seminyak hotel, one of which is by upselling. Upselling is the idea of up- grading products that customers order to add additional features or additional services and ad- ditional benefits for sellers (Saputra, 2015: 52). According to Smith in Andriani (2020: 60), upselling is a strategy to increase their profits by training staff on how to sell more. Upselling is more than just a sale, it requires perception, knowledge, and wisdom. Upselling can be seen as a process of selling and servicing customers. Therefore, to implement an upselling strategy to increase room sales at the Alila Seminyak hotel, the management assigned a Guest Relation Host to one of the Host Service (Front Office) departments. Guest Relation Host is important part of the Alila Seminyak hotel, because it has the main function of providing information and services to guests who come to visit or stay which is located at the front of the hotel. According to Ardiana (2020: 1-2), the front office in the check-in process is based on orders made by guests before staying, but the front office can also implement an upselling program to sell rooms with a higher room type than the previous order. Journal of Applied Sciences in Travel and Hospitality 11 In planning the implementation of upselling as a strategy, it is necessary to identify in- ternal and external factors that are owned by Alila Seminyak hotels. Therefore, this study will analyze the implementation of upselling as a strategy in increasing room sales at Alila Seminyak hotel. The method used in this research is interviews and questionnaires, where the results of interviews and questionnaires will be analyzed using SWOT analysis to formulate alternative strategies that are then evaluated through QSPM to find upselling strategy that must be priori- tized in increasing room sales at Alila Seminyak hotel. Methodology This study used a mixed-methods design with Sequential Exploratory: qualitative followed by quantitative linking the data between two stages, namely qualitative-quantitative (Cameron, 2009: 145). In the Sequential Exploratory design, it explains that the researcher collects qualita- tive data first then quantitative data. The purpose of the sequential exploratory mixed methods design involves first qualitative data collection procedures to explore phenomena and then col- lecting quantitative data to explain the relationships found in qualitative data (Creswell and Pla- no C. in Subedi, 2016: 573). This research begins, by identifying internal variables which are internal factors of Alila Seminyak Hotel with indicators of the 7P elements of the marketing mix according to Kotler and Armstrong (2016: 62), namely product, price, place, physical evidence, people, process, promotion. External variables in this study are the environment that Alila Seminyak Hotel cannot control, such as tax, economic, social and cultural policies, business and technology, long stay guests, guests from travel agents or online travel agents, high and low season, goals and visions hotel. The types of data in this research are quantitative and qualita- tive, and data sources are primary and secondary data. The method of determining the sample in this study is purposive sampling. Purposive sampling is a data source sampling technique with certain considerations such as the person who is considered the most knowledgeable of what we expect (Sugiyono, 2016: 85). The sample is all staff of Guest Relations Host, totaling 23 people. The collection methods used in this study were interviews and questionnaires. In this study, researchers encountered problems due to researching in the COVID-19 pandemic situation, collecting data through interviews with Host Managers and Assistant Host Managers, and distributing questionnaires to 23 staff of Guest Relations Hosts at Alila Seminyak Hotel re- lated to the implementation of upselling as a strategy to improve room sales. This study uses a combination of several analysis techniques were IFAS (Internal Factor Analysis Summary) matrix, EFAS (External Factor Analysis Summary) matrix, IE (Internal- External) matrix, SWOT analysis according to Rangkuti (2017: 83-84), the tools used for compil- ing the company's strategic factors is a SWOT matrix, and QSPM (Quantitative Strategic Plan- ning Matrix) analysis. According to Purwanto (2012: 142) QSPM analysis is an analysis used to find out what alternative strategies are best to be selected or implemented in a company. In analyzing the data in this study, the researcher observed and interviewed internal and external factors at Alila Seminyak Hotel to the Host Manager and Assistant Host Manager. Furthermore, sorting the data and identifying the result files from the interviews into tabulations of internal and external factors which will be used as questionnaires to be distributed and filled out by 23 respondents. The results of the distribution of the questionnaire will be used to measure the weight, rating, and score of the IFAS and EFAS. After obtaining the total IFAS and EFAS scores will be used to determine the current position of the company then combine internal and exter- nal factors into the SWOT matrix to formulate four strategies between SO (Strength- Opportunity) strategies, ST (Strength-Threat) strategies, WO (Weakness-Opportunity) strate- gies, and WT (Weakness-Threat) strategies. The final stage of data analysis in this study is to evaluate alternative strategies to find alternative upselling strategies that must be prioritized through QSPM analysis. Results and Discussions Analysis of Internal and External Factors The first step is to conduct a qualitative analysis by conducting interviews related to in- ternal and external factors at the Alila Seminyak Hotel to informants, namely the Host Manager Journal of Applied Sciences in Travel and Hospitality 12 and Assistant Host Manager who know more about the flow of upselling implementation at Alila Seminyak Hotel. Furthermore, the results of the interview will be used as a means of measuring weight, rating, and score in quantitative analysis. The results of the interviews in this study were then inputted into the IFAS (Internal Factor Analysis Summary) matrix (Table 3) and the EFAS (External Factor Analysis Summary) matrix (Table 4). In this study, the researcher shows the results of the rating and weighting of the two matrices to the Host Manager and Assistant Host Manager, to be used in analyzing the position of Alila Seminyak Hotel in the IE (Internal- External) matrix in Figure 1. In the IFAS matrix, scores are obtained from weighting factor indi- cators. The internal factor is multiplied by the average value of each internal factor indicator. Internal factors in the IFAS matrix are divided into two categories, namely Strengths and Weaknesses so that the IFAS matrix score obtained is 2.94 can be seen in Table 3. Table 3. IFAS of Upselling Strategy No Strength Weight Rating Score 1 Alila Seminyak Hotel has ten types of rooms equipped with different facilities and views and atmosphere in each room, which can attract guests to do upselling. 0.09 3.57 0.27 2 The size or size of ten different room types in providing com- fort to guests while staying, which is taken into consideration for guests when upselling to get a room according to the needs and comfort of guests while staying at Alila Seminyak Hotel. 0.08 3.43 0.25 3 The payment method used by Alila Seminyak Hotel to make it easier for guests to process the payment for room upselling can be done via cash, credit card, or bank transfer. 0.06 3.35 0.21 4 It has a strategic location because Alila Seminyak Hotel is on the beachside, and several rooms directly lead to the beach and can attract guests' interest in upselling their rooms. 0.06 3.35 0.25 5 Alila Seminyak Hotel provides transportation for guests that can be used for traveling by guests, picking up guests who are checking in or who have already checked out to be taken to the airport. 0.07 3.39 0.21 6 Promotions carried out by Sales & Marketing through websites and social media, to make it easier for guests to find infor- mation about room rates or special promotions currently being held by Alila Seminyak Hotel. 0.06 3.35 0.21 7 The understanding of Guest Relation Hosts on product knowledge at Alila Seminyak Hotel so that they can inform or explain to guests during the room upselling process. 0.07 3.39 0.22 8 Completeness of room facilities is very influential when guests upselling a room because guests want to get a room with facili- ties that can make guests comfortable and satisfied while stay- ing at Alila Seminyak Hotel. 0.06 3.30 0.24 9 Alila Seminyak Hotel has a design lobby with direct views of the beach and is equipped with sofas and tables which are used as a place to negotiate when upselling a room between guests and the Guest Relation Host. 0.06 3.35 0.24 Total 0.61 2.10 Weaknesses 1 Special upselling prices that are rarely given by Alila Seminyak Hotel to guests when upselling a room. 0.06 2.17 0.14 2 Personal selling activities of the Guest Relation Host are ham- pered in providing room information during the upselling pro- cess for guests who do not understand English. 0.06 2.17 0.14 3 Lack of motivation and appreciation for the Guest Relations Host who managed to do upselling beyond what Alila Seminyak Hotel targeted. 0.06 2.26 0.14 Journal of Applied Sciences in Travel and Hospitality 13 4 Ability to master foreign languages (other than English) by the Guest Relation Host which becomes an obstacle in negotiating with passive English-speaking foreign guests when upselling a room. 0.06 2.22 0.14 5 Lack of education and training by Alila Seminyak Hotel for the Guest Relation Host regarding the implementation of upselling activities so that these activities are successful and able to achieve or exceed the target. 0.06 2.17 0.14 6 The Alila Seminyak Hotel has not made an SOP book on the procedure for carrying out room upselling activities. 0.06 2.22 0.14 Total 0.36 0.84 Total of Weights and Scores for Internal Factor 1.00 2.94 After analyzing the internal factors, then analyzing the external factors faced by Alila Seminyak Hotel, namely opportunities and threats, which are contained in the EFAS matrix. In the EFAS matrix, the total score is obtained through the weighting of external factors then mul- tiplied by the average value on each external factor indicator. In the EFAS matrix obtained a total score of 3.08 can be seen in Table 4. Tabel 4. EFAS of Upselling Strategy No Opportunities Weight Rating Score 1 The hospitality of the community, environment, and culture around the hotel can make guests feel comfortable staying at Alila Seminyak Hotel. 0.12 3.87 0.44 2 Guests can easily search for information about Alila Seminyak Hotel via the internet with a wi-fi network obtained from a wi-fi corner or using a private cellular network. 0.11 3.83 0.41 3 Long-stay guests at Alila Seminyak Hotel are an opportunity to be offered room upselling so that guests can enjoy the experi- ence of staying in a different room type than before. 0.12 2.83 0.33 4 Travel agent guests and online travel agents have the oppor- tunity to be offered room upselling, informing in detail about the rooms that can be upselling by travel agent guests or online travel agents assisted by the Guest Relations Host when guests check-in. 0.12 2.74 0.33 5 The influence of high season and low season in increasing room sales at Alila Seminyak Hotel. 0.11 3.87 0.44 6 The goals and visions of the Alila Seminyak Hotel affect the comfort of guests from the services provided by all hotel staff. 0.11 3.83 0.43 Total 0.69 2.38 Threats 1 Government tax policy for tourists which has an impact on guest consideration for upselling at Alila Seminyak Hotel. 0.10 2.22 0.23 2 The purchasing power of guests, which has an impact on the guest's decision to stay at a hotel that is cheaper than staying at the Alila Seminyak Hotel. 0.11 2.17 0.23 3 The number of hotels in the Seminyak area is a threat to Alila Seminyak Hotel in maintaining the market and guests' interest in choosing Alila Seminyak Hotel accommodation to stay and visit while in Bali. 0.10 2.26 0.24 Total 0.31 0.70 Total of Weights and Scores for External Factor 1.00 3.08 After analyzing internal and external factors, then transfer the score results into the IE (Internal-External) matrix. The results of the IFAS matrix analysis have a score of 2.94 and the EFAS matrix with a score of 3.08. The score results from the two matrices are used to analyze the position of Alila Seminyak Hotel, in Figure 1. Journal of Applied Sciences in Travel and Hospitality 14 Figure 1. Current Position of Alila Seminyak Hotel by IE Matriks Figure 1 shows the position of Alila Seminyak Hotel's upselling strategy in cell II of the IE (Internal-External) matrix. Cell II shows the upselling strategy at the Alila Seminyak Hotel is in the Growth Strategy stage with concentration through horizontal integration. This strategy is designed to achieve good growth in sales, profits and increase the range of products and ser- vices. Therefore, the Alila Seminyak Hotel can add room facilities and interiors, improve services for guests upselling rooms, offer room upselling to long-stay guests, travel agent guests, and online travel agents. The results of the IE matrix are used as consideration in formulating tech- nical and concrete alternative upselling strategies through the SWOT matrix. Table 5. SWOT Matriks IFAS / EFAS STRENGTHS (S) WEAKNESSES (W) OPPORTUNITIES (O) SO STRATEGIES 1. Additional facilities and room inte- riors to support upselling activities, and offer room upselling to long- stay guests, travel agent guests, and online travel agents as well as repeater guests. 2. Improve relations with the com- munity around Alila Seminyak Ho- tel so that guests who stay feel comfortable and interested when offered room upselling. WO STRATEGIES 1. Add incentives and rewards for Guest Relation Hosts who achieve or exceed room upselling targets. 2. Organizing foreign language training programs (other than English) specifically for Guest Relation Hosts. 3. Adjusting Standard Operating Procedures for upselling activities to make them more effective and efficient following the objectives and vision of the Alila Seminyak Hotel. Journal of Applied Sciences in Travel and Hospitality 15 TREATHS (T) ST STRATEGIES 1. Increase the benefits that guests will get after upselling the room so that guests feel comfortable stay- ing at Alila Seminyak. 2. Improve the quality of service to guests in doing room upselling ac- tivities. WT STRATEGIES 1. Organizing training programs to improve service quality for Guest Relation Host. 2. Providing dynamic prices to over- come competition, especially giving special prices for room upselling. Based on Table 5 above, the following is an explanation of the formulation of an alterna- tive upselling strategy, namely: 1. SO (Strength-Opportunity) Strategies There are two alternative upselling strategies recommended in the SO strategies, the first is the addition of facilities and interiors according to the room type owned by the hotel, consid- ering that Alila Seminyak Hotel has ten types of rooms with different facilities and interiors in each room, which can attract guests to upselling rooms and able to increase room sales. Sec- ond, the Alila Seminyak hotel can improve good relations with the surrounding community, in attracting guests to stay overnight. As well as attracting guests' interest to know the surround- ing culture in religious ceremonies or other activities carried out by the surrounding community. 2. ST (Strength-Threat) Strategies There are two alternative upselling strategies recommended in the ST strategies, the first is the provision of benefits for guests upselling their room by giving special prices for breakfast at Seasalt restaurant and a discount promo on the Alila Moment package that guests can enjoy. Second, the Guest Relation Host can improve the quality of service when guests are going upselling the room, such as giving advice and being able to make guests get a room according to the wishes and purchasing power of guests at Alila Seminyak Hotel. 3. WO (Weakness-Opportunity) Strategies There are three alternative upselling strategies recommended in the WO strategies, the first is to provide incentives outside the salary and award for the best employees by providing certificates from the management of Alila Seminyak Hotel for the Guest Relation Host. Second, a foreign language training program (other than English) specifically for Guest Relation Hosts related to hotel operational languages, product knowledge, and related upselling activities. The third is the making of an SOP book containing a guide in offering room upselling to guests to succeed and make guests feel happy and comfortable when doing room upselling with the Guest Relation Host, of course by the goals and vision of Alila Seminyak Hotel. 4. WT (Weakness-Threat) Strateges There are two alternative upselling strategies recommended in the WT strategies, the first is a training program for Guest Relation Hosts in conducting personal selling to guests and improving service quality so that guests prefer Alila Seminyak Hotel over competing accommo- dations. Second, Alila Seminyak needs to provide special prices in attracting guests to upselling rooms, of course, the special prices given to guests have been taken into account by the man- agement and the Guest Relation Host at Alila Seminyak Hotel to resolve competition with other accommodations. QSPM (Quantitaive Strategic Planning Matrix) Analysis The final result in this study is to analyze an alternative assessment of the upselling strategy that was previously formulated using the SWOT analysis matrix into the QSPM analysis for evaluation. The purpose of the assessment of alternative strategies is to find out which al- ternative upselling strategies should be implemented by the Guest Relations Hosts in increasing room sales at Alila Seminyak Hotel. This QSPM matrix assessment uses the average rating and the average attractive score (AS) which will produce a Total Attractiveness Score (TAS). Here is the formula for obtaining TAS: π‘‡π‘œπ‘‘π‘Žπ‘™ π΄π‘‘π‘‘π‘Ÿπ‘Žπ‘π‘‘π‘–π‘£π‘’π‘›π‘’π‘ π‘  π‘†π‘π‘œπ‘Ÿπ‘’ (𝑇𝐴𝑆) = π΄π‘£π‘’π‘Ÿπ‘Žπ‘”π‘’ π‘…π‘Žπ‘‘π‘–π‘›π‘” π‘₯ π΄π‘£π‘’π‘Ÿπ‘Žπ‘”π‘’ π΄π‘‘π‘‘π‘Ÿπ‘Žπ‘π‘‘π‘–π‘£π‘’ π‘†π‘π‘œπ‘Ÿπ‘’ (𝐴𝑆) (1) Journal of Applied Sciences in Travel and Hospitality 16 The following is an alternative ordering of the upselling strategy obtained based on the calculation of the TAS value in the QSPM matrix, which can be seen in Table 6. Table 6. Alternative Strategies for Upselling Implementation by QSPM Strategy Code Alternative Strategies TAS SO1 Additional facilities and room interiors to support upselling activities, and offer room upselling to long-stay guests, travel agent guests, and online travel agents as well as repeater guests. 232.64 WO1 Add incentives and rewards for Guest Relation Hosts who achieve or exceed room upselling targets. 225.55 WT2 Providing dynamic prices to overcome competition, especially giving special prices for room upselling. 216.54 ST1 Increase the benefits that guests will get after upselling the room so that guests feel comfortable staying at Alila Seminyak 192.85 ST2 Improve the quality of service to guests in doing room upselling activi- ties 187.72 WO2 Organizing foreign language training programs (other than English) specifically for Guest Relation Hosts. 185.01 WT1 Organizing training programs to improve service quality for Guest Rela- tion Host. 182.99 WO3 Adjusting Standard Operating Procedures for upselling activities to make them more effective and efficient following the objectives and vision of the Alila Seminyak Hotel 175.27 SO2 Improve relations with the community around Alila Seminyak Hotel so that guests who stay feel comfortable and interested when offered room upselling 160.74 Table 6 above shows the results of the assessment of the alternative upselling strategy chosen by the Guest Relation Host which should be applied in increasing room sales at Alila Seminyak Hotel. Alila Seminyak can apply all of the strategies or some of the upselling strategies. In the analysis, QSPM Guest Relation Host has assessed and selected three alternative upselling strategies that are prioritized to be implemented in increasing room sales at Alila Seminyak Hotel. The first strategy for SO1 with a TAS score of 232.64 is the addition of facilities and interiors in each room. The second strategy of WO1 with TAS 225.55 is giving incentives and rewards for Guest Relation Hosts. The third strategy with a TAS score of 216.54 is to provide dynamic prices to overcome competition, in particular by providing special room upselling rates to guests. Conclusions Based on the results of previous research and discussion, the conclusions are as follows. The implementation of upselling as a strategy at Alila Seminyak Hotel is by the 7P elements of the marketing mix such as product, price, place, promotion, people, process, physical evaluation. The results of the upselling implementation at Alila Seminyak Hotel were able to increase room sales. Upselling activities at the Alila Seminyak hotel need to be improved during the low season for staying guests. The upselling implementation strategy at Alila Seminyak Hotel is currently in cell II, namely the Growth Strategy stage with concentration through Journal of Applied Sciences in Travel and Hospitality 17 horizontal integration, this strategy is designed to achieve good growth in sales, profit and increase the type of product or service. Therefore, the alternative strategies that should be implemented by Guest Relation Hosts in increasing room sales at Alila Seminyak Hotel are the addition of facilities and room interiors to support upselling activities, as well as making upselling opportunities for long stay guests, travel agent guests, and online travel agents and guest repeater. 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