Transcript The G.M. Sets the Pace

Chapter 7
Sales and Marketing
The Role of Sales and Marketing
Sales
Marketing
Activities related directly to servicing consumer
demand and booking clients
Activities designed to increase consumer awareness
and demand by promoting and advertising hotel
Role of Director of Sales and Marketing:
Identify and cultivate clients
Manage hotel’s marketing efforts
Set rates to maximize RevPar
Negotiate sales contracts on behalf of hotel
Serve as a leader to hotel’s sales and marketing team
The Front Office
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The Role of Sales and Marketing: In the Hotel
Front Office
Influence
Transient Rooms
Sales and Marketing
Influence
Group Sales
Tasks of sales and marketing staff with its group sales focus:
Planning hotel’s sales and marketing strategy
Preparing and issuing sales contracts in timely manner
Maintaining accurate sales records, forecasts, and histories
Coordinating and communicating special client requests
with affected hotel departments
Hosting clients during their stay
Conducting site tours
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©2007 Pearson Education
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The Role of Sales and Marketing:
In the Community
Two sales opportunities:
Promotion
Opportunities
When DOSM and Sales team are active members
of the business community (e.g., local chamber of
commerce), disseminating information about
hotel’s products and services is allowed.
Networking
Opportunities
Development of personal relationships for
business-related purposes will result in increased
numbers of sales calls.
– Convention and Visitors Bureau (CVB)
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Segmentation of the Sales and Marketing
Department
Segmentation based on:
Product(s) Sold
Product designations becoming
sales specialty areas
Market (Market
Segment)
Type of guests (clients) who buy
the product
Distribution
Network
“How” the hotel’s sales
(products) are made (distributed)
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Segmentation of the Sales and Marketing
Department (cont.)
Catered Event
Group Guest
Rooms
Conferences
By Product
Sold
Conventions
Meetings
Weddings and
Special Events
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Segmentation of the Sales and Marketing Department
(cont.)
Leisure
Corporate
Business travelers (who
pay highest room rates)
Long-Term Stay
By Market
(Market
Segmentation)
Guaranteed occupancy,
ease of cleaning rooms,
less complicated billing
Rooms often sold at very
low daily rates
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Vacations, weddings, visits
by friends and family, or
nonwork-related reasons
Heavy reliance on travel
agents’ advice
SMERF and Others
Social, military,
educational, religious, or
fraternal organizations
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Segmentation of the Sales and Marketing Department
(cont.)
Meeting Planners
Travel Agents
Representatives of corporations,
groups, and organizations
Use comparison-shopping
techniques
By
Influence on hotel’s
reputation
Distribution
Networking
Consortia
Largest customers of many
hotels
Negotiated rate/blackout
dates/pick-up
Retailers, wholesalers, or both
Using Global Distribution
System
Receiving commission (5–
20%) from hotel
Internet
Fastest-growing distribution
channel
Creating homepages and
linking them to other sites
Drop-Ins
Potential guests who arrive at hotel without
appointments
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Sales and Marketing Activities: Sales Efforts
Sales and Marketing
Committee
Harmonizes efforts across
department lines
Engages in long-term
planning
Ensures cooperation of all in
sales and marketing process
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Trace
Systems
Maintain record (e.g.,
demographic data) of
hotel’s past, current, and
prospective clients
Help department maintain
its sales records, meet
deadlines, and plan future
activities
©2007 Pearson Education
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Sales and Marketing Activities:
Sales Efforts (cont.)
The Sales Cycle
Presale Phase
Invite client on a site tour
Submit a bid
Sales Phase
Complete “Request for Proposal,” and submit on time
Establish room rates
Prepare group contract (attrition and cancellation policy)
Forward direct bill application to group
Establish group block
Detail client’s contracted requirements
Monitor client’s block
Attend pre-event sales meeting of hotel staff
Postsale Phase
Write thank-you note to each group
Review the final bill
Include that group in the hotel’s preferred client database
File all written reports
Hotel Operations Management, 2nd ed.
Hayes/Ninemeier
©2007 Pearson Education
Pearson Prentice Hall
Upper Saddle River, NJ 07458
Sales and Marketing Activities:
Sales Efforts (cont.)
Sales lead: Effective DOSM should discuss the following:
New leads uncovered since last meeting
Realistic sales potential of these leads
Who in the department is following up on leads
How leads will be pursued
What, if anything, GM can do to help cultivate prospect
Any sales resulting from leads discussed previously
Reserve Adequate Time for Cold Calling!
Make a sales visit/presentation to potential clients without
having previously set an appointment to do so
Visit/call quality prospective clients for hotel’s rooms/services
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©2007 Pearson Education
Pearson Prentice Hall
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Sales and Marketing Activities:
Sales Efforts (cont.)
Client Appreciation Activities
Goals
Solidify business relationship
with current clients (allow
hotel to express gratitude to
clients for current business)
Communicate to potential
clients the seriousness with
which the hotel views the
hotel/client relationship
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Examples
Gala client appreciation
event
Golfing, sporting events,
concerts, theater tickets
Gift-giving
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Sales and Marketing Activities: Marketing Efforts
Marketing Plan Development: Format of Marketing Plan
A review of market competition
Occupancy trends /ADR trends / performance of own hotel
Competitive analysis of your competitor
Strengths / weaknesses / price structure
Competitive analysis of your own hotel
Strengths / weaknesses / price structure
Forecast of future market conditions
Estimated market growth or contraction / performance goals and objectives for
own hotel / timeline for achieving these goals and objectives
Determination of specific marketing strategies and activities
Advertising / public relations / promotions
Preparation of a marketing budget
Development of measurement and evaluation tools
Hotel Operations Management, 2nd ed.
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©2007 Pearson Education
Pearson Prentice Hall
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Sales and Marketing Activities:
Marketing Efforts (cont.)
Advertising
Types of advertising:
Exterior signage
In-hotel and in-room signage and
materials
Radio or television commercials
Direct mailing
Internet banners
E-mail messages
Yellow Pages
Franchiser-supplied advertising
vehicles (directories, co-ops, etc.)
Billboards
Personal contact
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Effective advertising:
Eye- or ear-catching
Memorable
Sells the hotel’s features
Cost-effective
Does not become quickly outdated
Reflects positively on hotel’s image
Can be easily directed to the hotel’s
core client groups
©2007 Pearson Education
Pearson Prentice Hall
Upper Saddle River, NJ 07458
Sales and Marketing Activities:
Marketing Efforts (cont.)
Promotions
“Special” packaging of products or services
Promoted and disseminated by advertising and
publicity
Publicity
Information about hotel distributed free of charge to
the media
Costs the hotel nothing
May be either good or bad
Public
Relations
(PR)
Activities ensuring hotel has a positive public image
(good citizen of the community)
Hosting charity events, contributing cash or in-kind
services, donation of hotel staff time for worthy cause
Hotel Operations Management, 2nd ed.
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©2007 Pearson Education
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Upper Saddle River, NJ 07458
Sales and Marketing Activities:
E-Marketing
Online Reservation Systems
Teaming of GDS with Internet
Impact
Travel agents: check availability, compare prices,
and book hotel online
Online booking sites are the fastest growing
source of reservations in the hotel industry.
Hotel Operations Management, 2nd ed.
Hayes/Ninemeier
©2007 Pearson Education
Pearson Prentice Hall
Upper Saddle River, NJ 07458
Sales and Marketing Activities:
E-Marketing (cont.)
Characteristics of effective hotel Web sites:
Easy to navigate
Include some level of interactivity
Link to appropriate companion sites
Allow for online booking
Balance guest privacy needs with hotel’s desire to build a
customer base
Allow for easy updating and revising of room rates
Include a virtual tour of the property
Complement other marketing efforts
In language(s) of potential clients
Easy-to-remember addresses
Hotel Operations Management, 2nd ed.
Hayes/Ninemeier
©2007 Pearson Education
Pearson Prentice Hall
Upper Saddle River, NJ 07458
Sales and Marketing Activities:
E-Marketing (cont.)
E-mail Systems
Traditional
Communication Methods
Direct mailing, telephone, fax
Emerging Communication
Methods
E-mail systems
Advantages of e-mail systems:
Inexpensive to send to many current and potential clients
Has attachment feature function to move documents quickly
Automatically updates user database
Can disseminate special rates, promotions, and new hotel
features to its client list
Hotel Operations Management, 2nd ed.
Hayes/Ninemeier
©2007 Pearson Education
Pearson Prentice Hall
Upper Saddle River, NJ 07458
Sales and Marketing Activities:
Evaluating the Sales and Marketing Effort
The Pace report:
Summarizes confirmed (group) sales made by the sales and
marketing department
Can be prepared based on number of rooms sold, value (in
dollars) of sales made, or both
Can also include any period of time in the future
Tells hotel’s owner and management the potential sales volume
generated by the sales and marketing department
However, does not indicate what actual sales volume should be
(STAR report does!)
Hotel Operations Management, 2nd ed.
Hayes/Ninemeier
©2007 Pearson Education
Pearson Prentice Hall
Upper Saddle River, NJ 07458
Sales and Marketing Activities:
Evaluating the Sales and Marketing Effort (cont.)
Waldo Hotel Group Rooms Pace Report for January, 200X
Sold This Month Total Sold YTD
Jan
Feb
Mar
Apr
May
June
July
Aug
Sept
Oct
Nov
Dec
25
450
550
650
875
1,100
1,350
1,700
500
300
850
200
Total
8,550
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Sold Same Month Total Sold Last
Last Year
YTD
750
1,550
1,550
1,175
1,400
2,250
2,900
700
800
1,150
550
150
250
330
550
650
800
1,100
1,500
750
550
300
125
550
1,250
1,350
1,050
1,700
2,150
1,900
1,750
1,050
600
225
14,775
7,055
13,575
©2007 Pearson Education
Pearson Prentice Hall
Upper Saddle River, NJ 07458
Sales and Marketing Activities:
Evaluating the Sales and Marketing Effort (cont.)
The Smith Travel Accommodations Report (STAR)
STAR working process and preparation:
Hotel voluntarily submits financial data to Smith
Smith maintains confidentiality of all individual hotel data
Combines operating data submitted by selected competitors
An individual hotel’s operating performance is compared to that
of its competitive set. (Understanding the competitive set is a
key component of understanding STAR!)
Who are the STAR interest groups?
Hotel owners, management companies, property management,
franchisers, appraisers, and the financial community
Hotel Operations Management, 2nd ed.
Hayes/Ninemeier
©2007 Pearson Education
Pearson Prentice Hall
Upper Saddle River, NJ 07458
Sales and Marketing Activities:
Evaluating the Sales and Marketing Effort (cont.)
The Smith Travel Accommodations Report (STAR) (cont.)
Operating
Comparison Criteria
Occupancy, ADR, RevPar, market share,
historical trends, to-date performance,
state or region
Goals
Assess performance of sales and
marketing department as well as the
entire property
Know the strength of hotel and sales and
marketing staff’s sales results, in
comparison with selected competitors
Hotel Operations Management, 2nd ed.
Hayes/Ninemeier
©2007 Pearson Education
Pearson Prentice Hall
Upper Saddle River, NJ 07458