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The Sales and
Marketing Department
Hayes/Ninemeier: Foundations of Lodging Management. (C) 2006 Pearson Education, Upper Saddle River, NJ 07458. All Rights Reserved.
Importance of Sales and Marketing
DOSM: short for “Director of Sales and Marketing.”
Variations include DOS (Director of Sales) and DOM
(Director of Marketing).
www.hsmai.org
Sales: activities directly related to a client’s purchase
of hotel rooms or services.
Marketing: activities directly related to increasing a
potential guest’s awareness of a hotel.
Hayes/Ninemeier: Foundations of Lodging Management. (C) 2006 Pearson Education, Upper Saddle River, NJ 07458. All Rights Reserved.
Importance of Sales and Marketing
Booking: hotel jargon for making a confirmed sale.
Effective Marketing Activity
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Increased Consumer Awareness
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Increased Hotel Bookings
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Increased Hotel Revenues
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Increased Hotel Profitability
Hayes/Ninemeier: Foundations of Lodging Management. (C) 2006 Pearson Education, Upper Saddle River, NJ 07458. All Rights Reserved.
Sales and Marketing Activities
Three types of activities in the Sales Cycle:
1. Pre-sale Activities
2. Sales Activities
3. Post-sale Activities
Hayes/Ninemeier: Foundations of Lodging Management. (C) 2006 Pearson Education, Upper Saddle River, NJ 07458. All Rights Reserved.
Sales and Marketing Activities
1. Pre-Sale Phase
Site Tour: a physical trip (tour) of a hotel, hosted by
a member of the hotel’s staff.
Bid: An offer by a hotel to supply sleeping rooms,
meeting space, food and beverages, or other services
to a potential client at a stated price. If the bid is
accepted, the hotel will issue the client a contract
detailing the agreement made between the hotel and
the client.
Hayes/Ninemeier: Foundations of Lodging Management. (C) 2006 Pearson Education, Upper Saddle River, NJ 07458. All Rights Reserved.
Sales and Marketing Activities
2. Sales Phase
Pickup: the actual number of rooms purchased by a
client in a specific time period.
Group Contract: a legal document used to summarize
the agreement between a hotel and its client group.
Attrition: the difference between the original request
and the actual pickup of a group.
Block: rooms reserved exclusively for members of a
specific group.
Hayes/Ninemeier: Foundations of Lodging Management. (C) 2006 Pearson Education, Upper Saddle River, NJ 07458. All Rights Reserved.
Sales and Marketing Activities
3. Post-Sale Phase
 Thank-you letters
 Adding clients to a preferred client list
 Formulating plans to retain the business the
following year
Convention and Visitor’s Bureau (CVB): an
organization, generally funded by taxes levied on
overnight hotel guests, which seeks to increase the
number of visitors to the area it represents.
Hayes/Ninemeier: Foundations of Lodging Management. (C) 2006 Pearson Education, Upper Saddle River, NJ 07458. All Rights Reserved.
On-Property Activities
Marketing Plan: a calendar of specific activities
designed to meet the hotel’s sales goals.
Sales and Marketing Committee: the team of
individuals responsible for coordinating the hotel’s
sales and marketing effort.
Inclusive: a single price that includes all charges.
Hayes/Ninemeier: Foundations of Lodging Management. (C) 2006 Pearson Education, Upper Saddle River, NJ 07458. All Rights Reserved.
On-Property Activities
Marketing plans vary but most include:
 An overview of competing area
 Competitive analysis of each competitor
 Competitive analysis of the hotel
 Forecast of future market conditions
 Plans relating to specific marketing strategies
 Advertising: information about a hotel that the hotel pays a fee to
distribute.
 Promotions
 Publicity: information about a hotel that is distributed for free by
the media.
 Development of a marketing budget
 Selection of measurement and evaluation tools
Hayes/Ninemeier: Foundations of Lodging Management. (C) 2006 Pearson Education, Upper Saddle River, NJ 07458. All Rights Reserved.
Off-Property Activities
Franchisor’s Efforts:
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National call centers
Brand-specific Web sites
National advertising
Brand-specific promotions
Frequent Guest Program: a promotional effort administered
by a hotel brand which rewards travelers each time they
choose to stay at that specific brand’s affiliated hotels.
PMS training and support programs
Sales training programs
Hayes/Ninemeier: Foundations of Lodging Management. (C) 2006 Pearson Education, Upper Saddle River, NJ 07458. All Rights Reserved.
Off-Property Activities
CVB Efforts:
www.nycvisit.com
Chamber of Commerce: an organization whose goal
is the advancement of all business interests within a
community or larger business region.
www.chamberofcommerce.com
Hayes/Ninemeier: Foundations of Lodging Management. (C) 2006 Pearson Education, Upper Saddle River, NJ 07458. All Rights Reserved.
Off-Property Activities
Other efforts:
By travel agent and travel advisory groups
www.AAA.com
Rating Scale:
One Diamond
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Two Diamonds
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Three Diamonds 
Four Diamonds 
Five Diamonds 
Hayes/Ninemeier: Foundations of Lodging Management. (C) 2006 Pearson Education, Upper Saddle River, NJ 07458. All Rights Reserved.
Hotel Markets
Transient Travelers
Track: to maintain extensive information on a
specific type of traveler.
Hayes/Ninemeier: Foundations of Lodging Management. (C) 2006 Pearson Education, Upper Saddle River, NJ 07458. All Rights Reserved.
Hotel Markets
Types of Transient Travelers:
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Corporate
Consortia: groups of hotel service buyers organized for the purpose of
reducing their client’s travel-related costs.
Negotiated Rate: A special room rate offered for a fixed period of time to s
specific client of the hotel
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Leisure
Government
Per Diem: a daily, fixed amount paid for a traveler’s food and lodging
expenses. www.dtic.mil/perdiem/pdrates.htmlm
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Long-Term Stay
www.hawthorn.com
Hayes/Ninemeier: Foundations of Lodging Management. (C) 2006 Pearson Education, Upper Saddle River, NJ 07458. All Rights Reserved.
Hotel Markets
Group Travelers
Hotel services often used by groups:
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Catered meals
Meeting space
Audio visual equipment
Registration services
Transportation
Baggage handling
Welcome receptions
On-site activities
Hayes/Ninemeier: Foundations of Lodging Management. (C) 2006 Pearson Education, Upper Saddle River, NJ 07458. All Rights Reserved.
Hotel Markets
SMERF: short for Social, Military,
Educational, Religious, or Fraternal groups
and organizations.
Meeting Planner: a professional employed by
a group to negotiate that group’s contract with
a hotel.
www.mpiweb.org
Hayes/Ninemeier: Foundations of Lodging Management. (C) 2006 Pearson Education, Upper Saddle River, NJ 07458. All Rights Reserved.
Sales and Marketing Tools
Useful hotel selling tools:
 In-person sales calls
 Print and direct mail
 Telephone
 E-mail
 Web sites
Hayes/Ninemeier: Foundations of Lodging Management. (C) 2006 Pearson Education, Upper Saddle River, NJ 07458. All Rights Reserved.
In-Person Sales Calls
Lead: information about a prospect who is likely to
buy products and services from the hotel.
Sales Call: a meeting arranged for the purpose of
selling the hotel’s products and services.
Networking: the development of personal
relationships for a business-related purpose.
Hayes/Ninemeier: Foundations of Lodging Management. (C) 2006 Pearson Education, Upper Saddle River, NJ 07458. All Rights Reserved.
In-Person Sales Calls
Cold Calling: making a sales visit/presentation to a
potential client without having previously set an
appointment to do so.
Drop-in: a potential group rooms or hotel services
buyer who arrives at the hotel without an
appointment.
Hayes/Ninemeier: Foundations of Lodging Management. (C) 2006 Pearson Education, Upper Saddle River, NJ 07458. All Rights Reserved.
Print and Direct Mail
Direct Mail: the process of sending an
advertisement to clients by U.S. mail service.
The total cost of a direct mail piece includes
the expenditures for the advertisement’s
design, printing, and mailing.
Hayes/Ninemeier: Foundations of Lodging Management. (C) 2006 Pearson Education, Upper Saddle River, NJ 07458. All Rights Reserved.
Print and Direct Mail
The best direct mail pieces:
Are eye catching
 Reflect positively on the hotel’s image
 Don’t say too much
 Introduce relevant hotel features and benefits
 Support the benefits with proof statements
 Are cost effective
 Ask for the sale (order) or a site visit
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Hayes/Ninemeier: Foundations of Lodging Management. (C) 2006 Pearson Education, Upper Saddle River, NJ 07458. All Rights Reserved.
Telephone
Telephone can be used to:
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Make transient reservations
Answer questions about potential group reservations and bids
Find prospects who may be interested in a site tour
Identify prospects and arrange dates and times for in-person
sales calls
Increase the speed and accuracy by which information is
transmitted to the caller
Overcome resistance to sales barriers
Improve phone-generated hotel revenue
www.ei-ah&la.org
Hayes/Ninemeier: Foundations of Lodging Management. (C) 2006 Pearson Education, Upper Saddle River, NJ 07458. All Rights Reserved.
E-mail
General principles for using e-mail as a sales tool:
 Maintain an up-to-date list of e-mail addresses
 Create messages that are short, yet effective
 Send e-mails at the proper frequency
 Provide a convenient way for receivers to be removed
from your e-mail list
Hayes/Ninemeier: Foundations of Lodging Management. (C) 2006 Pearson Education, Upper Saddle River, NJ 07458. All Rights Reserved.
Web sites
In 2003, internet hotel sales accounted for 12% of all
reservations made.
www.acromarketing.com
Link: a relationship between two Web sites. When website
users select a link at one site, they are taken to another Web
site address. An external link leads to a webpage other than
the current one; an internal link leads elsewhere on the current
website.
Demand Generator: an organization, entity, or location that
creates a significant need for hotel services.
Hayes/Ninemeier: Foundations of Lodging Management. (C) 2006 Pearson Education, Upper Saddle River, NJ 07458. All Rights Reserved.
Client Appreciation Activities
Appreciation activities can help to retain
clients.
Could include:
Social activities
 Outings
 Events
 Gifts
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Hayes/Ninemeier: Foundations of Lodging Management. (C) 2006 Pearson Education, Upper Saddle River, NJ 07458. All Rights Reserved.
Evaluation of Sales and
Marketing Efforts
STAR Report: short for the “Smith Travel
Accommodations Report.” Produced by Smith Travel
Research, this report is used to compare a hotel’s
sales results to those of its selected competitors.
Areas to consider when evaluating performance:
What?
Who?
How Much?
How Effective?
Hayes/Ninemeier: Foundations of Lodging Management. (C) 2006 Pearson Education, Upper Saddle River, NJ 07458. All Rights Reserved.
Evaluation of Sales and
Marketing Efforts
Competitive Set: the group of competing hotels to
which an individual hotel’s operating performance is
compared.
Information is important to:
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Hotel Owners
Management Companies
Property Managers
Franchisors
Appraisers
The Financial Community
www.str-online.com
Hayes/Ninemeier: Foundations of Lodging Management. (C) 2006 Pearson Education, Upper Saddle River, NJ 07458. All Rights Reserved.
Evaluation of Sales and
Marketing Efforts
Popular operating comparisons include:
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Occupancy
ADR
RevPar
Market share
Historical trends
To-date performances
City, region, or state performance
Hayes/Ninemeier: Foundations of Lodging Management. (C) 2006 Pearson Education, Upper Saddle River, NJ 07458. All Rights Reserved.
Evaluation of Sales and
Marketing Efforts
Poor STAR performance can indicate:
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Poor franchise (brand) name
Poor signage
Poor room mix for the market
Room Mix: the ratio of room types contained in a hotel.
Sub-standard furnishings or décor
Marketing/advertising budget too small
Marketing staff too small
Marketing staff ineffective
Hayes/Ninemeier: Foundations of Lodging Management. (C) 2006 Pearson Education, Upper Saddle River, NJ 07458. All Rights Reserved.