Transcript The G.M. Sets the Pace

Chapter 10:
Sales & Marketing
Roles of Sales & Marketing
Sales
Marketing
Activities related directly to servicing consumer
demand & booking clients
Activities designed to increase consumer awareness
& demand by promoting & advertising hotel
Roles of Director of Sales & 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 & marketing team
The Front Office
Hotel Operations Management, 1/e
Hayes/Ninemeier
©2004 Pearson Education
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Roles of Sales & Marketing: In the Hotel
Front office
Influence
Transient rooms
Sales & Marketing
Influence
Group sale
Tasks of Sales & Marketing staff with their group sales focus
Planning hotel’s sales and marketing strategy
Preparing and issuing sales contracts in timely manner
Maintaining accurate sales records, forecast and histories
Coordinating and communicating special client requests
with affected hotel departments
Hosting clients during their stay
Conducting site tours
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©2004 Pearson Education
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Roles of Sales & 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 info 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
Hotel Operations Management, 1/e
Hayes/Ninemeier
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Segmentation of the Sales & Marketing Dept.
Segmentation based on:
By product(s)
sold
product designations becoming
sales specialty areas
By market
(market segment)
type of guests (clients) who buy
the product
By distribution
network
“how” the hotel’s sales (products)
are made (distributed)
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©2004 Pearson Education
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Segmentation of the Sales & Marketing Dept.
Catered event
Group guest
rooms
Conferences
By
product sold
Meetings
Conventions
Weddings and
special events
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©2004 Pearson Education
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Segmentation of the Sales & Marketing Dept.
Corporate
Business travelers (who
pay highest room rates)
Leisure
Vacations, weddings, visits
by friends and family, or
non-work related reasons
Heavy reliance on travel
By market agents’ advice
(market
segmentation) SMERF & Others
Long-term stay
Guaranteed occupancy,
ease of cleaning their
rooms, relatively
uncomplicated billing
Rooms often sold at very
low daily rates
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Social, military,
educational, religious, or
fraternal organizations
©2004 Pearson Education
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Segmentation of the Sales & Marketing Dept.
Meeting planners
Travel agents
Representative of corporations,
groups and organizations
Using comparison-shopping
techniques
By
Influence on hotel’s
reputation
distribution
Retailers, wholesalers or both
Using Global Distribution
System
Receiving commission
(5 – 20 %) from hotel
networking
Consortia
Largest customers of many
hotels
Negotiated rate / blackout
dates / pick-up
Internet
Fastest growing distribution
channel
Creating homepages and
linking them to other sites
Drop-ins
Potential guest who arrives at hotel
without an appointment
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©2004 Pearson Education
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Upper Saddle River, NJ 07458
Sales & Marketing Activities: Sales Efforts
Sales & 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
©2004 Pearson Education
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Sales & Marketing Activities: Sales Efforts
The sales cycle
Pre-sale phase
Invite client to 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
Post sale 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, 1/e
Hayes/Ninemeier
©2004 Pearson Education
Pearson Prentice Hall
Upper Saddle River, NJ 07458
Sales & Marketing Activities: Sales Efforts
Sales lead – effective DOSM should discuss the followings:
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, G.M. 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 client without
having previously set an appointment to do so
Visit / call quality prospective clients for hotel’s rooms / services
Hotel Operations Management, 1/e
Hayes/Ninemeier
©2004 Pearson Education
Pearson Prentice Hall
Upper Saddle River, NJ 07458
Sales & Marketing Activities: Sales Efforts
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
©2004 Pearson Education
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Sales & Marketing Activities: Sales 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 & activities
Advertising / public relations / promotions
Preparation of a marketing budget
Development of measurement & evaluation tools
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©2004 Pearson Education
Pearson Prentice Hall
Upper Saddle River, NJ 07458
Sales & Marketing Activities: Sales Efforts
Advertising
Types of advertising
Exterior signage
In-hotel and in-room signage and
materials
Radio or television commercials
Direct mailing
Internet banners
E-mail message
Yellow pages
Franchiser-supplied advertising
vehicles (directories, co-ops, etc.)
Billboards
Personal contact
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Effective advertising
Eye or ear catching
Memorable
Sell the hotel’s features
Cost effective
Does not become quickly outdated
Reflect positively on hotel’s image
Can be easily directed to the hotel’s
core client groups
©2004 Pearson Education
Pearson Prentice Hall
Upper Saddle River, NJ 07458
Sales & Marketing Activities: Sales Efforts
Promotion
Publicity
Public
Relations
(PR)
“Special” packaging of products or services
Promoted and disseminated by advertising and
publicity
Information about hotel, media-distributed free of
charge
Costs the hotel nothing
May be either good or bad
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, 1/e
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©2004 Pearson Education
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Upper Saddle River, NJ 07458
Internet Sales & Marketing
Online reservation system
Teaming of GDS with Internet
Impact
Travel agents: check availability, compare prices and
book hotel on-line
Online booking sites are fastest growing source of
reservations in hotel industry
Hotel Operations Management, 1/e
Hayes/Ninemeier
©2004 Pearson Education
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Upper Saddle River, NJ 07458
Sales & Marketing Activities: Websites
Effective hotel websites should:
be easy to navigate.
have some level of interactivity.
be linked to appropriate companion sites (demand generator).
allow for online booking.
balance guest privacy needs with hotel’s desire to build a
customer base.
update and revise room rates easily on the website.
include a virtual tour of the property.
complement other marketing efforts.
be in language(s) of potential clients.
have website address easy to remember.
Hotel Operations Management, 1/e
Hayes/Ninemeier
©2004 Pearson Education
Pearson Prentice Hall
Upper Saddle River, NJ 07458
Internet Sales & Marketing : E-mail Systems
Traditional
communication methods
Direct mailing, telephone, fax
Emerging
communication methods
E-mail system
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 rate, promotion, new hotel feature to
its client list
The Front Office
Hotel Operations Management, 1/e
Hayes/Ninemeier
©2004 Pearson Education
Pearson Prentice Hall
Upper Saddle River, NJ 07458
Evaluating Sales & Marketing Department:
Pace Report
Pace report
Is a document summarizing confirmed (group) sales made by
Sales and Marketing dept.
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 Sales and Marketing department
However, does not indicate what actual sales volume should be
(STAR report does!)
Hotel Operations Management, 1/e
Hayes/Ninemeier
©2004 Pearson Education
Pearson Prentice Hall
Upper Saddle River, NJ 07458
Evaluating Sales & Marketing Department:
Sample Pace Report
Waldo Hotel Group Rooms Pace Report for January, 200x
Sold this month
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
Hotel Operations Management, 1/e
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Total sold YTD
Sold same month
last year
Total sold last
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
©2004 Pearson Education
Pearson Prentice Hall
Upper Saddle River, NJ 07458
Evaluating Sales & Marketing Department:
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
Combine 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 key
component of understanding STAR!)
Who are the STAR interest groups?
Hotel owners, management companies, property management,
franchisers, appraisers, financial community
Hotel Operations Management, 1/e
Hayes/Ninemeier
©2004 Pearson Education
Pearson Prentice Hall
Upper Saddle River, NJ 07458
Evaluating Sales & Marketing Department:
The Smith Travel Accommodations Report (STAR)
Operating
comparison criteria
Goals
Hotel Operations Management, 1/e
Hayes/Ninemeier
Occupancy, ADR, RevPar, market share,
historical trends, to-date performance, state
or region
Assess performance of Sales &
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.
©2004 Pearson Education
Pearson Prentice Hall
Upper Saddle River, NJ 07458