Chapter 7Sales and Marketing
Hotel Operations Management, 2nd ed. ©2007 Pearson EducationHayes/Ninemeier Pearson Prentice Hall
Upper Saddle River, NJ 07458
The Front Office
Manage hotel’s marketing efforts
Set rates to maximize RevParNegotiate sales contracts on behalf of hotel
Serve as a leader to hotel’s sales and marketing team
The Role of Sales and Marketing
SalesActivities related directly to servicing consumer demand and booking clients
Role of Director of Sales and Marketing:
MarketingActivities designed to increase consumer awareness and demand by promoting and advertising hotel
Identify and cultivate clients
Hotel Operations Management, 2nd ed. ©2007 Pearson EducationHayes/Ninemeier Pearson Prentice Hall
Upper Saddle River, NJ 07458
Planning hotel’s sales and marketing strategyPreparing and issuing sales contracts in timely mannerMaintaining accurate sales records, forecasts, and histories
Coordinating and communicating special client requests with affected hotel departmentsHosting clients during their stayConducting site tours
Front Office
Sales and Marketing
The Role of Sales and Marketing: In the Hotel
Transient RoomsInfluence
Group SalesInfluence
Tasks of sales and marketing staff with its group sales focus:
Hotel Operations Management, 2nd ed. ©2007 Pearson EducationHayes/Ninemeier Pearson Prentice Hall
Upper Saddle River, NJ 07458
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.
Development of personal relationships for business-related purposes will result in increased numbers of sales calls.– Convention and Visitors Bureau (CVB)
Networking Opportunities
Hotel Operations Management, 2nd ed. ©2007 Pearson EducationHayes/Ninemeier Pearson Prentice Hall
Upper Saddle River, NJ 07458
Segmentation of the Sales and Marketing Department
Product designations becoming sales specialty areas
Segmentation based on:
Product(s) Sold
Market (Market Segment)
Distribution Network
Type of guests (clients) who buy the product
“How” the hotel’s sales (products) are made (distributed)
Hotel Operations Management, 2nd ed. ©2007 Pearson EducationHayes/Ninemeier Pearson Prentice Hall
Upper Saddle River, NJ 07458
By Product Sold
Group Guest Rooms
Conferences
Catered Event
MeetingsConventions
Weddings and Special Events
Segmentation of the Sales and Marketing Department (cont.)
Hotel Operations Management, 2nd ed. ©2007 Pearson EducationHayes/Ninemeier Pearson Prentice Hall
Upper Saddle River, NJ 07458
Guaranteed occupancy, ease of cleaning rooms, less complicated billingRooms often sold at very low daily rates
Vacations, weddings, visits by friends and family, or nonwork-related reasonsHeavy reliance on travel agents’ advice
Social, military, educational, religious, or fraternal organizations
Business travelers (who pay highest room rates)
Corporate
SMERF and Others
By Market (Market
Segmentation)Long-Term Stay
Leisure
Segmentation of the Sales and Marketing Department (cont.)
Hotel Operations Management, 2nd ed. ©2007 Pearson EducationHayes/Ninemeier Pearson Prentice Hall
Upper Saddle River, NJ 07458
Potential guests who arrive at hotel without appointments
Fastest-growing distribution channel Creating homepages and linking them to other sites
Largest customers of many hotelsNegotiated rate/blackout dates/pick-up
Retailers, wholesalers, or bothUsing Global Distribution SystemReceiving commission (5–20%) from hotel
Representatives of corporations, groups, and organizations
Use comparison-shopping techniquesInfluence on hotel’s reputation
Meeting Planners
Internet
By Distribution NetworkingConsortia
Travel Agents
Drop-Ins
Segmentation of the Sales and Marketing Department (cont.)
Hotel Operations Management, 2nd ed. ©2007 Pearson EducationHayes/Ninemeier Pearson Prentice Hall
Upper Saddle River, NJ 07458
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
Harmonizes efforts across department lines
Engages in long-term planning
Ensures cooperation of all in sales and marketing process
Sales and Marketing Activities: Sales Efforts
Sales and Marketing Committee
Trace Systems
Hotel Operations Management, 2nd ed. ©2007 Pearson EducationHayes/Ninemeier Pearson Prentice Hall
Upper Saddle River, NJ 07458
The Sales Cycle
Presale Phase
Sales and Marketing Activities: Sales Efforts (cont.)
Invite client on a site tourSubmit a bid
Postsale Phase
Complete “Request for Proposal,” and submit on timeEstablish room ratesPrepare group contract (attrition and cancellation policy)Forward direct bill application to groupEstablish group blockDetail client’s contracted requirementsMonitor client’s blockAttend pre-event sales meeting of hotel staff
Write thank-you note to each groupReview the final billInclude that group in the hotel’s preferred client databaseFile all written reports
Sales Phase
Hotel Operations Management, 2nd ed. ©2007 Pearson EducationHayes/Ninemeier Pearson Prentice Hall
Upper Saddle River, NJ 07458
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
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
Sales lead: Effective DOSM should discuss the following:
Reserve Adequate Time for Cold Calling!
Sales and Marketing Activities: Sales Efforts (cont.)
Hotel Operations Management, 2nd ed. ©2007 Pearson EducationHayes/Ninemeier Pearson Prentice Hall
Upper Saddle River, NJ 07458
Gala client appreciation event
Golfing, sporting events, concerts, theater tickets
Gift-giving
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
Goals Examples
Client Appreciation Activities
Sales and Marketing Activities: Sales Efforts (cont.)
Hotel Operations Management, 2nd ed. ©2007 Pearson EducationHayes/Ninemeier Pearson Prentice Hall
Upper Saddle River, NJ 07458
A review of market competition
Occupancy trends /ADR trends / performance of own hotel
Marketing Plan Development: Format of Marketing Plan
Sales and Marketing Activities: Marketing Efforts
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. ©2007 Pearson EducationHayes/Ninemeier Pearson Prentice Hall
Upper Saddle River, NJ 07458
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
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
Sales and Marketing Activities: Marketing Efforts (cont.)
Types of advertising: Effective advertising:
Advertising
Hotel Operations Management, 2nd ed. ©2007 Pearson EducationHayes/Ninemeier Pearson Prentice Hall
Upper Saddle River, NJ 07458
Promotions“Special” packaging of products or servicesPromoted and disseminated by advertising and publicity
Publicity
Information about hotel distributed free of charge to the mediaCosts the hotel nothingMay 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
Sales and Marketing Activities: Marketing Efforts (cont.)
Hotel Operations Management, 2nd ed. ©2007 Pearson EducationHayes/Ninemeier Pearson Prentice Hall
Upper Saddle River, NJ 07458
Teaming of GDS with Internet
Sales and Marketing Activities: E-Marketing
Online Reservation Systems
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. ©2007 Pearson EducationHayes/Ninemeier Pearson Prentice Hall
Upper Saddle River, NJ 07458
Characteristics of effective hotel Web sites:
Easy to navigateInclude some level of interactivityLink to appropriate companion sitesAllow for online bookingBalance guest privacy needs with hotel’s desire to build a customer baseAllow for easy updating and revising of room ratesInclude a virtual tour of the propertyComplement other marketing effortsIn language(s) of potential clientsEasy-to-remember addresses
Sales and Marketing Activities: E-Marketing (cont.)
Hotel Operations Management, 2nd ed. ©2007 Pearson EducationHayes/Ninemeier Pearson Prentice Hall
Upper Saddle River, NJ 07458
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
Traditional Communication Methods
Direct mailing, telephone, fax
Emerging Communication Methods
E-mail systems
Advantages of e-mail systems:
Sales and Marketing Activities: E-Marketing (cont.)
E-mail Systems
Hotel Operations Management, 2nd ed. ©2007 Pearson EducationHayes/Ninemeier Pearson Prentice Hall
Upper Saddle River, NJ 07458
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!)
Sales and Marketing Activities: Evaluating the Sales and Marketing Effort
Hotel Operations Management, 2nd ed. ©2007 Pearson EducationHayes/Ninemeier Pearson Prentice Hall
Upper Saddle River, NJ 07458
Sold This Month Total Sold YTDSold Same Month
Last YearTotal Sold Last
YTDJan 25 150Feb 450 750 250 550Mar 550 1,550 330 1,250Apr 650 1,550 550 1,350May 875 1,175 650 1,050June 1,100 1,400 800 1,700July 1,350 2,250 1,100 2,150Aug 1,700 2,900 1,500 1,900Sept 500 700 750 1,750Oct 300 800 550 1,050Nov 850 1,150 300 600Dec 200 550 125 225
Total 8,550 14,775 7,055 13,575
Waldo Hotel Group Rooms Pace Report for January, 200X
Sales and Marketing Activities: Evaluating the Sales and Marketing Effort (cont.)
Hotel Operations Management, 2nd ed. ©2007 Pearson EducationHayes/Ninemeier Pearson Prentice Hall
Upper Saddle River, NJ 07458
Hotel voluntarily submits financial data to SmithSmith maintains confidentiality of all individual hotel dataCombines operating data submitted by selected competitorsAn individual hotel’s operating performance is compared to that of its competitive set. (Understanding the competitive set is a key component of understanding STAR!)
STAR working process and preparation:
Hotel owners, management companies, property management, franchisers, appraisers, and the financial community
Who are the STAR interest groups?
Sales and Marketing Activities: Evaluating the Sales and Marketing Effort (cont.)
The Smith Travel Accommodations Report (STAR)
Hotel Operations Management, 2nd ed. ©2007 Pearson EducationHayes/Ninemeier Pearson Prentice Hall
Upper Saddle River, NJ 07458
Operating Comparison Criteria
Goals
Occupancy, ADR, RevPar, market share, historical trends, to-date performance, state or region
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
Sales and Marketing Activities: Evaluating the Sales and Marketing Effort (cont.)
The Smith Travel Accommodations Report (STAR) (cont.)
Top Related