Hotel Online  Special Report

advertisement

.

Implement This Successful Hotel Sales
Program In Under 30 Days!
by Richard J. Welch CHA, CHME 
March 2003

Although I like to think of myself as a conversational style writer, there is a yearning deep within my soul that aches for a sense of contributing that which can only be filled by trying something as difficult as writing and sharing successful ideas.

I always thought that everything you need to become successful in the Hotel business, you already have! So, with that thought in mind I have developed a sales and marketing action plan that will yield immediate results. 

Today we are faced with the dual clouds of war and a sluggish economy. The hotel business is nowhere near a return to what was once considered "normal."  

And many hotels are coming to grips with the idea that "normal," as they remember it, will never return.  So, get over it! 

The profile of our guest has forever changed.  We need to change also, in order to enable us to obtain a greater share of the available market! We cannot create �demand�. We can however increase our sales at the expense of our competition. 

The outline I have put together will enable you to maximize your sales and marketing potential without increasing your expenses. It combines the need for a contemporary approach to accessing new technology available to you and the creation of a partnership with the franchiser.  Neither one of you can become successful alone. 

Summary Of Work To Be Performed:  

WEEK ONE:

A)  The Importance Of Your Global Distribution System (GDS).

GDS is going to give you your biggest room sales numbers. It all starts and comes back to your use of the Global Distribution System. It should be your main distribution channel. To make it work for you, you need to keep your Global Distribution System straight at all times.

  1. What your system and database should have in it. 
  2. Your last audit and what should you check. 
  3. Analyzing denials and regrets--the secret weapon.
  4. Updating your rates--what�s your selling order?
  5. Current data and inventory.
  6. Fallback rates, rate tiers, and SRP.
  7. Brand support
  8. Outside monitoring techniques.
  9. Ask for help from everyone you can find who works in this medium.
B)  The Internet�Are you using the Internet as a distribution channel?

Next you should do an overview of Internet marketing and discuss with your management team some effective strategies to better understand this powerful revenue opportunity. Your perception in this market is very important to your success. It should be viewed, as �base business� not discounted, low rated business.  As long as you have the technology, and invest very heavy in technology, the whole world changes for you. 

  1. Corporate brand web site. 
  2. Travel web sites. 
  3. Independent hotel web site.
  4. Your web site.
  5. State and local tourism sites.
  6. Special event web sites.
  7. Your competitions web site
C)  E-commerce marketing plan article:  

http://www.hotel-online.com/News/PR2003_1st/Jan03_eCommerceRace.html

D)  Maximizing your Franchise Potential:

Make sure you are getting everything you are paying for in your franchise fees. Some of these services are not widely promoted by the brand. Some are very inexpensive and some are only offered by asking for their help. A separate complete plan with accountability and action steps should be established. Did you know that some major franchisers offer deep discounts for �Travelclick� and �STR � reports? It still amazes me that some franchisees are not using the many tools available to them from the franchiser. Your franchise service representative should become an integral part of your success team.

WEEK TWO:

Driving Business:  Making Your Analytical Tools Really Work
 
This week you are going to find ways to get the most out of your best analytical tools for optimal positioning within your competitive set and for also taking full advantage of your strengths within your market.

  • Finding what you need and what you have--information you may already have and may not be using. 
  • What your internal reports can really do to help you with your future-selling plan. 
  • How to exploit your external sources�STR reports, Hotelligence* reports, and your own brand reports. 
  • Understand what these reports tell you about the marketplace and your hotel�s position. Is it time to make changes to your internal reports? Are your managers spending more time completing internal reports than making you money?  
  • Re-evaluate valuable information to improve your year over year planning.
  • Analyze your competition from the perspective of why people choose one hotel over another. Personal contact, not rate is the answer here.
  • Evaluate the perceived �benefits picture� presented in your Web Site and sales collateral for the purpose of taking business from your main competitors. 
  • Evaluate your position in the marketplace compared to your competitive set. Are you number one in �yield and penetration� and still losing money?  
  • Determine which accounts to target and why.
  • Why �Price� is important?
  • Remember to not to get caught up in �paralysis by analysis� 
WEEK THREE: 

Motivating Others To Sell For You And Demand Generator Analysis
 
Zero in on the market segments that give you your greatest  �Return On Investment�, the biggest bang for your buck. Situate Your Hotel optimally in these segments and get others, notably people in your targeted segments, to sell your hotel for you.

  • Identify where your business is coming from. 
  • Redirect your General Manager and the sales staff to their proper places in your key markets. 
  • Make sure your segmentation is a good fit for your hotel. 
  • Review all market segments to determine opportunities and do not go off chasing markets from which you are not receiving business.
  • Find �friends� to sell for you, developing a selling network. 
  • Front desk selling, getting referrals and closing more sales. Have you implemented a �Courtesy Call� program?
  • �Account Maximization��obtaining all available revenue from existing accounts.
  • The General Managers should have two key accounts�the Franchiser and the Internet.
WEEK FOUR:

Outside sales calls, get serious about obtaining more business.

We instinctively know that BIG game customers like being hooked by BIG gamesmen.  Never underestimate the impact it makes on a potential client when the Vice President, Owner and/or the GM takes time to accompany a Sales Manager on sales calls and ask for the business. People do business with People they know!

Sales-Savvy Leadership:  When the area manager, the owner and the GM get involved in the sales process he/she can play an integral part in showing the client a new approach to hospitality! They should participate in every site tour and attend important client lunches with the sales manager. They should leave the hotel to conduct sales calls at least once a week and above all, set the tone and example of the kind of sales intensity he/she expects from the sales team. 

In graduate school we are taught that �sales minus expenses� equals profit! I think that all management positions require that 50% of that position be directed at creating revenue and 50% of their efforts be directed to controlling expenses. I never met anybody who went broke making a profit!  

 Building on a long, successful hotel career on both the property and corporate levels, with multi-property and multi-franchise responsibilities, Rick excels at programs that effectively integrate the headquarters and the field in the pursuit of marketing and sales objectives. He has years of experience and leadership in response to the challenges of rapid expansion, economic slumps, aggressive competitors, technological innovations, and even unexpected natural disasters. He is an accomplished author of numerous hospitality articles and has been a successful hotel owner. This has given him a unique and timely combination of skills for responding to a market or a business in transition. Through it all, his objective has been to achieve significant improvement in revenues, productivity and overall procedural and personnel efficiency by repositioning marketing and sales.
Rick Welch tailors practical solutions for today's challenging business climates based on a comprehensive knowledge and extensive experience in all facets of contemporary sales and marketing development. This includes multi-unit and multi-franchise management, training, competition analysis, and e-commerce marketing.

This outline has recently been field-tested and many changes have been made to guarantee its success. I hope you find it as successful as I have. If you would like additional information, please do not hesitate to e-mail or call me.

Rick Welch is currently President of the Lakeshore Group Professional Hospitality Management, Consulting and Asset Management Company. Rick Welch CHA, CHME specializes in practical hotel sales and marketing solutions customized for today's challenges and uncertain business environment.

Contact:

Richard J. Welch, CHA, CHME 
President 
The Lakeshore Group 
2180 Defoors Ferry Rd. 
Atlanta, GA 30318 
404-355-7021 
[email protected]
www.thelakeshoregroup.com
Also See e-Commerce Marketing, The Race For Success / Richard J. Welch CHA, CHME / January 2003
Your Perception Is Your Reality: 9-11-02 / Richard J. Welch CHA, CHME / Sept 2002
Opinion: Hotel Brand Franchise Impact Policies Must Change / Richard J. Welch, C.H.A / June 2002


To search Hotel Online data base of News and Trends Go to Hotel.Online Search

Home | Welcome! | Hospitality News | Classifieds | Catalogs & Pricing | Viewpoint Forum | Ideas/Trends
Please contact Hotel.Online with your comments and suggestions.