Hotel Online  Special Report

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Midscale Operators Develop Sales Strategies
To Pursue Declining Corporate Market

Hoteliers Target Hometown Corporate Accounts; Eye Affordable Enterprise
Sales Technology, Training Efficiencies to Edge Ahead

Portsmouth, N.H. � June 9, 2003 � As the hospitality industry languishes in economic doldrums, fallout from the Iraqi conflict and SARS, the midscale market � whose growth is normally split along food and beverage lines � is slowly swinging towards technology solutions to help squeeze revenue out of an evaporating corporate market.  By aggressively targeting new regional and local corporate accounts, doggedly maintaining existing customers, watching costs like a hawk, and fine-tuning internal operations to improve the consistency of their products, midscale operators are holding their own and positioning themselves to lead the pack during the eventual economic upswing.  Here is a sampling of three separate strategies.

MMI Hotel Group Stays �An Hour Ahead� of Customers to Keep Accounts 
 

�A big challenge in the midscale market is maintaining existing accounts while also going after new business, and it�s critical to have an electronic mechanism for maintaining our sales information,� says Fred Ruder, vice president of marketing for the MMI Hotel Group, based in Flowood, Mississippi, who says he tracks ten market segments every day.  �I tell our sales team, �80% of your responsibility is managing the business after the contract is signed, and then growing the client.�  We do that by 
MMI Hotel Group
Cabot Lodge Thomasville Road
1653 Raymond Diehl Rd.
Tallahassee, Florida
knowing what the client�s needs are, and being an hour ahead of our customer all day long.  If they get there at 8:00 a.m., we get there at 7:00 a.m.  We ask �what is important to you? What would it take to make this the most successful meeting or conference you have managed?� and then go about the task of fulfilling their expectations. The rule of thumb is to ask first; not to present first.  There must be an electronic mechanism for maintaining that information.�   MMI Hotel Group, a division of MMI, owns or operates a mix of 17 full-service properties and their own highly acclaimed limited service Cabot Lodge brand in the southeast United States. 
 

Silver Cloud Inns and Hotels Ratchets Up Consistency of Product
 

�As a growing midscale company, our properties require a system that will keep our sales team on course and manage their efforts to stay in close contact with customers and prospects,� said Brian Zuber, chief operating officer with Bellevue, Washington-based Silver Cloud Inns and Hotels.  �Right now we track and manage sales contract data manually � capturing it electronically will allow us to cover more ground more quickly, increase efficiencies, retain valuable information 
Silver Cloud Inn
2317 N. Ruston Way
Tacoma, Washington
during turnover, and train new sales staff more quickly.�   Founded in 1980 as a small family-owned company, Silver Cloud has grown steadily to become a strong midscale chain with 11 properties and three under development.  All of Silver Cloud�s hotels are at the upper end of the limited service segment that appeals to traveling professionals, although Zuber notes, �Our direction is toward developing high profile properties, like our new Capitol Hill Seattle Hotel, that will attract a higher ADR clientele.  Location is key. Our most recent properties are near water in attractive settings.� 
 

Best Value Inn Keep Members Happy With Plans to Funnel More Guests to Associates
 

Roger Bloss is president and CEO of Best Value Inn, a four year old, 260-member association comprised mainly of one- two- or three-diamond AAA status properties in 43 states, Canada, and Mexico.  The company, rated by Lodging Hospitality in 2002 as the second fastest growing chain in America, recently voted to create a new Worldwide Sales division. �We have grown to the point where we need to install an enterprise sharing of sales leads and the ability to track them,� says Bloss. �When our members spend 
Best Value Inn
 3100 East Andy Devine Avenue
Kingman, Arizona
money, they want to see a return on their investment; being able to target larger accounts, tour operators and wholesalers from the corporate level, and electronically share those leads with our members would create the kind of efficiencies we need to handle the sheer numbers of our growth.�  Bloss cites adding 100 properties a year as a good growth model for the company, while still maintaining quality.  Best Value recently weeded out 20 non-participating properties.  Bloss concludes, �Increasing the number of guests who visit properties is a key way to make our existing members happy and attract new affiliates.� 

Newmarket International, maker of the industry�s leading sales and catering systems, will debut a completely new Internet-based sales management application, Delphi.NET, during HITEC, June 24 to 26, at the Ernest N. Morial Convention Center in New Orleans to deliver �leading edge technology� to midscale operators.  For the first time, midscale organizations can quickly track and share enterprise leads and availability at a low cost of ownership, and improve customer service through quick training that creates consistency of performance.  For more information on Delphi.Net please visit www.newmarketinc.com/midscale

About Newmarket International
Newmarket International is the leader in delivering group, sales, catering, and banquet system solutions for global travel and entertainment organizations. The company�s hospitality solutions are in use at more than 3,300 properties in 65 countries to generate new business and run their daily operations.  Hotels, international property chains, casinos, visitor bureaus, meetinghouses, convention centers and arenas all use Newmarket�s specialized applications. The company provides competitive advantages to all of its customers by enabling cross selling, automated lead generation, efficient enterprise management, and supplying the tools to electronically transfer account information across cities and around the world. By combining award-winning technology and support, the industry's best return on investment, secure domain expertise, and a commitment to the travel industry, Portsmouth, N.H.-based Newmarket International enables its clients to increase efficiencies and maximize profits. For more information call 603/436-7500, visit www.newmarketinc.com, or stop by booth # 1216 at HITEC.

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Contact:
Shawn McDonald
 Director of Marketing
Newmarket International Inc.
(603) 430-7434
[email protected]


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