|by Brenda Fields, May 15, 2006
Ensuring that the sales team is highly motivated and productive is an ongoing process, regardless of the size or type of hotel property. There are many ways to ensure success, one of which is incentive plans. But, to achieve the desired results, it is important to know that when it comes to incentive plans, one size does not fit all. Effective incentive plans take on many shapes and sizes, depending on the needs of the property and the business mix of the property. And as a note, an incentive plan does not replace skilled sales managers working in an organized, professional, and strategic manner. It should be the icing on the cake to ensure that good sales people are going the extra distance and have added motivation to prospect, overcome customer objections, and effectively handle product or service deficiencies.
This article will address key components to consider in customizing an effective plan which motivates and rewards the hotel sales manager and/or sales team and at the same time, produces the optimal financial results for the property.
Key Points to Consider and Questions to Address:
A hotel room is a perishable product.
Unlike other products, a hotel room has a very short shelf life. What we don’t sell today is forever gone. Conversely, if demand exceeds our inventory, we cannot produce more rooms to sell. Therefore, the key is to sell effectively on a daily basis. Another factor is that hotel rooms have varying values depending on demand patterns. The same room can sell for widely different rates depending on the day of week and season. Selling rooms in peak season usually is a function of “taking orders” rather than excellent sales skills, which is required in persuading a group to book your property over another one in a buyer’s market.
An effective plan is one which motivates and rewards the individual and or sales team for great achievement and at the same time, produces the best financial results for the hotel. Rewarding a team to book business which actually displaces revenues happens when a basic understanding of your business goals has not taken place or the strategic plan was not well founded. So, before going forward with a plan, it is important to assess the following for your hotel.
The best plans have checks and balances to meet short term objectives while ensuring that a foundation is laid to achieve long term objectives. One way is to ensure that booking goals are tied into goals for business consumed and that group cancellations and group pick-up are factored into booking goals.
This article was published with the permission of its author and Hotel
About Brenda Fields
In her more than 20 years as a marketing and sales pro in the hospitality industry, Brenda G. Fields has emerged as the “go to” sales and marketing consultant and for independent and/or privately owned hotels and resorts seeking real-world solutions for today’s market challenges.
From small boutique hotels to large convention properties, Brenda has created and implemented highly successful marketing and yield management programs that enable owners to achieve target results despite market conditions.
With a “who’s who” roster of clients, Brenda has worked with a number of industry leaders and real estate investment companies including Starwood Lodging Corporation, Vornado Realty Trust and Planet Hollywood, John Hancock Mutual Life Insurance Company, Olympus Real Estate Corporation, and Apple Core Hotels, among others.
Brenda Fields can be contacted at email@example.com; or call 518 789 0117 or visit www.fieldsandcompany.net.t www.fieldsandcompany.net. or phone 518 789 0117 or email firstname.lastname@example.org.
1011 Smithfield Road
Millerton, NY 12546
Phone: 518 789 0117
Fax: 518 789 0118
|Also See:||Creating Results: Strategy vs. Knee-Jerk Reactions / Brenda Fields / January 2006|
|Advertising: How to Create Award Winning Ads (Yes, Even on a Budget) / Brenda Fields / September 2005|
|A Primer’s Guide to Understanding and Maximizing Your Hotel Web Site / Brenda Fields and Michael Parkes / January 2005|
|David and Goliath: How Independent Hotels Can Successfully Compete with the Large Chains / Brenda Fields / October 2004|
|Catering Sales in Boutique Hotels: How to Maximize Revenues and Optimize Sales Productivity / Brenda Fields / July 2004|
|The New Market Segmentation and Pricing Model for Independent Hotels / Brenda Fields / May 2004|
|Boutique Hotels: Rethinking the Fundamentals in a New Business Environment / Brenda Fields / February 2004|
|Room Configuration - Are Your Rooms Configured for the Best and Highest Use? / Brenda Fields / January 2004|
|Direct Sales - What to Expect from Your Hotel Sales People and How to Get Results / Brenda Fields / August 2003|
|Boutique Hotels: How to Survive in a Down Market - Getting Back to Basics / Brenda Fields / May 2003|
|Industry Marketing Pro Brenda Fields Opens Consultancy Focusing on Independent Properties / January 2003|