January 2008 - The Washington Post reported on December 31 that Marriott
stock declined by 31% in 2007 -- should we be worried? Concern is
an appropriate response. As the disposable income of leisure travelers
is pressed by increasing gas prices and declining home values, business
travel may be suppressed by a contracting economy constrained by declining
profits and subsequent falling share prices in many market sectors.
The research is mixed on the impact of developments in the economy on
the hotel industry in 2008. PKF produced a forecast of relative optimism
based upon limited new supply and a slowing economy. However, the
prestigious researchers also hedged their bets by producing a forecast
based upon a hypothetical recession. Given the decline in the
jobs market last week, we may want to revisit PKFs �hypothetical� recession
scenario.
If the leisure and corporate transient markets decline, the pressure
will be on hotel sales departments to increase group sales.
If the cold call is ineffective and ��the consumer has taken control�,
due to the influence of social marketing including the impact of review
sites as was suggested in a recent HSMAI conference, how does this
impact the processes of hotel sales departments?
What changes about the activities engaged in by hotel sales people when
they come to work in the morning? This is the first full week of
work in 2008 � the strategies and subsequent activities pursued in this
first week may well set the standard for success or �challenges� for the
entire year.
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New Business Development Redefined. It becomes
critical to have a clear picture of the �ideal client� by market segment.
The exercise of developing the DNA of the client that fits the objectives
of the revenue management strategy for each segment and opportunity period
focuses the sales effort and becomes the filter through which leads and
inquiries are evaluated. (It also minimizes the haggling
between sales and revenue management!) Develop strategies to approach
new prospects and position the hotel on these potential clients� radar
screen. Be at the top of their minds when they are ready to �buy�.
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Research and Evaluation. The time spent on researching
potential clients on the internet and other resources is time well spent.
Many sales people that are evaluated on the number of client contacts per
week fear that the time it takes to do this research is not accounted for
in the activity reports. It is way past time that sales people are
evaluated on the quality of the contacts made and into the quantity.
Bear in mind that two quality contacts a week is still unacceptable!
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Apply the �Filter� to the Database. Time spent on accounts
that no longer fit the �ideal� DNA for the hotel is time wasted.
Routine traces on these clients should focus on qualification and they
should be re-prioritized based upon the new information. It is all
too comfortable to spend a great deal of time on simply contacting old
clients as the trace comes up.
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Account Mapping. One of the best sources of new business is
from existing accounts. However, this is rarely done in a systematic
manner. I engaged in a coaching experience with
a client who was given the task of account mapping a University close to
the hotel. A systematic approach was developed to ensure that
every contact within that account was identified and qualified for every
piece of potential hotel revenue. More on this process in a
later article.
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RFPS and Inquiries. Apply the same filter to these opportunities.
To those that fit the DNA profile, respond quickly, completely and creatively.
Politely decline those that don�t� � don�t waste time responding in detail
to RFPs that don�t match the objectives. The meeting planner will
appreciate the fact that you haven�t wasted their time either.
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Prioritize and Plan Activity. The ultimate measure of activity
is to focus first on those things that have the potential to produce revenue
� everything else can wait! Commission sales people understand
this and prioritize their activity and prospects by likelihood of �close�.
Laser focus is required to plan each day executing activities that will
�move the ball down the field � toward the revenue objectives.
A good DOS will work with the staff to ensure that they are investing time
in revenue generating activity.
Many markets have already felt the impact of a slowing economy � others
have been impacted by new supply. In both scenarios, the pressure
will be on hotel sales departments in a way that many hotel sales people
have not experienced in the recent past.
Change is the new buzz � changes in the economic environment should
prompt changes in the way hotel sales is done if the hotel�s revenue objectives
for 2008 are to be met.
 Carol
Verret And Associates Consulting and Training offers training services
and consulting in the areas of sales, revenue management and customer service
primarily but not exclusively to the hospitality industry. To find out
more about the company click on www.carolverret.com.
To contact Carol send her an email at [email protected]
or she can be reached by cell phone (303) 618-4065. View the Hotel
Sales Blog at www.hotelsalesblog.com
copyright © Carol Verret, 2002-2003 -2004 -2005 - 2006 - 2007
- 2008 |
