February 03, 2009 - The Economic Stimulus Package that is almost certain
to pass in mid February contains extensive opportunities for hotel sales
departments to stimulate revenue in a year when leading industry analysts
are predicting that "... a 2.5 percent fall off in demand, combined with
a 2.9 percent increase in supply, will result in a 2009 year-end occupancy
level of 57.6 percent. This represents a 5.3 percent decline in occupancy."
(PKF, December 9, 2008)
The goal of the national Economic Stimulus package is to pump money
into the economy in order to stimulate economic activity and create new
jobs. One consequence of job creation is that more Americans will
once again have a certain amount of discretionary income to spend on things
such as travel.
While there is mixed reporting about the timing and the impact of the
stimulus package the details are beginning to emerge. The New York
Times reported that "... The White House released a report Saturday
revealing details about the package, which would pay for a variety of projects."
"According to the report, the Obama plan would double the generating capacity
of renewable energy over three years ... It would retrofit two million
homes and 75 percent of all federal buildings to better protect against
the weather, ... envisions using loan guarantees and other financial support
to leverage $100 billion in private sector investment in so-called clean
energy projects over three years. The plan would lay 3,000 miles of new
or upgraded transmission wires for a new electric grid. ... The plan would
modernize 10,000 schools, improve security at 90 ports and build 1,300
wastewater projects." (NYT, January 24, 2009)
Other details include extensive grants to states in order to begin repairing
the country's infrastructure as well as investments in Health Care such
as ensuring that there is access to affordable health care and beginning
the process of creating a database where patients' medical records will
be stored.
So where do the revenue opportunities lie:
-
Alternative or Renewable Energy: This includes companies
that generate or plan to generate wind based energy through wind farms
and solar energy companies. It also includes the companies
that manufacture components, the tech labs where the technology is developed,
etc.. There will also be demand generated by consultants to these
industries as well as engineers and technicians. The price
of solar components is actually coming down so these companies are well
positioned for both commercial and residential installations. The
light bulb went off for one client after an alternative energy company
booked a meeting at their hotel on short notice -- they are now pursuing
others.
-
New Electric Grid Suppliers. This includes the development
of the infrastructure technology for the grid as well as the manufacturers
of the components. In addition, there will be all of those consultants
and engineers who will provide the expertise. The planning for this
has probably already begun but will gain traction as soon as the money
begins to flow even though the project will take years to complete.
-
Health Care. Health care has been a recession proof
industry but the implications making health care available to more people
should stimulate new projects, new money available for research and all
of the outpatient and auxiliary services, such as testing and analytics
labs, that accompany this. The provisions of the Stimulus Package
package that call for an extension of COBRA for the unemployed and the
development of a national patient database, while not an immediate priority,
will require the that technology be developed long before its potential
implementation.
-
Education. Not only will the states receive funds for
public schools but Universities will see increased enrollment due to the
Pell grant and student loan guaranteed funding. With more people
being able to go to institutions of higher education, the competition will
increase for these institutions to attract new students so look for facility
improvements as well as curriculum and research upgrades.
-
Federal Government Agencies: Who do you think is going
to oversee and regulate all these projects? The BLM that oversees
land management for these Alternative Energy installations locations,
the EPA will want to ensure environmental integrity for these and the waste
water projects, the various agencies involved in energy management and
regulation, etc., etc.,. Then there is the project of retrofitting
Federal government buildings across the country to become more energy efficient
and the suppliers of the technology and companies that will win contracts
for the actual installations. What new technology will be required
and who will staff the improved security at 90 ports throughout the country?
-
State Government Agencies. These are going to be BIG
winners in that the states will be given money to begin infrastructure
improvement, many of which have been designated as �shovel ready'.
Look for the Departments of Transportation to begin a flurry activity in
awarding contracts if they haven't already. http://www.bidclerk.com/
could become a hotel's BFF.
-
The Automotive industry. Yes, I said the automotive
industry. Bailed out industries will be transformed by their bail
outs and the expectations connected to them. Look for the automakers
to scramble to design and perfect high mileage cars that run on alternative
fuels, electricity, ethanol, etc. As well, with people driving cars
longer, the auto parts and repair industries are seeing resurgence.
Companies that not only manufacture but especially distribute auto parts
and those franchises that specialize in auto repairs are targets for meetings.
I was recently conducting a seminar in a hotel and there were two automotive
related franchises holding regional meetings.
The time to locate these companies, agencies and the associations that
service them is NOW! Don't wait until the money is distributed.
Develop your approach strategy and begin building relationships so when
they are ready to book, you are already there.
 Have
you signed up yet for the Weekly Shots of Hotel Sales and RM Caffeine?
This is an absolutely, totally free �give back' to the industry and is
short shots of motivation and sales tips that arrive in your Inbox each
week. Your email address will be used for no other purpose.
Shoot a blank email to [email protected]
to sign on.
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.net.
To contact Carol send her an email at [email protected] or she can
be reached by cell phone (303) 618-4065. Visit www.hotelsalesblog.com. |
