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Stimulate Hotel Revenue

The Economic Stimulus Package Opportunities

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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 carol@carolverret.com 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 carol@carolverret.com or she can be reached by cell phone (303) 618-4065.  Visit www.hotelsalesblog.com.


 
Contact:
Carol Verret, Consulting and Training
Carol Verret
5910 S. University #C-18, PMB 374
Greenwood Village, CO 80121
Telephone: (303) 618-4065
carol@carolverret.com
Web Site: http://www.carolverret.com/
Email: carol@carolverret.com
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Also See: 2009 The Game Changer for Innovation in Hotel Sales Processes / Carol Verret / January 2009
Contrarian Strategies for Hotel Sales Departments to Thrive in an Economic Downturn / Carol Verret / December 2008
‘Selling Into’ a Bad Economy – Overcoming Fear and Stealing Share / Carol Verret / October 2008
Habits of Highly Successful Hotel Sales People – Accelerated Sense of Urgency / Carol Verret / September 2008
The Challenges and Opportunities for Independent and Boutique Hotels in a Difficult Economy / Carol Verret / August 2008
The Science of Hotel Sales* – The Benchmarking Imperative for Success in a Difficult Economy / Carol Verret / July 2008
Marketing & Revenue Management Plan 2009 - Succeeding in a Difficult Year / Carol Verret / July 2008
Tactics to Drive Business in a ‘Not So Hot’ Summer / Carol Verret / May 2008
All Marketers Are Liars - Web 2.0 Strategies for Hotel Sales and Marketing / Carol Verret / April 2008
Contingency Hotel Revenue Management Strategies 'I Will not Cut Prices'/ Carol Verret / March 2008
The Contingency Hotel Sales and Marketing Plan - Hope for the Best, Plan for the Worst / Carol Verret / February 2008
Change is the Buzz – Rebooting Hotel Sales Activity at the Property Level / Carol Verret / January 2008
Habits of Highly Successful Revenue Managers Ramped Up for 2008 / Carol Verret / November 2007
Five Tips to Improving Hotel Customer Service with User Generated Reviews / Carol Verret / October 2007
Habits of Highly Successful Hotel Sales People – A Seismic Shift in 2008! / Carol Verret / September 2007
GMs – How User Generated Review Sites Can Make you a Better Manager! / Carol Verret / September 2007
Web 2.0 and Hotel Sales Strategies for '08; What Are Your Clients Saying About You? / Carol Verret / August 2007
“It’s not the big that eat the small, it’s the fast that eat the slow” -- Five Revenue Management Tactics for Independent Hotels / Carol Verett / June 2007
Developing New Hotel Business Using Client DNA / Carol Verret / May 2007
The Jigsaw Puzzle – The Fit of the Revenue Management and Internet Group Sales Pieces / Carol Verret / April 2007
Client DNA - The Gold Standard for New Business Development / Carol Verret / March 2007
The 'I Hate Cold Calls' Web Cast - The New Paradigm of Sales! / Carol Verret / February 2007
Hate Cold Calls? - Discover the New Paradigm of Hotel Sales / Carol Verret / January 2007
Issues in Hotel Sales Training - Metics for Success / Carol Verret / December 2006
Is the Party Over?; The Challenge of Decreasing Hotel Room Demand / Carol Verret / October 2006
The Habits of Highly Successful Hotel Sales People Ramp Up for 2006! / Carol Verret / September 2006
Identifying the WIIFM Factor – The Essential of Hotel Sales Success / Carol Verret / August 2006
Revenue Management for Hotel GMs – What You Don’t Know Can Jump Up and Bite You!/ Carol Verret / July 2006
Feeding the Revenue Elephant; Hotel Revenue Management / Summer 2006
The "Tipping Point" - Identifying the Touch Points in Hotel Sales / Carol Verret / May 2006
The "Tipping Point" - Touch Points Make a Difference in Customer Service Training / Carol Verret / April 2006
Selling Up! Taking Group Room Revenue to a New Level / Carol Verret / February 2006
Revenue Management 2006; The Risks and Rewards / Carol Verret /January 2006 
Revenue Management and Group Sales - The Partnership Not the Disconnect / Carol Verret / November 2005
Habits of Highly Successful Hotel Sales People / Carol Verret / September 2005
Triple Witching Hour - The Marketing Plan, Revenue Management Strategy and RFPs for '06 / Carol Verret / August 2005
"Smile" is a Learned Behavior - Creating a Culture of Customer Service / Carol Verret / July 2005
Revenue Management Systems -- Considerations for Evaluation / Carol Verret / June 2005
Disconnect -- Aligning the Revenue Management and Sales Strategies / Carol Verret / May 2005
Independent Hotels & Resorts; Ride the Wave or Float with the Tide? / Carol Verret / March 2005
Hospitality Sales Training Companies Reach Across the Competitive Playing Field to Combine Live Seminar Expertise with  the Convenience of the Internet / Carol Verret / January 2005
Revenue Management - The Challenge for Hotel Sales / Carol Verret / January 2005
Hotel Sales Departments -- Issues in Processes and Functionality / Carol Verret / November 2004
The GM'S Role in Revenue Management / Carol Verret / October 2004
Transforming the Hotel Sales Organization; Alignment with the New Realities of Sales / Carol Verret / August 2004
The Revenue Management Strategy - The Pre-Plan Marketing Plan / Carol Verret / July 2004
Hotel Revenue Management this Summer - a Game of Skill, Art and Most of All Nerves / Carol Verett / May 2004
What Do Meeting Planners Want? Hotel Sales Managers Want to Know! / Carol Verret / May 2004
Revenue Management -- The Integration of Revenue Drivers / Carol Verret / March 2004
CYBER SALES -- Hotel Sales in an Internet World is the New Reality / Carol Verret / February 2004
The New Realities of Hotel Sales - Focus on Revenue Generation / Carol Verret / January 2004
Hotel Sales -- Innovation in the Face of Limitations / Carol Verret / November 2003
The Good News & the Bad News; Improving Economy = New Hotel Development / Carol Verret / October 2003
Leadership - General Managers Managing the Sales Process / Carol Verret  / October 2003
When the Crystal Ball is Cloudy; Marketing Plans for 2004 / Carol Verret / July 2003
Partnership of Sales and Technology; Using Tech Tools to "Sell" the Hotels / Carol Verret  / July 2003
Back to the Basics? The Basics of Hotel Sales Have Changed! / May 2003
Creating Sales "HUNTERS": The Skill Sets Required in the New Hotel Sales Environment / April 2003
Heightened Security Requires New Strategies in Hotels Sales / Carol Verret Consulting and Training / Mar 2003
Revenue Recovery - Building The ‘A’ Team in Sales / Carol Verret / January 2003
Contingency Marketing Plan – War In Iraq! / Carol Verret / November 2002
Playing the Rate Game - Positioning -- Positioning -- Positioning! / Carol Verret / October 2002
The Rate Game - Playing to Win / Carol Verret / October 2002
The Challenge of Marketing Independent Boutique Hotels / Carol Verett / August 2002
Hotel Sales in a Limited Service Environment - The Rules Have Changed / Carol Verett / August 2002
The General Manager’s Role in Sales -Chief Marketing Officer of the Hotel / Carol Verret / April 2002
100% Market Share Penetration is Not Good Enough / Carol Verett / January 2002
The Key to REVPAR Recovery –  New Business Development / Carol Verett / December  2001
Trash the 2002 Marketing Plan - And Just Start Over / Carol Verett / September 2001
How to Use Consultants Effectively –  A View From the Other Side  / Carol Verret / August 2001
How Soft Is Your Hotel's Economic Landing?  / Carol Verret / Aprl 2001
The ‘Value Proposition’: Marketing Yourself to Prospective Employees / Carol Verret / January 2001
Generation Y:  Motivating and Training a New Generation of Employees / Carol Verret / November  2000
Why Customer Service Seminars Don't Work / Carol Verret / October 2000
Creating a Culture of Customer Service / Carol Verret Consulting and Training / Sept 2000 
FAT, DUMB AND HAPPY – The Seasonal Boom and  Bust Cycle / Carol Verret / August 2000
Surf's Up - Ride the Wave or Miss the Boat -The Effective Use of Technology in Hotel Sales / Carol Verret / July 2000 
Measuring Effectiveness of  Hotel Sales Departments / Carol Verret / June 2000
Hotel Sales Training - The Need for Immediate Results / Carol Verret/ May 2000



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