As the autumn months are upon us, most hotel management is either in the throes of 1997 planning or getting geared up for it. One of the most crucial components of annual planning is the Sales & Marketing Plan.

In the hotel business, and I'm sure it's true of many other businesses, an enormous amount of resources in time and money is used to increase sales. All of us know we need a market plan with its many components that build toward an action plan to increase market share or reposition ourselves in the market to a more profitable segment. Many dread preparing the market plan almost as much as we dread preparing the capital plan where the necessary improvements (or catch up work on deferred maintenance!) which will help achieve the plan's goals are budgeted. In many of the plans I see there are some crucial components which are either given short shrift of are omitted completely.

Accountability is a rare feature. Who is supposed to do something and by when is a fairly common part of a market plan. The details of the mechanism for reporting what actually occurs is weak. Knowing this becomes very useful whether or not the plans goals are met. This is true when one wants to know what or who was most effective in contributing to the success of the plan. Almost needless to say is that if the goals of the plan are not met this information will be equally as useful. This information feeds into the reward system and into modifications one may wish to include in updated versions of the plan. No, accountability does not directly increase sales but it is a key to holding the market plan together.

Everyone has heard that the easiest sales are the successive sales to satisfied customers. However, how many market plans specifically address this fact? Why do so many hotels forget this essential market in the annual planning? Keeping these guests happy needs to have specific strategies and actions planned. The first thing that needs to be done is to know specifically who our satisfied customers are, why they feel that way and what improvements they would like to see. Market plans need to focus on continuing to take care of that group and facilitating their word of mouth referrals and comments about the business.

Another important task is keeping familiar with the existing guests' constantly evolving needs and plans. This information allows you to sell them additional (and possibly more profitable) features or services when appropriate. It also keeps you more knowledgeable than your competition. Never forget that once someone commits to use your services or buy a product from you a certain level of trust has been established and the beginning of a habit. Build on that by continuing to find needs that customer has that your services can satisfy by explaining the benefits of your services. I believe Xerox use to call this, "Need-Benefit Selling."

I do not know whom to quote, but there is the old saying, "you never get a second chance to make a first impression." This cliche needs to be applied as an active part of a market plan. One must think about all the first impressions the business has in addition to the obvious. In hotels it can be little things such as the sound of gum being chewed by a telephone operator, the appearance and manners of the maintenance staff (that person may be in the parking lot when the potential guest arrives), odors, lighting in rest rooms, detailed cleanliness, internal signage program and the level of familiarity with which we treat people are all first impressions. They are all manageable.

The capital plan needs to relate to the market plan because it has a direct impact on repeat business. It is not just a matter of building additional features such as pools, larger bars or replacing worn carpet. It is a matter of also asking what will make the hotel prettier (or homier or more elegant or more sophisticated, or whatever you want your image to be). It is attention to detail in physical facilities that capitalizes into repeat business or a better price value perception (and lower maintenance costs). Obviously, there is a cost-benefit curve involved. Walls covered with foam padded fabrics are only cost effective in very special circumstances. When doing capital improvements for marketing purposes, one should always remember the marginal or hidden ongoing costs associated with the project. 

It is important to understand that most capital projects relate to marketing and every little decision affects the potential repeat sale tremendously. There is a hotel in the Twin Cities which spends a tremendous amount of money getting new guests while the ownership won't spend money to get the HVAC system working properly. The owner's development and operating division have been arguing for years over what the problem is! They have literally had meetings regarding this across from the front desk as they have overheard guests checking out of the hotel before their scheduled departure dates.

This leads to the final point. Every employee in a hotel has potential legitimate ideas that apply to sales and marketing. Most of these relate to repeat sales and are usually very cost effective. This is true because most of the employees, because of their pay levels, think almost any amount of money is a lot. Additionally, their exposure to the guest is frequent and at close quarters while the guest is in the property. Take advantage of this insight by drawing it out in a non-threatening environment and give them credit for the idea.

In summary, let's keep focusing on booking new business but let's spend an equal amount of time focusing on keeping the business we have. A specific plan to this end needs to be incorporated into our annual plans if we are going to give this crucial marketing activity the time and attention it warrants.