Unlocking Asset Potential® |
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| By Dale Turner, Turn Key Hotel Advisors
It’s happening – some hotels are cutting back on sales training as an “unnecessary expense” to shore up dwindling profit margins. But it’ll cost you share in an already dwindling Market RevPAR pie. September 11, 2001 Before this infamous date, industry analysts were already predicting the greatest RevPAR decrease in forty years. The crisis that befell America as the World Trade
Rightfully, hotels in crisis mode are first concerned with the most basic financial survival tactics: maintain skeleton staffing to meet whatever customer demand there is; improve worker and manager productivity; cut overhead; and manage operating expenses only to replace inventory necessary to sustain business volume. These are natural first reactions to the immediate and significant occupancy drop experienced after the attack. But there is evidence that the low occupancies of September will not be sustained as fall progresses and the nation gets on with life. Recent press coverage has reported that most cancellations in the weeks following the September 11th assault were due to postponed meetings, not outright cancellations. The first week in October was already showing signs of travel rebounding. But even in times of crisis management, hotel leadership cannot sustain cash flow and improve market share without a sales effort that drives results like never before. Training is Not Superfluous An ill-trained desk clerk cannot check guests into your hotel, no matter how the staffing grids are prepared. An ill- trained housekeeper will likely leave unsatisfactory product in inventory to be sold to guests who have a lot more options about where they might stay next time they’re in your market. And an ill-trained Sales Manager, or more likely, one who has had little to no formal training at all, cannot compete for market share in a downside economy. While expenses must be carefully monitored and controlled in the wake of this recent market occupancy decline, to forego Sales Manager training altogether should be filed under ‘C’, for “Cutting Off Your Nose to Spite Your Face.” Many Sales Managers in our industry today have only been taught how to sell in the good times. Over the past ten years, our industry enjoyed a period of unprecedented growth, with each year of the nineties reporting record profits over the year before. While there were pockets of over-built markets starting to show the strain of intersecting supply and demand curves (such as Dallas and Atlanta), most of the country, particularly California and the Northeast, barely had to do more than answer their phones to book the business. Sales Managers in these markets probably are today ill-trained in matters of prospecting, cold-calling, telemarketing, negotiating, persuasion tactics and most importantly, closing the sale. It is in these areas that a sales training program should be focused and if there were ever a time when these skills were needed, it is now. A Critical Shortage of Talent There is a severe shortage of sales talent in our industry right now.
Even the largest and most stable companies will whisper their concern over
the lack of available talent to recruit into their fold and of sales positions
that remain vacant for months on end. For years, our industry has
struggled with providing sales incentive plans that were lucrative enough
to attract high-producing sales talent while meeting ever increasing profit
expectations. We believe that the start of this problem occurred
when most lodging companies created sales incentive plans to be competitive
against other lodging companies, when in fact, they should have been creating
sales incentive plans that compete effectively against other industries.
A good many Sales Managers that came from our industry are still selling
today. But they sell in other markets for industries producing other
products.
Don’t pull the plug on keeping your Sales Managers trained. It isn’t a superfluous expense. It’s a necessary hedge against the competition, and a safe bet to recruit and maintain a motivated sales staff in today’s difficult market.
Turn Key Hotel Advisors is a Dallas based consulting group with roots in hotel management and operations. It offers consulting services and essential business tools for all aspects of hotel operations, lodging asset management, hotel product repositioning, and re-branding. The Dallas group is experienced in hotel operations, revenue management, market positioning and profit engineering. Specializing in diagnostics of under-performing assets, Turn Key Hotel Advisors will quickly and accurately assess a hotel's competitive environment and strategic positioning. Their consultants then provide action plans for both owner and manager that will improve the hotel's RevPAR yield, increasing revenue and drive both profitability and owner cash return. Turn Key Hotel Advisors guarantees their results. For hotels undergoing refurbishment, repositioning or re-branding, Turn Key Hotel Advisors created the Delta Process™, which has been successfully used in assets, to date, undergoing $200 million in redevelopment dollars. The Delta Process™ ensures the hotel's sales and service delivery teams have specific, concrete action plans to deliver on an owner's or lender's return-on-investment expectations. The company also conducts due diligence exercises for
assets undergoing ownership change, market assessment studies for new lodging
development, as well as hotel sales training, account management tools
and hotel marketing products. It is affiliated with The Consortium
- An Alliance of Hospitality Companies. Turn Key Hotel Advisors also
operates a subsidiary company, Integrated Selling Systems with innovative
technologies for the lodging industry, including CD Business Cards, Web
Designs and On-Line Customer Reservations Booking Engines. Turn Key
Hotel Advisors is an allied member of the American Hotel and Lodging Association.
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Turn Key Hotel Advisors
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