Carol Verret Consulting and Training Consulting Training Seminars |
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. . �Selling Into� a Bad Economy � Overcoming Fear and Stealing Share
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October 28, 2008 - Tough times require creative solutions not just business as usual! Not only are hotels being buffeted by the economy but also by the new competitive hotels have come online and/or are coming online in the near future. Make no mistake; there will be winners and losers in this environment --- some hotels that will prosper and those that will capitulate! The Business Travel Coalition recently conducted a survey of corporate travel managers. �The Business Travel Coalition, which represents corporate travel buyers and suppliers here and internationally, surveyed travel managers last week and found a sense of real urgency. More than a quarter of nearly 200 travel managers surveyed said that their companies had recently started emergency cutbacks, on top of the cuts already in place this year.� (New York Times, October 20, 2008) The good news in this is that 75% of travel planners were not in panic mode but, as we all know, are watching those travel dollars. However, if we look at the reports there are hopeful signs. In an excellent report, Global Insight reported that �Full year 2008 domestic travel is now expected to reach only 1.987 billion Person-Trips, down 0.6% over 2007. Leisure travel, about 76% of total, will register 1.5 billion Person-Trips, a 0.5% increase over last year. Business travel (is) expecting (a) decline of 3.8%...� The report went on to say �Relief has already begun, however, in the form of moderating oil prices and average daily room rates. This favorable trend will begin to accelerate beginning in the second quarter of 2009� and ��leisure will begin to recover in the second half of the year.� (Hotel Resource, October 27, 2008) This report indicates that leisure travel actually increased by .5% in 2008 and business travel will post a decline of 3.8%. There are hotels that benefited from the increase in leisure and those that are able to maintain or increase share of business travel despite a decrease. A 3.8% decrease in corporate travel is challenging but certainly not a disaster! When every other hotel around you is slashing budgets, the one budget that can be maximized is the efficiency of the sales department and marketing dollars redirected to more cost efficient channels. Here are five things you can do to �sell into� the recession: � Overcome Fear and Panic. It is often said that stock market declines are being driven by fear, panic and a lack of confidence. If you buy into the fear and panic syndrome, you are accepting that business will decline and subconsciously that will seep into the sales and marketing effort. Those hotels that look at the research look for the opportunities and think �out of the box� (I hate that term, how about �out of the circle). They will develop cost effective, innovative ways to reach out to the real people and companies within those opportunities.Those hotels and hotel companies the �sell into� the current economic downturn will steal share from those hotels that don�t and succeed in this economy. �Selling into� this economy means not only doing more of what you�re already doing but actively drilling into the opportunities that present themselves in the trends. For example, continuing to try and wring business from the Financial Services sector would not be logical but starting to drill down into the upbeat HealthCare stock market sector is �selling into� this economy based on the opportunity. It will require overcoming the fear and natural instinct to �hunker down� � that is exactly the wrong reaction to become a winner in this economy and emerge stronger than prior to this economic challenge!
Carol Verret and Associates offer training options at various price points � invest in your people! Also, watch for the book Hotel Sales & Revenue Management 2.0 coming in November. Reserve your copy at [email protected]. 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. Visit www.hotelsalesblog.com. copyright © Carol Verret, 2002-2003 -2004 -2005 - 2006 - 2007 - 2008 |
Carol Verret 5910 S. University #C-18, PMB 374 Greenwood Village, CO 80121 Telephone: (303) 618-4065 [email protected] Web Site: http://www.carolverret.com/ Email: [email protected] |