The Sales and Marketing Department HayesNinemeier Foundations of

The Sales and Marketing Department Hayes/Ninemeier: Foundations of Lodging Management. (C) 2006 Pearson Education, Upper Saddle River, NJ 07458. All Rights Reserved.

Importance of Sales and Marketing DOSM: short for “Director of Sales and Marketing. ” Variations include DOS (Director of Sales) and DOM (Director of Marketing). www. hsmai. org Sales: activities directly related to a client’s purchase of hotel rooms or services. Marketing: activities directly related to increasing a potential guest’s awareness of a hotel. Hayes/Ninemeier: Foundations of Lodging Management. (C) 2006 Pearson Education, Upper Saddle River, NJ 07458. All Rights Reserved.

Importance of Sales and Marketing Booking: hotel jargon for making a confirmed sale. Effective Marketing Activity Increased Consumer Awareness Increased Hotel Bookings Increased Hotel Revenues Increased Hotel Profitability Hayes/Ninemeier: Foundations of Lodging Management. (C) 2006 Pearson Education, Upper Saddle River, NJ 07458. All Rights Reserved.

Sales and Marketing Activities Three types of activities in the Sales Cycle: 1. Pre-sale Activities 2. Sales Activities 3. Post-sale Activities Hayes/Ninemeier: Foundations of Lodging Management. (C) 2006 Pearson Education, Upper Saddle River, NJ 07458. All Rights Reserved.

Sales and Marketing Activities 1. Pre-Sale Phase Site Tour: a physical trip (tour) of a hotel, hosted by a member of the hotel’s staff. Bid: An offer by a hotel to supply sleeping rooms, meeting space, food and beverages, or other services to a potential client at a stated price. If the bid is accepted, the hotel will issue the client a contract detailing the agreement made between the hotel and the client. Hayes/Ninemeier: Foundations of Lodging Management. (C) 2006 Pearson Education, Upper Saddle River, NJ 07458. All Rights Reserved.

Sales and Marketing Activities 2. Sales Phase Pickup: the actual number of rooms purchased by a client in a specific time period. Group Contract: a legal document used to summarize the agreement between a hotel and its client group. Attrition: the difference between the original request and the actual pickup of a group. Block: rooms reserved exclusively for members of a specific group. Hayes/Ninemeier: Foundations of Lodging Management. (C) 2006 Pearson Education, Upper Saddle River, NJ 07458. All Rights Reserved.

Sales and Marketing Activities 3. Post-Sale Phase n Thank-you letters n Adding clients to a preferred client list n Formulating plans to retain the business the following year Convention and Visitor’s Bureau (CVB): an organization, generally funded by taxes levied on overnight hotel guests, which seeks to increase the number of visitors to the area it represents. Hayes/Ninemeier: Foundations of Lodging Management. (C) 2006 Pearson Education, Upper Saddle River, NJ 07458. All Rights Reserved.

On-Property Activities Marketing Plan: a calendar of specific activities designed to meet the hotel’s sales goals. Sales and Marketing Committee: the team of individuals responsible for coordinating the hotel’s sales and marketing effort. Inclusive: a single price that includes all charges. Hayes/Ninemeier: Foundations of Lodging Management. (C) 2006 Pearson Education, Upper Saddle River, NJ 07458. All Rights Reserved.

On-Property Activities Marketing plans vary but most include: o An overview of competing area o Competitive analysis of each competitor o Competitive analysis of the hotel o Forecast of future market conditions o Plans relating to specific marketing strategies o Advertising: information about a hotel that the hotel pays a fee to distribute. o Promotions o Publicity: information about a hotel that is distributed for free by the media. o Development of a marketing budget o Selection of measurement and evaluation tools Hayes/Ninemeier: Foundations of Lodging Management. (C) 2006 Pearson Education, Upper Saddle River, NJ 07458. All Rights Reserved.

Off-Property Activities Franchisor’s Efforts: o o o o National call centers Brand-specific Web sites National advertising Brand-specific promotions Frequent Guest Program: a promotional effort administered by a hotel brand which rewards travelers each time they choose to stay at that specific brand’s affiliated hotels. PMS training and support programs Sales training programs Hayes/Ninemeier: Foundations of Lodging Management. (C) 2006 Pearson Education, Upper Saddle River, NJ 07458. All Rights Reserved.

Off-Property Activities CVB Efforts: www. nycvisit. com Chamber of Commerce: an organization whose goal is the advancement of all business interests within a community or larger business region. www. chamberofcommerce. com Hayes/Ninemeier: Foundations of Lodging Management. (C) 2006 Pearson Education, Upper Saddle River, NJ 07458. All Rights Reserved.

Off-Property Activities Other efforts: By travel agent and travel advisory groups www. AAA. com Rating Scale: One Diamond Two Diamonds Three Diamonds Four Diamonds Five Diamonds Hayes/Ninemeier: Foundations of Lodging Management. (C) 2006 Pearson Education, Upper Saddle River, NJ 07458. All Rights Reserved.

Hotel Markets Transient Travelers Track: to maintain extensive information on a specific type of traveler. Hayes/Ninemeier: Foundations of Lodging Management. (C) 2006 Pearson Education, Upper Saddle River, NJ 07458. All Rights Reserved.

Hotel Markets Types of Transient Travelers: o Corporate Consortia: groups of hotel service buyers organized for the purpose of reducing their client’s travel-related costs. Negotiated Rate: A special room rate offered for a fixed period of time to s specific client of the hotel o o Leisure Government Per Diem: a daily, fixed amount paid for a traveler’s food and lodging expenses. www. dtic. mil/perdiem/pdrates. htmlm o Long-Term Stay www. hawthorn. com Hayes/Ninemeier: Foundations of Lodging Management. (C) 2006 Pearson Education, Upper Saddle River, NJ 07458. All Rights Reserved.

Hotel Markets Group Travelers Hotel services often used by groups: o o o o Catered meals Meeting space Audio visual equipment Registration services Transportation Baggage handling Welcome receptions On-site activities Hayes/Ninemeier: Foundations of Lodging Management. (C) 2006 Pearson Education, Upper Saddle River, NJ 07458. All Rights Reserved.

Hotel Markets SMERF: short for Social, Military, Educational, Religious, or Fraternal groups and organizations. Meeting Planner: a professional employed by a group to negotiate that group’s contract with a hotel. www. mpiweb. org Hayes/Ninemeier: Foundations of Lodging Management. (C) 2006 Pearson Education, Upper Saddle River, NJ 07458. All Rights Reserved.

Sales and Marketing Tools Useful hotel selling tools: o In-person sales calls o Print and direct mail o Telephone o E-mail o Web sites Hayes/Ninemeier: Foundations of Lodging Management. (C) 2006 Pearson Education, Upper Saddle River, NJ 07458. All Rights Reserved.

In-Person Sales Calls Lead: information about a prospect who is likely to buy products and services from the hotel. Sales Call: a meeting arranged for the purpose of selling the hotel’s products and services. Networking: the development of personal relationships for a business-related purpose. Hayes/Ninemeier: Foundations of Lodging Management. (C) 2006 Pearson Education, Upper Saddle River, NJ 07458. All Rights Reserved.

In-Person Sales Calls Cold Calling: making a sales visit/presentation to a potential client without having previously set an appointment to do so. Drop-in: a potential group rooms or hotel services buyer who arrives at the hotel without an appointment. Hayes/Ninemeier: Foundations of Lodging Management. (C) 2006 Pearson Education, Upper Saddle River, NJ 07458. All Rights Reserved.

Print and Direct Mail: the process of sending an advertisement to clients by U. S. mail service. The total cost of a direct mail piece includes the expenditures for the advertisement’s design, printing, and mailing. Hayes/Ninemeier: Foundations of Lodging Management. (C) 2006 Pearson Education, Upper Saddle River, NJ 07458. All Rights Reserved.

Print and Direct Mail The best direct mail pieces: Are eye catching n Reflect positively on the hotel’s image n Don’t say too much n Introduce relevant hotel features and benefits n Support the benefits with proof statements n Are cost effective n Ask for the sale (order) or a site visit n Hayes/Ninemeier: Foundations of Lodging Management. (C) 2006 Pearson Education, Upper Saddle River, NJ 07458. All Rights Reserved.

Telephone can be used to: o o o o Make transient reservations Answer questions about potential group reservations and bids Find prospects who may be interested in a site tour Identify prospects and arrange dates and times for in-person sales calls Increase the speed and accuracy by which information is transmitted to the caller Overcome resistance to sales barriers Improve phone-generated hotel revenue www. ei-ah&la. org Hayes/Ninemeier: Foundations of Lodging Management. (C) 2006 Pearson Education, Upper Saddle River, NJ 07458. All Rights Reserved.

E-mail General principles for using e-mail as a sales tool: o Maintain an up-to-date list of e-mail addresses o Create messages that are short, yet effective o Send e-mails at the proper frequency o Provide a convenient way for receivers to be removed from your e-mail list Hayes/Ninemeier: Foundations of Lodging Management. (C) 2006 Pearson Education, Upper Saddle River, NJ 07458. All Rights Reserved.

Web sites In 2003, internet hotel sales accounted for 12% of all reservations made. www. acromarketing. com Link: a relationship between two Web sites. When website users select a link at one site, they are taken to another Web site address. An external link leads to a webpage other than the current one; an internal link leads elsewhere on the current website. Demand Generator: an organization, entity, or location that creates a significant need for hotel services. Hayes/Ninemeier: Foundations of Lodging Management. (C) 2006 Pearson Education, Upper Saddle River, NJ 07458. All Rights Reserved.

Client Appreciation Activities Appreciation activities can help to retain clients. Could include: Social activities n Outings n Events n Gifts n Hayes/Ninemeier: Foundations of Lodging Management. (C) 2006 Pearson Education, Upper Saddle River, NJ 07458. All Rights Reserved.

Evaluation of Sales and Marketing Efforts STAR Report: short for the “Smith Travel Accommodations Report. ” Produced by Smith Travel Research, this report is used to compare a hotel’s sales results to those of its selected competitors. Areas to consider when evaluating performance: What? Who? How Much? How Effective? Hayes/Ninemeier: Foundations of Lodging Management. (C) 2006 Pearson Education, Upper Saddle River, NJ 07458. All Rights Reserved.

Evaluation of Sales and Marketing Efforts Competitive Set: the group of competing hotels to which an individual hotel’s operating performance is compared. Information is important to: n n n Hotel Owners Management Companies Property Managers Franchisors Appraisers The Financial Community www. str-online. com Hayes/Ninemeier: Foundations of Lodging Management. (C) 2006 Pearson Education, Upper Saddle River, NJ 07458. All Rights Reserved.

Evaluation of Sales and Marketing Efforts Popular operating comparisons include: o o o o Occupancy ADR Rev. Par Market share Historical trends To-date performances City, region, or state performance Hayes/Ninemeier: Foundations of Lodging Management. (C) 2006 Pearson Education, Upper Saddle River, NJ 07458. All Rights Reserved.

Evaluation of Sales and Marketing Efforts Poor STAR performance can indicate: o o o o Poor franchise (brand) name Poor signage Poor room mix for the market Room Mix: the ratio of room types contained in a hotel. Sub-standard furnishings or décor Marketing/advertising budget too small Marketing staff ineffective Hayes/Ninemeier: Foundations of Lodging Management. (C) 2006 Pearson Education, Upper Saddle River, NJ 07458. All Rights Reserved.