Chapter 3 sales and marketing in hotel

Importance of Sales and MarketingDOSM: short for “Director of Sales and Marketing.” Variations include DOS Director of Sales and DOM Director of Marketing.. www.hsmai.org Sales: activit

Sales and Marketing in

Hotel

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

Importance of Sales and Marketing

Booking: hotel jargon for making a confirmed sale

Effective Marketing Activity

Sales and Marketing Activities

Three types of activities in the Sales Cycle:

1 Pre-sale Activities

2 Sales Activities

3 Post-sale Activities

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.

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

Sales and Marketing Activities

3 Post-Sale Phase

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

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

On-Property Activities

Marketing plans vary but most include:

 An overview of competing area

 Competitive analysis of each competitor 

 Competitive analysis of the hotel

 Forecast of future market conditions

 Plans relating to specific marketing strategies

 Advertising: information about a hotel that the hotel pays a fee to

distribute.

 Promotions

 Publicity: information about a hotel that is distributed for free by

the media.

 Development of a marketing budget 

 Selection of measurement and evaluation tools

Off-Property Activities

Franchisor’s Efforts:

 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

www.chamberofcommerce.com

Off-Property Activities

Other efforts:

By travel agent and travel advisory groups

www.AAA.com Rating Scale:

Group Assignment

Name: Hotel’s Marketing Activities

Assignment: Select one 4-5 star hotel in Ha Noi Collect

documents about its marketing activities Present (sort,

evaluate…) about that at class (15 - 30 mins).

Deadline: 27/2/2019

Hotel Markets

Transient Travelers

Track: to maintain extensive information on a specific type of traveler.

Negotiated Rate: A special room rate offered for a fixed period of time to

s specific client of the hotel

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

Sales and Marketing Tools

Useful hotel selling tools:

 In-person sales calls

 Print and direct mail

 Telephone

 E-mail

 Web sites

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

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

Print and Direct Mail

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

Print and Direct Mail

The best direct mail pieces:

Telephone can be used to:

 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

General principles for using e-mail as a sales tool:

 Maintain an up-to-date list of e-mail addresses

 Create messages that are short, yet effective

 Send e-mails at the proper frequency

 Provide a convenient way for receivers to be

removed from your e-mail list

current website.

Demand Generator: an organization, entity, or location that creates a significant need for hotel services

Client Appreciation Activities

Appreciation activities can help to retain clients.

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?

Evaluation of Sales and

Marketing Efforts

Competitive Set: the group of competing hotels to

which an individual hotel’s operating performance is compared.

Evaluation of Sales and

Evaluation of Sales and

Marketing Efforts

Poor STAR performance can indicate:

 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 too small

 Marketing staff ineffective