Hospitality Net

When the economy is strong and demand is high, hotel sales can often be about up selling and serving the potential guests or groups’ needs in creative (and hopefully) profitable ways. In times such as we are now facing with a global economic slowdown, hotel sales requires assertive and focused efforts on reaching the potential client who can be best served at the best price for all parties.

Effective use of time is not necessarily about bundling more activities into every hour; but about achieving greater results in that hour because of doing the right thing. This use of time planning means working a “living” marketing plan that addresses both long and short term needs.

I have worked in a wide range of properties in my career, which run the gamut from resorts under 100 rooms to mega hotels of more than 1500 rooms. I have been in operational and sales management for single properties and for groups of hotels with different branding. Room rates have ranged from under $60 to several hundred dollars for Towers-type upscale lodging.

A widespread hazard in almost of all of these properties has been the tendency to allow short term challenges overshadow long term needs. The uncertainty of today’s market challenges is a genuine concern to hotel general managers and owners – the reality of properly taking the necessary steps to insure continuing business survival often depends on effective use of staff and avoiding taking only a short term mentality approach.

In the fall of 2008, US automakers asked Congress for a financial bail-out or loan, depending on the interpretation, yet they did not have a concrete plan for their initial multi billion dollar request. It was the responsibility of the leadership and management of those companies to create and work the plan , not the front line. The leadership apparently failed to do, as evidenced by the erosion of the product acceptance over the past generation. The evolution of purchasing other brands came over a generation of more than 25 years, but the long term realities were not addressed by those organizations.

I am not implying that the lodging industry has been overlooking the future – the evolution of some products and services has been very evident. The consolidation of global brands into approximately a dozen international companies has created certain synergies and still allowed for entrepreneurial efforts to be successful. The US industry recovered after the Savings & Loan Crisis in the late 1980s into the 1990s and was rewarded with record success in 2005-2007. Global expansion of brands into Europe, Asia and the Far East were welcomed by developers and travelers.

The purpose of this article is address the individual hotel owner and management team’s recognition of long term needs and to avoid what so frequently happens when the economy shrinks. “It” is a trend that has repeated itself over and over.

"It" happens everywhere, regardless of the brand, the location or the type of hotel. "It" tends to happen more at medium and smaller sized hotels (under 200 rooms), but "it" also happens at 600+ room convention hotels.

The "it", of course, is the extent to which on non-sales jobs to which sales staffs are frequently assigned. The problem comes when the sales manager or team is regularly expected to:

There is a natural "tug" between operations and sales staff. Operational staffs see sales people lunching with clients and imagine extravagant expense account trips. Sales people might view themselves as the main reason there are guests at the hotel, which provides employment for the rest of the staff.

The truths lie in between those imagined extravagances and the “grunt” work of converting leads and prospects into confirmed business. There is a TEAM effort in successful hotels where on occasion the sales manager may perform some of the above tasks or pour coffee in the restaurant, but to the ongoing detriment of selling.

Effective managers will want to make sure their sales team is out selling during every logical time. Using the sales staff regularly for the above listed jobs might save a few dollars today on payroll or make it slightly easier for others on the staff. Without question though, it will cost your hotel substantially more tomorrow with no new business because your competition "stole" it by having their sales people there building and maintaining the personal contacts.

Continual identification and development of new and repeat business cannot be completed by a cashier or front desk agent, but only by a trained and competent professional versed in the hotel's offerings, pricing and selling tactics. In these times of internet marketing, last minute booking decisions and instant communication, delay of a few hours could mean the gain or loss of thousands of dollars in revenue.

The value of the person responsible for selling is a matter of financial prioritizing and strategic planning. Larger hotels find the challenge a bit easier sometimes as they have more support staff. Owners and managers of every size of hotels must realize that someone must be developing new prospects for the future, because competition, the economy and other market changes will erode some of the existing base of business.

In smaller hotels where the general manager might be the sales staff as well, there needs to be additional staff trained to do the every day business chores so the GM can effectively be out in the marketplace, finding the business to keep everyone gainfully employed.

Earlier in this article it was identified that successful use of time is not about activities but about achieving results. This use of time planning means working a “living” marketing plan that addresses both long and short term needs. In June of 2008, About four months ago, I wrote an article titled Updating marketing and sales strategies mid year NOW Is Essential. As we enter into 2009, the following are even more crucial:.

For those of us who have been in the industry less than 15 years, think back to whatever industry you may have been involved with before and remember those cycles. If you are under 35 in age, look at the economic histories of other businesses and study what they did well or poorly. What lessons can be learned?

The hospitality industry has had a solid run of accomplishments these past ten years or so, but that was preceded by a very mixed 20 year cycle.

Look at what is going on in your hometown and figure out as many ways as possible to be an essential part of the community as a good corporate citizen. That commitment will help ride out some stormy valleys of lower demand and will endear you and your hotel to the community and help maintain your levels of success.

Suggestions for upcoming articles are always welcome and I have planned a series of upcoming columns on the following topics:

John Hogan is a frequent guest speaker at industry events and advises hotel management groups and owners, lenders, asset managers and operators on industry 'best practices' and conducts reviews of quality in operations and marketing.

Hogan’s professional experience includes over 35 years in hotel operations, food & beverage, sales & marketing, training, management development and asset management on both a single and multi-property basis. He holds a number of industry certifications (CHA, CHE, MHS, ACI) and is a past recipient of the American Hotel & Lodging Association’s Pearson Award for Excellence in Lodging Journalism, as well as operational and marketing awards from international brands. He has served as President of both city and state hotel associations.

John’s background includes teaching college level courses as an adjunct professor at three different colleges and universities over a 20 year period, while managing with Sheraton, Hilton, Omni and independent hotels. He was the principal in an independent training & consulting group for more than 12 years serving associations, management groups, convention & visitors’ bureaus, academic institutions and as an expert witness. He joined Best Western International in spring of 2000, where over the next 8 years he created and developed a blended learning system as the Director of Education & Cultural Diversity for the world’s largest hotel chain.

He has served on several industry boards that deal with education and/or cultural diversity and as brand liaison to the NAACP and the Asian American Hotel Owners’ Association with his ongoing involvement in the Certified Hotel Owner program. He has conducted an estimated 3,100 workshops and seminars in his career. He served as senior vice president for a client in a specialty hotel brand for six years.

He has published more than 350 articles & columns on the hotel industry and is co-author (with Howard Feiertag, CHA CMP) of LESSONS FROM THE FIELD – a COMMON SENSE APPROACH TO EFFECTIVE HOTEL SALES, which is available from a range of industry sources and AMAZON.com. He resides in Phoenix, Arizona and is finalizing his 2nd book based on his dissertation – The Top 100 People of All Time Who Most Dramatically Affected the Hotel Industry.