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

2. 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.

3. 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

4. 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

5. 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.

6. 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.

7. 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 Thank-you letters Adding clients to a preferred client list 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.

8. 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.

9. 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:  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

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

11. 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

12. 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 

13. 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.

14. Hayes/Ninemeier: Foundations of Lodging Management. (C) 2006 Pearson Education, Upper Saddle River, NJ 07458. All Rights Reserved. Hotel Markets Types of Transient Travelers:  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  Leisure  Government Per Diem: a daily, fixed amount paid for a traveler’s food and lodging expenses. www.dtic.mil/perdiem/pdrates.htmlmwww.dtic.mil/perdiem/pdrates.htmlm  Long-Term Stay www.hawthorn.com

15. 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:  Catered meals  Meeting space  Audio visual equipment  Registration services  Transportation  Baggage handling  Welcome receptions  On-site activities

16. 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

17. 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:  In-person sales calls  Print and direct mail  Telephone  E-mail  Web sites

18. 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.

19. 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.

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

21. 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 Reflect positively on the hotel’s image Don’t say too much Introduce relevant hotel features and benefits Support the benefits with proof statements Are cost effective Ask for the sale (order) or a site visit

22. Hayes/Ninemeier: Foundations of Lodging Management. (C) 2006 Pearson Education, Upper Saddle River, NJ 07458. All Rights Reserved. Telephone 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

23. 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:  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

24. 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.

25. 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 Outings Events Gifts

26. 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?

27. 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: Hotel Owners Management Companies Property Managers Franchisors Appraisers The Financial Community www.str-online.com

28. 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:  Occupancy  ADR  RevPar  Market share  Historical trends  To-date performances  City, region, or state performance

29. 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:  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