Chapter 4

Selling Hospitality

Women in Hospitality

Women are rising in management in all areas of business

1/3 of all businesses in America are owned by women

Almost ½ of the labor force is made up of women

The hospitality industry is in need of good managers and is selecting women to fill these positions

Women in Hospitality

The search for effective managers provides opportunities for talented women.

Many scholarship programs and competitions are available for women

Customers are more likely to be women

Marketing the Hotel or Restaurant

Selling hospitality More than renting rooms or tables

Ranking of hotels and restaurants is based on price

Most ranking systems use stars

Or diamonds A five star or diamond refers to the highest

quality, best-in-class

Hotel Ranking:

4-star or diamond hotels represent excellent service

3-star or diamond hotels are associated with very good properties

Good Hotels and restaurants are given 2-star ratings

A 1-star or diamond hotel is usually a budget property.

A beautiful facility does not assure guest satisfaction!

The Internet

Is having a huge impact on how individuals conduct business

Is redirecting customer attention to new sellers of products

Infomediaries are third parties used to make reservations on the Internet

Infomediaries are replacing travel agents

The Internet

Uses software to match buyers and sellers in the hospitality business

The balance of power is shifting from the seller to the buyer because they have more choices with the Internet

Industry Challenge

One of the greatest problems in the industry is finding, training, and keeping good people in the industry that can respond to the demands of the changing technology environment

Developing leaders that have a strong commitment to customer-relations

Traditional Sales Techniques Brochures: convey a message of quality and

price, kept in high traffic areas, include property highlights and promotions

Mailings: target customers, mailing lists of previous guests, travel companies, include special promotions, sales

Bulk distributions: sent to masses, also noncompetitive properties such as chamber of commerce, shopping malls, rest areas, departments of tourism, etc.)

Tracking Quality: What Works!

Sales departments realize that there is a direct relationship between customer satisfaction and repeat business

Sales departments gather information on customer experiences at the properties

Psychographic information is gathered to identify particular types of people and what they like

Demographics

Data compiled on customers that may includeAgeHome locationSpending habitsEmployment

Surveys

Questions that may be included on the hotel or restaurant bill

Gain more information about the customer May be on the registration cards Once information is gathered and studies

a marketing strategy is chosen to help get the guests to return.

Success today does not assure success in the future

Hotel Reservations

There are a variety of ways to reserve a roomMailTelephoneFaxFace to faceWeb site

How do travelers determine where to stay? Recommendations from friends Advertisements in newspapers, radio, tv Tour brochures Travel guides Hotel reference books Internet

Regular Reservation:

Non-guaranteed Usually held until 6:00 p.m. on date of

arrival If guest does not arrive by 6:00 p.m. the

room is made available for other guests

Guaranteed Reservation

Guest must pay for the first night prior to arrival

Credit card number usually used Advance payment guarantee may be used Guest given a conformation number

Room availability is easily determined by using a computerized reservation system.

Reservations: Cyber Marketing PriceLine.com gives

consumers the power to negotiate prices for good and services.

Consumers can bid prices on airlines tickets and hotel rates.

Today’s market is more customer-driven because of the ability to negotiate price NE

GOTIATE

BARGIN

Cancelled Reservations

Courteous travelers call the hotel when they do not plan to use the reservations

Non-guaranteed reservations are normally revoked or “pulled” at 6:00 p.m.

Stay-overs or overstays are persons staying longer than the length of their reservation-sometimes causing booking problems

Due-outs: persons expected to check out today

Third-party Reservations

Travel agents and the Internet are third-party distribution channels for reservations

Hotels can save money by reaching customers directly instead of paying commissions to third party intermediaries. This is where technology pays off for the hotel.

Sales and Event Planning

Most cities realize the financial importance of tourism

Many build convention centers and hotels to attract business

Some cities issue tax bonds to pay for the convention centers- good or bad?

BIG

CVB-Conference and Visitors Bureau Organization that tries to

attract more travelers to the area

Usually has membership of local businesses that work together

Examples of members: hotel/motels, amusement parks, museums, restaurants, tour companies

Selling Hospitality

Direct mail Publicity Public relations Advertising Sales promotions Use market research to

target market and set forecasts

Potential Markets

Vast Different Each have special needs May be large or small groups All expect high quality service Thousands of professional

associations