HOTEL BUSINESS REVIEW

November FOCUS: Hotel Sales & Marketing

 
November, 2014

Hotel Sales & Marketing: The Heart of the Matter

Of all the areas of a hotel's operation, perhaps none are as crucial, challenging and dynamic as the Sales and Marketing department. In their rapidly evolving world, change is the only constant, driven by technological innovations and the variable demands and expectations of a diverse traveling public. These professionals occupy a vast, multi-channel universe and it is incumbent on them to choose wisely when determining where and how marketing dollars are to be spent to generate revenue from all their multiple constituencies - individuals, corporate guests, groups and wholesalers. Complicated decisions are made and complex plans are devised, based on answers produced from intricate questions - What is the proper balance between Direct vs. Indirect Channel Sales? What kinds of resources are to be devoted to a comprehensive digital marketing program (website, email, social, blog, text and online advertising) on multiple channels (desktop, tablet and smart phone)? What are the elements driving local market conditions and how can local people be attracted and the local competition bested? How does an operation research, analyze and partner with group business generators, meeting planners, wholesalers, incentive travel companies, corporate travel departments, and franchise-sponsored marketing programs? How can effective sales incentive programs be implemented and how can a strategic marketing campaign be deployed? How are new sales leads prospected, qualified, sold and closed? The November Hotel Business Review will examine some of these critical issues and explore what some sales and marketing professionals are doing to address them.

This month's feature articles...

Stevi  McCoy

How much is a good customer experience worth? Some might argue that it is priceless. Most will agree that the holistic brand experience can make or break effective customer engagement. But will consumers pay more for an amazing experience? Recent data on this subject indicates that consumers do indeed make decisions based on factors other than price. According to a CEI Survey, 86% of buyers will pay more for a better customer experience. But only 1% of customers feel that vendors consistently meet their expectations. READ MORE

Mark Johnson

Generating customer loyalty in hospitality is a surefire way to drive sales and revenue, as guests tend to remain dedicated to certain hotels based on positive experiences. However, what it means to have a positive customer experience at a hotel has been transforming as of late, and marketing and sales must keep up with new customer expectations to stay competitive. Mark Johnson, CEO of Loyalty360, an unbiased, voice of the customer loyalty marketer's association, explores the new landscape of loyalty in his piece “The Loyalty Renaissance: Navigating New Expectations to Deliver an Exceptional Experience in Hospitality.” With expert insight and examples from hotels doing it right, Johnson delivers a must-read piece for anyone implementing a loyalty program in the hospitality industry. READ MORE

Bonnie Knutson

There is no question that we will see a tremendous explosion in the use of strategic content marketing in the relatively near future. With the proliferation of mobile devices, and the growth in all things Internet, people will be connecting anywhere, any time. So your brand message had better be ready and able to inform interestingly, entertainingly and with relevance 24/7. This takes what I am dubbing the 5 Cs of Kontent is King. In this article, you'll see how your these 5 Cs can help your hotel develop an effective content marketing strategy for guests and prospective guests alike. READ MORE

Andrew Freeman

The old saying that “everyone's money is green here” might seem like true hospitality in action, but for a marketer with limited resources, it's a recipe for failure. Clearly defining target markets means identifying who we believe will respond first and most often to our concept. However, it also means consciously acknowledging that we can't be everything to everyone for every occasion. Demographics alone are no longer sufficient and marketers must deeply know their guests. Initially, this process can seem time consuming, but it can ultimately lead to stronger brand loyalty and the generation of greater revenue at a lesser cost. READ MORE

Robert Gilbert

It's an ever-changing world for hotel sales, marketing and revenue management professionals. In 2014 we've seen continued global hotel demand growth and moderate supply growth, but we've also seen a focus on integrating the disciplines of sales, marketing, and revenue management more than ever before. As customer acquisition costs continue to grow and erode hotel profit margins, the science of understanding and optimizing the business derived by channel and managing these and other intermediation costs will be paramount to success. READ MORE

Laurence Bernstein

Customer experience design (CSE) is the new black, although mostly viewed as a function of big data and digital marketing. This is misguided: customer experience design is neither new nor a function of the digital world. CSE is very much a part of the organization as a whole and should be directed by the marketing department to ensure that all customers experience the products and services delivered by the organization in the context of the brand. The greater the global understanding of the fundamental importance of understanding how customers experience the organization and what it does for them, the greater the importance of the marketing team to every aspect of the organization: rather than displace marketing, customer experience design is elevating the function. READ MORE

Grainne  Maycock

If you want to reach 80 percent of your global audience, you need to translate your hotel website into 12 or more languages. But website translation is merely one step of many. You have a lot more to consider on the marketing assets front. To establish and build your hotel brand in new markets worldwide, you need to consider tailoring elements as closely as possible to each audience's cultural expectations. These elements include your color schemes, your website, logo and tagline, marketing campaigns and, of course, the very words on the page. Look to expert guidance from localization experts when it comes to adapting each of these aspects to achieve a local feel in new regions and cultures. READ MORE

Susan Hartzler

What is the difference between traditional media and social media? Many in the hospitality industry are asking that very question. It seems like everyday, there's a new revelation in this arena so what's a hotel, motel or resort to do? Public Relations Professional Susan Hartzler explains the difference between traditional media and social media and how they work together. In this article, you will gain a perspective on how to develop a strong marketing campaign that will brand your property on all the necessary platforms the potential guests use. READ MORE

John Manderfeld

ometimes it's right under your nose—hundreds, perhaps thousands, of additional room nights for your hotel—not from a previously unknown prospect, but from an existing client. It happens over and over: a hotel sales team happily enjoys the repeat business of a major corporate or government account while never considering that they have barely scratched the surface on the account's potential. Countless times I have discovered that a hotel's best clients are also the best clients of one, sometimes several, of the hotel's competitors. So, I learned that my hotel was not getting as much of my best account's business as I had previously believed. READ MORE

Loulu  Lima

As I write this article, I am working with a plethora of hotels and daily being asked to justify distribution. While I work for Travelzoo, (Nasdaq: TZOO) my background is revenue management based as well as hotel distribution through the Online Travel Agency side. I get it and understand where you sit. So without adding bias, I came up with the following points to help them understand where they should focus their strengths based on what they are capable of affording and managing. First, let us define distribution as outlined for commerce in businessdictionary.com: The movement of goods and services from the source through a distribution channel, right up to the final customer, consumer, or user, and the movement of payment in the opposite direction, right up to the original producer or supplier. READ MORE

Robert Mandelbaum

The introduction of technology has had a dramatic influence on hotel sales and marketing strategies and tactics. Revenue management and control of distribution channels now dominate the time spent by lodging industry marketing personnel. These changes have impacted the dollars spent at the property level within the Sales and Marketing Department. To gain a better understanding of how U.S. hotels are deploying their unit-level marketing dollars, and the fees they pay to franchisors, PKF Hospitality Research examined Sales and Marketing Department expense data from its Trends® in the Hotel Industry database of annual operating statements. READ MORE

Dave Spector

This article reveals the battle-tested tactics of one of the world's leading hotel marketing firms. These hotel marketing practices have been implemented and measured over the last 25 years at properties worldwide. Use these 10 simple methods to avoid costly mistakes and turn marketing into a measurable contributor to revenue. READ MORE

Frank  Vertolli

35 percent of leisure travelers engaged in travel-related video activities within the past six months. Online video has become one of the most important elements to marketing destinations, hotels, and travel. Travel is an immersive experience and video has always been a great medium to sell it. Thanks to advances in technology, today's video options are more affordable and marketable than traditional video. READ MORE

Larry  Mogelonsky

The proliferation of China's outbound tourism, while something you should definitely take notice of, is serving to overshadow India's vast growth in this same area. The nation is expected to not only make incredible gains in GDP per capita, but also in the volume of outbound travelers. However, even though India represents a lucrative market for hoteliers to engage new groups of travelers, there are many exceptional factors which might inhibit these connections from properly forming. With an overview of pertinent information about the country for both the present and the future, several clear and simple actionable steps become apparent. READ MORE

Andy Fisher

A Forrester study found that today's travelers are not only using mobile devices to research lodging and travel options, but also as a transactional tool to book and communicate onsite preferences directly with the hotel. However, travelers are still having conversations with brands offline, which challenges hotel marketers to explore how to distribute their budget—how much should be spent offline and how much should support online initiatives. Gaining advanced attribution capabilities enables hotel marketers to measure both offline and online investments to confidently optimize their marketing strategies and annual budgets. This article dispels common myths about advanced attribution and provides practical advice on how hotel marketers can best leverage this advanced technique. READ MORE

Jane  Coloccia

The Millennial generation is a different breed. The way they live, work, and play is contrary to prior age groups, and in order to attract them you have to appeal to how they want to interact. Not only will it involve changing services and facilities within the hotel, but ways in which you market and sell. Keep in mind that Millennials never existed without computers and smart phones and therefore technology is their go-to resource for research and information. They look at everything on a smartphone not a computer, use social media and texts instead of 800 numbers and voicemail, and have a completely different mindset than the rest of us. As a result, how you position yourself going forward to appeal to this generation — which is on pace to outnumber the Baby Boomers — is now more important than ever. READ MORE

Emil Atanassov

How do you use social media to encourage your current and prospective guests in different countries to engage with your hotel brand? It's a question that is hard enough to answer for a social media program in one country, let alone for multiple countries across the globe. Emil Atanassov, general manager, Asia Pacific at Sajan, lends his expert insight into all aspects of fostering multilingual conversations—and hotel brand loyalty—among guests. Learn best practices on everything from responding to messages in near real time using machine translation to personalizing your engagement strategy for each target audience. READ MORE

Marc Stephen Shuster

The United States Green Building Council estimates that buildings account for approximately (“~”) 38% of carbon emissions, ~14% of potable water consumption, ~30% of waste output, ~40% of raw materials, and a significant portion of our energy consumption. In California, roughly 19% of all energy consumed is for water treatment and pumping for human consumption. These numbers hold true for hotels, resorts, and casinos in warm climates. Maximizing sustainability in a hotel, resort, or casino property takes time and a considerable upfront capital investment. Detailed, below, are some reasons why sustainable measures are a “must” in the nation's hospitality market. READ MORE

Bernard Ellis

2014 has been a big year for the hospitality industry as a whole. Business is improving, and many hoteliers are seeing larger Revenue per Available Room (RevPAR) gains than they have in several years. Technology has played a critical role in the effort to grow revenue while simultaneously managing rising costs, and it will continue to be an important part of changes in the industry as we enter the new year. READ MORE

Paul van Meerendonk

Major events provide a unique opportunity for hoteliers a chance to increase their revenue potential and improve ongoing financial stability. However, more often than not many Hotel Owners and Hotel Managers fail to recognize the need for 'pre-event' planning. Without a proper level of planning prior to an actual event, hoteliers may find themselves overwhelmed by the patronage they experience when the event begins. Similarly, without effective marketing and sales strategies in place in the lead up to the actual event, hoteliers may find they do not reach their full patronage potential that they had originally hoped for. READ MORE

Paul van Meerendonk

As the wider hospitality industry continues to face a prolonged period of economic uncertainty, hotels should be looking inwards during this time with a view to protecting and making the most out of their intellectual capital. Whilst many organizations are wisely using this current economic downturn to adequately plan for the future through improved levels of staff investment, many others are not heeding the warning signs and are instead shedding costs wherever possible. READ MORE

Paul van Meerendonk

As the wider hospitality industry continues to face a slow recovery, savvy hotel owners and managers should be looking inwards during this time with a view to ensuring that the technology they use to help run their facilities are best suited for the roles they have to perform. Whilst many international hotel organizations have used the economic downturn to adequately plan for the future through improved levels of technology and staff investment, many others are not heeding the warning signs and are instead shedding costs wherever possible - which can lead to disastrous consequences. READ MORE

Paul van Meerendonk

In this period of uncertainty, how is a hotel to set long term strategies for 2010 and beyond? Who can predict how next year's economy is going to shape up and when demand is going to return if even the world's best economists are having difficulties predicting global economies for the next few months. Savy owners, operators and managers therefore should not only push back on dooms-day scenarios but put in place two key strategies for a successful 2010... READ MORE

Paul van Meerendonk

For many hotels, developing effective pricing strategies remains a complex issue for revenue managers. Their goal, ultimately, is to maximize companywide revenue and profits while building strong hotel partner relationships within their marketplace. Beyond the scope of regular revenue management practices such as selecting the correct overbooking, rate restrictions and best available rate, lies the challenge of selecting the correct rates to choose from in the first place. The emergence of rate optimization has made strides to demystify pricing practices and help revenue managers understand the demand characteristics of their products, understand the price sensitivity of demand and design a rate spectrum that is tuned to all these. This allows hoteliers to take full advantage of their business opportunities, ensuring that they are capturing the maximum revenue at all times through an optimized rate spectrum. READ MORE

Janet  Gerhard

With guest satisfaction at its highest level in since 2006, what can be learned from the most recent J.D. Power Hotel Guest Satisfaction Survey? Hotel rankings by segment may feel like the essence of the study, but by digging deeper into the results individual hotels can focus on a few key areas, especially when it comes to the next generation of traveler, to improve your guest experience. Act quickly though. The 2015 results are already starting to come in. READ MORE

Peter McAlpine

As unlikely as it seems, with hotel groups focusing on technology to enhance the guest experience, the time will come when the major area of competition is the energetic feel of the guest experience. This change is inevitable because energy is the only unexplored area of hospitality left. This article follows on from Part 1 and states three more scientific principles, which hoteliers must know in order to create an energetic Heart-Based Hospitality guest experience. When applied, the guest experience can be transformed to new levels above 5-Stars. The first hotel group to apply them will have a major advantage. READ MORE

Scott  Watson

Advances in technology, particularly the ability to send and store data securely “in the cloud”, have changed the way in which all types of business can be conducted, including back-office hotel accounting. One emerging business model being considered and adopted by management companies is the outsourced accounting team, providing an almost immediately tangible return-on-investment and bottom-line savings, along with allowing hotel teams to focus more time on serving their guests. In an age where technology should be making work easier and not harder, it's time to consider seven reasons why outsourcing may be a great option for your hotel portfolio. READ MORE

Ken Hutcheson

Winter of 2014 was one of the most severe winters in recent history, with many major cities seeing anywhere from 100 to 300% more snowfall than usual and the “Polar Vortex” keeping the northern half of the United States in record cold temperatures for days at a time. The Old Farmer's Almanac predicts this winter to be another arctic blast with above-average snowfall throughout much of the nation. Weather has proven to be cyclical, and we're in the early stage of a cycle. The severity of the storms the country experienced last year came as a shock to most - especially folks living as far south as Georgia. One of the biggest challenges hotel owners, operators, managers, and other hospitality professionals will face this winter is keeping their properties safe from the snow and ice that comes with each storm. To avoid potential hazardous conditions and to ensure the safety of hotel properties and their guests, it's imperative for hotel professionals to understand the importance of snow and ice management and to have a plan in place. By preparing in advance for winter storms and by following a few simple safety tips, property owners will be able keep their hotel landscapes beautiful and their guests, and employees safe and comfortable. READ MORE

Dale Scott Marion

Conventional marketing, within and beyond the hospitality industry, is anything but scientific. Expensive and prone to erroneous conclusions, existing information - about potential guests, and the ways in which to reach them - acts as a veneer of scientific legitimacy, to disguise decidedly unscientific results. There is, however, an alternative to this system: One that uses mobile technology to actively engage consumers, simultaneously transforming marketing into both an adventure (for individuals and families) and a science (for hotel executives). Reproducible by design, and filled with real-time intelligence about how people respond to a powerful incentive (money), hoteliers can now enjoy scientific, measurable data about their respective businesses. READ MORE

Randy  Reaney

Existing forms of encryption are inadequate and far from impenetrable. These vulnerabilities are (or should be) a matter of the highest priority for hotel executives, lest hackers and cyber criminals access private financial data and personal information about individual guests. Discarding the status quo, and through the adoption of a more sophisticated and effective brand of encryption (or enhanced information rights management, E-IRM), hoteliers can guard against the global threats that confront businesses on a daily basis. This opportunity allows hotel executives to be at the forefront of a technological revolution, which protects sensitive materials and works as intended, period. READ MORE

Carolyn  Childs

Technology is creating both opportunities and challenges for hotels in the eternal battle to drive conversion, build yield and increase loyalty. Traditionally hotels have sought to do so at the point of purchase or via loyalty programs. But by aiming to connect with travelers at every stage of their journey (even before they know it is a journey), hotels have the opportunity to raise their profile in the decision and get that all important loyalty advantage. However, it's important to understand what consumers needs are at each stage and reflect these in both communication and product innovation. READ MORE

Trevor Stuart-Hill

All signs point to continued favorable conditions in the hospitality industry in the foreseeable future. Supply growth is modest compared to prior up-cycles, plus demand is at historical highs, so everything is right with the hospitality world - right? Not quite. Profitability isn't as strong as it could be, neither is average rate. As sure as the sun rises and sets, we will once again experience a downturn. Leveraging the full capabilities that the revenue management discipline offers now can drive incremental short-term profits and help insulate your property when the tide eventually turns. READ MORE

Sanjay Nijhawan

All of us who work in the hospitality industry are aware that the needs and expectations of guests are ever increasing and changing. Guests are our job and as companies we need to adapt to ensure we are offering the best level of service and keep guests coming back. An area that has seen the biggest and speediest change in the last ten years in my opinion is that of the technological needs and expectations of the guests. Ten years ago it was enough to offer in-room movies and a small business centre with internet access. Now that offering sounds possibly dinosaur. In a bid to 'keep up' and be a market leader, hotels especially within the premium sector, have fallen over themselves to shout about their building wide Wi-Fi, i-pod docking stations as standard in all rooms and automated check in services. In reality many are merely paying lip service to having these amenities and don't actually have the systems in place to support guests' requirements. READ MORE

Susan Tinnish

Today's hospitality leaders must communicate information powerfully to inspire, enrich, motivate, and devise optimal solutions. As visual creatures, humans rely predominantly on this sense to learn. Utilizing visual communication which includes text as well as art, signs, photography, typography, drawing, graphic design, and illustrations enriches communication. The quote that “A picture is worth a thousand words” has been widely attributed to many sources; regardless of the source, visual imagery is valuable in persuasive communication. This article advances ideas for using images and other forms of visual information beyond the “written word.” READ MORE

Brian  Mitchell

Any perusal of the literature will show how increasingly important Food & Beverage has become to overall hotel operations. Its influence reaches across marketing, finance, staffing priorities, guest satisfaction results, and overall positioning of a property. Yet for all its acknowledged significance the F&B function can easily fly under the radar when it comes to performance scrutiny. This series of articles examines the underlying mindsets and principles that ultimately determine F&B success - factors that won't be picked up in year on year performance measures, or even comparisons against other restaurant operations. It's entirely feasible for an F&B department to tick all the financial boxes, yet grossly underperform when measured against actual revenue opportunities available and ignored. The six articles, concluding with the accompanying one, provide a litmus test for management in evaluating the latent strength of an F&B operation. READ MORE

Kelly  McGuire

It is not news to hoteliers that there are advantages to revenue management and marketing working more closely together. The better synchronized these two activities are, the more profitable the enterprise becomes. As an industry, we've been talking about opportunities in this area for a while, and recently with the advent of digital marketing and personalization initiatives, the need has grown for these groups to work more closely together. In this article, I'll talk about emerging opportunities to synchronize demand generation and demand control activities with the goal of profitably increasing guest engagement and guest conversion. READ MORE

Simon Hudson

Although hotel marketers have not as a rule incorporated product placement or branded entertainment into their marketing mix, there are a few examples of hotels that have successfully employed these marketing tactics to gain exposure and attract guests through the mediums of film, television or the Internet. This article identifies the critical success factors necessary for effective communications of this nature, taking a closer look at the use of product placement and branded entertainment by hotels. The article presents several examples of hotels that have partnered with producers of television, film and digital content to present engaging stories that appeal to potential guests. READ MORE

Coming up in March 1970...