Chapter 3 Organizing for Convention Sales Convention Management and Service Eighth Edition (478TXT or 478CIN)

Competencies for Organizing for Convention Sales Identify factors to consider when organizing for convention sales. Describe typical sales and marketing staff positions, and outline the roles of regional and national sales offices and independent hotel representatives. (continued)

Competencies for Organizing for Convention Sales (continued) Explain how to manage the efforts of the sales team in terms of establishing standard operating procedures, conducting sales meetings, assigning account responsibility, and evaluating the sales effort. Explain the various records and filing systems maintained by a sales office. Describe technological applications for a sales office.

Organizing for Convention Sales Sales Structures Hotel chains with multiple brands are consolidating and relying more on regional and national sales offices Chains are assigning a single salesperson to represent all brands in their company to meeting planners Revenue managers and revenue departments are becoming common as hotels look to maximize revenue—property wide—from convention groups (continued)

Organizing for Convention Sales (continued) Small Properties Salesperson and general manager will solicit all market segments Large Properties Hotels tend to specialize and assign sales staff to specific meeting market segments

In convention-oriented hotels, the sales office works closely with three key departments: Convention services Banquets/Catering Revenue Management

Sales and Marketing Staff Positions within Sales Director of sales and marketing—leads the sales effort by setting objectives and monitoring action plans Director of sales—executes the marketing plan, coordinates and directs the efforts of the sales staff Convention sales manager—solicits convention trade for the hotel Convention service manager—coordinates and services the conventions booked by the property Tour and travel sales manager—develops group and charter business for the hotel (continued)

Sales and Marketing Staff (continued) Advertising and public relations director—coordinates all promotional materials and public relations Sales staff—prospect, set appointments, and call on prospective clients Clerical support—maintain records, provide support, assist in follow-up Supplemental Sales Staff Regional sales offices—provides a central information point that directs meeting planners to the property that will best meet their needs Independent representatives—represent the property as a “long arm” of the sales department

Regional Sales Offices Solicit business for any hotel in the chain One-stop shopping (similar meetings) Computer banks on clients and chain properties Intermediary between client and property

Independent Hotel Representatives Used when in-house staff cannot cover all areas Services offered vary widely Represent more than one property (but rarely similar clients) Hired on a contract basis Must work within the scope of the property's marketing plan and familiarize themselves with the property 

Standard Operating Procedures Describe how recurring business actions should be handled Act as a reference that helps banquet and sales staff handle functions consistently Cover such things as function book control, booking policies, organizational chart, and reservation cut-off dates

Areas Covered by SOPs Function book control and procedures Guestroom control book procedures Booking policies Rate guidelines for high and low demand periods Credit/deposit/cancellation policies Policies regarding VIP and complimentary rooms Meeting room rental fees and procedures Banquet and room reservation cut-off dates Convention service standards and procedures Organization chart and job description for sales department

Types of Marketing and Sales Meetings Weekly staff meetings Weekly function meetings Weekly revenue management committee meetings Annual or semiannual sales meetings for all employees

Assigning Account Responsibility Methods and Fairness Accounts could be assigned by market segment or by specific accounts. The director of sales must ensure a fair distribution. Key Account Management Prioritizes accounts based on profits Helps identify the accounts with the highest profit potential

Evaluating the Sales Effort The director of sales should: Evaluate each salesperson’s weekly activity report and his or her reader file Periodically review the organizational structure of the sales office

The Importance of Relationships Meeting planners value personal relationships with hotel salespeople Choice of hotel is frequently based on relationships with convention sales personnel and with the convention service manager Technology (e-mail, voice mail, Internet, text messaging) has tended to depersonalize the sales process Salespeople should strive to develop lifelong relationships with clients Seek to “own the planner’s business”

Sales Filing Systems and Forms Elements of Sales Filing Systems Master card Account file Tickler file Control Books Function book Guestroom control book Sales Forms Tentative booking sheet Definite booking form Working file Change form Cancellation form Lost business form

Master Card Summarizes sales efforts Serves as prospect database Often color-coded Trailer cards hold information on divisions of large companies Details contact names, months in which group meets, size of group, where the group has met in the past, and key decision-makers

Account File Serves as the basic group business record Folder that includes all correspondence and related materials Started at initial contact Also color-coded with cross-reference to master card Information in the file includes tear sheets, past convention programs, and contracts

Tickler File Also known as a trace file, bring-up file, or follow-up file Helps ensure effective follow-up Filed by month/day in accordion-style files Entry in the pocket for the day or month you want to contact prospect Example: In the pocket for August 15, 2012, a note to call a local PTA leader about annual holiday banquet 

Control Books—Function Book A master control of all banquet space; each page or computer screen lists the property’s meeting space and allows for recording of meeting activity by day A page for every day of the year All function rooms represented on each page Entries under function rooms include name of organization, type of function, attendees, rates, etc. Most hotels have computerized their function book One person should control and maintain the function book (manual version) Prevents double-booking

Control Books—Guestrooms Control Book A master control of guestrooms available for sale to groups; each page or computer screen lists the booking activity and status of group guestroom blocks Helps monitor guestroom allotments to groups Lists rooms available to groups Format consists of a monthly report sheet with space for group's name and guestroom commitment by day Both tentative and definite bookings are noted Computerized guestrooms control books allow salesperson access either in-house or from a remote location

Sales Forms Tentative booking sheet—documents that the meeting planner has been given an option on the space and a hold has been placed on the room(s); used if a date has not been confirmed or if details have not been worked out Definite booking form—used after business has been confirmed Working file—established once a group “goes definite”; includes only information relevant to the event Change form—documents changes in dates and/or room requirements Cancellation form—confirms cancellation Lost business form—details reasons for cancellation

Advantages of an Automated Marketing and Sales Office Tedious tasks accomplished quickly and efficiently Instantaneous access to sales information Personalized mailings Risk of human error reduced Easier to reorganize client or guest data on the basis of zip code, desired time periods, areas of interest, etc. Faster preparation of mass mailings (continued)

Advantages of an Automated Marketing and Sales Office (continued) Enhanced communication among properties in large chains Frees salespeople from the office; laptops, e-mail, text messaging, and cellular phones allow salespeople to work on the road Facilitates yield and revenue management

Technical Components of the Virtual Office Laptop computer E-mail Blackberry/cellular phone

Yield and Revenue Management Yield management—a technique used to maximize hotel revenue/profits by basing prices for guestrooms and banquet space on supply and demand. Revenue management—the practice of assessing a group’s overall contribution to hotel revenue/profits by measuring its impact on guestroom, meeting space, restaurant, and retain revenues, as well as its potential for future business.