September 25, 2013 Hospitality Asset Managers Association 5 Tough Questions To Ask Your Group Sales Team

Reasons to ask the tough questions  Shorter lead time  Groups are cortical foundation  Room lists are flawed and diminish profitability

Today’s 5 Questions 1.What is the online booking % for groups arriving in the next 90 days 2.What is the decision process for creating special offers to group guests 3.What is being done to encourage longer stays for group guests 4.What is being done to move toward direct booking and away from room lists 5.What strategies are in place to maximize pickup

#1 What is the online booking % for groups arriving in the next 90 days Did you know:  Brand.com fees exceed $4 per reservation  Typical online booking ratios are below 20%  Goal for online bookings should exceed 50%

#2 What is the decision process for creating special offers to group guests  Hold standing meetings  Start with the lounge or spa  Take chances and think of each group as a private channel

Success story: specialty cocktail promotion Created specialty drink and promoted to attendees while in house. Captured audience for the evening. Generated $900 in orders from the specialty drink Sent recipe with bounce back offer. Planner thanked hotel for customized service 1 2 3

Success story: marketing the spa Promoted a free facial treatment when booked with an hour-long appointment Attendees give a promo code when making appointment Hotel gained over $150K incremental revenue 1 2 3

#3 What is being done to encourage longer stays from group guests  Allocate inventory  Promote standing attractions  Market special events  Again, take chances. This is a private channel

#4 What is being done to avoid room lists  Obsolete process  Understand how room lists vary by market segment  Seek to understand why a list is being used  Set goal of 50% conversion

Success story: room list avoidance – small groups Hotel recognized that planner type is often a personal assistant. Only reason for using a list is because of master billing Hotel made planner look good with a personalized web page, less errors, less work. Guests able to indicate personal preferences Hotel turned 50% of its short term room list groups into marketing opportunities 1 2 3

Success story: room list avoidance – large groups Individuals paying own but planner is holding all names until cutoff. There is zero forecasting and group is shut off after cutoff Hotel speaks to planner integrating reservation process with planner’s own reg/hpusing system. 30% lift in pickup. Increased upselling. Less work. PCI compliance 1 2 3

#5 What is being done to maximize pickup  30% of all pickup often happens within 30 days of arrival  Collaborate with planners  Early detection is king  Embrace attrition as an opportunity

Success story: planner collaboration Hotel recognized poor pickup and reached out to planner Facing attrition fees, planner agreed to let hotel market to potential attendees Group went from 60% to 90% pickup in 30 days Planner grateful for hotel’s efforts 1 2 3

Chris Avery VP, Business Development Thank you and questions Maximize online bookings Create special offers Drive longer staysAvoid room lists Maximize pickup