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 include  Age  Home location  Spending habits  Employment

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 room  Mail  Telephone  Fax  Face to face  Web 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 NEGOTIATE 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