Issue 3, April, 2001 

http://www.carolverret.com


How Soft is Your Hotel's Economic Landing?

  The Federal Reserve planned for a 'soft landing' of the economy; the 'impact', however, has been softer for some than for others. The hotel sectors most impacted are those in areas dominated by tech companies with extended stay and limited serve products in overbuilt markets. While pilots say that 'any landing you walk away from is a good one', merely surviving isn't sufficient for owners who have been used to double-digit revenue growth for the last five years.

 

   The summer of 2001 may hold challenges that many hotel managers and sales departments haven't dealt with before. Instead of managing the yield produced by high demand they will need to generate demand from market segments impacted by lay-offs, high gasoline prices and declining disposable in e from deflated stock portfolios. Generating demand is a skill that hasn't been required in most markets for several years.

   How can you prepare your property to maintain market share in these circumstances?

  Evaluate your rate positioning against your competition often. Ensure that all reservation sources that can be immediately impacted are notified of any changes that you may make based on your forecast. These include your reservations system, internet based sources, and central reservations sources for your area such as resort associations.

 Get your sales department out on the road making sales calls. Evaluate their sales skills and provide immediate training if they have deficiencies. Ask for and analyze their sales reports. Support them in their efforts by accompanying them on sales calls and by giving the potential client your personal assurance of quality service for their guests.

  Empower and motivate the front desk to capture every same day reservation and walk-in. Typically, we suspend incentive programs during the summer because demand is high and we believe that we will capture the demand. It is far easier for the front desk to let a walk-in go back out the door than to go the extra mile to close them. Set a reasonable rate range every night that they can quote with confidence for walk-ins, same-day and short lead reservations. 

 Give your guests the highest level of service they can imagine – exceed their expectations. Make your expectations of quality customer service clear to your employees in terms of empowering them to satisfy the guest and resolve guest plaints. Don't limit this to the front desk but include all of your employees. Add value by putting complimentary coffee in the lobby and a bowl of apples on the front desk. (I am assuming that many of you already do this – I hope I'm right.) Demonstrate to your staff what you mean by modeling behavior with guests that show the level of your commitment to customer service.

In all likelihood, it is going to be a tough summer for a lot of hoteliers. Minimize the damage and maintain or increase your market share against a competitive set that may be 'asleep at the switch' until it is too late. 

 

The ResultsWoW Customer Service Newsletter by Carol Verret is a monthly newsletter designed to keep you updated on information relating to the hospitality industry specifically in the areas of sales and customer service. You will receive an edition each month.

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Contact: Carol Verret (303)618-4065
Web Site: http://www.carolverret.com/ 
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