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threat of looming war is taking an already elevated level of security to new
heights. Public buildings, office towers and military installations are
increasingly difficult to access. Hotels, especially large destination and
gateway properties, are aware of the potential risks to guests and have their
own security issues. This is likely to be e more of an issue when and if the
US goes to war in Iraq.
The temptation on the part of hoteliers may
be similar to that following September 11. Immediately following that event most
businesses, including hotels and hotel companies, went into a temporary state of
paralysis. Business travel came to a screeching halt and hoteliers' first
reaction was to look for ways to reduce expenses. However, this time expenses
have already been cut to the bone in many cases.
There are some hotels and hotel companies
that included the marketing and sales function in their expense revisions. While
there was often a great deal of 'flab' in these budgeted expenses, the smart
companies measured their cuts against productivity and many have sought to
provide enhanced training opportunities for their sales staff to enable them to
cope with the new economic realty.
When we look at the travel trends following
September 11, we see that corporations have pared down their business travel -
this will be attenuated with the threat of terrorism again on US soil.
Association and trade show attendance has been negatively impacted by the
economy. (Travel Industry Association of America, www.tia.org)
The market segments that were once the backbone of hotel revenues can no longer
be assumed to support property budgets.
Couple that increased level of security
with the urgent need on the part of hotels to develop new business, a new
approach to prospecting for new business has to be developed. A mainstay of
'backyard' marketing used to be to make cold calls on every commercial building
within a certain radius. This simply will no longer work in major metropolitan
areas. Access will be denied very quickly to those without appointments.
Alternative markets take more time, skill and creativity to develop.
How then to ensure that a hotel is
squeezing every bit of business out of their local markets? The following are
but a few ideas and certainly not exhaustive. WARNING -
This approach requires sales people to dig deeper for longer to maximize this
opportunity. If management is not prepared to support the time and increased
learning curve in new business development, read no further!
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Develop
and maintain a directory of businesses and associations in your market.
If you have piled a Territory Report in the past, you have a head start. If
not, there are many business directories that you can buy. However, remember
that once these directories are published, they are going out of date. Be sure
to check the publication date so that you are not buying more directory
information than you need. Go for a drive and walk into buildings. Write down
the list of business and organizations on the inside directory so that you have
an up to date list.
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Research
which industry sectors are outperforming the market. There is
still corporate business out there, you will need to discover which industry
sectors are thriving in this economy and go after them. An excellent tool for
this is USA Today's weekly stock market sector report that tells you which
industries as a whole are outperforming the market. (Bet many of you never read
that USA Today in your lobby except for the Lifestyle section.)
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Cross-reference
the sector list against the directory. This will tell you the
prospects in your market that in all likelihood are doing well and can pay your
rate. The professional associations that serve these sectors are also likely to
have strong attendance. For example, the pharmaceutical and medical supply
sectors are performing reasonably well. Apart from the obvious, calling any
pharmaceutical companies in your market, visit your local hospital and ask the
purchasing department who their suppliers are and can you get a list or offer
them a rate for those suppliers coming into town.
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Explore
alternative markets. Why we dump the SMERF market on the
newest sales manager or the sales assistant (yes, some hotels actually do this),
I'll never know. More than ever, this market requires a lot of creative
'digging' to uncover groups that you may have never considered before. My
attorney's assistant clued me into an affinity group that I would never have
thought about. I mentioned that I was going to a certain hotel to conduct a
training seminar and she said that her Quilting Club had a meeting there. Who
would have thought! Think of some other hobbies that have groups or clubs, go to
shops or facilities that furnish supplies for them. They usually know who the
clubs and the contacts.
PS.
Now that the pharmaceutical companies and quilting clubs will be deluged with
all of you calling, don't tell them it was me who sent you! |
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Carol
Verret, Owner of Carol Verret Consulting & Training, is a twenty-year
veteran of the hotel industry. She arrived in Denver in 1984 in the midst of an
economic downturn and quickly established herself as an expert in sales and
marketing in hotel turn-around situations, applying her formula for REVPAR
improvement. To learn more about Carol Verret, Consulting and Training, visit
her web site at http://www.carolverret.com
Send
email to
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