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It
hasn't been until recently that the General Manager has been asked to take an
active role in managing the sales department. If they answered the phone, sent
out hotel information and disappeared from time to time to 'make sales calls',
we thought everything was okay. Hotels were achieving budgeted REVPAR, exceeding
revenue goals and life was good.
Now we are demanding a lot more of our
sales staff, many of whom began their careers at a time when all they had to do
was answer the phone. Now with pressure being brought to bear on the GM when
revenues are down, the GM is expected to actively manage the sales department.
Many GMs have never been expected to do that and many are unsure how.
What follows is a brief checklist for
managing a sales department on a day-to-day basis and the fact is 'Nobody does
what nobody checks'.
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Involve
sales in the 'vision' or the big picture. Help them understand
how everything they do and sell fits into the overall strategy for the hotel.
Sales is arguably the most important department in the property - nothing
happens until a sales is made. You might argue that the franchise drives
business through the 800 number and the guest loyalty program. Most franchises
now drive only between 3-5% (non GDS) contribution to occupancy through the 800
number. Could you make your budget on 3-5%.
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Involve
sales in the revenue management process. In the past six or
seven years, Revenue Managers became the new heroes of the industry. Revenue
management is predicated upon there being demand to manage. The role of sales is
to generate demand. Sales can better approach accounts when they understand how
the process works. Have you had to explain to a sales manger why they can't take
a certain piece of business at a busy time of year? Then you haven't adequately
let them in on the revenue management development strategy. |
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Design
incentives and goals based on market segment objectives. For
example, how many rooms do you allocate to a lower rated market segment such as
government during your peak periods, your off-peak periods? Weight your
incentive program for the sales person handling that market segment to offer a
bigger reward during off-peak times and less during high season.
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Evaluate
the sales skills of your department and provide training where needed.
Remember, we didn't give sales all the credit when times were good, why should
we give them the blame? Many sales people are very capable of doing what we are
asking them but need the tools to learn how to do it. Hang out in the sales
department and listen to the way they handle phone calls - go along for the ride
with each one making outside sales calls. Evaluate how well they handle
situations and get them some assistance if necessary. |
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Set
goals against which to monitor performance. The debate has
often raged between call quotas or activity goals. My former boss and I had this
discussion when I was relatively new to the company and he insisted on call
quotas. That year every sales person achieved their bonus based upon reaching
their call objectives but only two out of seven hotels made budget. The next
year we did it my way and it was based on hotel revenue goals. Six out of seven
hotels achieved budgeted revenue. I rest my case. |
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Ask
for and review weekly call reports at the weekly sales meeting.
You do have a weekly sales meeting and the GM attends, right? Check not only the
number of calls but were they to existing accounts or new prospects? What was
the objective of the call? Spot-check each report and ask how we found this lead
- was it an inquiry or did we develop this prospect ourselves? |
These few steps will assist you in
proactively managing the sales department and guiding them to be able to
generate new business. Your regional person, if you have one, comes in
periodically; it is up to you to observe and manage the department on a
day-to-day basis.
If you are to be the CMO, Chief Marketing
Officer of the hotel, this is only the beginning of a positive and supportive
interaction with your sales staff that will result in increased revenue and
market share for your hotel. |
