LHS- INTERNATIONAL TOURISM MANAGEMENT Tute 01 Date .
INTRODUCTION TO HOSPITALITY MARKETING AND SALESImportant of
Sales and Marketing team to a Hotel High competition among the
hotels, need the competent team of Sales and Marketing to promote
the product among the competitors. Main Responsibilities -
Responsible for building the image of the organization among the
customers - Responsible for putting up a effective sales and
marketing plan - Responsible for carrying out market research
product development campaign etc. - Responsible for finding new
segment in market - Responsible for bringing business and helping
out finance department to achieve the set targets ORGANIZING CHART
OF THE SALES AND MARKETING DEPARTMENT
Director Sales & Marketing Sales MangerAssistant Sales
Manager Sales Executives Whats Marketing?
Marketing ManagerAssistant Marketing Manager Marketing
executives
1
Marketing is the study and management of the exchange process.
It involves the things that the property will do to select a target
market and stimulate or alter that market demand for the property
services. It consist with research, action , strategies
advertising, publicity, & sales and promotion. Whats Sales?
Sales consists of direct efforts to sell the property by personal
sales, calls, telecommunication & mailings THE MARKETING MIX
The term Marketing mix is used to indicate the variable factors
which can satisfy specific consumer needs. It is mix of 4ps such as
product, price, promotion, and place
2
Managements Role in Marketing & Sales Role of Director
Marketing - Responsible for carrying out a marketing plan through
out the year - Conducting sales promotion plan with the help of
Director sales - Responsible for identifying new segmentation of
the market - Responsible for identifying new opportunities -
Responsible for redirecting& modifying strategies that are not
working well - Other managerial function Role of Director Sales -
Responsible for applying marketing strategies and directing the
sales staff - Responsible for putting up sales plan through out the
year - Responsible for Guiding the sales team accordingly -
Responsible for identifying new opportunities The Challenge of
Hospitality Marketing and Sales Hospitality sales differ greatly
from consumer goods sales in that the hospitality sales person is
selling something that has both tangible and intangible products. -
Intangibility - Perishability - Inconsistency - Inseparability
Trends shaping the future of Hospitality Marketing & Sales
Identify new trends & act immediately - Globalization Expanding
the business globally to attract different customer segments around
the world Ex: International reservation / Central reservation
Developing marketing strategies for specific countries and regions
- Consolidation It can be merge, acquisition, or making joint
ventures among two or more Corporation - Partnership Marketing
Involving two or more partners and serving similar markets with
noncompetitive Products. It gives the benefit from each others
strengths Niche Marketing & branding
3
-
Designing, building and marketing hospitality products for
specific market Segments Technology Providing more efficiency
service via technology, more properties have web Sites and guest
are also being reached on line booking facilities. Environmental
awareness Costumers are more concern about the environmental issues
Ex: Eco Tourism Guest preference Giving a prominent place for guest
whishes Relationship marketing To day most of the places treat
their customer as assets and making good relation ship to get the
repeat business
-
4
THE MARKETING PLAN It is a guide for marketing, sales,
Advertising and promotional efforts. It is the upon which sales is
built It is the propertys road map .Normally marketing plan has to
develop for at least three year period. It - Forces Managers to
think ahead and make better use of the propertys resources. - sets
responsibilities and coordinates and unifies efforts to reach the
propertys sales Goals - Creates an awareness of problems and
obstacles - Identifies opportunities to increase market share in
some market segments and new Opportunities in previously ignore
areas - Ensure that sales promotions and advertising are not wasted
because of misdirected Efforts If the management is uncomfortable
with three year plan a compromise can be reached by setting broad
goals over the three year period and well defined objectives and
strategies for for the first year of three year cycle The Marketing
Team It denotes a group of people representing at least one from
each revenue center of the hotel Steps of Marketing Plan Three are
five steps that must be included
5
STEP 01
Conducting a Marketing Audit
The foundation of any marketing plan is the marketing audit.
Marketing audit is the research steps in the planning process, and
is some time referred to as gathering marketing intelligence. -
property analysis It is a written unbiased self- appraisal used to
assess the strength and weakness of your property. Under that
following factors will be considered *Revenue and non revenue
producing area * Reputation * Location * Building exteriors *
Landscaping Sample Property Analysis Form
6
Competition Analysis An evaluation of a businesss competition to
identify opportunities and unique selling points. It is a part of
marketing audit. The objectives of a competition analysis are to
discover the objectives of a competition analysis are to discover -
profitable guest groups are being served by competitors that are
not being at your property - Some competitive benefits or advantage
your property enjoys that cannot be matched by major competitors -
Weakness in the marketing strategies of the competition on which
your property can capitalize Ex: competitive rate analysis
Market Place Analysis Researches the propertys current position
in the market place and reveals potential opportunities to promote
the property It evaluates the environmental opportunities and
problems that can affect the business and forces affecting a
business, such as changes in life styles societal values, economic
conditions, and Technology.
7
STEP 02
Selecting Profitable Target Markets
Here we have to consider the difference market segmentation in
an around us. Market segmentation: Dividing the market in to groups
of consumers with similar needs, wants, backgrounds, incomes,
buying habits, and so on Exhibit 06 The market place analysis
STEP03
Positioning the property
Positioning: A marketing term used to describe the process of
shaping how consumers perceive the products and services offered by
a particular hotel or restaurant in relation to similar products
and services offered by competitors (the process of designing a
propertys market position is known as positioning) Positioning is
not simply advertising. A property s is composed of the hospitality
it offers and the managers and marketers ability to create unique
selling points based on the property location internal or external
features personnel. Without positioning it is impossible to
determine what the property has to offer, where the property is
going and how it will get there etc.
8
STEP 04
Establishing Objectives and Action Plan
Once the market audit is completed, the target market segments
identified and the positioning established, the next step in the
marketing plan is to establish specific marketing objectives. This
is one of the most difficult steps in the planning process because
it involves establishing goals for each market segment. Marketing
objectives should be simple should be set for each market segment,
revenue centre and revenue producing service like outsource laundry
facilities. Marketing objective should be - In writing -
Understandable - Realistic and challenging - Specific and
measurable STEP 05 Monitoring and Evaluating the Market Plan
Marketing efforts should be measured carefully; the easier it
will be future marketing activities and programs. The marketing
plan should be review periodically so that corrective action can be
taken through out the planning cycle. If action plans are effective
and objectives are realized within establish budget limits,
corrective action need not be a part of the process. But it is
painful fact that some strategies do not work .If hotel sales goals
are not being met the problem can often be traced to one or more of
the following reasons - Lack of responsibility - Lack of
communication - Lack of time - Lack of authority - Lack of appeal -
Lack of control - Lack of realistic goals
9
LHS- INTERNATIONAL HOTEL MANAGEMENT Chapter 03 Refer page 66 for
sample marketing plan Tutorial 01(Chapter 01) Review questions 09
Case study 01 Tutorial 02(Chapter 02) Review questions 09 Case
study 01 Date.
MANAGING THE MARKETING AND SALES OFFICEMarketing and sales
Division Marketing and sales division can be varied with the size,
type, and budget of the hotel to hotel. Small hotel only have one
person who is handling all the sales activities related to the
hotel business. But large hotel have organized sales and marketing
division with no of key personnel. Refer 74 page for organization
chart for sales and marketing of a small hotel Refer 75 page for
organization chart for sales and marketing of a large hotel Duties
of key positions Marketing research coordinator Responsible for -
Finding out current market trends - Marketing and sales strategies
- General consumer trend - Fining out new market trends -
Conducting any other research activity which will affect to the
business Director of Advertising and Public Relation
10
Responsible for - coordinate all promotional material -
establishing good public image to the company - selecting
advertising media for the property Director of Revenue Management
Responsible for - price structure based on the date,season,day of
the week competitive situation and the potential of the group
Telemarketing Director Responsible for - supervise and manage the
telephone sales staff Director of convention services Responsible
for - overseeing the servicing of the group business once it has
been sold - handling bookings related to the convention halls -
close coordination with food and beverage department Director of
sales Responsible for - putting up the sales plan for the hotel -
coordinating with top management - administrating a sales support
system - training the sales staff - setting sales targets -
evaluating sales progress - evaluating sales procedures Refer page
78 for sample job description of a sales person Organizing the
Marketing and Sales Office It can be organized in a variety of
ways, based on a number of factors, - The propertys goals and
objectives - The budget for marketing and sales - Available outside
assistance (travel agents, chain referral, reservation) - The total
market potential and the no of people needed to take advantage to
take That potential Recruiting and hiring effective sales person
Common characteristic of an effective sales person -
professionalism - Ability to communicate
11
-
Intelligence Ability to analyze Motivation Efficiency
Persistence Empathy Curiosity Training a sales person
Each sales person should have a firm foundation in the following
key areas Property knowledge- General description about the
property, the no of and type of guest rooms, room rates, no of
conventions hall, lay out of the hotel. Office procedure should
know about the office routine works .Booking policies, sales
quotas, sales office hours, function and guest room control books,
sales forms and reports Performance standard Expected service from
the sales persons Salesmanship- How efficiency in sales activities
Training Techniques 1 simulated sales calls Giving to train new
sales person can make a sales presentation and be critiqued by
other staff member 2 Double calling Sales person accompanied by the
director of sales or a senior person. 3 Market segmentation drills
Educating about the current serving market segments 4 Case study
exercises Making sales strategy plans for other organization which
are not own by the same company 5 In basket drill Training about
the documentation skills Managing sales people It is a duty of
director sales to implement a proper tracing system to manage his
staff
12
Evaluating salespeople Can evaluate by studying - No of sales
calls made - No of room nights booked and revenue generated - No of
proposal sent out - No of follow ups on the file - Percentage of
rooms nights booked during high need time - No of inspections
conducted and business generated Developing the Marketing and Sales
Office Communication system It is understood fact that the
department should have proper communication link within the
department as well as the the other areas. a sales marketing office
relies on various methods to communicate ideas and information,
including holding meetings, keeping sales records, and establishing
filing system. Sales records and forms Sample sales call report It
is kind of form to be filled when making a sales call Refer page 97
exhibit 9 for Sample sales call report Sample booking form It is a
kind of document which filled during the booking is taken Refer
sample booking form page 99 exhibit 10 Sample lost business report
This formed to used to fill either business cancelled or changed
Refer page no 100 for exhibit 11 Sample function book reservation
sheet This sheet help to avoid double booking of particular selling
place once it is sold Refer page 101 for exhibit 12 The guest room
control book It used to monitor the no of guest rooms committed to
groups. The book should indicate no of rooms allotted to each
group. The guest room control book is used to monitor the
13
no of guest rooms committed to groups. It indicate whether
allotment is confirm or tentative at any given time. Refer page no
105 for sample guest room control report
FILING SYSTEM There are several types of filing methods that may
be used for storing client data and other sales information. These
methods fall into three general categories. 1 Alphabetical filling
2 Key word alphabetical filling 3 Numerical The Master card file
Master cards are instrumental in establishing data banks of
information on the needs of clients. Each master card contains a
summary of everything needed for an effective sales effort, the
organization name ,the names and titles of key executives ,address
,phone numbers month or months in which group meets, the size of
the group, the group decision maker and other potential data that
can help to obtain and keep that accounts business. The Account
file It is standard size folder holding information needed for
serving a client basic business needs. The account file usually
kept in a standard file folder and contains all of the groups
information , including sales call reports, tentative and confirm
booking information, function sheet of past business, and
correspondence generated related to the booking. Information is
placed in the file chronological order. Account file folder to be
color corded according to various groups. Sample account file
-Refer exhibit 16 page 108 Sample manual trace file The trace file
also known as a tickler file ,bring up file , or follow up file is
an effective aid for following up an account reminder card or note
is filled in the trace file by month and date. The system is used
as a reminder of correspondence, telephone calls or contacts that
must be handled on particular day. Sample trace file Refer exhibit
17 page 109
THE AUTOMATED MARKETING ANAD SALES OFFICE Sales and marketing
office generates an incredible of paper work, to avoid that most of
the offices are computerized. Benefit of automation - Less paper
work - Can provide quick and efficiency services to customer - Easy
access to sales information
14
-
Facilitate personalized mailing Cost effective
Additional Application of Automation - Database marketing Data
base marketing assist the marketing and sales department to
organize, analyze information about the individual guest and
groups. It helps to use information from routine source like guest
folios registration cards, customer survey the group histories of
meetings to build relation ships and market the propertys services
effectively. - Home based and virtual offices Virtual office
Because of the advance technology sales people can function their
activity in any area by using laptop computer and cellular phones.
Home based office Sales staffs are free to do their work even
staying their home. It saves initial cost of opening sales offices
- Can generate lists, reports, and analysis application It helps to
generate quick report in various areas - Yield and revenue
management It helps to calculate the yield and accumulated revenue
for the past finance year. EVALUATING THE MARKETING AND SALES
OFFICE It is responsibility of director sales and marketing to
evaluate his or her staff on regular basis to identify their
performance and abilities towards the selling techniques.
Tutorial 03 Review questions - (page 118) Case study -01 (page
119)
15
LHS - INERNATIONAL HOTEL MANAGEMENTLESSON HOSPITALITY SALES
& MARKETING Lesson no 04 Date
PRESONAL SALESThe personal sales call is often the most
effective means of customer contact, especially when directed at
volume movers of the leisure, business and meetings market. A
personal sales call is used to build rapport with clients or
potential clients and sell them the propertys product and services.
Type of personal sales call 1 cold calls or prospect calls which
can either be made in person or by telephone, are usually made
within a small geographic area with a minimum amount of time spent
on each call. 2 public relation calls This call made for existing
customer to enhance the relation ship. 3 Presentation calls This
call are made to individuals committees or groups to explain how
your property can meet their needs and to ask for their business. 4
Inside calls These calls are made to walk-ins inquiry about the
property or to group buyers, such as tour operators and meeting
planners.
ProspectingProspecting is the life blood of sales because
prospecting identifies the individuals or groups that may become
the propertys client base in the future. At a minimum, each sales
person should be making 10 to 15 calls per week on new prospects.
Sources of prospecting - Referral program of past and present
clients - Account penetration - Local organization and companies -
Community contacts - Front desk personnel - Other property
employees - The property competitors - Other sources - The national
level - Networking - The internet
16
Qualifying prospects Qualify and quantify are two of the most
important steps in the solicitation of any account. Unfortunately,
not every prospect qualifies as a potential client, in many hotels
80 percent of business is generated by 20 percent of their
accounts. Refer sample sales prospect card exhibit 2 page no 137
Prepare for the presentation sales call Once the prospect has been
called on and has expressed an interest in the property, a
presentation sales call can be made. Although you should approach
each presentation sales call with confidence, you should realize
that not all presentation lead to sale. You should have well
prepared presentation. It results 1 increased credibility 2
increased confidence 3 increased probability of reaching the
decision maker Pre presentation planning To be effective pre
presentation planning should include property research, competitor
research, and client research. Property research includes the
developing a property fact book including various information
related to the hotel. Such as - General property description -
Guest rooms - Restaurants and lounges - Meeting and banquet
facilities - Audiovisual equipment - Transportation - Recreation
facilities - Out side services - Vendors Competition research
includes the the gathering various information related to the
competitors strengths, weaknesses, and their customer base. Refer
sample competition analysis-page 143 exhibit 03 Client research
includes the study about client, annual reports, internet sites,
business directories, articles, trade journals etc... The sales kit
Before making a sales call you should prepare a well organized and
professional sales kit. Only the information pertinent to the
clients particular needs should be included, too much information
results in clutter and appears unprofessional.
17
Projecting a professional image You are the official
representative of the property and your appearance, attitude, and
approach to clients can mean the difference between new business
and a negative response. Remember, you never get a second chance to
make good first impression. First and foremost, never smoke; chew
gum, or drinking during a sales call. Other factors in projecting a
professional image include nonverbal communication, voice quality,
listning skills, and negotiation skills Nonverbal communication -
Appearance - The handshake - Territorial space - Public space -
Social space - Personal space - Intimate space - Body language
Voice quality The sales presentation must be clear and
understandable to be effective. The human voice is a persuasive
instrument when used properly, and it is vitally important that you
learn to use your voice as a selling tool. Listening skill At the
other end of the spectrum, you must know when to stop talking. You
need to show genuine interest in your clients need, and listening
is and important part of building a rapport. Negotiating skill
Listening plays a key role in yet another important sales skill,
negotiating. Negotiation involves two or more parties coming
together to reach an agreement for their mutual benefit. The
presentation sales call The objective of a presentation sales call
is to book business for the property .once you have prepared
yourself for a presentation sales call it is time to make an
appointment with the client and follow the five steps that will
help ensure success. 1 opening the sales calls 2 Getting client
involvement 3 Presenting your property 4 Overcoming objections 5
closing and following up
18
1. Opening the sales call All sales call begins with an opening.
The opening should put the customer at ease establish rapport and
build the prospects confidence and trust in you it divides in to
following stages - Introduction Giving introduction about the
presenter - Purpose statement Stating purpose of the visit -
Benefit statement Reasoning out why he /they should listen to him
and benefits what they can gain - Bridge statement This will
indicate the body of sales presentation 2. Getting a client
involvement Second stage in the sales call focus on determining the
clients specific needs and involving the clients by asking
questions questioning always precedes any sales presentation. This
is is a fundamental rule. Questioning and presenting are separate
steps. 3. Presenting your property You should have prepared,
rehearsed sales presentation that addresses the needs of each of
the major market segments the property has targeted. For example a
general sales presentation for meeting planners that relates
specially to the needs of that segment. There are three skills
required for a successful presentation; they are - Organization -
Effective speaking - Visual aids Refer exhibit 05 page 154 for
sample presentation planning check list. Closing the presentation
When you have conclude the presentation, a transition phrase, which
may be simple as do you have any questions can lead to the next
step of the sales call overcoming any objections expected by the
client. 4. Over coming the objections Step four of the sales call
deals with those times when the client has objections to your sales
presentation. Objection can occur at any time, and there is no
reason to panic when an objection is raised. Some objections are a
clients way of asking fro more information and some may offer an
opportunity to close the sale. Normally the objection fall in two
three main categories 1. Price or rate 2. Product or service 3.
Lack of interest
19
4. Closing and following up Closing up Many sales people enjoy
presenting their products, but hesitate when it comes to closing.
Closing is not difficult, however, when you understand some
fundamental principles involved. There two basic types of closes.
Test close and major close. Test close try draw a reaction from the
client. A major close is a question or statement that asked for
sales. Following up It is necessary to follow up all the sales call
was made. If a sale was not made, follow up can consist of a brief
thank you letter. The letter should be accompanied by additional
material not given to the client at the time of presentation and
any materials specifically requested by the client. Improving sales
productivity Sales is a highly competitive field, and you should
constantly monitor your performance in no of areas. In order to
measures your productivity, you must first have a written list of
goals, goals keep you on track and allow you to gauge your success
the basis for goals should always be the hotels marketing plan, and
success should be evaluated in terms of achieving the optimum
customer mix set by the property. Time management Good time
management is leads to successful sales career. It is important to
have track record for time utilization for each task. Your workday
should be planned. Non selling task should be eliminated during
during prime selling time, and emphasis given to work items with
deadlines. In order to use time most effectively, time spent on
routine work should be minimized. By using a hotel director a sales
person can utilize his time effectively Refer sample hotel director
in page 164 Key account manager A typical sales person at
properties of all sizes handles 300 to 400 accounts. Landing new
accounts does not mean that you must service an ever increasing
number of clients. New accounts with high potential will replace
those with the lowest potential for business, so that the total no
of accounts you service will remain relatively stable as you
continually increase the quality of the accounts being followed
Tutorial - 04 Review Questions10 Nos (page 168)
20
LHS - INERNATIONAL HOTEL MANAGEMENTLESSON HOSPITALITY SALES
& MARKETING Lesson no 05 Date
TELEPHONE SALESChapter will outline the basics of telephone
communication; describe how to handle outgoing and incoming calls
in a professional manner. The telephone is an important business
tool and proper handling of a phone call is one of the most
important skills one needs in the business world. Since the
telephone is used in so many different ways, telephone sales may be
delegated to several groups of employees within a property. Sales
call may be handled by sales people or top management no matter how
calls are delegated, both incoming and out going calls play an
important role in a propertys overall sales and marketing efforts.
BASIC TELEPHONE COMMUNICATION Telephone Etiquette The lodging
industry offers more than just rooms and guest services. It offers
hospitality, and friendliness and courtesy are an important part of
any interaction between a property employee and potential guest.
When using the telephone, property employees must communicate
warmth and a willingness to be of service. Telephone etiquette
begins by letting the potential guest know that he or she is
important to the property. It is important that the propertys
representative be polite and understanding and that the unseen
guest feel that someone is concerned about what he or she has to
say. Refer exhibit 01 for sample telephone etiquette guide lines.
There are a number of other ways salespeople can make a good
impression - Adequate preparation - Adequate time - Direct contact
- Courtesy and respect - Brevity - Timing TELEPHONE COMMUNICATION
SKILLS Tone of the voice Pitch Inflection Understandability
Enthusiasm
21
LISTENING SKILLS The other half of a successful telephone call
is listening to what the prospective client or guest has to say. A
salesperson in particular should be aware of several keys to good
listening. - limit talking - Get involved - Ask questions Outgoing
calls 1. Prospect and Qualifying calls The objective of prospect
calls is to gather information and learn the names of decision
makers. Qualifying calls determine if prospects need or can afford
the products and services offered by the property. Refer sample
prospect qualification form in page 176 2. Appointments calls
Appointment calls are used to briefly introduce a prospective
client to the features and services offered by the property and ask
for an appointment to meet face to face the object of an
appointment call is to get the prospect to agree to an appointment,
not to make a sale. Before making appointment call you should have
all necessary information available at your hand.appoinment call is
made up of several steps - reaching the decision maker - opening
the sales call - the presentation - overcoming objection - setting
the appointments 3. Sales call Telephone sales calls may be made by
a sales person or by a telemarketer working with a sales script.
Hotel chain and many large independent hotels work with specially
trained telephone sales team that call on prospect and concentrate
on getting bookings or commitments by phone. 4. Promotional calls
Promotional calls may be made by sales people or top management to
introduce special promotions. 5. Service calls Client satisfaction
and loyalty can be develop through service calls, whether the calls
are made just to keep in touch or are follow up calls to clients
after a sale has been made. It helps to build a good rapport with
the customer and help to identify any changes in meeting schedules.
5. Public relation calls These calls are made to generate goodwill
among the prospect customer.
22
INCOMING CALLS No matter what type of calls is receiving to the
hotel, it is essential that the caller receive a positive first
impression .when a call is answered at the hotel, the spot light is
on the person representing the property, and any unprofessional
behaviour will create a bad reflection about organization.
Reservations Telephones play an important role in making
reservations. At small properties reservation are handle by a small
group of reservation staff or the front desk agents. Since the
reservationists is often the publics first contact with the
property, more and more emphasis is being put on the training of
reservation personnel. Response to advertising One of the most
effective advertising methods used by hotelier today is the
listening of a toll free telephone number in print ads. Since
people are more likely to respond if the call is free. Toll free
calls are often handle by telemarketing people staff that tries to
get either a firm commitment for a reservation or information to
pass along to a hotel sales person. Inquires Excellent leads for
prospective business come in the form of inquiries from people who
call the property on the recommendation of friends, acquaintances
or business associates who are familiar with the property.
23
TELEPHONE SALES OPERATIONS The telephone can be used in creative
ways to boost sales. Two of the most common ways are telephone
sales blitz which can be extremely effective for small to mid size
properties and telemarketing which is used primarily by large
properties. TELEPHONE SALES BLITZES Telephone sales blitzes are
usually used to gather information, but thy can also result
immediate sales. This system especially effective for properties
that cannot afford expensive computers and other telemarketing
technology. The successful telephone sales blitz begins with
organization. The property s general manager or sales team usually
targets a particular geographical area or market segment and
develops a plan for contacting as many as possible within a short
period of time Refer sample sales blitzes form exhibit 07 page
(193) TELEMARKETING OPERATIONS Telemarketing is an effective sales
tool that provides person to person contact immediate feed back and
the flexibility of Varity of approaches without the cost of a
personal sales call. Telemarketing is characterized by systematic
use of the telephone often by a special Staff of highly trained
telemarketers along with computers and other technology that
provide instant access to information Refer sample telemarketing
call report exhibit 08 (page 194)
Tutorial-05 Review Questions 10 nos (page 199) Case study 01 nos
(page 200)
24
LHS - INERNATIONAL HOTEL MANAGEMENTLESSON HOSPITALITY SALES
& MARKETING Lesson no 06 Date
INTENAL MARKETING AND SALESWHAT IS INTERNAL MARKETING?
-------------------------------------------------------A concept
that sees employees as customer who must be sold on the property
they work for and convinced of their importance to its successes.
What is an internal sale? Specific sales activities engaged in by
various employees of a property in conjunction with a program of
internal merchandising to promote additional sales and guest
satisfaction. Management can encourage these vital relation ships
in three ways. 1 .provide an environment for guest employee
relation. 2. Instill pride (recognizing the value of employee and
their positions) 3. Provide training that encourages employees to
become more helpful. THE ROLE OF GENARAL MANAGER IN INTERNAL SALES
The attitude of the general manager will greatly influence the
success of an internal sales program. If the GM is not customer and
sales oriented, it is unlikely that the staff will be highly
motivated. A general manager can develop a sales oriented staff by,
- hiring sales oriented employees - training employees in sales
techniques - motivating employees to sell The role of employees in
internal sales Many employees make guest contacts while the guests
are in the hotel. here the employees are encourage to make good
rapport with the customer to get their repeat buisneess.it is
especially important to build guest loyalty to avoid losing even a
small part of your current guest base to competitors. Relationship
selling Relationship selling can be defined as building guest
locality by creating enhancing and maintaining a good relation ship
with guest. There several ways for properties to learn more about
their guests so they can build relationship with them. One common
method used is the use of guest profiles. Other way is getting
information through staff.
25
Employee training Employee training should be included a number
of areas that will enable employees to assist guest and build
rapport. These areas include - knowing the property Employees are
encouraged to study the property fact book in order to get a good
knowledge about the property. knowing the community It important to
aware the area surrounding hotel and places of interest in the
area. Employee can promote such things to their customers.
Interacting with guest Positive interaction with guest is crucial
to making a good impression and generating repeat business. When
ever possible called guest by their names. Learning sales skills.
Sales skills help employees to make the most of sales opportunities
in their particular areas of guest contact.
-
-
Upgrading Reservation is an effective way to increase revenues,
but very few front desks or reservations staffs are trained to use
upgrading technicques.upgrading can be accomplished without
pressuring a guest by using one of three methods. Top down method
Guests are encouraged to reserve middle or high rate rooms. Rate
category alternative methods If the guest cant afford high rates,
Guests are encouraged to select middle rates range of rooms Bottom
up If the guest cant afford high rates and middle rates Guest are
encouraged to buy low rates rooms
-
SUGGESTIVE SELLING It is a process of influencing guests
purchase decision through the use of sales phrases. The entire
employee can practice these techniques to increase the sales
volume. Ex; food server can suggest a cocktail before the dinner.
EMPLOYEE INCENTIVE PROGRAMME Employee incentive programs can be an
effective means of motivating employees to sell and of tracking
sales results. Here the employees are rewarded in various ways for
their extra selling efforts. When developing incentive programs
management should realized
26
that while incentives in the form of cash, merchandise, or trips
are often used to motivate employees. INTERNAL MERCHANDISING
Internal merchandising is the use of guest room services
directories, Restaurant tent cards, Elevator posters, Bulletin
boards and other promotional items to promote the propertys
facilities and services. Refer page 228 for sample annual internal
merchandising plan
TUTORIAL 06 Review Questions 10 Nos (page 233)
27
LHS - INERNATIONAL HOTEL MANAGEMENTLESSON HOSPITALITY SALES
& MARKETING Lesson no 07 Date
ADVERTISING AND PUBLIC RELATIONWhy Advertise?
-------------------------------------------------------------------------------------Hospitality
firms advertise for a number of reasons. - Advertising reaches a
vast audience. - Advertising is relatively inexpensive -
Advertising prompts audience response - Advertising demonstrates
competitiveness TYPES OF ADVERTISING The types of advertising that
hospitality firms use include print, broadcast, electronic, direct
mail, outdoor, collateral and alternative media. PRINT ADVERTISING
News papers Print advertising media include news papers, magazines,
and directories. News papers are used by the hospitality industry
more than other advertising mediums for a number of reasons. - High
leadership - Flexibility - Low advertising rates Magazines
Magazines are an excellent advertising option, since many consumer
and trade magazines target specific leader ship. Other advantages
include - production quality - wider scope - long life Directories
Directories fall in to three categories. They are general, hotel,
trade etc. BROAD CAST ELECTRONIC ADVERTSING Both broad cast and
high Tec electronic advertising media have the potential of
reaching large no of consumers at one time
28
Different methods of Electronic Advertising 1. Radio 2.
Television 3. Video 4. Internet 5. CD ROMs 6. Fax DIRECT MAIL
ADVERTISING Direct mail is one of the most popular forms of
hospitality advertising because it is - Targetable - Personal -
Conspicuous - Flexible - Designed for prospect involvement action -
Easily cost controlled - Easily tested and measured OUTDOOR
ADVERTISING Methods of out door advertising - Signs Sign can be a
simple as a painted board or as standing board with the atmosphere
of the place. - Bill board Signs appear on the grounds of the hotel
or restaurant, but billboard advertisement are placed away from the
property at strategic location on well traveled streets and
highways - Displays Displays can be used both in house and off
property to promote products and services. Collateral Materials
Virtually all hospitality firms use collateral materials in one
form or another. It includes materials, such as brochures, poster,
fliers and tent cards and specialty items designed to promote your
product and services.
29
ALTERNATIVE MEDIA ADVERTISING In addition to these common
advertising options, three are several alternative media
advertising options. These include - Movie theater advertising -
Sponsor ship advertising - In flight advertising - Insert in
billings - High flying advertising - Retailer tie ins
DEVELOPING ADVERTISING PLAN No matter what strategy is used,
your advertising must cut through the media clutter and promote
your firm in a memorable and cost effective way. Four
characteristics reach; Frequency, consistency, and Timing play
important roles in all successful advertising strategies. - Reach
Refers to the no of different individuals or homes exposed to an
advertising message at least once during a specified time
period.Genarally advertising costs will be higher as reach goals
increase. - Frequency Is a measure of how many times the average
person in the target market is exposed to the advertising message
over a specified time period? - Consistency Plays an important part
in consumer recognition of your hotel or restaurant. Your
advertising will be far more effective if it has a consistent look
and, in the case of broad cast media, a consistent sound - Timing
It involves scheduling advertising for those times when it will be
most effective. The news paper advertising bureau recommends timing
advertisements to coincide with seasonal sales patterns promoting
summer vacation packages just before the season. PLACING
ADVERTISEMENTS Here you have to consider the placement of your
advertisements should be based on where and when they will be most
effective. In particular you should select the media outlets in
which to place ads based on the ability of each to - reach the
largest number of potential guest at the lowest cost per guest -
deliver an adequate selling message
30
BUDGETING FOR ADVERTISING Before establishing an advertising
budget, you should consider a number of variables that will affect
the kind of advertising budget you will use, - The size and type of
the hospitality firm - The competition - Marketing objectives -
Target markets COOPERATIVE ADVERTISING Involves advertising in
conjunction with another advertisier.there are two types of
corporative advertising. Horizontal and vertical. Horizontal co-op
advertising involves similar business, such as several hotels that
pool resources to promote their destination city. Vertical co-op
advertising, on the other hand involves several different types of
businesses such as a hotel and airline that cosponsor an
advertisement benefit both parties. RECIPROCAL ADVERTISING It is
the exchange of hospitality product or services (rooms, food and
beverages etc...) for advertising space or airtime. This type of
advertising can be especially effective for firms with limited
budget MONITORING ADVERTISING There are three ways to monitor the
cost-effectiveness of your advertising 1. cost per thousand 2. cost
per inquiry 3. cost per conversion
CPM (Cost Per 1,000 Impressions)Stands for "Cost Per 1,000
Impressions," and is used in online advertising. CPM defines the
cost an advertiser pays for 1,000 impressions of an advertisement,
such as a banner ad or other promotion. An impression is counted
each time an advertisement is shown. Cost per thousand refers to
the cost for reaching one thousand potential buyers, and is
calculated as follows Cost of advertisement CPM Vehicle circulation
* 1,000
31
Cost per inquiry can be used evaluate both the response to a
specific advertisement and the cost of soliciting each potential
customer. CPI can determine as follows. Cost of advertisement CPI
Total inquires generated Inquires dont always result in sales, so
to determine the actual value received for the cost of advertising
,actual sales must be measured. Cost of advertisement Cost per
conversion Total conversions Cost per conversion is an advertising
and marketing term, describing the cost of acquiring a customer,
typically calculated by dividing the total cost of an advertising
campaign by the number of conversions. The definition of
"conversion" varies depending upon the situation; it is sometimes
considered to be a lead, a sale, or a purchase. Cost of
advertisement Eg: Cost of sales Total sales
ADVERTISING AGENCIES Advertising agencies can be extremely
helpful in making media decisions that will cut through media
clutter and make the best use of your advertising dollars. When
selecting an advertising agency, its important to consider these
factors - The agency longevity, reputation. And experience with
hospitality firms - Who will handle your account and his experience
- The number of accounts the agency handle - The services the
agency provides and how it would work with your firm - The number
of and types of media with which the agency experienced - How the
agency would be compensated PUBLIC RELATIONS AND PUBLICITY PUBLIC
RELATION Public relations can be defined as the process of
communicating favorable information about a hospitality firm to the
public. Public relations include positive guest relations,
publicity, and other interaction with the public and media.
32
DEVELOPING PUBLIC RELATION PLAN Your plan should include what
you hope to accomplish, when you can best reach target markets,
and, perhaps most important .who will be involved in these efforts
and what these people will do. PUBLICITY Publicity, the medias
gratuitous of your firm, is one of the most effective promotional
tools available to the hospitality industry, yet few properties
include publicity in their marketing plan. Developing Promotional
Materials Several types of promotional materials are typically used
in conjunction with public relations and publicity campaigns. Press
kits typically include A letter of introduction A summary sheet
Fact sheet A basic news letter Photographs of the property
Photographs of key personal News clipping Advertising materials
PRESS RELATIONS It is easier to establish or maintain effective
public relations program if your property or restaurant enjoys a
good relationship with the press. To develop good media relations
and get the the most from media coverage have to consider following
factors. - prepare news release properly - avoid duplication - be
honest - respect deadlines
TUTORIALS Review questions 10 nos (page 278)
33
LHS - INERNATIONAL HOTEL MANAGEMENTLESSON HOSPITALITY SALES
& MARKETING Lesson no 08 Date
MARKETING TO BUSINESS TRAVELERSWho are the business
travelers?People those who travel business purpose will come under
this category. Ex: company chairmen, CEO, Top Management, Business
travelers concern following points when selecting a hotel -
Convenient location - Clean, comfortable rooms - Room rates and
amenities - Recommendations of friends and colleagues - Previous
experience with the property - Facilities - Frequent traveler
programs Frequent Business Travelers Business travelers who come on
regularly basis to a selected hotel will known as frequent business
travelers. The following factors are accompanied by the percentage
s of frequent business travelers who found them important. -
Restaurant on premises - Quality service - Room appointments -
Sport and recreation facilities - Ambience - Entertainment on
premises - Prior knowledge - Safety and security
There are there types of frequent travelers 1. No Frill
Travelers No frill travelers, is made up largely of middle to upper
management level positions. They expect clean, comfortable, room at
a fair price but their spending power is above the cost plus
travelers. They are more interest on such facilities like swimming
pool, saunas, tennis court, etc...
34
2. Cost plus Travelers This is the next largest group of
frequent business travelers. These travelers are extremely cost
conscious and seeking for low room rates. Cost plus travelers are
more interested on restaurant opening hours, room amenities and
lounges of the hotel etc... 3. Extroverted- Affluent Travelers They
are typically young and affluent, and either professional ,top
level executives or self employed they required following
characteristics in the hotel such as fashionable properties, high
quality amenities, recreational facilities, live entertainment,
finest deco in eating outlets etc WOMEN BUISNESS TRVELERS They are
more concern about following points when they book a hotel -
Security - Comfort and service - Convenience - Facilities
IDENTIFYING NEEDS OF BUISNESS TRVELERS They have high spending
power and expect personalized service from hotel side. Following
services are required to attract business clients. - Business
floors - Business centers - Health and fitness centre - High Tec
and other special amenities - In room refreshment centers -
Frequent traveler program( introducing guest privilege cards,
special discounts on room rates, complimentary finding dinner, VIP
treatments)
TUTORIAL 09 Review questions - 09 nos (page 304) Case study - 01
nos (page 307)
35
LHS - INERNATIONAL HOTEL MANAGEMENTLESSON HOSPITALITY SALES
& MARKETING Lesson no 09 Date
MARKETING TO LEISURE TRAVELERS
WHO ARE LEISURE
TRAVELERS?............................................................................
Those who Travel for pleasure, as opposed to business travel. Often
used to indicate a trip of sevens days or longer, regardless of its
purpose
36
The leisure travelers market can be divided into two segments,
they are, 1 Individual Traveler 2. Group Traveler INDIVIDUAL
LEISURE TRAVELERS
Can be define as non business guests who are traveling
independently rather than with a group on prearranged tour. They
can be classified in to following group - Families - Seniors - Baby
boomers - Generation x - Others
FAMILIES
Married couples, couples with children, single parents and grand
parents and other family members traveling with children comes
under this category. They expect following characteristics from the
hotel, such as - Rooms with more space - Reasonable rates or no
rates for children - Low cost recreational facilities - Rooms with
kitchen facilities - Kiddies menus - Colorful interior rooms - In
house doctors - Baby sitting facilities - All inclusive
packages
37
SENIORS
An elderly person above 55 years old comes under this. There
four types of seniors by age limit, they are - Preretirement (50
years -65 years) - Young old (65 years -75 years) - Old- old (75
years -85 years) - 85 plus ( above 85 years) What do they expect
from a hotel? - Quality service - Clean and comfortable room -
Clean and comfortable lounge areas and public areas - Rooms with
two separate beds - High safety and security measures - Easy access
rooms closer to elevators - Elderly care facilities - Large well
lit rooms - Non slippery floors How to reach the senior market? -
Introducing religious tour packages - Conducting promotion in
various social organization - Advertise to older travelers in
travel guides - Advertise in elders magazines - Advertise in news
papers
BABY BOOMERS Baby boomers market consists of the 77 milion
people born in the United States between 1946 and 1964 and covers a
wide spectrum. Baby boomers include single adults, two income
couples without children, couple with children. This is segment
wealthier and healthier than seniors. What do they expect from a
hotel? - Willing to buy god quality products - More recreation
facilities 38
-
variety of foods and beverages Fresh and healthy foods
How to reach the baby boomers market? - Advertising in News
papers and Magazines - Combination of radio spots and out door
advertising GENERATION X People those who born in between 1965 and
1976.this segment has become a variable economic force. What do
they expect from a hotel? - Exciting experience - Latest
entertainment - More seafood and vegetarian dishes - Prefer for
adventure activities How to reach the Generation X market? - Av
advertising in computer, travel ,environment magazines - Through
travel agents OTHERS Other individual leisure travelers include
businesses travelers who are taking a leisure trip either before or
after doing business, affluent leisure travelers, active leisure
travelers, and single leisure travelers who may be traveling alone
or with a group of other singles. Business leisure travelers People
those who travel for both purpose will comes under this Affluent
leisure travelers This segment consists with those who have wealth
and those who have mindset of affluence. Each different person has
different needs and interests. Active leisure travelers Active
leisure travelers are actively participating with different type of
activities in order to spend their leisure time. They really
concern such activities like sport, adventure etc... Single leisure
travelers Here only one member is representing alone for his
holiday. Many single leisure travelers look for personal enrichment
while on vacation.
39
GROUP LEISURE TRAVELERS
People those who travel with formulated groups comes under this
segmented. Services in group tour packages range form
transportation, accommodation, and baggage handling to more
extensive arrangements such as meals ,sight seeing ,entertainment,
and admission to attractions. Tour intermediaries Travel
professionals who arrange tours are known as tour intermediaries or
travel intermediaries. They include tour brokers, tour wholesalers,
and retail travel agents. Tour brokers Also known as tour
operators. They do bulk purchasing of hotel products and and other
transportation products. Many tour operators operate their own
travel agencies through which tours are sold. Most of the times
they own charter flights also. Tour wholesalers Like tour brokers
put tour packages together, but typically work with airlines rather
than ground transportation. Most of tour wholesalers contact with
hotels, air lines and other travel and lodging suppliers. TYPES OF
TOUR There are three types of tours commonly taken by group leisure
travelers .they are 1. Motor coach tours 2. Airline tours 3.
Property package tours 1. Motor coach tours Motor coach tours fall
in to two general categories. They are, - Over night or Non
destination tours They only one night at a destination expect
following this from the hotel side < Quick service in baggage
handling and meals < Wide verity of food choices < Fair room
service operation < Express check-outs
40
- Destination tours These guests will be staying a minimum of
two nights at a place. They are mainly interest on area sight seen
and attraction. Sample itinerary planTour Features Fabulous views
of the Hoover Dam, the Southwest Desert, and the Grand Canyon. 1
meal included, lunch. Complimentary hotel pick-up and drop-off.
Air-conditioned deluxe motor coach transportation. Luxury coach
seats and viewing windows. Restroom equipped motor coaches. Video
entertainment. Photo opportunities. Free time to explore and
souvenir shop. Rest stops along the way.
Tour ItineraryTour Duration Hotel Pick-up Bus from Aladdin Hotel
& Casino, Dessert Passage to Grand Canyon South Lunch 15 hours
The Grand Canyon Executive Coach Passengers are picked up from most
major hotels in Las Vegas approximately 1 to 1 1/2 hours prior to
departure depending on location of hotel. Passengers board an
air-conditioned motor coach for an immediate departure for the
Grand Canyon National Park. En route, passengers will pass Lake
Mead and stop briefly a Hoover Dam. The bus ride duration is
approximately 5 hours to the Grand Canyon National Park. Before
entering the Grand Canyon National Park a brief stop will be made
in Tusayan Village just outside the park for lunch. This will take
approximately 1 hour. Stops at observation points in Grand Canyon
National Park with approximately 20 to 30 minutes at each stop for
photos, exploring and souvenir shopping.
Grand Canyon National Park Observation points
Bus from Grand Canyon South Passengers board an air-conditioned
motor coach for an immediate departure for to Aladdin Hotel &
Casino, the Aladdin Hotel & Casino, Dessert Passage. En route,
passengers will pass Dessert Passage Lake Mead. The bus ride
duration is approximately 5 hours to the Aladdin Hotel &
Casino, Dessert Passage. Hotel Drop-off Upon returning passengers
will board motor coach for a complimentary transfer to most Las
Vegas Hotels or McCarran International Airport for connection
flights.
How to reach motor coach tour brokers? - Sending representatives
to motor coach trade association meetings to promote group packages
and tours 41
-
Sending direct mail along with the brochures Sponsoring for
their events with display boards Developing toll free number to
provide information at all the time Publishing print journals,
magazines etc... Putting up advertisement in bus tour magazines,
bus world, courier destination magazines etc.. 2. Airline tours
Airline tours are usually arranged by airline tour wholesalers.
They do advertising like motor coach travelers and create airline
complete vacation packages for their clients.Fixed-wing charter
aircraft sightseeing flight with guided bus tour. The most popular
tour to the Grand Canyon! Only from the air can you truly see the
majesty and beauty of the Grand Canyon. Fly over beautiful Lake
Mead and the incredible Hoover Dam before flying to the Grand
Canyon South Rim. A bus excursion through the National Park will
stop along the Rim for magnificent views and photo opportunities.
Enjoy a light meal before flying back to Las Vegas.Extend your
adventure over the Grand Canyon. After your tour from Las Vegas
take a helicopter over the widest and deepest portion of the Grand
Canyon. Choose our Grand Canyon Odyssey Tour! Would you like the
opportunity to catch one of those famous Grand Canyon Sunrises or
Sunsets? Care for a little more time on the Grand Canyon? Choose
our Grand Canyon Deluxe Overnight tour and stay a night!
Tour departs from Scenic Airlines Terminal. A Complimentary
pick-up and drop-off at most major Las Vegas hotels.
Tour Features Charter flight from Scenic Airlines Terminal to
the South Rim of the Grand Canyon and return Guided Canyon tour for
approximately 3 hours One meal is included breakfast or lunch
Multiple stops at the South Rim scenic overlooks Air-conditioned
motor coach with guide Complimentary hotel pick-up and drop-off
Air-conditioned passenger aircraft Fabulous views of Lake Mead,
Hoover Dam, the Colorado River and the Grand Canyon Large oversized
windows for panoramic views and photos Tour narration in 16
languages Camcorder hook-up for tour narration Photo opportunities
Free time to explore and souvenir shop Tour company with a FAA
flight certified safety record Commemorative flight certificate
available upon request or with purchase of personalized photo
42
Tour ItineraryTour Duration Hotel Pick-up 8 hours The Grand
Canyon Deluxe Passengers are picked up from most major hotels in
Las Vegas approximately 1 hours prior to flight departure.
Passengers arrive at Aladdin Hotel & Casino transfer station
for check-in. They will then board a motor coach to Scenic Airlines
Terminal. Passengers board aircraft approximately 10 minutes before
departure and fly to the Grand Canyon National Park Airport. Flight
time is approximately 1 hour and 10 minutes. Upon landing
passengers will board an air-conditioned motor coach. Visit
overlooks in Grand Canyon National Park with approximately 30
minutes at each stop for photos, exploring and souvenir shopping.
Return by motor coach to the village of Tusayan for lunch.
Approximately 1 hour. (The meal, lunch or breakfast, may be served
before the Rim tour depending on the day and time). Return by motor
coach to the Grand Canyon South Rim airport and board plane.
Passengers board aircraft approximately 10 minutes before departure
and fly back to Scenic Airlines Terminal. Flight time is
approximately 1 hour and 10 minutes. De-plane the aircraft and
board motor coach for return to hotel. Approximate time from hotel
pick-up to hotel drop-off is 8 hours (depending on hotel
location
Charter flight from Scenic Airlines Terminal to Grand Canyon
South Grand Canyon National Park Observation points Lunch
Return To Grand Canyon National Park Airport Charter flight from
Grand Canyon South to Scenic Airlines Terminal Hotel Drop-off
Property package tours Here the property will develop packages
to suit their client ales before develop your own package, how ever
you must first familiarize yourself with the tour industry and
determine what type of tour would work best for your property.
Property packages can, - increase sales - brings business during
the off peak time - Help to make a good name among the industry THE
VACCATION OWNERSHIP OPTION A timeshare is a form of vacation
property ownership. With timeshares, the use and costs of running
the resort are shared among the owners. While the majority[citation
needed] of timeshares are condominiums or cooperatives at vacation
destinations, developers have applied the timeshare model to
houseboats, yachts, campgrounds, motor homes, cruises and private
jets. The notion of a timeshare was originally created in Europe in
the 1960s. A ski resort developer in the French Alps innovatively
marketed his resort by encouraging guests to "stop renting a room"
and instead "buy the hotel". The developer was successful in
increasing occupancy and the idea spread worldwide. While a useful
tool for many, the 43
timeshare industry has also become a magnet for attracting
illegal and barely legal methods for the sale and resale of
property.
Tutorial 09 Review Questions 10 nos (page 348) Case study 01 nos
(page 350)
LHS - INERNATIONAL HOTEL MANAGEMENT44
LESSON HOSPITALITY SALES & MARKETING Lesson no 10
Date
MARKETING TO TRAVEL AGENTS
Travel AgentsTravel agents help travelers sort through vast
amounts of information to help them make the best possible travel
arrangements. They offer advice on destinations and make
arrangements for transportation, hotel accommodations, car rentals,
and tours for their clients. They are also the primary source of
bookings for most of the major cruise lines. In addition, resorts
and specialty travel groups use travel agents to promote travel
packages to their clients. Travel agents are also increasingly
expected to know about and be able to advise travelers about their
destinations, such as the weather conditions, local ordinances and
customs, attractions, and exhibitions. For those traveling
internationally, agents also provide information on customs
regulations, required papers (passports, visas, and certificates of
vaccination), travel advisories, and currency exchange rates. In
the event of changes in itinerary in the middle of a trip, travel
agents intercede on the travelers behalf to make alternate booking
arrangements.
45
Travel agents use a variety of published and computer-based
sources for information on departure and arrival times, fares,
quality of hotel accommodations, and group discounts. They may also
visit hotels, resorts, and restaurants themselves to evaluate the
comfort, cleanliness, and the quality of specific hotels and
restaurants so that they can base recommendations on their own
experiences or those of colleagues or clients. Travel agents who
primarily work for tour operators and other travel arrangers may
help develop, arrange, and sell the companys own package tours and
travel services. They may promote these services, using
telemarketing, direct mail, and the Internet. They make
presentations to social and special-interest groups, arrange
advertising displays, and suggest company-sponsored trips to
business managers. Agents face increasing competition from travel
and airline websites for low-cost fares, but travelers still prefer
using travel agents who can provide customized service and planning
for complex itineraries to remote or multiple destinations. To
attract these travelers, many travel agents specialize in specific
interest destinations; travel to certain regions, or in selling to
particular demographic groups.
Travel Management Companies Also known as Mega travel Agencies
because of their size and scope are giant chains that own and
control all aspect their operations. they provide complete travel
services, including arranging and booking transportation
,accommodations, and trips and tours. Consortiums are groups of
travel agents that have partnered to maximize their buying power
and share the high cost of todays computer technology. Independent
agencies may serve areas not covered by major agencies. Generally
speaking travel agents serve three types of travelers. They are -
Business Travelers - Leisure travelers - International Travelers
More travel agencies are serving business groups .this trend has
lead to the development of agents or separate department within
travel agencies that specialized in business meetings and groups.
Leisure travelers often need more assistance in planning their
destinations than business travelers.buisness travelers they have
pre determine palces.International travelers can be business or
leisure travelers. MEETING THE NEEDS OF TRAVEL AGENTS Property
information Hotels can provide information to travel agents in a
number of ways; they are Global distribution system, Internet
distribution system, Web sites, Faxes, and E-mails, Hotel
directories, Information packages, Familiarizations tours.
46
Global distribution system (GDS s)
Global Distribution Systems in Present Times Four Major GDS
Systems; Amadeus, Galileo, Sabre, WorldspanOctober 2002 - The
travel marketplace is a global arena where millions of buyers
(travel agents and the public) and sellers (hotels, airlines, car
rental companies, etc.) work together to exchange travel services.
Among the shelves on which buyers search for travel services are
worlds global distribution systems and the Internet distribution
systems. These systems have become electronic supermarkets linking
buyers to sellers and allowing reservations to be made quickly and
easily. Nowadays, more travel is sold over the Internet than any
other consumer product. The Internet is a perfect medium for
selling travel as it brings a vast network of suppliers and a
widely dispersed customer pool together into a centralized market
place. Nearly 37 million of Americas more than 162-million active
Internet users have already purchased travel online. Online travel
bookings exceeded $23 billion in 2001, and are expected to reach
$63 billion by 2005. However, any discussion of the Internet as a
distribution channel for travel needs to start with an
understanding of the existing electronic distribution
infrastructure, the Global Distribution System (GDS). The airline
industry created the first GDS in the 1960s as a way to keep track
of flight schedules, availability, and prices. Although accused of
being dinosaurs due to their use of legacy system technology, the
GDSs were actually among the first e-commerce companies in the
world facilitating B-2-B electronic commerce as early as the mid
1970s, when SABRE (owned by American Airline) and Apollo (United)
began installing their propriety internal reservations systems in
travel agencies. Prior to this, travel agents spent an inordinate
amount of time manually entering reservations. The airlines
realized that by automating the reservation process for travel
agents, they could make the travel agents more productive and
essentially turn into an extension of the airlines sales force. It
is these original, legacy GDSs that today provide the backbone to
the Internet travel distribution system. There are currently four
major GDS systems: 1. 2. 3. 4. Amadeus Galileo Sabre Worldspan
AmadeusFounded in 1987 by Air France, Iberia, Lufthansa, and
SAS, Amadeus is the youngest of the four GDS companies. Amadeus is
a leading global distribution system and technology provider
serving
47
the marketing, sales, and distribution needs of the worlds
travel and tourism industries. Its comprehensive data network and
database, among the largest of their kind in Europe, serve more
than 57,000 travel agency locations and more than 10,500 airline
sales offices in some 200 markets worldwide. The system can also
provide access to approximately 58,000 hotels and 50 car rental
companies serving some 24,000 locations, as well as other provider
groups, including ferry, rail, cruise, insurance, and tour
operators. Upon its inception, Air France, Iberia, Lufthansa and
SAS held equal shares of Amadeus Global Travel Distribution S.A.
Shortly after the formation of the company, however, SAS sold its
shares to Amadeus Data Processing. The three founder airline
shareholders currently hold 59.92% of the company: Air France
(23.36%), Iberia (18.28%), and Lufthansa (18.28%). Remaining shares
are held publicly. As the youngest of the four GDS companies,
Amadeus has done remarkably well during its short tenure. Yet, in
many ways, the company remains an anomaly. Amadeus has the greatest
number of travel agency locations with the highest productivity per
terminal in the world, yet its booking share is Number 3, and its
revenues are dwarfed by Sabre and, to a lesser degree, by Galileo.
While the company is Number 1 in locations worldwide, serving the
greatest number of countries, it provides the fewest U.S.
destinations of the top four GDSs. As with its competitors, the
future for Amadeus will continue to be linked to the technological
and structural changes that are revolutionizing the travel
industry. Amadeus appears to be adapting well (albeit cautiously)
to the shift of business to the Internet. Having acquired e-Travel,
Inc. from Oracle Corporation in July of 2001, Amadeus now has a new
business unit dedicated to delivering solutions to e-commerce
players worldwide. The eTravel solutions integrate all components
of a managed travel program into a single Internet-based service
that enables travelers to book air, car, hotel, and rail services,
all within corporate guidelines. With its strong company
infrastructure worldwide, impressive product set, and growing
customer base, Amadeus is one of the most significant players in
shaping the future of the GDS.
Galileo InternationalGalileo International was founded in 1993
by 11 major North American and European airlines: Aer Lingus, Air
Canada, Alitalia, Austrian Airlines, British Airways, KLM Royal
Dutch Airlines, Olympic Airlines, Swissair, TAP Air Portugal,
United Airlines, and US Airways. It is a major player in the GDS
business throughout the world: North America, Europe, the Middle
East, Africa, and the Asia/Pacific region. Galileo International is
a diversified, global technology leader. Its core business is
providing electronic global distribution services for the travel
industry through its computerized reservation systems, leading-edge
products and innovative Internet-based solutions. Galileo is a
value-added distributor of travel inventory dedicated to supporting
its travel agency and corporate customers and, through them,
expanding traveler choice. In 1997, Galileo International became a
publicly traded company, listed on the New York and Chicago Stock
Exchanges. In October of 2001, Cendant Corporation acquired Galileo
International for approximately $1.8 billion in common stock and
cash. Currently, the company is represented in 116 countries, and
serves travel agencies at approximately 45,000 locations. Other
travel suppliers
48
include 500 airlines, 227 hotel companies, 33 car rental
companies, and 368 tour operators. Galileos competitive strengths
include market share, well-balanced and global presence,
relationships with diverse groups of travel vendors,
technologically advanced information systems, highly skilled
personnel, and a stable product line. Compared to other GDS
companies, Galileo is a cautious follower when it comes to
technology. However, in response to the growing demand of web-based
travel, the company has established successful relationships with
entities such as Go, UKs best low-cost airline; subsidiaries such
as Highwire, Inc., providing Internet-based tools and services to
the corporate travel market; and Sheperd Systems, an industry
leader in the provision of sales and marketing intelligence systems
and services within the travel industry. Additionally, Galileo has
sponsored membership to the THOR Worldwide Negotiated Hotel Rates
Program, and has a state-of-the-art development center supplying
information and systems support to travel agencies operating more
than 178,000 computer terminals, all of which are linked to the
Galileos Data Center. Galileos primary weakness, its singular focus
on the distribution side of the business, is also its perceived
strength. Based on its competitive strengths, Galileo is pursuing a
strategy that includes expanding its global distribution,
strengthening customer loyalty, leveraging technology, and
capitalizing on opportunities created by increasing Internet use.
Galileo sees the GDS industry as having the ability and potential
to provide electronic distribution and many components of ecommerce
to other industries, and is utilizing its strengths to provide
expanding services to its growing customer base.
SabreFor more than 40 years, Sabre has been developing
innovations and transforming the business of travel. From the
original Sabre computer reservations system in the 1960s, to
advanced airline yield management systems in the 1980s, to leading
travel web sites today, Sabre technology has traveled through time,
around the world, and has touched all points of the travel
industry. In July of 1996, Sabre became a separate legal entity of
AMR (parent company of American Airlines), followed by a successful
initial public offering in October in which AMR released
approximately 18% of its shares to be publicly traded. Sabre,
represented in 45 countries, is a leading provider of technology
for the travel industry and provides innovative products that
enable travel commerce and services, and enhance airline/supplier
operations. Headquartered in Southlake, Texas, Sabre connects more
than 60,000 travel agency locations around the world, providing
content from approximately 400 airlines, 55,000 hotel properties,
52 car rental companies, 9 cruise lines, 33 railroads, and 229 tour
operators. In addition to being one of the leading GDS companies,
Sabre also provides a broad range of products and services that
enhance travel agency operations and their ability to serve the
traveler. Sabre-connected travel agencies use Sabre web- based
technologies and low-fare finding solutions to create new sales
opportunities, drive operational efficiencies, and improve customer
service. Among the companys recent innovations is Sabre Virtually
There, a personalized web site service that automatically gives
travelers up-to-the-minute details about itineraries, while also
providing a wealth of information about their destinations. Sabre
owns Travelocity.com, the industrys leading online consumer travel
web site. In 2001, Travelocity.coms 32 million members used the
site,
49
generating more than $300 million in revenues. Travelocity.com
offers innovative technologies that help consumers find the best
air, car, hotel, and vacation reservations. Sabre also owns Get
There, a provider of web-based corporate travel procurement,
including the purchase of air, hotel, car, and meeting planning
services. Customers include more than 800 leading corporations.
Sabres competitive strengths include market position, global reach,
stable product line, diversification of revenue streams, and
intellectual capital. The Sabre business model is a strong one, and
continues to make significant progress in advancing both its
electronic travel distribution and its information technology
solutions businesses. Revenues have been growing steadily, and the
company has embarked on a strategy that fully embraces
diversification of its customer base and revenue streams. Sabre is
considered to be one of the most significant and competitive GDSs
due to the fact that it anticipates and takes advantage of the
changes in the information economy and develops innovative
practices, leveraging both human resources and technology
systems.
WorldspanFounded February 7, 1990, Worldspan was originally
owned by affiliates of Delta Air Lines, Inc., Northwest Airlines,
and Trans World Airlines, Inc. It is currently owned by affiliates
of Delta Air Lines, Inc. (40%), Northwest Airlines (34%), and
American Airlines, Inc. (26%). Since its 1995 advance into the
world of Internet technology for the travel industry, Worldspan has
successfully developed the strategies, solutions, and services to
ensure the companys long-term success in the new web-based world of
travel distribution. Worldspan provides worldwide electronic
distribution of travel information, Internet products and
connectivity, and e-commerce capabilities for travel agencies,
travel service providers, and corporations. Worldspan currently
serves 20,021 travel agencies in nearly 90 countries and
territories. Headquartered in Atlanta, Georgia, Worldspan connects
approximately 421 airlines, 210 hotel companies, 40 car rental
companies, 39 tour and vacation operators, and 44 special travel
service suppliers. To escalate the delivery of web-based
technologies and services to its customers; Worldspan has forged a
number of new partnerships and equity agreements with leading
travel technology companies. Resulting technologies, joint
developments, and an expanded realm of solutions and Internet
travel products are enabling the company and its customers to
participate in a spectrum of e-business opportunities. Some of the
successful partnerships have been with companies such as Datalex, a
leading provider of e-business infrastructure and solutions for the
global travel industry; Digital Travel, a global online tour
provider; Kinetics, Inc., developer of technology and solutions for
the airline industry; OpenTable.com, an Internet-enabled restaurant
management tools system; and Viator, a major provider of
Internet-based content, technology, and distribution services,
including data management, hosting, and e-commerce. Additionally,
in 2001, Orbitz LLC was launched on the Internet, using Worldspan
as its Internet Booking Engine, and in 2002, the launch of
Worldspan ePricingSM made Worldspan the first GDS to introduce a
revolutionary new multiserver-based technology, offering an
unprecedented selection of pricing options to all of Worldspans
customers.
50
Worldspan has a legacy of industry firsts that are not well
known. The company therefore has an opportunity to raise the
industrys awareness of its accomplishments and more importantly,
its future strategy. Worldspan continues to look at benefits of
creating its own consumer brand and has been partnering with
different companies to expand the services that it can provide to
its customer base. Worldspan believes in focusing on its core
competencies, and is determined to be perceived as a distribution
facilitator across all channels. It is increasingly getting a
clearer sense of its capabilities and building its appetite for
technical and commercial challenges. Through the companys
revolutionary e-world ideas, offerings, and services, along with
its agility and eagerness in meeting the needs of the travel
distribution market on a global scale, Worldspan and its customers
are transforming the way travel is distributed, bought, and
sold.
Global distribution system
Internet Distribution SYSTEM51
Karyon strategically partners with internationally respected
travel industry companies to provide you with the services,
products and connectivity to build the operational backbone for
single or multi-property distribution management. As a result,
Karyon enables you to increase revenue, improve guest loyalty, and
reduce costs by centralizing and streamlining your operations while
maximizing existing technology investments. Our distribution
relationships enable Karyon to use the software products internally
and offer you robust and flexible services. These services and
underlying technologies have been designed and developed to manage
a wide and diverse range of lodging properties entire rate,
availability, and booking information through one system regardless
of your property management system while maintaining complete
control of a variety of individual distribution channels. Internet
Distribution System ("IDS") connectivity encompasses hotel
inventory distribution to hundred's of today's most popular Web
sites and travel portals driven through our connections to
alternate channels such as the Pegasus Online Distribution Database
(ODD) (e.g. Travel Web, Hotwire, Expedia, etc.), and Hotel Booking
Solutions Demand Partner Network (American Airlines Vacations,
Group Travel Planet, Liberty/GoGo Travel, etc). Web sites Another
way to use computers is to create a chain or property web site
either as part of travel related net work or as an independent
site. Faxes and E mails Updates on property promotions and special
rates can be sent via fax as well as over the internet. Hotel
directories Hotel directories provide the detailed information
travel agents need to properly service clients. An agent can
compare one propertys costs, location, amenities, and facilities
with each other. Brochures A property can also include large
quantity of for agency clients in its information package.
Familiarization tour Many properties offer familiarization tours to
travel agents. These tours can be conducted during during slack
periods are an effective way to promote the property. SERVICE
52
The kind of service agents receive from a property is an
important factor in whether they will recommend that property
again. Service to travel agents also includes service to their
clients. 1. 2. 3. 4. Toll free numbers Travel agents clubs
commission payment plans Providing good service for travel agents
clients.
FINDING TRAVEL AGENTS There are five resources that can help a
property identify travel agents and agencies it may want to do
business with 1. The official air line guide 2. The world travel
directory 3. In house records 4. Industry mailing list 5. Travel
industry trade shows REACHING THE TRAVEL AGENTS You can reach
travel agents through hotel directories, trade magazines, direct
mail, trade shows, and membership in travel agent association,
personal sales and public relation efforts. THE FUTURE OF THE
TRAVEL AGENTS With the evolution of electronic ticketing,
self-booking over the Internet, and the emerging trend of
point-to-point airline services that can only be booked via
telephone (including some that do not pay agency commissions), the
question arises... What is the Future of the Travel Agent? The
future for travel agencies is very positive ... just not in the
"mode" of today's operations. Today, agencies are largely "order
takers" and "ticket distributors" ... even the majority of the
leisure stores provide little more than these services. Agent's
"skills" are in the ability to access inventory -- and to issue a
document (tickets in the case of air; voucher or itinerary in the
case of tours, cruises, hotels, etc.). In today's travel world,
agents are the "link" between the human consumer and the inventory
systems that distribute the "product" manufactured by travel
vendors. Airlines dominate the agent distribution system mainly
because the airlines were the first to provide a fully automated
distribution system, and more importantly, airlines provided an
53
automated settlement process long before credit cards. Other
travel vendors have simply "piggy-backed" on the existing systems.
The evolution of automation and technology being applied in the
travel industry is rapidly assuming the very high "labor-driven"
costs of providing "interface" to the inventory (and in the case of
airlines, settlement) systems. Effectively, technology is
decreasing or eliminating the need for "inventory access" and
"ticket delivery". The "role" of today's agent is being replaced.
However, the need for travel information is increasing with the
explosion in distributed information and related expectations. The
need for marketing "packages" that integrate travel information
with destination (really, fulfilling consumer "dreams") is
concurrently increasing as information becomes more readily
available and the "ease" of booking at lower prevailing costs
further enables fulfilled consumer "expectations". With
"expectations", comes the need to "consolidate" travel or build
offerings that enable "flexible" travel opportunities. This type of
travel product into some form of "minipackages" that meet broad
specific demographic, niche, or business market demands ... but
retain some flexibility in length of stay or other related
destination needs. With "minipackages", the need to distribute
related information and access will increase. None of these are
services easily performed or provided by the manufacturing
"vendors" of travel product, even in today's automated world. It is
logical, therefore, to expect agents (and agencies) to assume these
information and marketing services ... and to take "risk" in
providing "mini-packages" to the demographic, niche, or business
markets. This would suggest that many agencies will shift their
"selling" efforts to higher yield commissioned distribution of tour
and cruise packaged products -- and to service fees for becoming
pure information providers or providing "unpackaged" booking
services for simple destination travel. It would also suggest that
other agencies, particularly those with a large corporate base,
will begin to negotiate "risk positions" with travel vendors for
the virtually guaranteed destination travel of their known customer
or client base (i.e., these agencies will buy the seats, rooms, and
car rentals at discounted prices in advance and offer them in
"mini-packages" -- thus reducing the vendor's risk and allowing the
vendors to stabilize pricing). As certain agents consolidate air
today, the theme presented above would suggest that agencies which
serve specific destinations or demographics (ski, mountain, sea,
desert, old, young, married, single, etc.) will also "mini-package"
travel solutions focused to serve these target markets. The
"mini-packages", along with the today's conventional tour and
cruise "package" -will still need to be inventoried and
distributed. Some agencies that are automation literate, will
evolve these automation skills and play an increasing role in
"decentralized" inventory "warehousing" of "mini-packaged" products
(and in providing links to the varied and many distribution
channels that are evolving).
54
For the next five to seven years, the GDS/CRSs will continue to
provide the core travel distribution access. It can be reasonably
expected that as the distribution channels expand, so too will the
consumer base of travelers (as they have expanded to meet the
increased air availability for lower priced point-to-point travel.
However, with the shift to direct booking of simple travel, the
GDS/CRSs will focus increasingly on distributing the sophisticated
packaged and "mini-packaged" products -- and in providing
"switching" access of the "mini-packages" and other non-air related
travel product. The GDS/CRSs will certainly continue to offer air
... because the "information providers" will need that resource to
"package" their fee compensated itineraries. But the lowering of
commission revenue combined with the increasing cost of labor at
the GDS/CRS's traditional "point of sale) will force a shift in the
compensation revenue streams. The GDS/CRSs will "fight a balanced"
shift in responding to the increased distribution alternatives such
as direct vendor access, Internet, telephone, interactive
television, etc. -and in a separate arena, with the banking system
for the settlement of travel purchases. Still, with the "bullets
flying overhead", the need for "agents" will not go away. What will
change is the role that an "agent" plays in the distribution of
travel product changes. For the agents and agencies that recognize
and adapt early to these shifts -- there are major profit
opportunities. For those seeking the "traditional" security of
commissioned sales, they only need to shift their focus from
airlines to the "packaged products" of tours, cruises, and in the
immediate future, "mini-packaged" target market offerings. For
travel agents (or consultants, if you prefer the term), the future
looks bright!
LHS - INERNATIONAL HOTEL MANAGEMENTLESSON HOSPITALITY SALES
& MARKETING 55
Lesson no 11
Date
MARKETING TO MEETING PLANNERSDefinition of "business tourism"
The tourism industry can be divided into leisure tourism and
business tourism. IMEX uses the following definition for business
tourism: "Business tourism is the provision of facilities and
services to the millions of delegates who annually attend meetings,
congresses, exhibitions, business events, incentive travel and
corporate hospitality". Please note that as is the case for many
terms in the meetings industry, there is not one commonly used
definition.
Group meeting business can benefit a proper ty in number of
ways, such as - Additional revenue - Ease in filling slow periods -
Ease in employee scheduling - Repeat business
THE GROUP MEETING MARKET
56
Group meeting market can be divided in to two segments. They are
associations and corporation. The needs of these two segments may
be the same in some areas related to the nature of the meetings.
ASSOCIATIONS An association is an organization of persons having
common interest of purpose Types 1. 2. 3. of associations Trade
associations professional scientific associations Non profit
Organizations
1. Trade associations Trade associations are made up of
Indiv