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  • How do I get a start in Hotel Sales?

    Wednesday, August 25, 2010


    After interviewing 15 candidates for an entry-level position last week, I realized that people kept asking me this question. I received 40+ resumes, met with 15 candidates, narrowed it down to a top five for my sales team to screen, then down to 3 for human resources to vet. Finally, my General Manager met the final "one".

    Why did I hire her? Well, to start with, her resume was flawless. Her GPA of 4.0 jumped off the page. The lay-out, content and even the paper she used were all Class A. Also, she dressed the part. In hiring a sales coordinator for a fashion-themed hotel, I was impressed by her interview suit and the care she obviously took in getting ready for our meeting. You would be surprised how many people showed up in business casual clothing for an interview.

    Also, she did her research. She studied our website, our social media pages, she even read up on me on Linked In. She let it slip to a member of the team that she even staked out the hotel the night prior to her interview - impressive undercover work.

    I asked the top 5 to do a bit of homework for me to see samples of their writing and marketing prowess. She was the first to reply and take this assignment seriously.

    Our new hire may not have had the most sales and marketing experience, but this is an entry-level role, so she didn't really need it. She simply took the interview very seriously, did her homework, primped and polished herself, her resume, and her conversation topics - voila she started yesterday.

    During this process, I came across quite a few candidates looking for start in hotel sales, but with no experience (other than "loving hotels"). The best way to break into our industry is to take class or 2, show your interest more deeply than just words. Take a continuing education class to show your commitment at the same time invest in yourself.


    I also came across some real faux pas:


    •Gentlemen without a tie or jacket. This is the hotel industry, business casual may be okay once you are hired, but take the interview seriously.
    •Forgetting a clean resume for the in-person interview. Regardless of an electronic application process, bring a nice printed version on good stock paper.
    •Be on time, do not ask to reschedule an interview, and if you are hoping to relocate, be available to meet in person in a timely manner.
    •Smile, be positive, have some good conversation starters, preferably about the hotel or neighborhood. This is the hospitality industry - full of fun, genuine, warm individuals.
    •Lack of Follow up - a handwritten note, an email, even a phone call the next day will show your genuine interest.

    Final word of advice; take yourself seriously, dress the part, smile, and bring you're a game. Good luck!


    Deirdre Yack, Director of Sales & Marketing, Fashion 26 | A Wyndham Hotel
    HSMAI HDOSM Special Interest Group Advisory Board member

  • Who Has The Pricing Power This Year – and How Do You Gain Your Share of Preferred Corporate Rate Programs?

    Thursday, July 22, 2010

    HSMAI University presented this webinar on June 24, 2010, featuring Allan Kane, President of Broadfield Marketing, as moderator and panelists Kristen Gutierrez, CCTE, U.S. Travel/Fleet/Meetings Manager, with Zurich Insurance Group (representing the buyer's point of view); Michael Fegley, Vice President, Global Sales, The Americas, InterContinental Hotels Group (representing the hotel point of view); and Michael Boult, Chief Commercial Officer, Lanyon R.F.P., Inc.


    Kane reminded viewers that over 5,000 companies conduct annual RFPs for corporate programs. The RFP market is worth over $30 billion annually, Kane said, and encompasses 200 million room nights.

    There are three top priorities from the buyers' perspective, Gutierrez offered: competitive pricing, ongoing communications, and accurate and timely administrative follow through. The key driver is, of course, pricing. The buyer expects to leverage company loyalty to the chain, and to see the price reflect the market, not just the property's policy. Buyers require accurate and timely RFP response, standardized amenities across the board, and meaningful last room availability policies.

    "Everything relies on communications," Gutierrez stressed. There must be a central point of contact for negotiations and information, and communication must be timely, accurate, and ongoing throughout the process. Additionally, administrative support is important. "Use standard formatted RFP tools," Gutierrez advised, "and monitor rate loading to ensure timely and accurate display of rates across the distribution platform."

    Michael Fegley with IHG spoke about building value through preferred corporate rate programs. "A good corporate hotel program is more than just negotiating rates," Fegley said. Hotel expense is usually the second largest expense for corporations, after airfares. Corporations need hotel programs that support compliance with their travel policies, include risk management, and have a strategic balance between price, proximity, and traveler preference. "The first step is finding the right match between client needs and potential preferred hotels," Fegley said. Hotels need to understand their clients' needs, timelines, and data; match the needs with the hotel portfolio; and focus on value propositions to make it a "win-win negotiation."

    "Becoming preferred takes both an effective communication plan and strong process management," Fegley told the audience. This includes internal communication and understanding the clients' viewpoint. Fegley also reminded viewers that "what gets measured gets managed...review key success metrics and conduct periodic account reviews with the client."

    Michael Boult with Lanyon R.F.P., Inc., said that hotel spend represents, on average, 39 percent of total travel. Boult said that it may be time for a "re-think."

    "We've been doing online RFPs for about 15 years, and it's time to look at the problems in the traditional 'managed' hotel program," Boult warned. These include -- on the travelers side -- travelers booking outside the program, travelers booking in non-preferred hotels, rates incorrectly loading or not loading, and -- on the hotel side - lower rates being available online, unauthorized hotels loading rates, and preferred hotels selling the wrong rates.

    "Most corporate hotel bookings are made by travelers contacting hotels directly, although the proportion made through TMC booking channels is growing," Boult said. Travel managers and travelers give a variety of reasons for booking outside the preferred hotel program, including personal preference, lack of awareness, preferred hotel data incorrectly loaded into GDS, and often, that the hotel "did not meet the traveler's need." So it's good to be in a program, "but it's not enough," Boult said. "The job doesn't end there; it starts there."

    Remember the covenant with buyers, Boult advised. In an audit of five companies' programs, only 50 percent of negotiated rates were loaded correctly into the GDS, and in an analysis of one company's program, poor GDS rate loading added more than five percent to hotel program costs. In another audit, a company received its negotiated rate or lower for only between 53-96 percent of room nights across a selection of seven hotels.

    Boult suggested that it is "time for a new covenant." Buyers need to be sure they are managing all spending, focus on committed suppliers, measure performance, and hold suppliers accountable. Suppliers, on the other hand, need to provide real value, focus on committed clients, measure performance, and hold buyers accountable. With such a new covenant, we might expect "long term relationships, trust and integrity governing those relationships, mutual value creation, efficiency, and accountability," Boult assured the viewers.

    To register for upcoming HSMAI University webinars or order recorded copies of previous programs, go to www.hsmaiuniversity.org.


  • Guess Who’s Coming To Visit

    Wednesday, June 2, 2010

    On June 1, 2010, HSMAI University presented this webinar about what to do when your property owner calls a meeting with your leadership and, just to add to your stress, your numbers may be "underperforming." John Parke, President and CEO of Leadership Synergies, LLC, moderated the panel, which included two leading industry professionals with more than 30 years experience combined dealing with owners from multiple hospitality companies:


    **Cherylanne Thomas has worked with LeMeridien, Hyatt, Swissotel, Wyndham, and Seaport Hotel, and is currently a National Malcolm Baldrige Quality Examiner with the National Institute of Standards and Technology (NIST), contributing to the national effort to recognize hospitality for-profit and non-profit organizations to promote performance excellence.

    **Bruce Mainzer, founder of the Mainzer Consulting Group, which assists hotel owners and asset managers in the evaluation of hotel revenue management, Web e-commerce, marketing, and sales strategies, is a pioneer in the industry. In 1986, he developed United Airlines' revenue management system, including the airline industry's first origin and destination inventory control system. He has served as VP of Marketing for Norwegian Cruise Line and Hyatt Hotels Corporation, and was Senior Vice President of Marketing and Sales for Vail Resorts.


    Thomas advised participants to instill owner trust and confidence by leveraging brand power and not being afraid to think wide and deep in finding and accessing new market mixes. "Be innovative," she adjured the audience, and that includes employing innovative ideas for cost efficiency "without sacrificing the guest experience." That fearless attitude must include embracing change and "staying dynamic - don't regress," she cautioned.


    "You have to invest in team management training and evaluate your deployment," she offered, "and know your competitor as well as you know yourself."


    Thomas' advice included "weave in the essence of value to increase sales opportunities - merchandise accommodations and services in inventive and individual ways." Finally, said Thomas, "the bottom line has become the yardstick, not kudos in travel magazines." Know what your owners are looking for: profitability and asset appreciation. You will succeed by holding these as imperatives and by transparent and frequent communication - be up front, own your results, and deliver no surprises to your owners. "They want and need to be educated and involved."


    Bruce Mainzer reminded attendees of the times when owners were "intimidated" by the "Revenue Management Black Box." Before the downturn, he said, "owners preferred not to dive into the details regarding revenue management marketing. But today's economy has brought the end of the "Black Box." Owners today are "focused on the net operating income of their assets," stressed Mainzer. "Cash is King!" And, he warned, owners are more likely to challenge their teams' decisions, and they will be staying much more involved in day-to-day operations.

    So...what should we do? Mainzer offered the practical advice: "Embrace owner involvement!" Your owner can help to free up resources to allow staffs to achieve greater efficiencies and unlock more revenue. "Discuss challenges, what has worked, and what has not worked," he offered, "and be open to the owner's ideas and questions. Don't shy away from an open and frank discussion."

    Mainzer echoed the theme of the value of innovative approaches. Think about "how existing policies and procedures can be changed to unlock more revenue potential," he advised. Citing his friend Bill Carroll of Cornell University, Mainzer discussed moving up the demand funnel - "pursue opportunities to garner more room nights and revenues." It's also important to think about "how revenue management tools and processes can make a contribution beyond just setting rates and availability."

    "Think like an owner," Mainzer told the audience. Consider how different channels can be managed to increase net revenue, how you can open up to more channels, and remember that forecasts and customer mix information are key for operations to streamline and reduce costs.

    John Parke concluded the webinar with information to be presented at the upcoming 32nd Annual NYU International Hospitality Industry Investment Conference this month in New York City. "Your owners will be there," he told the viewers, "and here's what they'll be learning." The supply change is the lowest it has been since 1968, said Parke, and he reminded the audience that in 1991, the first segment of the industry to recover was luxury and the last to recover was mid-scale, but after 2001, the first to recover was mid-size and the last was the upper upscale. So, bottom line, we can't say for certain what it will be now. But there are some predictions we can feel confident about, Parke said, including:

    * Occupancy will precede rate;
    * RevPar is not expected to be back to 2007 levels until 2013;
    * Top 25 markets will see earlier and stronger demand;
    * Group will rebound following corporate sector recovery; and
    * "Frugal fatigue" will fuel this summer's rebound.


    "Act like a consultant," Parke advised. "Provide your owners with three scenarios: good, better, and best. And prepare your team to change their mindset from defensive to offensive. Change your language - start pushing value vs. discounts. If you are pushing discounts, you're just offering a commodity. And lastly, be sure to verify the data you're giving your owners."


    A recording of this webinar can be purchased from HSMAI University at http://eo2.commpartners.com/users/hsmai/index.php. To learn more about HSMAI University and register for upcoming webinars, go to www.hsmaiuniversity.org.


  • Upsell in a Recovering Economy: Trends for Enhancing Group and Catering Sales

    Thursday, May 27, 2010

    On May 18, 2010, HSMAI University presented this webinar on upselling in today's economy and moving from defense to offense. John Parke, President and CEO of Leadership Synergies, LLC, moderated the webinar. Panelists Rose Genovese, VP of Sales & Marketing at Denihan Hospitality; Jordan Schwartz Hendin, Director of Catering and Conference Services; Heather Allison Smith, Director of Sales & Marketing, The Ritz Carlton, St. Louis; and Robin Albach, Director of Catering, The Ritz Carlton St. Louis, focused on key leading indicators to watch that show the economy is improving, and how to take advantage of the upswing.

  • Take Advantage of the Recovery

    Friday, May 21, 2010

    By Heather Allison Smith, Director of Sales & Marketing, The Ritz-Carlton, St. Louis & The Ritz-Carlton, Dearborn and member of the HSMAI Hotel Director of Sales & Marketing Advisory Board

    Although we are approaching our outlook with cautious optimism, there are a number of signs that suggest that economic recovery is on the horizon. A few key indicators to watch:

    • Leisure travel gave us the first hint of recovery. Now, watch your transient booking pace on mid-week patterns. Pay close attention to what is happening with transient pace and negotiated accounts. If you have sustained growth year-over-year, it is relatively safe to assume that growth will continue.
    • Review your weekly STAR reports to look for overall trends in your market, not just your hotel or your competitive set. If available to you, evaluate the group, transient and contract segmentation individually to see where changes in year over year performance exist. Is the market experiencing the same trends you are? Again, transient is going to rebound first, so look at your market's transient trending over the last 90 days to see if there has been consistent growth from last year.
    • Measure lead activity and conversion ratios year over year. Dive deeper and review by segment if available. Watch for changes in the segments that were hit the hardest during the downturn.

    The question now is how do you take advantage of the recovery? Our teams have grown accustomed to a buyer's market. Group business is typically won through a combination of rate and an extensive list of concessions, often times disproportionate to the value of the business. Depending upon your group booking window, the decisions you make based upon the economic environment today could have impact that reaches far into 2011 and beyond, so reprogramming your team for the recovery is critical to your positioning in future years. A few things you can do right now:

    • Get together with your revenue manager and hold a refresher course on yield and pattern management for the group team. Many sales managers don't understand displacement and how it impacts your overall profitability.
    • Evaluate your "additional considerations" guidelines to ensure they still make sense in a recovering economy. Determine the hard cost of each concession and discuss possible alternatives that will drive overall profitability. For example, rather than extending a flat 15% discount on food and beverage, offer custom menu selections within desired price ranges.
    • Evaluate your deployment. Does it still make sense? Are you deployed against the markets that have produced during the downturn? Are you seeing recovery in segments that you have largely overlooked in the past 18 months that need to be re-engaged?
    • Take calculated risks. Look at the months where you have a solid base of group business, and agree on where you can take more risk in group rate and your overall package.

    This is also where HSMAI can help. There has never been a more critical time for you to take full advantage the benefits available to you as an HSMAI member. For example, eConnect provides you with immediate access to the latest news, books, blogs and articles related to our industry. Special Interest Groups provide targeted learning opportunities and tools to professionals within certain disciplines or roles such as directors of sales & marketing and revenue management. The HSMAI Marketing Review is a publication featuring articles about cutting edge issues facing sales and marketing professionals. Active participation on a local level gives you access to relevant and affordable educational programming, networking and community involvement.

    The real key is to stay informed. It is important that you understand what is happening in your market so that you can effectively lead your teams through the recovery.

    Heather spoke about the issue of taking advantage of the recovery in a webinar "Upsell in a Recovering Economy: Trends for Enhancing Group and Catering Sales" on May 18th.

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