Sales techniques HOTEL MANAGEMENT
Tips for Increasing Sales in the Hotel Industry
As
the economy continues to rebound, the hospitality industry has shown prolonged
signs of growth.
There is documented increase in jobs is indicative of
continuing growth in the industry. Clearly, there is reason for hotel managers
to feel hopeful about the future given the strong growth rates. However, only
hotels that leverage this growth will truly benefit. This means that it is
important for managers to look carefully at their practices and work hard to
improve revenue streams. To do this, carefully implemented selling and
up-selling is essential since these practices can fill more rooms and increase
conversions.
To start this
process, consider the following tips:
1. Leverage call
centers.
Good managers know the
importance of delegation. There is a reason hotels employ staff members to do
different jobs. Housecleaning employees are not asked to tend the front desk.
Receptionists are not expected to perform maintenance. This is because these
individuals are all trained for their specific jobs. Asking them to work
outside that training would be a waste of time and resources.
This principle is
obvious and yet many hotels do not direct the task of selling and up-selling to
trained salesmen. While front desk staff can take reservations, they are often
not well equipped to up-sell. It is smart, therefore, to use call centers. Call
centers take calls regarding reservations, ensuring a standardized response to
every inquiry. Call centers also provide intense sales training, giving
employees strategic knowledge to better reach consumers. By having specific
staff for this purpose, the entire process is streamlined, maximizing the
potential for success.
2. Coordinate with
sales.
While many hotels have
daily staff meetings, it can be harder to arrange meetings with salespeople
since they are often working throughout the country. However, this range is why
it is especially important to arrange weekly conference calls to go over
revenue management strategies.
These meetings should be
carefully organized with an established agenda. It is best if the salespeople
have copies of the agenda in advance and know what is expected of them at the
meeting. This way, the meetings will be streamlined and effective, producing
usable results each week.
Topics should include
new ways to increase conversions, plans to improve up-selling and more. These
meetings should also be geared toward creating a better understanding of the
market and brainstorming methods to reach the market under current conditions.
3. Remember
customer service.
Customer service is a
crucial part of success. Guests are most likely to interact with front desk
associates, housekeepers or kitchen staff. The quality of these interactions
often has a large impact on a guest’s overall experience. This is why it is
important to remember to include these staff members in the overall revenue
plan.
These staff members
should be trained to think of themselves as representatives of the hotel. They
should consider every action as a means of increasing conversions and
advertising the brand. This can encourage staff to be more productive and
especially courteous since every small interaction can potentially lead to
increased traffic and higher profits.
More than that, these
staff members are well situated to receive guest feedback. This feedback should
always be relayed to the sales team in order to modify techniques and maximize
sales.
4. Be realistic.
All businesses need to
look to the future in order to make decisions. This forecasting is essential in
determining staff assignments, new hires and more. It can be tempting to paint
an overly optimistic view of the future. After all, strong goal setting is
usually necessary for success. However, forecasting should not be confused with
long-term goal setting. Forecasting must be realistic in order to avoid
overspending and creating waste.
In the volatile economic
climate, realistic forecasting can be especially difficult since tepid numbers
can seem to indicate a problem. However, using accurate numbers is the only way
to ensure that all resources are used properly. An overly optimistic forecast
will result in mismanaged staff and misdirection of funds. For short-term
stability, realistic forecasting can ensure that resources are used correctly.
Forecasting is highly
variable, and it is not an exact science. Many factors are involved with
creating an accurate forecast, but it is important to always let forecasts
dictate procedure, not the other way around.
5. Perform system
audits.
No one likes an audit,
but the fact is, audits are merely acts of accountability. Audits are critical
methods of checking efficiency and accuracy within a system. For hotels, while
there are many systems that can benefit from internal audits, one place that is
often neglected is the booking system.
Modern booking systems
rely heavily on computerized technology. Because of this, many hotels can use
the system itself for auditing purposes. Then it is possible to see patterns,
trends and potential problems. These audits can dictate policy and be used for
rate configuration. After all, rates should be established well in advance to
accommodate early planners. The only way to know what future rates to use is to
understand the success of past rates.
An audit will reveal
booking habits and patterns, allowing hotels to customize their rates and
effectively leverage the market to yield maximum success.
Conclusion
With
a thriving market, hotels need to be purposeful. Even though the market is
strong, success is not guaranteed. To the contrary, only hotels with smart,
systematic approaches will flourish, which makes it more important than ever to
improve selling and conversion techniques. Every hotel will develop a different
approach since the needs and assets of any given property will vary
dramatically. It is important to use these strategies as needed in order to
develop a sales plan that works for short-term gains and long-term
success. _
A
new study analyzed real calls from real hotel prospects to find out what specific
actions, words, and tactics increased the likelihood of the caller committing
to a hotel reservation. The study found that guest service agents only asked
for the sale 52% of the time; call centers ask even less frequently at just
42%.
By Doug Kennedy
After more than 20 years in the business of front desk and reservations sales training, I’m extremely excited that a new white paper study has confirmed what we trainers have known all along: training our staff to ask for the sale will increase the likelihood of getting the business.
The study which is entitled “The Factors That Lead to More Reservations: A Statistical Analysis of Scored Phone Calls and Bookings,” is a collaborative effort between ContactPoint LLC and Dr. Kyle Wells, PHD, MBA, of the Udvar-Hazy School of Business at Dixie State College.
ContactPoint and Dr. Wells analyzed 4400 recorded actual phone calls from 30 hotels in 14 states. The population included hotels from market segments including economy through upscale. The calls analyzed were not “staged” mystery shopping calls, but rather real calls from real hotel prospects recorded using ContactPoint’s LogMyCalls call tracking and monitoring tool. The researcher’s objective was to find out what specific actions, words, and tactics increased the likelihood of the caller committing to a reservation.
As a hotel sales trainer, what stands out the most for me is that the simple act of offering to secure the reservation made the caller 4.4 times more likely to book the reservation. Put another way, that means the hotel or call center has a 440% greater chance to get the sale if the agent just asks. Yet the study also found that hotel Guest Services Agents (GSR’s) in the study only asked for the sale 52% of the time; call centers ask even less frequently at just 42%. With a sales tactic as important as this, it makes one wonder why this is not used 100% of the time.
The results also found another huge area of opportunity, which is to train the staff to overcome resistance to booking. The study found that in 610 of the 4400 calls analyzed, the potential guest exhibited some resistance to reserving a room. This resistance ranged from the price being too high, to the property not being centrally located, to the potential guest just calling for “information.” Regardless of the reason for the caller’s resistance, the findings show that persistence pays off more than any other single thing a GSR or reservations agent could do. When agents refuse to give up and instead use any number of methods, such as reiterating the value, creating urgency, or removing barriers to booking now, callers who initially resist are 12.6 times more likely to book the room.
It goes without saying that simply asking for the sale and overcoming resistance alone will not alone increase call conversation rates, and the study confirmed the influence of other factors as well. As a trainer I’ve often said that closing the sale starts with the opening greeting and a positive first impression. The study seems to support this philosophy.
The results revealed advantages to using other sales basics, such as using the caller’s name, which made it 2.5 times more likely that the caller would want to secure the reservation. The findings also suggested that rather than simply reading a list of features, using vivid adjectives when describing the rooms, the grounds, the views, and the room attributes, results in the caller being 1.6 times more likely to book the room.
Taken collectively, if all of these sales essentials are used consistently by all GSR’s or reservations agents, the potential impact on call conversion can be very significant.
Even if your hotel, resort, vacation rental, or call center is not within the demographics of the survey’s mainstream population, the results seem to prove a direct correlation between the use of basic sales tactics and increased call capture rates.
It is a great reminder of the importance of training and coaching every associate who is staffing “The Storefront Window” of your hotel or resort. Take a moment to calculate the potential ROI on even a small increase in call conversion.
First calculate the potential value of every transient phone call you receive:
- Transient average rate x transient average stay.
- Add “Average revenue per guest” if you are a full service hotel or resort with numerous revenue generating outlets. (i.e. Spa, golf, F&B, gaming, retail.)
Then take that potential revenue per booking and calculate the potential revenue if every GSR or reservations agent got just one more sale per shift. Although the resulting number should be enough to catch the attention of the executive management team, this study now shows that the ROI could be significantly more than one more booking per day.
Here are some training tips for your next in-house meeting:
- Always ask for the caller’s name and use it conversationally throughout the call.
- Determine whether the caller has stayed previously, and if they haven’t then paint a picture of the hotel experience using vivid language, rather than listing available features.
- Remind your staff that closing the sale benefits everyone, including the caller as it ensures availability and locks-in the rate.
- When caller’s resist an initial attempt to secure the sale, ask questions such as “Is there something special you’re looking for that I’ve not mentioned?” to find out if the caller has a “product” or price objection.
- For “product” objections, offer alternatives and reiterate benefits of what you “do” have and what “is” available.
- For price objections, reiterate value. If low to moderate demand, offer lower-rated room options or specials.
- Create urgency and remove barriers to booking right now and ask for the sale again.
By training your GSRs and Reservations Agents to use sales techniques such as these, your hotel will not only convert more inquiry calls into bookings, and along the way provide a positive first impression of your hotel’s overall levels of guest service excellence.
After more than 20 years in the business of front desk and reservations sales training, I’m extremely excited that a new white paper study has confirmed what we trainers have known all along: training our staff to ask for the sale will increase the likelihood of getting the business.
The study which is entitled “The Factors That Lead to More Reservations: A Statistical Analysis of Scored Phone Calls and Bookings,” is a collaborative effort between ContactPoint LLC and Dr. Kyle Wells, PHD, MBA, of the Udvar-Hazy School of Business at Dixie State College.
ContactPoint and Dr. Wells analyzed 4400 recorded actual phone calls from 30 hotels in 14 states. The population included hotels from market segments including economy through upscale. The calls analyzed were not “staged” mystery shopping calls, but rather real calls from real hotel prospects recorded using ContactPoint’s LogMyCalls call tracking and monitoring tool. The researcher’s objective was to find out what specific actions, words, and tactics increased the likelihood of the caller committing to a reservation.
As a hotel sales trainer, what stands out the most for me is that the simple act of offering to secure the reservation made the caller 4.4 times more likely to book the reservation. Put another way, that means the hotel or call center has a 440% greater chance to get the sale if the agent just asks. Yet the study also found that hotel Guest Services Agents (GSR’s) in the study only asked for the sale 52% of the time; call centers ask even less frequently at just 42%. With a sales tactic as important as this, it makes one wonder why this is not used 100% of the time.
The results also found another huge area of opportunity, which is to train the staff to overcome resistance to booking. The study found that in 610 of the 4400 calls analyzed, the potential guest exhibited some resistance to reserving a room. This resistance ranged from the price being too high, to the property not being centrally located, to the potential guest just calling for “information.” Regardless of the reason for the caller’s resistance, the findings show that persistence pays off more than any other single thing a GSR or reservations agent could do. When agents refuse to give up and instead use any number of methods, such as reiterating the value, creating urgency, or removing barriers to booking now, callers who initially resist are 12.6 times more likely to book the room.
It goes without saying that simply asking for the sale and overcoming resistance alone will not alone increase call conversation rates, and the study confirmed the influence of other factors as well. As a trainer I’ve often said that closing the sale starts with the opening greeting and a positive first impression. The study seems to support this philosophy.
The results revealed advantages to using other sales basics, such as using the caller’s name, which made it 2.5 times more likely that the caller would want to secure the reservation. The findings also suggested that rather than simply reading a list of features, using vivid adjectives when describing the rooms, the grounds, the views, and the room attributes, results in the caller being 1.6 times more likely to book the room.
Taken collectively, if all of these sales essentials are used consistently by all GSR’s or reservations agents, the potential impact on call conversion can be very significant.
Even if your hotel, resort, vacation rental, or call center is not within the demographics of the survey’s mainstream population, the results seem to prove a direct correlation between the use of basic sales tactics and increased call capture rates.
It is a great reminder of the importance of training and coaching every associate who is staffing “The Storefront Window” of your hotel or resort. Take a moment to calculate the potential ROI on even a small increase in call conversion.
First calculate the potential value of every transient phone call you receive:
- Transient average rate x transient average stay.
- Add “Average revenue per guest” if you are a full service hotel or resort with numerous revenue generating outlets. (i.e. Spa, golf, F&B, gaming, retail.)
Then take that potential revenue per booking and calculate the potential revenue if every GSR or reservations agent got just one more sale per shift. Although the resulting number should be enough to catch the attention of the executive management team, this study now shows that the ROI could be significantly more than one more booking per day.
Here are some training tips for your next in-house meeting:
- Always ask for the caller’s name and use it conversationally throughout the call.
- Determine whether the caller has stayed previously, and if they haven’t then paint a picture of the hotel experience using vivid language, rather than listing available features.
- Remind your staff that closing the sale benefits everyone, including the caller as it ensures availability and locks-in the rate.
- When caller’s resist an initial attempt to secure the sale, ask questions such as “Is there something special you’re looking for that I’ve not mentioned?” to find out if the caller has a “product” or price objection.
- For “product” objections, offer alternatives and reiterate benefits of what you “do” have and what “is” available.
- For price objections, reiterate value. If low to moderate demand, offer lower-rated room options or specials.
- Create urgency and remove barriers to booking right now and ask for the sale again.
By training your GSRs and Reservations Agents to use sales techniques such as these, your hotel will not only convert more inquiry calls into bookings, and along the way provide a positive first impression of your hotel’s overall levels of guest service excellence.
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