Why Do You Need a Hotel Sales Strategy?
A strategy for sales is essential for any hospitality company. From B&Bs in rural areas to luxury boutique hotels, you can’t be competitive if you don’t clearly define your goals in sales and determine how you’ll accomplish these goals.
For a lot of businesses, creating strategies for sales can be relatively simple. They offer tangible products at a fixed price. They have stock in stock and concentrate on only one goal in mind: to sell more. Strategies for sales in hotel Sales are typically much more complicated.
We are working on inventory, which is dependent. It is impossible to make the same sale twice, and we are unable to sell a room not yet filled at a later time. To be clear, the development of a successful sales strategy must go hand in hand with revenue management theories. Check out our guide to figure out how.
Let Market Research Guide Your Sales Strategy
Start By Segmenting Your Market
The first step towards designing g effective hotel sales strategy is to analyze your target market. To maximize your profits, you must know the amount of sales and the RevPAR of each group.
Analyze B2B and B2C segment markets:
- Transient: Independent travellers who make an individual reservation via OTAs, as well as direct
- Corporate/Negotiate: Guests who are brought to the hotel as part of their company’s rate contracts
- Group: A small group (reservation of at least 10 persons) that stays at the hotel Sales for business or leisure travel
- Wholesale: rooms are provided at a bulk rate to tour operators and booking agents
Once you have a clear understanding of your needs and goals, you can develop custom marketing and sales plans for each market segment. These plans will give you information on different requirements in terms of pricing sensitivity and the behavior of booking.
Identify Your Most Profitable Distribution Channels
To be sure that your business is profitable To ensure that you are profitable, you need to examine the volume of sales as well as the revenue and cost of acquisition for each distribution channel. With respect to segmentation, it is important to consider B2B and B2C sales channels:
- Direct: Reservations are made directly with the hotel through telephone calls or via email.
- Reservations: made on the website are processed through your hotel’s reservation system, which is on your website. A third of the travel industry that sells different hotel rooms on its platform
- GDS Global Distribution System: transmits rates and inventory to travel websites (e, Amadeus, Galileo, Sabre, Worldspan).
Direct bookings usually yield the greatest revenue share for hotel Sales but they may be very low-volume. Selling via OTAs and Metasearch is able to provide a wider reach, but they have high commission costs. Another important indicator of performance to track is the Net RevPAR after subtracting the acquisition expenses (marketing as well as distribution). There isn’t a perfect mix for this. It is important to tweak the mix to maximize profits and sales at your business.
Hotel Sales Strategies
B2B Hotel Sales Strategies for Groups, Corporate Accounts & Wholesalers
It is crucial to establish your B2B sales on a solid base. The sales of hotels for B2B have drastically changed over the past few years, and are evolving into a digitalized industry. But we believe the fundamentals and old-fashioned concepts remain. Here are a few of our most efficient methods you can use within your house:
Diversification is key
Review your business strategy and find ways to optimize. Are you in a certain segment that is weighing heavily within your business mix? For instance, a hotel Sales with a lot of corporate business (even more so if it’s just one corporate account) in the middle of the week might take a significant hit to revenues if the account that was negotiated decides to transfer to a different location from one year to the next.
The pandemic has shown us that it’s important not to put every egg in the same basket and to be diversified so that you can withstand any changes in the behavior of customers or market trends.
The Paradox of Risk:
(1) Don’t put all your eggs into one basket. If you are unable to locate the basket, you’ll lose everything.
(2) Don’t place your eggs in more than one basket. As many baskets as you have, and the smaller amount of energy you’ll need to put into each of them. It’s risky to take things halfway.
Diversified: However, they are specific.
Begin by looking at your historical data and performance. Next, begin to plan your strategies and tactics in order to broaden your company mix to ensure optimal performance and to manage your risk in the present and the future.
Corporate Accounts:
Bill Gates is predicting that more than 50 percent of business travel and more than 30% of the days spent working will end in the post-coronavirus era. This is a crucial segment for city-centre hotels, which is the reason for the large demand during weekdays (Tuesdays and Wednesdays, mostly). The chance of a decrease in the 50% time to the next is bound to affect the overall city efficiency and occupancy. There is more supply and less demand, which will result in the possibility of a substantial drop in revenues.
Use this opportunity to revise those corporate accounts to be renegotiated for the coming year, and also strengthen your relationships with the account managers. Slowly, but surely, reconnect with your contacts in order to learn more about what their requirements and needs will be for the next few months and years.
A Wish/Want/Walk chart can assist you in renegotiating your contracts. It’s a straightforward way to improve your negotiation skills:
WISH: your dream rate. The dream rate you want for this account
You want to pay the price you would like to pay. Your goal is where you believe the negotiations will be based on the market forces external to it. This is the place where the vast majority of transactions are concluded.
Walk: Your pace is your level at which you’ll leave the deal, as it’s just not worth it (you could end up dislodging more people or affecting your brand’s positioning, for instance).
This strategy is a potent tool for any negotiation: Corporate Groups, Wholesalers, Groups, M&A, and Strategic Partnership.
Wholesalers
Leisure consumers are expected as the very first segment to rebound after the coronavirus outbreak is over. In normal times, we’d recommend being cautious when dealing with Wholesaler agreements (or at the very least, be extremely cautious) to ensure that rates are in line and avoid wild distribution wholesalers, as well as the other more typical Travel Agency models could make an appearance over the next months.
Be sure to look for the best quality and not just quantity here. Join with the top players in this industry and try the water. Always stay focused and ensure make sure your rate parity is adhered to. You should consider using an approach that is dynamic as the static rate mode; however, don’t be afraid to play with various models and find out what’s most effective and what doesn’t. Is there a specific niche TA, D, MC, or Wholesaler in your region that you can partner with?
Terms and Conditions that are flexible
Numerous hotel Sales chains have launched their “Book without a doubt” as well as “book without a limit” to encourage bookings for groups. Customers are seeking flexibility and don’t want to sign anything now, despite the possibility of a new lockdown or travel limitations.
So it’s crucial to increase their trust by providing flexibility in terms and conditions, especially in the case of unexpected changes at the last minute. Are you able to offer smaller deposits for groups? A longer release date? Any way to let them know that they are supported by you and that you’re there for them in case there is a problem? This will earn them points not only in the short-term but also over time through strengthening your relationship with them.
Improve Your RFP Process For More Group Business
With the latest technology, when the planner has a clear understanding of the needs of their client, they can send out many RFPs from all over the world by pressing an icon. Hotels, for instance. This means the increase in RFPs by threefold in the past five years.
It sounds good, but in reality, your sales staff could easily get overwhelmed. This means they could be chasing down low-quality leads, submitting proposals that aren’t appropriate to your particular hotel. Achieving the perfect balance in your RFP process will assist you in gaining more business, cutting down on time, and reducing costs.
Reduce Time by using RFP Software
The majority of the contracts are being sent only to five hotels that are the first to reply to the customer; time is of crucial importance. Like with many aspects of management in hotels, this is where technology can assist. When you implement software for hotel RFPs, it is possible to analyze every RFP you receive, send it to the right team, and then respond within minutes.
It is also possible to create template responses to common RFPs, which eliminates the manual process. It’s crucial to include personalization to show that you are concerned about, comprehend, and meet the specific requirements of each client.
Score Leads Appropriately
Software can increase effectiveness;s, however, it can’t substitute the expertise your sales staff has. One of their greatest roles is to decide which leads are best to bring into your business. These criteria could include your targeted segment, the facilities and amenities you have, and the season and performance. A large conference is of little value if you are unable to effectively hold it.
A smaller group booking might be overlooked during peak season; however, er it is ideal for the low season. Lead scoring can allow sales staff to prioritize RFPs and focus their energy and resources on the ones that are most valuable and likely to win.
Be Proactive With Sales Outreach
Contact leads and prospects directly, and you will make sure that your competitors are on the defensive before the process starts. Think about the channels that planners will likely use to communicate and investigate the options available. Google is the go-to tool for almost every internet search.
SEO, as well as Google Ads, are some of the most cost-effective strategies for marketing to consider. But LinkedIn allows you to display ads to individuals according to their company or the title of their job. You can also register your hotel Sales on chambers of commerce in your area or destination marketing partnerships, as well as marketplaces for venues online, to boost your visibility online.
Use Your CRM Data
Your data from the past has an important role to play in securing repeat business. Make use of it to build personal connections if you’ve previously collaborated with the company. Reaffirm your knowledge and emphasize your selling points that u’re aware of as important to the group. If you’ve submitted a proposal that didn’t succeed, highlight any changes that could alter the result.
For a step further, think about an active outreach before the RFP. Note the timeframes and the processes that customers adhere to. Once you know they’ll be prepared to begin making plans, reach them via personal messages or an offer to re-book.
B2C Hotel Sales Strategies to Maximize Direct Bookings
Similar to B2B sales, contacting and engaging consumers is a constant online focus. Once you’ve got a good knowledge of your marketplace, distribution channels, as well as pricing strategies, you can develop your strategy. Here are a few of our most efficient hotel sales strategies that can reach customers.
Improve Your Hotel’s Online Visibility
It is essential to increase the visibility of your hotel’s website and conversion rate for your website using digital marketing. Take into consideration Search Engine Optimization, Google Ads, and social media in order to raise awareness and increase direct sales. Also, you should expand the presence of your metasearch sites. These websites give you a huge reach, without having to pay commissions to OTAs.
Tailor Your Message for Each Segment
Your hotel’s sales strategies must always be geared towards different segments of customers by focusing on their behavior, preferences, and requirements. For bookings for groups, you could concentrate on facilities, meeting rooms for in-house dining, as well as transportation options. If you are booking for a temporary stay,y you can offer the experience and fun local attractions and activities.
Fine-Tune Your Booking Process
The process of booking must be easy and quick. Your website should be clear in its details, well-designed, and functional. This is applicable to mobile and desktop visitors. You must also incorporate an engine for direct booking to manage reservations. After the engine has been plugged in, it syncs with the hotel’s website and also with your Facebook page, for example. The information is then transferred to your PMS so that you can control the reservations.
Create Promotions
You can evaluate value-added promotional offers against price deals. This could include discounts, late checkout options, as well as improvements, welcoming drinks, and more. Utilize limited-time promotions that encourage people to take action through a sense of urgency. Most importantly, when you are running a campaign, be sure the details are uniform across all sales channels.
Reward Loyalty
Get the most value from your CRM. Hotels have a more robust customer database than other online travel agencies. Utilize a CRM system to stay in touch to customize your booking, and make sure you offer the correct product to the appropriate customer. Personalized service encourages repeat visits.
Rewards loyal customers by personalizing their offerings. Knowing your customers will allow you to know their lead times and requirements.
Think Beyond Room Sales
Concentration on the total RevPAR instead of focusing on room bookings by themselves. Groups of leisure travelers are more likely to go to the bar and also use restaurant services in hotels. Some guests might prefer the fitness facilities, health treatment, and dining options in the hotel. A strong food and beverage package can significantly boost the revenue of a hotel. Create a customized offer and test whether it is effective to upsell when the customer makes a purchase or even during your time of your stay.
Consider an Open Pricing Strategy
Open pricing strategies maximize the revenue of your hotel Sales during high and low times. It allows all channels to increase your hotel’s reach in the marketplace. Open pricing lets you set rates that are independent for each channel, segment, and room kind. Instead of giving discounts on a percentage of your BAR, discounts are flexible according to demand.
This means that the cost difference between a king-sized room and a double-sized room, for example, will be based on the quantity of inventory and demand. The same method can be used to determine the price of a room. Hoteliers can calculate the level of discounts per section.
Be Contactable 24/7
As a follow-up to the previous paragraph, if you can save the time of guests, you’ll boost the sales of your hotel. Being the first one to take action on an invitation is a crucial aspect in winning business from a group. Making sure your team offers excellent services throughout the entire event can keep your customers coming back each year.
Perfect Your Product
It’s no secret that it’s much simpler to market a quality product. Every guest’s amenities, decor, and ambience are essential. The same goes for the experience and service. But there are a lot of little victories that could be the difference. Make it easy to get around, speedy (or digital) check-in/out process, small gifts, a nd other items that can add worth.
Continually Review & Improve Your Hotel Sales Strategy
Whatever strategies for hotel sales you employ, a common concept is constant improvement. Your teams must always experiment, observe, and learn. Marketing and Sales teams must collaborate with Revenue Managers in order to analyze the revenue, sales volume, and profitability of every sector and channel.
Conducting audits on channels and analyzing the behaviour of bookings can help determine the most effective mix and increase the total RevPAR.