The Hotel Sales Process: What You Need to Know

As I've said before and I'll say again, every hotel, in every city, in every state, around the country and around the world has its own ways of conducting business. It's true! Except for the fact that there are things every hotel does exactly the same way. I'm talking specifically about the hotel sales process. Understanding how this process works, how hotels determine prices and availability can be a huge help. Here are a few points I thought might be of interest to you:

To Book or Not To Book, That is the Question

It's called Business Review and every hotel sales department practices it. It's the time in the day (usually first thing in the morning) when the Sales Managers present the leads from the previous day. Sales Managers actually have to "sell" your group to the Director of Sales for approval. It's a check and balance system that ensures good business decisions. Your group is directly affected by the information your sales rep has gathered and how it's presented. It affects availability of preferred dates, rates, meeting space, and overall cost. The variables of how and why hotels quote certain ways span far and wide - anything from the state of the economy to how the Director of Sale's new baby slept last night. It's in your best interest to allow this process to happen. Expect a good 24 hours before receiving a full proposal and don't push for immediate answers (immediate answers are typically not the best quote, as the Sales Manager has to go out on a limb). Provide as much accurate information as possible, such as history, competition, date flexibility, budget, demographics of the attendees, purpose of the meeting, not to mention who you are and what you do. Try not to overestimate or underestimate your requirements. A perfect fit can easily be declined in Business Review without the accurate details.

The Rooms to Space Phenomenon

The fact of the matter is that hotels are really in the business of selling hotel guestrooms. Everything else is incidental. 24-hour room service, revolving restaurants, valet parking, fitness rooms, indoor/outdoor pools, and ballrooms are all there for just one reason - to sell guestrooms. It's the bread and butter of the operation. It's not the other way around. Groups that require just meeting space, and minimal guestrooms, are typically not considered good business decisions. And I might add that the sheer amount of business turned away due to "rooms to space ratio" is truly staggering to the mind. It is a very big deal, but you'd never know it....you'll most likely be told that there's no availability over your preferred dates, perhaps you'd like to move the meeting to some alternate dates. Truth be told, there's probably too much availability over your preferred dates. So much so, they'll hold out for a better group to come along. Condensing your space and/or not asking for more space than you really need will help you immensely. Do you really need 25 separate breakout rooms? More is not better, by any means. The less space you require, the more valuable your business becomes. Recently a client of mine required a 3,500 square foot meeting room for a meeting of 20 people. I have no idea why! Really big people, perhaps? Anyway, it was promptly declined at business review...now I'll never know. Also, keep in mind that groups that need excessive meeting space will get charged meeting room rental fees. It certainly doesn't pay to be spacey.

Don't Quota Me on This

No matter what sales industry we're talking about (hotel sales managers, used car dealers, pharmaceutical reps, etc.) they (we) all have goals and quotas that must be achieved. And a hotel sales manager that isn't making his or her goals will not be a hotel sales manager for very long. That's the way it works...it's a cruel world. Generally these goals are measured on a monthly and/or quarterly basis. You can use this inside information as a great negotiation tool. Let's say the hotel you want is just a tad over your budget. Well, if you can negotiate to have that contract signed, sealed and delivered by the last day of the month, then you've just tipped the scale in your direction. Any sales manager who's not achieving his or her goals will fight hard on your behalf in order to get that contract back. And the sales manager who IS making his or her goal will fight even harder (most bonuses are compounded exponentially - that means more money in their pockets). In the end, you've helped your sales person achieve his or her numbers, while helping yourself get the best deal. Everyone's a winner (but you didn't hear this from me).

Josh Baker is National Sales Manager for the Sheraton Atlanta Hotel. He has a degree in Hospitality Management from the University of South Carolina. Contact him directly at jbaker@sheratonatl.com.