Selling Hospitality Chapter 4. Unit Essential Question How are hotels and restaurants marketed?

Selling HospitalitySelling Hospitality

Chapter 4Chapter 4

Unit Essential QuestionUnit Essential Question

How are hotels and How are hotels and restaurants marketed?restaurants marketed?

Essential Question 1Essential Question 1

How has the internet impacted How has the internet impacted hospitality marketing and how hospitality marketing and how can it be used to increase sales can it be used to increase sales in hospitality businesses?in hospitality businesses?

Marketing the Hotel or Marketing the Hotel or RestaurantRestaurant

Marketing Hospitality PropertiesMarketing Hospitality Properties• Selling involves more than renting rooms or

tables.

• Image– The sales team needs to decide the image the

hotel or restaurant will project.


Marketing Hospitality PropertiesMarketing Hospitality Properties• Ranking systems

– Most ranking systems use a star or diamond system.

– 5 stars refer to the highest quality and best-in-class accommodations.

– Hotels or restaurants with more stars may charge higher prices however, the services and amenities offered must justify the higher costs.


Marketing Hospitality PropertiesMarketing Hospitality Properties• Customer satisfaction

– Requires the involvement of all employees and staff.

– Begins with the front desk clerk or restaurant host.

– A bad experience will result in an unhappy customer who will tell potential customers about being dissatisfied.


Internet ImpactInternet Impact• The internet is having a major impact on

how individuals and businesses correspond with one another.

• Infomediaries: Third parties used to make reservations through the internet.


Internet ImpactInternet Impact• What customers expect

– Convenience– Consistency– Information– High-speed access


Changing Rules in Hospitality Changing Rules in Hospitality MarketingMarketing

• Successful hospitality businesses have the common traits of speed, flexibility, and consistency.– Speed is necessary to respond to a dynamic business

environment.

– Customers are very fickle, and brand loyalty is much harder to accomplish today.

– Flexibility is necessary to survive in the competitive marketplace.


Changing Rules in Hospitality MarketingChanging Rules in Hospitality Marketing• New rules for resourcesNew rules for resources

– Success in the hospitality industry depends on visionary leadership and a strong commitment to customer relations.

– Creativity and risk taking are characteristics necessary for success.

– Finding, training, and keeping employees who can respond to the demanding environment are becoming increasingly difficult.

– The bottom line is customer satisfaction.



• Traditional sales techniquesTraditional sales techniques– Includes brochures, mailings, and bulk distributions.

– Brochures should clearly identify hotel and restaurant highlights and must be readily available for prospective customers.

– Targeted mailing lists are useful when sending out sales promotions that revolve around sporting events, honeymoons, family weekend packages, etc.



• Tracking qualityTracking quality– Customer feedback is important in maintaining repeat

customers.

– Psychographic informationPsychographic information: Identifies reasons why customers stay at a particular hotel or eat at specific restaurant.

– Psychographic and demographic data are combined and used to create successful marketing plans.



• Restaurant salesRestaurant sales– Sales strategies for restaurants are based on upon market

trends, changing customer tastes, and competition.

– Restaurants cannot depend on past successes and must constantly work to maintain customer loyalty.

– Excellent food, atmosphere, and service are major factors when determining repeat business.


What are the various types of What are the various types of reservations and how has reservations and how has technology impacted the technology impacted the reservation business?reservation business?

Hotel ReservationsHotel Reservations

Reserving a Hotel RoomReserving a Hotel Room• There are many ways a guest can make hotel

reservations:– Telephone

– Mail

– Fax

– Email

– Face-to-face

– Web site


Reserving a Hotel RoomReserving a Hotel Room• Computer reservation systems keep the latest tally on

available rooms.• Desk clerks can readily see which rooms are

available, C/O, and occupied.• Customer loyalty is built on the assurance of

reservation accuracy.• Nonsmoking rooms and the size of beds are

important for different hotel guests.• The hotel’s sales department may offer good group

rates for conventions or family reunions.


Reserving a Hotel RoomReserving a Hotel Room• Types of reservationsTypes of reservations

– Regular reservationRegular reservation: • A non-guaranteed reservation that is usually held until 6 p.m. on

the date of arrival.

• After 6 p.m. the room is made available on a first-come, first-serve basis.

– Guaranteed reservationGuaranteed reservation:• Requires the guest to pay for the first night prior to the guest’s

arrival.

• Held with a deposit or credit card.

• Gives guests the peace of mind that they have a room no matter how late they arrive at the hotel.


Reserving a Hotel RoomReserving a Hotel Room• Cancelled reservationsCancelled reservations

– Courteous travelers call when they do not plan on using a reservation.

– Cancellation numbers are assigned so the customer is not charged and the room is changed to available status.

– Stayovers or overstays:Stayovers or overstays: Persons staying longer than their reservation.

– Due-outsDue-outs: People expected to check out.


Third-Party ReservationsThird-Party Reservations• Third-party distribution channelsThird-party distribution channels

– Examples:• Travel agents

• Internet

– Hotels have become increasingly dependant on third-parties.

– The hotel will usually pay a commission to the third-party.


Third-Party ReservationsThird-Party Reservations• Importance of communicationsImportance of communications

– The reservation process is also linked to the data-gathering process.

– Advances in technology, shortages in clerical employees, and consumers’ willingness to seek the best deal on their own make a focus on easy, accurate, and economically competitive reservations essential.


What markets take advantage What markets take advantage hospitality event marketing and hospitality event marketing and what strategies can be used to what strategies can be used to attract them?attract them?

Sales and Event PlanningSales and Event Planning

The Big Business of HospitalityThe Big Business of Hospitality• Hospitality Event Planning: Hospitality Event Planning: Sales strategies that

attract the business of large conventions and banquets.– Some use a Conference and Visitors Bureau (CVB)Conference and Visitors Bureau (CVB)::

Promotes tourism and convention business. Typical members include accommodation facilities, special attractions, restaurants, and tour companies.

– Group salesGroup sales:: Involve renting multiple rooms and meeting rooms.

• Awards Banquets

• Weddings• Proms

• Reunions

• Conventions

• Social Events


The Big Business of HospitalityThe Big Business of Hospitality• Sales staffSales staff

– Plans strategies for convention and banquet business.

– Must market the entire hotel product, including room, food and beverage service, meeting space, and recreational facilities.


The Big Business of HospitalityThe Big Business of Hospitality• Advertising and researchAdvertising and research

– Necessary elements are advertising, direct mail, publicity, and public relations.

– Alert sales departments take advantage of free positive publicity in the newspaper.

– Sales departments use marketing research to determine the best days of the year for business.

– ForecastsForecasts: : Projections of potential business based on past records of rooms sold, convention business, walk-ins, and meals sold.

• Necessary for staffing, purchasing food, and ordering linen supplies.


The Big Business of HospitalityThe Big Business of Hospitality• Catering for hospitality eventsCatering for hospitality events

– Catering has an enormous impact on the success of a conference.

– Customer expectations rise with prices.

– Most catered meals at hotels are expensive, so it is extremely important to have high-quality food and good service.

– The catering department• Helps clients determine a meal that meets their budget and taste.• Has the task of making the customer’s experience a pleasant one.


Potential MarketsPotential Markets• Every meeting or convention has a unique

personality with its own special needs.• Professional organizations:

– Lawyers, doctors, teachers, or other skilled professionals

• Political conventions• Special events:

– Kentucky Derby, The Player’s Championship (TPC), The Super Bowl, etc.


Sales StrategiesSales Strategies

• Brochures

• Internet

• Virtual tours

• Mailing lists

• Chambers of commerce

• State tourism offices

• Tour operators

• Newspaper articles

Selling Hospitality Chapter 4. Unit Essential Question How are hotels and restaurants marketed?

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