Hotel Sales: Strategies, Channels, and Customer Engagement
What is Sales?
Sales is more than just exchanging money for products or services. It’s the art of understanding and empathizing with the customer’s feelings and thoughts. Selling involves solving problems, building relationships, educating guests, providing confidence, and creating value perceptions.
Distribution Channels
- OTA = Booking, Expedia
- TA = Travel Agencies (e.g., Viajes El Corte Inglés)
- Hotel website, phone/mail
- Metasearch tools = Tripadvisor, Google Maps
- Loyalty programs, social media
Classify Distribution Channels:
- Online – Direct: Hotel website, airline website…
- Online – Indirect: Booking, Expedia…
- Offline – Direct: Counter reservations, local providers.
- Offline – Indirect: Physical agencies, tourism offices.
Pros and Cons of Using Intermediaries
PROS:
- Increased visibility
- Higher bookings
- Ease of marketing
- Global reach
- Convenience
CONS:
- High commissions
- Reduced direct relationships
- Price competition
- Dependence
Intensity of Distribution Channels
Distribution intensity refers to the level of reach a company desires for its products within distribution channels.
- Exclusive Distribution: Product in only one selling point or with one intermediary.
Example: Rolex (Hotel: Casa Montelagua). - Selective Distribution: Product in different, chosen selling points.
Example: Apple (Tourism packages). - Intensive Distribution: Product in the maximum selling points available.
Example: Coca-Cola (Meliá Hotels).
Upselling and Cross-Selling
- Upselling: Offering a superior product or service.
Ex: Room with sea views, breakfast pack. - Cross-selling: Offering complementary products or services.
Ex: Airport transfer after booking a room.
Features vs. Benefits:
- Features: Hotel characteristics.
- Benefits: How features improve the customer experience.
Example: Feature: Soundproof windows. Benefit: Quiet rest.
Hotel Sales Market
- Corporate: Business travel. Services: meeting rooms, fast Wi-Fi, good locations.
Example: Hilton Garden Inn. - Leisure: Tourist and leisure travelers. Services: recreational activities, pool, spa, beach access.
Example: Riu Palace Punta Cana. - MICE: Corporate and group events. Services: large meeting rooms, conference technology, catering.
Example: Hotel Meliá.
How to Be More Effective in Sales
- Know your client.
- Talk about benefits, not features.
- Build confidence.
Individualize customer needs.
Who is a Seller in a Hotel?
All staff are responsible for upselling. Every interaction is an opportunity to generate revenue. Receptionists can upsell room upgrades, restaurant staff can cross-sell drinks or desserts, and concierges can upsell tours or spa packages.
Buying Process
The process of buying products includes:
- Recognition of need: Convert need into want.
- Information search: Provide necessary information.
- Evaluation of alternatives: Emphasize product advantages.
- Purchase decision.
- Post-purchase evaluation: Ensure the right purchase.
Booking Window
The time between reservation and service use. Key for planning resources, adjusting prices, and designing marketing strategies. Bookings can be early or last minute.
Examples: A booking 6 months in advance allows for revenue forecasting. A booking 2 days in advance allows for dynamic pricing.
Needs, Wants, and Demand
- Needs: Basic requirements for living or feeling good (e.g., rest).
- Wants: Specific desires to satisfy a need (e.g., a hotel with a spa).
- Demand: Desire with the money and access to buy it.
Example: Need: Rest. Want: Hotel with a spa. Demand: Booking the hotel.
Motivational Matrix
A tool to understand why customers make purchasing decisions, combining rational and emotional motivations.
- Rational: Based on logic and utility (e.g., good infrastructure).
- Emotional: Based on feelings and desires (e.g., relaxation).
Competitive Set (Comp Set)
A group of direct competitors (4-5 hotels) in the same area, with similar prices, services, and target customers.
Why is this important?
For sales decisions: Adjust promotional strategies to attract more customers.
Factors to consider:
- Location
- Star Rating
- Size
- Rates
- Facilities
- Food and Beverage Options
- Online Reviews
How to Be a Good Seller
Focus on actively listening to the customer, creating a personalized relationship, and being honest and reliable. Tailor the sales pitch to each customer and resolve objections effectively.
How to React to Objections
Address objections immediately with confidence and solid arguments. For example, justify the value of a product when the customer believes it is expensive.
7 Key Points of Effective Sales
- Know your product or service.
- Competitive analysis.
- Unique Selling Points (USP).
- Know your customer.
- Personal relationship.
- Adapted presentation.
- Win/Win selling.
Sales Actions
- Promotions: Discounts, contests, newsletters.
- Cold calls.
- Roadshows.
- Tradeshows.
- Famtrips.
- Site inspections.
- Hotel consortia.
- Luxury programs.
Sales Speech & Presentation
Tailor presentations to the type of sales action, based on time and context.
Timing:
Tradeshows/roadshows (2-15 minutes), site inspections (30+ minutes).
Tools:
Use presentations for tradeshows/roadshows, not for cold calls or site inspections.
Content:
Tailor the pitch to the customer’s needs.
Attitude:
Adjust your approach based on customer familiarity and culture.
Tips for a Good Presentation
- Identify your target market.
- Clear structure: introduction, development, conclusion.
- Be visual: Use images and graphics.
- Personalize: Tailor content to the client’s needs.
- Control time.
- Communicate with confidence.
Two Types of Reports
Sales Actions Report:
Details sales actions, objectives, and results. Example: Report on customer interest after a roadshow.
Competitive Intelligence Report:
Compares hotel performance with competitors. Example: Adjust promotions based on competitor occupancy and rates.