22/06/2015
A great article here from Amy Infante of Plan B Consultants.
Quick Spend $10,000: Why Your Hotel Sales Expectations are Unrealistic
The reason hotel sales teams give up on prospecting so easily is because the efforts put in on prospecting rarely effect the immediate panic of today. Sure there are stories of miracle finds. However, as I’ve mentioned in past posts, prospecting tends to be deployed when there is an immediate need & then it stops when times are good because the sales team is focusing on a compressed sales cycle.
In regards to prospecting efforts TODAY, we are best served by letting go of false expectations and allowing the prospecting team to focus beyond 30-90 day window. The “sweet spot” is 6 – 18 months into the future. That wide gap simply reflects the diversity of the business in each market we cover. As a more specific example, we are currently conducting a prospecting effort for a major US brand. 85% of the business we have uncovered as of June 15th is for 2016, 2017 or unknown timing. Unknown timing means the planner mentioned they have their 2015 business needs met and they are unsure when they will start the process for future needs. Yes, they have “pop-ups”, but currently they can’t predict anything for 2015. 33% of the business we have uncovered as of June 15th will be making their decision on venue for their next meeting in Q1 2016. Let’s be clear…this business is not consuming in Q1. They are selecting the hotel in Q1 2016.
As our GBIR (Global Business Intelligence Researchers) make hundreds of dials/day and have multiple conversations with hotel prospects composed of meeting planners, procurement managers, travel agents and travel managers…the message rings loud and clear. The CUSTOMER focus is on their future business needs. So…why are we as hotel sales professionals focusing so many resources on today or the super short-term needs of the hotel?
I know some will shut me down right here, and say, “Amy, my sales managers MUST be focused on business when we need it most.” My response is that if you keep doing the same thing, you will get the same results. Directing prospecting initiatives to cover last-minute booking needs only creates more panic for the same time next year. It’s “Groundhog Day”! Expecting prospecting to uncover miracle business that will save the hotel from a bleary quarter when you’re in that quarter is just not realistic.
Currently, your potential buyers are looking toward their future plans, they are researching and going through their internal processes and gaining approvals to start sourcing vendors for business needs they have 6-18 months out. A 100 room night decision does not happen overnight for buyers. They are going through sometimes painstaking internal processes, which include “risk management” training for a $10,000 spend. Hotel sales teams should be clear on the B2B buying process and marry their efforts to work with the process vs. against or in opposite directions. Leadership/Hotel Owners can have a giant impact on either derailing the focus, or keeping things right on track through FUTURE focus.
The British Author, James Howell, said, “All we can do is be better prepared today than yesterday and better prepared tomorrow than today."
As an outsource business process firm, we ONLY focus on the future for our clients, so sales managers on property have the ability to respond to immediate needs of the compressed sales cycle as well as managing larger accounts to grow the hotel’s market share. We do so efficiently through our bandwidth, experience & knowledge of the hotel industry, and we’re super pumped to help your team with joint planning to ensure your sales process is efficient and effective to grow revenue!
