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LHS- INTERNATIONAL TOURISM MANAGEMENT

Tute 01 Date ………….

INTRODUCTION TO HOSPITALITY MARKETING AND


SALES

Important of Sales and Marketing team to a Hotel

High competition among the hotels, need the competent team of Sales and Marketing to
promote the product among the competitors.

Main Responsibilities

- Responsible for building the image of the organization among the customers
- Responsible for putting up a effective sales and marketing plan
- Responsible for carrying out market research product development campaign etc.
- Responsible for finding new segment in market
- Responsible for bringing business and helping out finance department to achieve the set
targets

ORGANIZING CHART OF THE SALES AND MARKETING


DEPARTMENT

Director Sales & Marketing

Sales Manger Marketing Manager

Assistant Sales Manager Assistant Marketing Manager

Sales Executives Marketing executives

What’s Marketing?

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Marketing is the study and management of the exchange process. It involves the things
that the property will do to select a target market and stimulate or alter that market
demand for the property services. It consist with research, action , strategies advertising,
publicity, & sales and promotion.

What’s Sales?

Sales consists of direct efforts to sell the property by personal sales, calls,
telecommunication & mailings

THE MARKETING MIX

The term Marketing mix is used to indicate the variable factors which can satisfy specific
consumer needs. It is mix of 4ps’ such as product, price, promotion, and place

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Management’s Role in Marketing & Sales

Role of Director Marketing


- Responsible for carrying out a marketing plan through out the year
- Conducting sales promotion plan with the help of Director sales
- Responsible for identifying new segmentation of the market
- Responsible for identifying new opportunities
- Responsible for redirecting& modifying strategies that are not working well
- Other managerial function

Role of Director Sales


- Responsible for applying marketing strategies and directing the sales staff
- Responsible for putting up sales plan through out the year
- Responsible for Guiding the sales team accordingly
- Responsible for identifying new opportunities

The Challenge of Hospitality Marketing and Sales

Hospitality sales differ greatly from consumer goods sales in that the hospitality sales
person is selling something that has both tangible and intangible products.
- Intangibility
- Perishability
- Inconsistency
- Inseparability

Trends shaping the future of Hospitality Marketing & Sales

Identify new trends & act immediately


- Globalization
Expanding the business globally to attract different customer segments around the
world
Ex: International reservation / Central reservation
Developing marketing strategies for specific countries and regions
- Consolidation
It can be merge, acquisition, or making joint ventures among two or more
Corporation
- Partnership Marketing
Involving two or more partners and serving similar markets with noncompetitive
Products. It gives the benefit from each other’s strengths

- Niche Marketing & branding

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Designing, building and marketing hospitality products for specific market
Segments
- Technology
Providing more efficiency service via technology, more properties have web
Sites and guest are also being reached on line booking facilities.

- Environmental awareness
Costumers are more concern about the environmental issues
Ex: Eco Tourism
- Guest preference
Giving a prominent place for guest whishes
- Relationship marketing
To day most of the places treat their customer as assets and making good relation ship
to get the repeat business

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THE MARKETING PLAN
It is a guide for marketing, sales, Advertising and promotional efforts. It is the upon
which sales is built It is the property’s road map .Normally marketing plan has to develop
for at least three year period. It
- Forces Managers to think ahead and make better use of the property’s resources.
- sets responsibilities and coordinates and unifies efforts to reach the property’s sales
Goals
- Creates an awareness of problems and obstacles
- Identifies opportunities to increase market share in some market segments and new
Opportunities in previously ignore areas
- Ensure that sales promotions and advertising are not wasted because of misdirected
Efforts

If the management is uncomfortable with three year plan a compromise can be reached
by setting broad goals over the three year period and well defined objectives and
strategies for for the first year of three year cycle

The Marketing Team


It denotes a group of people representing at least one from each revenue center of the
hotel

Steps of Marketing Plan


Three are five steps that must be included

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STEP 01 Conducting a Marketing Audit

The foundation of any marketing plan is the marketing audit. Marketing audit is the
research steps in the planning process, and is some time referred to as gathering
marketing intelligence.

- property analysis
It is a written unbiased self- appraisal used to assess the strength and weakness of your
property. Under that following factors will be considered
*Revenue and non revenue producing area
* Reputation
* Location
* Building exteriors
* Landscaping

Sample Property Analysis Form

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Competition Analysis
An evaluation of a business’s competition to identify opportunities and unique selling
points. It is a part of marketing audit. The objectives of a competition analysis are to
discover the objectives of a competition analysis are to discover
- profitable guest groups are being served by competitors that are not being at your
property
- Some competitive benefits or advantage your property enjoys that cannot be matched
by major competitors
- Weakness in the marketing strategies of the competition on which your property can
capitalize

Ex: competitive rate analysis

Market Place Analysis

Researches the property’s current position in the market place and reveals potential
opportunities to promote the property
It evaluates the environmental opportunities and problems that can affect the business and
forces affecting a business, such as changes in life styles societal values, economic
conditions, and Technology.

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STEP 02 Selecting Profitable Target Markets

Here we have to consider the difference market segmentation in an around us.

Market segmentation: Dividing the market in to groups of consumers with similar


needs, wants, backgrounds, incomes, buying habits, and so on
Exhibit 06 The market place analysis

STEP03 Positioning the property

Positioning: A marketing term used to describe the process of shaping how consumers
perceive the products and services offered by a particular hotel or restaurant in relation to
similar products and services offered by competitors (the process of designing a
property’s market position is known as positioning)
Positioning is not simply advertising. A property ‘s is composed of the hospitality it
offers and the managers and marketers ability to create unique selling points based on the
property location internal or external features personnel. Without positioning it is
impossible to determine what the property has to offer, where the property is going and
how it will get there etc.

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STEP 04 Establishing Objectives and Action Plan

Once the market audit is completed, the target market segments identified and the
positioning established, the next step in the marketing plan is to establish specific
marketing objectives. This is one of the most difficult steps in the planning process
because it involves establishing goals for each market segment.
Marketing objectives should be simple should be set for each market segment, revenue
centre and revenue producing service like outsource laundry facilities. Marketing
objective should be
- In writing
- Understandable
- Realistic and challenging
- Specific and measurable

STEP 05 Monitoring and Evaluating the Market Plan

Marketing efforts should be measured carefully; the easier it will be future marketing
activities and programs. The marketing plan should be review periodically so that
corrective action can be taken through out the planning cycle.

If action plans are effective and objectives are realized within establish budget limits,
corrective action need not be a part of the process. But it is painful fact that some
strategies do not work .If hotel sales goals are not being met the problem can often be
traced to one or more of the following reasons
- Lack of responsibility
- Lack of communication
- Lack of time
- Lack of authority
- Lack of appeal
- Lack of control
- Lack of realistic goals

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LHS- INTERNATIONAL HOTEL MANAGEMENT

Chapter 03 Date…….

Refer page 66 for sample marketing plan

Tutorial 01(Chapter 01)

Review questions 09
Case study 01

Tutorial 02(Chapter 02)

Review questions 09
Case study 01

MANAGING THE MARKETING AND SALES OFFICE

Marketing and sales Division


Marketing and sales division can be varied with the size, type, and budget of the hotel to
hotel. Small hotel only have one person who is handling all the sales activities related to
the hotel business. But large hotel have organized sales and marketing division with no of
key personnel.
Refer 74 page for organization chart for sales and marketing of a small hotel
Refer 75 page for organization chart for sales and marketing of a large hotel

Duties of key positions

Marketing research coordinator


Responsible for
- Finding out current market trends
- Marketing and sales strategies
- General consumer trend
- Fining out new market trends
- Conducting any other research activity which will affect to the business

Director of Advertising and Public Relation

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Responsible for
- coordinate all promotional material
- establishing good public image to the company
- selecting advertising media for the property
Director of Revenue Management
Responsible for
- price structure based on the date,season,day of the week competitive situation and the
potential of the group

Telemarketing Director
Responsible for
- supervise and manage the telephone sales staff

Director of convention services


Responsible for
- overseeing the servicing of the group business once it has been sold
- handling bookings related to the convention halls
- close coordination with food and beverage department

Director of sales
Responsible for
- putting up the sales plan for the hotel
- coordinating with top management
- administrating a sales support system
- training the sales staff
- setting sales targets
- evaluating sales progress
- evaluating sales procedures

Refer page 78 for sample job description of a sales person

Organizing the Marketing and Sales Office


It can be organized in a variety of ways, based on a number of factors,
- The property’s goals and objectives
- The budget for marketing and sales
- Available outside assistance (travel agents, chain referral, reservation)
- The total market potential and the no of people needed to take advantage to take
That potential

Recruiting and hiring effective sales person

Common characteristic of an effective sales person


- professionalism
- Ability to communicate

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- Intelligence
- Ability to analyze
- Motivation
- Efficiency
- Persistence
- Empathy
- Curiosity

Training a sales person

Each sales person should have a firm foundation in the following key areas

Property knowledge- General description about the property, the no of and type of guest
rooms, room rates, no of conventions hall, lay out of the hotel.

Office procedure – should know about the office routine works .Booking policies, sales
quotas, sales office hours, function and guest room control books, sales forms and reports

Performance standard – Expected service from the sales persons

Salesmanship- How efficiency in sales activities

Training Techniques

1 simulated sales calls


Giving to train new sales person can make a sales presentation and be critiqued by other
staff member
2 Double calling
Sales person accompanied by the director of sales or a senior person.

3 Market segmentation drills


Educating about the current serving market segments

4 Case study exercises


Making sales strategy plans for other organization which are not own by the same
company

5 In basket drill
Training about the documentation skills

Managing sales people


It is a duty of director sales to implement a proper tracing system to manage his staff

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Evaluating salespeople
Can evaluate by studying
- No of sales calls made
- No of room nights booked and revenue generated
- No of proposal sent out
- No of follow ups on the file
- Percentage of rooms nights booked during high need time
- No of inspections conducted and business generated

Developing the Marketing and Sales Office

Communication system
It is understood fact that the department should have proper communication link within
the department as well as the the other areas. a sales marketing office relies on various
methods to communicate ideas and information, including holding meetings, keeping
sales records, and establishing filing system.

Sales records and forms

Sample sales call report


It is kind of form to be filled when making a sales call

Refer page 97 exhibit 9 for Sample sales call report

Sample booking form


It is a kind of document which filled during the booking is taken

Refer sample booking form page 99 exhibit 10

Sample lost business report


This formed to used to fill either business cancelled or changed

Refer page no 100 for exhibit 11

Sample function book reservation sheet


This sheet help to avoid double booking of particular selling place once it is sold

Refer page 101 for exhibit 12

The guest room control book


It used to monitor the no of guest rooms committed to groups. The book should indicate
no of rooms allotted to each group. The guest room control book is used to monitor the

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no of guest rooms committed to groups. It indicate whether allotment is confirm or
tentative at any given time.
Refer page no 105 for sample guest room control report

FILING SYSTEM

There are several types of filing methods that may be used for storing client data and
other sales information. These methods fall into three general categories.
1 Alphabetical filling
2 Key word alphabetical filling
3 Numerical

The Master card file


Master cards are instrumental in establishing data banks of information on the needs of
clients. Each master card contains a summary of everything needed for an effective sales
effort, the organization name ,the names and titles of key executives ,address ,phone
numbers month or months in which group meets, the size of the group, the group decision
maker and other potential data that can help to obtain and keep that accounts business.

The Account file


It is standard size folder holding information needed for serving a client basic business
needs. The account file usually kept in a standard file folder and contains all of the groups
information , including sales call reports, tentative and confirm booking information,
function sheet of past business, and correspondence generated related to the booking.
Information is placed in the file chronological order. Account file folder to be color
corded according to various groups.
Sample account file -Refer exhibit 16 page 108

Sample manual trace file


The trace file also known as a tickler file ,bring up file , or follow up file is an effective
aid for following up an account reminder card or note is filled in the trace file by month
and date. The system is used as a reminder of correspondence, telephone calls or contacts
that must be handled on particular day.
Sample trace file –Refer exhibit 17 page 109

THE AUTOMATED MARKETING ANAD SALES OFFICE


Sales and marketing office generates an incredible of paper work, to avoid that most of
the offices are computerized.
Benefit of automation
- Less paper work
- Can provide quick and efficiency services to customer
- Easy access to sales information

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- Facilitate personalized mailing
- Cost effective

Additional Application of Automation

- Database marketing
Data base marketing assist the marketing and sales department to organize, analyze
information about the individual guest and groups. It helps to use information from
routine source like guest folios registration cards, customer survey the group histories of
meetings to build relation ships and market the property’s services effectively.

- Home based and virtual offices

Virtual office
Because of the advance technology sales people can function their activity in any area by
using laptop computer and cellular phones.

Home based office


Sales staffs are free to do their work even staying their home. It saves initial cost of
opening sales offices

- Can generate lists, reports, and analysis application


It helps to generate quick report in various areas

- Yield and revenue management


It helps to calculate the yield and accumulated revenue for the past finance year.

EVALUATING THE MARKETING AND SALES OFFICE

It is responsibility of director sales and marketing to evaluate his or her staff on regular
basis to identify their performance and abilities towards the selling techniques.

Tutorial 03

Review questions - (page 118)


Case study -01 (page 119)

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LHS - INERNATIONAL HOTEL MANAGEMENT

LESSON – HOSPITALITY SALES & MARKETING


Lesson no 04 Date…………

PRESONAL SALES
The personal sales call is often the most effective means of customer contact, especially
when directed at volume movers of the leisure, business and meetings market. A personal
sales call is used to build rapport with clients or potential clients and sell them the
property’s product and services.
Type of personal sales call
1 cold calls or prospect calls – which can either be made in person or by telephone, are
usually made within a small geographic area with a minimum amount of time spent on
each call.
2 public relation calls – This call made for existing customer to enhance the relation ship.

3 Presentation calls – This call are made to individuals committees or groups to explain
how your property can meet their needs and to ask for their business.

4 Inside calls – These calls are made to walk-ins inquiry about the property or to group
buyers, such as tour operators and meeting planners.

Prospecting
Prospecting is the life blood of sales because prospecting identifies the individuals or
groups that may become the property’s client base in the future. At a minimum, each
sales person should be making 10 to 15 calls per week on new prospects.

Sources of prospecting
- Referral program of past and present clients
- Account penetration
- Local organization and companies
- Community contacts
- Front desk personnel
- Other property employees
- The property competitors
- Other sources
- The national level
- Networking
- The internet

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Qualifying prospects
Qualify and quantify are two of the most important steps in the solicitation of any
account. Unfortunately, not every prospect qualifies as a potential client, in many hotels
80 percent of business is generated by 20 percent of their accounts.

Refer sample sales prospect card exhibit 2 page no 137

Prepare for the presentation sales call


Once the prospect has been called on and has expressed an interest in the property, a
presentation sales call can be made. Although you should approach each presentation
sales call with confidence, you should realize that not all presentation lead to sale. You
should have well prepared presentation. It results
1 increased credibility
2 increased confidence
3 increased probability of reaching the decision maker

Pre presentation planning


To be effective pre presentation planning should include property research, competitor
research, and client research.

Property research includes the developing a property fact book including various
information related to the hotel. Such as
- General property description
- Guest rooms
- Restaurants and lounges
- Meeting and banquet facilities
- Audiovisual equipment
- Transportation
- Recreation facilities
- Out side services
- Vendors

Competition research includes the the gathering various information related to the
competitors strengths, weaknesses, and their customer base.
Refer sample competition analysis-page 143 exhibit 03

Client research includes the study about client, annual reports, internet sites, business
directories, articles, trade journals etc...

The sales kit


Before making a sales call you should prepare a well organized and professional sales
kit. Only the information pertinent to the client’s particular needs should be included, too
much information results in clutter and appears unprofessional.

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Projecting a professional image
You are the official representative of the property and your appearance, attitude, and
approach to clients can mean the difference between new business and a negative
response. Remember, you never get a second chance to make good first impression.
First and foremost, never smoke; chew gum, or drinking during a sales call. Other factors
in projecting a professional image include nonverbal communication, voice quality,
listning skills, and negotiation skills

Nonverbal communication
- Appearance
- The handshake
- Territorial space
- Public space
- Social space
- Personal space
- Intimate space
- Body language

Voice quality
The sales presentation must be clear and understandable to be effective. The human voice
is a persuasive instrument when used properly, and it is vitally important that you learn to
use your voice as a selling tool.

Listening skill
At the other end of the spectrum, you must know when to stop talking. You need to show
genuine interest in your clients’ need, and listening is and important part of building a
rapport.

Negotiating skill
Listening plays a key role in yet another important sales skill, negotiating. Negotiation
involves two or more parties coming together to reach an agreement for their mutual
benefit.

The presentation sales call


The objective of a presentation sales call is to book business for the property .once you
have prepared yourself for a presentation sales call it is time to make an appointment with
the client and follow the five steps that will help ensure success.
1 opening the sales calls
2 Getting client involvement
3 Presenting your property
4 Overcoming objections
5 closing and following up

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1. Opening the sales call
All sales call begins with an opening. The opening should put the customer at ease
establish rapport and build the prospects confidence and trust in you it divides in to
following stages
- Introduction
Giving introduction about the presenter
- Purpose statement
Stating purpose of the visit
- Benefit statement
Reasoning out why he /they should listen to him and benefits what they can gain
- Bridge statement
This will indicate the body of sales presentation

2. Getting a client involvement


Second stage in the sales call focus on determining the client’s specific needs and
involving the clients by asking questions questioning always precedes any sales
presentation. This is is a fundamental rule. Questioning and presenting are separate steps.

3. Presenting your property


You should have prepared, rehearsed sales presentation that addresses the needs of each
of the major market segments the property has targeted. For example a general sales
presentation for meeting planners that relates specially to the needs of that segment.
There are three skills required for a successful presentation; they are
- Organization
- Effective speaking
- Visual aids
Refer exhibit 05 page 154 for sample presentation planning check list.

Closing the presentation


When you have conclude the presentation, a transition phrase, which may be simple as
“do you have any questions” can lead to the next step of the sales call overcoming any
objections expected by the client.

4. Over coming the objections


Step four of the sales call deals with those times when the client has objections to your
sales presentation. Objection can occur at any time, and there is no reason to panic when
an objection is raised. Some objections are a client’s way of asking fro more information
and some may offer an opportunity to close the sale. Normally the objection fall in two
three main categories
1. Price or rate
2. Product or service
3. Lack of interest

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4. Closing and following up
Closing up
Many sales people enjoy presenting their products, but hesitate when it comes to
closing. Closing is not difficult, however, when you understand some fundamental
principles involved. There two basic types of closes. Test close and major close. Test
close try draw a reaction from the client. A major close is a question or statement that
asked for sales.

Following up
It is necessary to follow up all the sales call was made. If a sale was not made, follow
up can consist of a brief thank you letter. The letter should be accompanied by
additional material not given to the client at the time of presentation and any materials
specifically requested by the client.

Improving sales productivity

Sales is a highly competitive field, and you should constantly monitor your
performance in no of areas. In order to measures your productivity, you must first
have a written list of goals, goals keep you on track and allow you to gauge your
success the basis for goals should always be the hotel’s marketing plan, and success
should be evaluated in terms of achieving the optimum customer mix set by the
property.

Time management
Good time management is leads to successful sales career. It is important to have
track record for time utilization for each task. Your workday should be planned. Non
selling task should be eliminated during during prime selling time, and emphasis
given to work items with deadlines. In order to use time most effectively, time spent
on routine work should be minimized. By using a hotel director a sales person can
utilize his time effectively
Refer sample hotel director in page 164

Key account manager


A typical sales person at properties of all sizes handles 300 to 400 accounts. Landing
new accounts does not mean that you must service an ever increasing number of
clients. New accounts with high potential will replace those with the lowest potential
for business, so that the total no of accounts you service will remain relatively stable
as you continually increase the quality of the accounts being followed

Tutorial - 04

Review Questions10 Nos (page 168)

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LHS - INERNATIONAL HOTEL MANAGEMENT

LESSON – HOSPITALITY SALES & MARKETING


Lesson no 05 Date…………

TELEPHONE SALES
Chapter will outline the basics of telephone communication; describe how to handle
outgoing and incoming calls in a professional manner. The telephone is an important
business tool and proper handling of a phone call is one of the most important skills one
needs in the business world. Since the telephone is used in so many different ways,
telephone sales may be delegated to several groups of employees within a property. Sales
call may be handled by sales people or top management no matter how calls are
delegated, both incoming and out going calls play an important role in a property’s
overall sales and marketing efforts.

BASIC TELEPHONE COMMUNICATION

Telephone Etiquette
The lodging industry offers more than just rooms and guest services. It offers hospitality,
and friendliness and courtesy are an important part of any interaction between a property
employee and potential guest. When using the telephone, property employees must
communicate warmth and a willingness to be of service. Telephone etiquette begins by
letting the potential guest know that he or she is important to the property. It is important
that the property’s representative be polite and understanding and that the unseen guest
feel that someone is concerned about what he or she has to say.

Refer exhibit 01 for sample telephone etiquette guide lines.

There are a number of other ways salespeople can make a good impression
- Adequate preparation
- Adequate time
- Direct contact
- Courtesy and respect
- Brevity
- Timing

TELEPHONE COMMUNICATION SKILLS


- Tone of the voice
- Pitch
- Inflection
- Understandability
- Enthusiasm

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LISTENING SKILLS
The other half of a successful telephone call is listening to what the prospective client or
guest has to say. A salesperson in particular should be aware of several keys to good
listening.
- limit talking
- Get involved
- Ask questions

Outgoing calls

1. Prospect and Qualifying calls


The objective of prospect calls is to gather information and learn the names of decision
makers. Qualifying calls determine if prospects need or can afford the products and
services offered by the property.
Refer sample prospect qualification form in page 176

2. Appointments calls
Appointment calls are used to briefly introduce a prospective client to the features and
services offered by the property and ask for an appointment to meet face to face the
object of an appointment call is to get the prospect to agree to an appointment, not to
make a sale. Before making appointment call you should have all necessary information
available at your hand.appoinment call is made up of several steps
- reaching the decision maker
- opening the sales call
- the presentation
- overcoming objection
- setting the appointments

3. Sales call
Telephone sales calls may be made by a sales person or by a telemarketer working with a
sales script. Hotel chain and many large independent hotels work with specially trained
telephone sales team that call on prospect and concentrate on getting bookings or
commitments by phone.

4. Promotional calls
Promotional calls may be made by sales people or top management to introduce special
promotions.

5. Service calls
Client satisfaction and loyalty can be develop through service calls, whether the calls are
made just to keep in touch or are follow up calls to clients after a sale has been made. It
helps to build a good rapport with the customer and help to identify any changes in
meeting schedules.

5. Public relation calls


These calls are made to generate goodwill among the prospect customer.

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INCOMING CALLS
No matter what type of calls is receiving to the hotel, it is essential that the caller receive
a positive first impression .when a call is answered at the hotel, the spot light is on the
person representing the property, and any unprofessional behaviour will create a bad
reflection about organization.

Reservations
Telephones play an important role in making reservations. At small properties reservation
are handle by a small group of reservation staff or the front desk agents. Since the
reservationists is often the public’s first contact with the property, more and more
emphasis is being put on the training of reservation personnel.

Response to advertising
One of the most effective advertising methods used by hotelier today is the listening of a
toll free telephone number in print ads. Since people are more likely to respond if the call
is free. Toll free calls are often handle by telemarketing people staff that tries to get either
a firm commitment for a reservation or information to pass along to a hotel sales person.

Inquires
Excellent leads for prospective business come in the form of inquiries from people who
call the property on the recommendation of friends, acquaintances or business associates
who are familiar with the property.

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TELEPHONE SALES OPERATIONS

The telephone can be used in creative ways to boost sales. Two of the most common
ways are telephone sales blitz which can be extremely effective for small to mid size
properties and telemarketing which is used primarily by large properties.

TELEPHONE SALES BLITZES

Telephone sales blitzes are usually used to gather information, but thy can also result
immediate sales. This system especially effective for properties that cannot afford
expensive computers and other telemarketing technology.
The successful telephone sales blitz begins with organization. The property ‘s general
manager or sales team usually targets a particular geographical area or market segment
and develops a plan for contacting as many as possible within a short period of time

Refer sample sales blitzes form exhibit 07 page (193)

TELEMARKETING OPERATIONS

Telemarketing is an effective sales tool that provides person to person contact immediate
feed back and the flexibility of Varity of approaches without the cost of a personal sales
call. Telemarketing is characterized by systematic use of the telephone often by a special
Staff of highly trained telemarketers along with computers and other technology that
provide instant access to information

Refer sample telemarketing call report exhibit 08 (page 194)

Tutorial-05

Review Questions 10 nos (page 199)


Case study 01 nos (page 200)

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LHS - INERNATIONAL HOTEL MANAGEMENT

LESSON – HOSPITALITY SALES & MARKETING


Lesson no 06 Date…………

INTENAL MARKETING AND SALES


WHAT IS INTERNAL MARKETING? --------------------------------------------------------

A concept that sees employees as “customer” who must be sold on the property they
work for and convinced of their importance to its successes.

What is an internal sale?


Specific sales activities engaged in by various employees of a property in conjunction
with a program of internal merchandising to promote additional sales and guest
satisfaction. Management can encourage these vital relation ships in three ways.
1 .provide an environment for guest – employee relation.
2. Instill pride (recognizing the value of employee and their positions)
3. Provide training that encourages employees to become more helpful.

THE ROLE OF GENARAL MANAGER IN INTERNAL SALES

The attitude of the general manager will greatly influence the success of an internal sales
program. If the GM is not customer and sales oriented, it is unlikely that the staff will be
highly motivated. A general manager can develop a sales oriented staff by,
- hiring sales oriented employees
- training employees in sales techniques
- motivating employees to sell

The role of employees in internal sales


Many employees make guest contacts while the guests are in the hotel. here the
employees are encourage to make good rapport with the customer to get their repeat
buisneess.it is especially important to build guest loyalty to avoid losing even a small part
of your current guest base to competitors.

Relationship selling
Relationship selling can be defined as building guest locality by creating enhancing and
maintaining a good relation ship with guest. There several ways for properties to learn
more about their guests so they can build relationship with them. One common method
used is the use of guest profiles. Other way is getting information through staff.

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Employee training
Employee training should be included a number of areas that will enable employees to
assist guest and build rapport. These areas include
- knowing the property
Employees are encouraged to study the property fact book in order to get a good
knowledge about the property.

- knowing the community


It important to aware the area surrounding hotel and places of interest in the area.
Employee can promote such things to their customers.

- Interacting with guest


Positive interaction with guest is crucial to making a good impression and generating
repeat business. When ever possible called guest by their names.

- Learning sales skills.


Sales skills help employees to make the most of sales opportunities in their particular
areas of guest contact.

Upgrading
Reservation is an effective way to increase revenues, but very few front desks or
reservations staffs are trained to use upgrading technicques.upgrading can be
accomplished without pressuring a guest by using one of three methods.

- Top down method


Guests are encouraged to reserve middle or high rate rooms.

- Rate category alternative methods


If the guest can’t afford high rates, Guests are encouraged to select middle rates range
of rooms

- Bottom up
If the guest can’t afford high rates and middle rates Guest are encouraged to buy low
rates rooms

SUGGESTIVE SELLING
It is a process of influencing guest’s purchase decision through the use of sales phrases.
The entire employee can practice these techniques to increase the sales volume.
Ex; food server can suggest a cocktail before the dinner.

EMPLOYEE INCENTIVE PROGRAMME


Employee incentive programs can be an effective means of motivating employees to sell
and of tracking sales results. Here the employees are rewarded in various ways for their
extra selling efforts. When developing incentive programs management should realized

26
that while incentives in the form of cash, merchandise, or trips are often used to motivate
employees.

INTERNAL MERCHANDISING
Internal merchandising is the use of guest room services directories, Restaurant tent
cards, Elevator posters, Bulletin boards and other promotional items to promote the
property’s facilities and services.

Refer page 228 for sample annual internal merchandising plan

TUTORIAL 06

Review Questions 10 Nos (page 233)

27
LHS - INERNATIONAL HOTEL MANAGEMENT

LESSON – HOSPITALITY SALES & MARKETING


Lesson no 07 Date…………

ADVERTISING AND PUBLIC RELATION


Why Advertise? --------------------------------------------------------------------------------------

Hospitality firms advertise for a number of reasons.


- Advertising reaches a vast audience.
- Advertising is relatively inexpensive
- Advertising prompts audience response
- Advertising demonstrates competitiveness

TYPES OF ADVERTISING
The types of advertising that hospitality firm’s use include print, broadcast, electronic,
direct mail, outdoor, collateral and alternative media.

PRINT ADVERTISING

News papers
Print advertising media include news papers, magazines, and directories. News papers are
used by the hospitality industry more than other advertising mediums for a number of
reasons.
- High leadership
- Flexibility
- Low advertising rates

Magazines
Magazines are an excellent advertising option, since many consumer and trade magazines
target specific leader ship. Other advantages include
- production quality
- wider scope
- long life

Directories
Directories fall in to three categories. They are general, hotel, trade etc.

BROAD CAST ELECTRONIC ADVERTSING


Both broad cast and high Tec electronic advertising media have the potential of reaching
large no of consumers at one time

28
Different methods of Electronic Advertising

1. Radio

2. Television

3. Video

4. Internet

5. CD ROMs

6. Fax

DIRECT MAIL ADVERTISING

Direct mail is one of the most popular forms of hospitality advertising because it is
- Targetable
- Personal
- Conspicuous
- Flexible
- Designed for prospect involvement action
- Easily cost controlled
- Easily tested and measured

OUTDOOR ADVERTISING

Methods of out door advertising


- Signs
Sign can be a simple as a painted board or as standing board with the atmosphere of the
place.

- Bill board
Signs appear on the grounds of the hotel or restaurant, but billboard advertisement are
placed away from the property at strategic location on well traveled streets and highways

- Displays
Displays can be used both in house and off property to promote products and services.

Collateral Materials
Virtually all hospitality firms use collateral materials in one form or another. It includes
materials, such as brochures, poster, fliers and tent cards and specialty items designed to
promote your product and services.

29
ALTERNATIVE MEDIA ADVERTISING
In addition to these common advertising options, three are several alternative media
advertising options. These include
- Movie theater advertising
- Sponsor ship advertising
- In flight advertising
- Insert in billings
- High flying advertising
- Retailer tie ins

DEVELOPING ADVERTISING PLAN

No matter what strategy is used, your advertising must cut through the media clutter and
promote your firm in a memorable and cost effective way. Four characteristics reach;
Frequency, consistency, and Timing play important roles in all successful advertising
strategies.
- Reach
Refers to the no of different individuals or homes exposed to an advertising message at
least once during a specified time period.Genarally advertising costs will be higher as
reach goals increase.

- Frequency
Is a measure of how many times the average person in the target market is exposed to the
advertising message over a specified time period?

- Consistency
Plays an important part in consumer recognition of your hotel or restaurant. Your
advertising will be far more effective if it has a consistent look and, in the case of broad
cast media, a consistent sound

- Timing
It involves scheduling advertising for those times when it will be most effective. The
news paper advertising bureau recommends timing advertisements to coincide with
seasonal sales patterns –promoting summer vacation packages just before the season.

PLACING ADVERTISEMENTS
Here you have to consider the placement of your advertisements should be based on
where and when they will be most effective. In particular you should select the media
outlets in which to place ads based on the ability of each to
- reach the largest number of potential guest at the lowest cost per guest
- deliver an adequate selling message

30
BUDGETING FOR ADVERTISING
Before establishing an advertising budget, you should consider a number of variables that
will affect the kind of advertising budget you will use,
- The size and type of the hospitality firm
- The competition
- Marketing objectives
- Target markets

COOPERATIVE ADVERTISING
Involves advertising in conjunction with another advertisier.there are two types of
corporative advertising. Horizontal and vertical. Horizontal co-op advertising involves
similar business, such as several hotels that pool resources to promote their destination
city. Vertical co-op advertising, on the other hand involves several different types of
businesses such as a hotel and airline that cosponsor an advertisement benefit both
parties.

RECIPROCAL ADVERTISING
It is the exchange of hospitality product or services (rooms, food and beverages etc...) for
advertising space or airtime. This type of advertising can be especially effective for firms
with limited budget

MONITORING ADVERTISING

There are three ways to monitor the cost-effectiveness of your advertising


1. cost per thousand
2. cost per inquiry
3. cost per conversion

CPM (Cost Per 1,000 Impressions)


Stands for "Cost Per 1,000 Impressions," and is used in online advertising. CPM defines
the cost an advertiser pays for 1,000 impressions of an advertisement, such as a banner
ad or other promotion. An impression is counted each time an advertisement is shown.

Cost per thousand refers to the cost for reaching one thousand potential buyers, and is
calculated as follows

Cost of advertisement
CPM * 1,000
Vehicle circulation

31
Cost per inquiry can be used evaluate both the response to a specific advertisement and
the cost of soliciting each potential customer. CPI can determine as follows.

Cost of advertisement
CPI
Total inquires generated
Inquires don’t always result in sales, so to determine the actual value received for the cost
of advertising ,actual sales must be measured.

Cost of advertisement
Cost per conversion
Total conversions

Cost per conversion is an advertising and marketing term, describing the cost of
acquiring a customer, typically calculated by dividing the total cost of an advertising
campaign by the number of conversions. The definition of "conversion" varies
depending upon the situation; it is sometimes considered to be a lead, a sale, or a
purchase.
Cost of advertisement
Eg: Cost of sales
Total sales

ADVERTISING AGENCIES

Advertising agencies can be extremely helpful in making media decisions that will cut
through media clutter and make the best use of your advertising dollars. When selecting
an advertising agency, it’s important to consider these factors
- The agency longevity, reputation. And experience with hospitality firms
- Who will handle your account and his experience
- The number of accounts the agency handle
- The services the agency provides and how it would work with your firm
- The number of and types of media with which the agency experienced
- How the agency would be compensated

PUBLIC RELATIONS AND PUBLICITY

PUBLIC RELATION
Public relations can be defined as the process of communicating favorable information
about a hospitality firm to the public. Public relations include positive guest relations,
publicity, and other interaction with the public and media.

32
DEVELOPING PUBLIC RELATION PLAN
Your plan should include what you hope to accomplish, when you can best reach target
markets, and, perhaps most important .who will be involved in these efforts and what
these people will do.

PUBLICITY
Publicity, the media’s gratuitous of your firm, is one of the most effective promotional
tools available to the hospitality industry, yet few properties include publicity in their
marketing plan.

Developing Promotional Materials


Several types of promotional materials are typically used in conjunction with public
relations and publicity campaigns. Press kits typically include

- A letter of introduction
- A summary sheet
- Fact sheet
- A basic news letter
- Photographs of the property
- Photographs of key personal
- News clipping
- Advertising materials

PRESS RELATIONS
It is easier to establish or maintain effective public relations program if your property or
restaurant enjoys a good relationship with the press. To develop good media relations and
get the the most from media coverage have to consider following factors.
- prepare news release properly
- avoid duplication
- be honest
- respect deadlines

TUTORIALS

Review questions 10 nos (page 278)

33
LHS - INERNATIONAL HOTEL MANAGEMENT

LESSON – HOSPITALITY SALES & MARKETING


Lesson no 08 Date…………

MARKETING TO BUSINESS TRAVELERS


Who are the business travelers?
People those who travel business purpose will come under this category.

Ex: company chairmen, CEO, Top Management,

Business travelers concern following points when selecting a hotel


- Convenient location
- Clean, comfortable rooms
- Room rates and amenities
- Recommendations of friends and colleagues
- Previous experience with the property
- Facilities
- Frequent traveler programs

Frequent Business Travelers


Business travelers who come on regularly basis to a selected hotel will known as frequent
business travelers. The following factors are accompanied by the percentage s of frequent
business travelers who found them important.
- Restaurant on premises
- Quality service
- Room appointments
- Sport and recreation facilities
- Ambience
- Entertainment on premises
- Prior knowledge
- Safety and security

There are there types of frequent travelers

1. No Frill Travelers
No frill travelers, is made up largely of middle to upper management level positions.
They expect clean, comfortable, room at a fair price but their spending power is above
the cost –plus travelers. They are more interest on such facilities like swimming pool,
saunas, tennis court, etc...

34
2. Cost plus Travelers
This is the next largest group of frequent business travelers. These travelers are extremely
cost conscious and seeking for low room rates. Cost plus travelers are more interested on
restaurant opening hours, room amenities and lounges of the hotel etc...

3. Extroverted- Affluent Travelers


They are typically young and affluent, and either professional ,top level executives or self
employed they required following characteristics in the hotel such as fashionable
properties, high quality amenities, recreational facilities, live entertainment, finest deco in
eating outlets etc…

WOMEN BUISNESS TRVELERS


They are more concern about following points when they book a hotel
- Security
- Comfort and service
- Convenience
- Facilities

IDENTIFYING NEEDS OF BUISNESS TRVELERS


They have high spending power and expect personalized service from hotel side.
Following services are required to attract business clients.
- Business floors
- Business centers
- Health and fitness centre
- High Tec and other special amenities
- In room refreshment centers
- Frequent traveler program( introducing guest privilege cards, special discounts on
room rates, complimentary finding dinner, VIP treatments)

TUTORIAL 09

Review questions - 09 nos (page 304)


Case study - 01 nos (page 307)

35
LHS - INERNATIONAL HOTEL MANAGEMENT

LESSON – HOSPITALITY SALES & MARKETING


Lesson no 09 Date…………

MARKETING TO LEISURE TRAVELERS

WHO ARE LEISURE TRAVELERS?............................................................................


Those who Travel for pleasure, as opposed to business travel. Often used to indicate a trip
of sevens days or longer, regardless of its purpose

36
The leisure travelers market can be divided into two segments, they are,
1 Individual Traveler
2. Group Traveler

INDIVIDUAL LEISURE TRAVELERS

Can be define as non business guests who are traveling independently rather than with a
group on prearranged tour. They can be classified in to following group
- Families
- Seniors
- Baby boomers
- Generation x
- Others

FAMILIES

Married couples, couples with children, single parents and grand parents and other family
members traveling with children comes under this category. They expect following
characteristics from the hotel, such as
- Rooms with more space
- Reasonable rates or no rates for children
- Low cost recreational facilities
- Rooms with kitchen facilities
- Kiddies menus
- Colorful interior rooms
- In house doctors
- Baby sitting facilities
- All inclusive packages

37
SENIORS

An elderly person above 55 years old comes under this. There four types of seniors by
age limit, they are
- Preretirement (50 years -65 years)
- Young old (65 years -75 years)
- Old- old (75 years -85 years)
- 85 plus ( above 85 years)

What do they expect from a hotel?


- Quality service
- Clean and comfortable room
- Clean and comfortable lounge areas and public areas
- Rooms with two separate beds
- High safety and security measures
- Easy access rooms closer to elevators
- Elderly care facilities
- Large well lit rooms
- Non slippery floors

How to reach the senior market?


- Introducing religious tour packages
- Conducting promotion in various social organization
- Advertise to older travelers in travel guides
- Advertise in elders magazines
- Advertise in news papers

BABY BOOMERS
Baby boomers market consists of the 77 milion people born in the United States between
1946 and 1964 and covers a wide spectrum. Baby boomers include single adults, two
income couples without children, couple with children. This is segment wealthier and
healthier than seniors.

What do they expect from a hotel?


- Willing to buy god quality products
- More recreation facilities

38
- variety of foods and beverages
- Fresh and healthy foods

How to reach the baby boomers market?


- Advertising in News papers and Magazines
- Combination of radio spots and out door advertising

GENERATION X
People those who born in between 1965 and 1976.this segment has become a variable
economic force.
What do they expect from a hotel?
- Exciting experience
- Latest entertainment
- More seafood and vegetarian dishes
- Prefer for adventure activities

How to reach the Generation X market?


- Av advertising in computer, travel ,environment magazines
- Through travel agents

OTHERS
Other individual leisure travelers include businesses travelers who are taking a leisure trip
either before or after doing business, affluent leisure travelers, active leisure travelers,
and single leisure travelers who may be traveling alone or with a group of other singles.

Business leisure travelers


People those who travel for both purpose will comes under this

Affluent leisure travelers


This segment consists with those who have wealth and those who have mindset of
affluence. Each different person has different needs and interests.

Active leisure travelers


Active leisure travelers are actively participating with different type of activities in order
to spend their leisure time. They really concern such activities like sport, adventure etc...

Single leisure travelers


Here only one member is representing alone for his holiday. Many single leisure travelers
look for personal enrichment while on vacation.

39
GROUP LEISURE TRAVELERS

People those who travel with formulated groups comes under this segmented. Services in
group tour packages range form transportation, accommodation, and baggage handling to
more extensive arrangements such as meals ,sight seeing ,entertainment, and admission to
attractions.

Tour intermediaries
Travel professionals who arrange tours are known as tour intermediaries or travel
intermediaries. They include tour brokers, tour wholesalers, and retail travel agents.

Tour brokers
Also known as tour operators. They do bulk purchasing of hotel products and and other
transportation products. Many tour operators operate their own travel agencies through
which tours are sold. Most of the times they own charter flights also.

Tour wholesalers
Like tour brokers put tour packages together, but typically work with airlines rather than
ground transportation. Most of tour wholesalers contact with hotels, air lines and other
travel and lodging suppliers.

TYPES OF TOUR

There are three types of tours commonly taken by group leisure travelers .they are
1. Motor coach tours
2. Airline tours
3. Property package tours

1. Motor coach tours


Motor coach tours fall in to two general categories. They are,

- Over night or Non destination tours


They only one night at a destination expect following this from the hotel side
< Quick service in baggage handling and meals
< Wide verity of food choices
< Fair room service operation
< Express check-outs

40
- Destination tours
These guests will be staying a minimum of two nights at a place. They are mainly interest
on area sight seen and attraction.

Sample itinerary plan

Tour Features

• Fabulous views of the Hoover Dam, the Southwest Desert, and the
Grand Canyon.
• 1 meal included, lunch.
• Complimentary hotel pick-up and drop-off.
• Air-conditioned deluxe motor coach transportation.
• Luxury coach seats and viewing windows.
• Restroom equipped motor coaches.
• Video entertainment.
• Photo opportunities.
• Free time to explore and souvenir shop.
• Rest stops along the way.

Tour Itinerary

Tour Duration 15 hours The Grand Canyon Executive Coach


Hotel Pick-up Passengers are picked up from most major hotels in Las Vegas approximately 1
to 1 1/2 hours prior to departure depending on location of hotel.
Bus from Aladdin Hotel & Passengers board an air-conditioned motor coach for an immediate departure for
Casino, Dessert Passage to the Grand Canyon National Park. En route, passengers will pass Lake Mead and
Grand Canyon South stop briefly a Hoover Dam. The bus ride duration is approximately 5 hours to the
Grand Canyon National Park.
Lunch Before entering the Grand Canyon National Park a brief stop will be made in
Tusayan Village just outside the park for lunch. This will take approximately 1
hour.
Grand Canyon National Park Stops at observation points in Grand Canyon National Park with approximately
Observation points 20 to 30 minutes at each stop for photos, exploring and souvenir shopping.
Bus from Grand Canyon South Passengers board an air-conditioned motor coach for an immediate departure for
to Aladdin Hotel & Casino, the Aladdin Hotel & Casino, Dessert Passage. En route, passengers will pass
Dessert Passage Lake Mead. The bus ride duration is approximately 5 hours to the Aladdin Hotel &
Casino, Dessert Passage.
Hotel Drop-off Upon returning passengers will board motor coach for a complimentary transfer
to most Las Vegas Hotels or McCarran International Airport for connection flights.

How to reach motor coach tour brokers?


- Sending representatives to motor coach trade association meetings to promote group
packages and tours

41
- Sending direct mail along with the brochures
- Sponsoring for their events with display boards
- Developing toll free number to provide information at all the time
- Publishing print journals, magazines etc...
- Putting up advertisement in bus tour magazines, bus world, courier destination
magazines etc..

2. Airline tours

Airline tours are usually arranged by airline tour wholesalers. They do advertising like
motor coach travelers and create airline complete vacation packages for their clients.

Fixed-wing charter aircraft sightseeing flight with guided bus tour.

The most popular tour to the Grand Canyon! Only from the air can you truly see the majesty and beauty of
the Grand Canyon. Fly over beautiful Lake Mead and the incredible Hoover Dam before flying to the Grand
Canyon South Rim. A bus excursion through the National Park will stop along the Rim for magnificent views
and photo opportunities. Enjoy a light meal before flying back to Las Vegas.

Extend your adventure over the Grand Canyon. After your tour from Las Vegas take
a helicopter over the widest and deepest portion of the Grand Canyon. Choose our
Grand Canyon Odyssey Tour!

Would you like the opportunity to catch one of those famous Grand Canyon Sunrises
or Sunsets? Care for a little more time on the Grand Canyon? Choose our Grand
Canyon Deluxe Overnight tour and stay a night!

Tour departs from Scenic Airlines Terminal. A Complimentary pick-up and drop-off at most major Las
Vegas hotels.

Tour Features

• Charter flight from Scenic Airlines Terminal to the South Rim of the
Grand Canyon and return
• Guided Canyon tour for approximately 3 hours
• One meal is included – breakfast or lunch
• Multiple stops at the South Rim scenic overlooks
• Air-conditioned motor coach with guide
• Complimentary hotel pick-up and drop-off
• Air-conditioned passenger aircraft
• Fabulous views of Lake Mead, Hoover Dam, the Colorado River and the Grand Canyon
• Large oversized windows for panoramic views and photos
• Tour narration in 16 languages
• Camcorder hook-up for tour narration
• Photo opportunities
• Free time to explore and souvenir shop
• Tour company with a FAA flight certified safety record
• Commemorative flight certificate available upon request or with purchase of personalized photo

42
Tour Itinerary

Tour Duration 8 hours The Grand Canyon Deluxe


Hotel Pick-up Passengers are picked up from most major hotels in Las Vegas approximately 1
½ hours prior to flight departure. Passengers arrive at Aladdin Hotel & Casino
transfer station for check-in. They will then board a motor coach to Scenic Airlines
Terminal.
Charter flight from Scenic Passengers board aircraft approximately 10 minutes before departure and fly to
Airlines Terminal to Grand the Grand Canyon National Park Airport. Flight time is approximately 1 hour and
Canyon South 10 minutes. Upon landing passengers will board an air-conditioned motor coach.
Grand Canyon National Park Visit overlooks in Grand Canyon National Park with approximately 30 minutes at
Observation points each stop for photos, exploring and souvenir shopping.
Lunch Return by motor coach to the village of Tusayan for lunch. Approximately 1 hour.
(The meal, lunch or breakfast, may be served before the Rim tour depending on
the day and time).
Return To Grand Canyon
Return by motor coach to the Grand Canyon South Rim airport and board plane.
National Park Airport
Charter flight from Grand Passengers board aircraft approximately 10 minutes before departure and fly
Canyon South to Scenic back to Scenic Airlines Terminal. Flight time is approximately 1 hour and 10
Airlines Terminal minutes.
Hotel Drop-off De-plane the aircraft and board motor coach for return to hotel. Approximate time
from hotel pick-up to hotel drop-off is 8 hours (depending on hotel location

Property package tours


Here the property will develop packages to suit their client ales before develop your own
package, how ever you must first familiarize yourself with the tour industry and
determine what type of tour would work best for your property. Property packages can,
- increase sales
- brings business during the off peak time
- Help to make a good name among the industry
-

THE VACCATION OWNERSHIP OPTION

A timeshare is a form of vacation property ownership. With timeshares, the use and costs
of running the resort are shared among the owners. While the majority[citation needed] of
timeshares are condominiums or cooperatives at vacation destinations, developers have
applied the timeshare model to houseboats, yachts, campgrounds, motor homes, cruises
and private jets.

The notion of a timeshare was originally created in Europe in the 1960s. A ski resort
developer in the French Alps innovatively marketed his resort by encouraging guests to
"stop renting a room" and instead "buy the hotel". The developer was successful in
increasing occupancy and the idea spread worldwide. While a useful tool for many, the

43
timeshare industry has also become a magnet for attracting illegal and barely legal
methods for the sale and resale of property.

Tutorial 09

Review Questions 10 nos (page 348)


Case study 01 nos (page 350)

LHS - INERNATIONAL HOTEL MANAGEMENT

44
LESSON – HOSPITALITY SALES & MARKETING
Lesson no 10 Date…………

MARKETING TO TRAVEL AGENTS

Travel Agents
Travel agents help travelers sort through vast amounts of information to help them
make the best possible travel arrangements. They offer advice on destinations and
make arrangements for transportation, hotel accommodations, car rentals, and tours
for their clients. They are also the primary source of bookings for most of the major
cruise lines. In addition, resorts and specialty travel groups use travel agents to
promote travel packages to their clients.

Travel agents are also increasingly expected to know about and be able to advise
travelers about their destinations, such as the weather conditions, local ordinances
and customs, attractions, and exhibitions. For those traveling internationally, agents
also provide information on customs regulations, required papers (passports, visas,
and certificates of vaccination), travel advisories, and currency exchange rates. In
the event of changes in itinerary in the middle of a trip, travel agents intercede on
the traveler’s behalf to make alternate booking arrangements.

45
Travel agents use a variety of published and computer-based sources for information
on departure and arrival times, fares, quality of hotel accommodations, and group
discounts. They may also visit hotels, resorts, and restaurants themselves to
evaluate the comfort, cleanliness, and the quality of specific hotels and restaurants
so that they can base recommendations on their own experiences or those of
colleagues or clients.

Travel agents who primarily work for tour operators and other travel arrangers may
help develop, arrange, and sell the company’s own package tours and travel services.
They may promote these services, using telemarketing, direct mail, and the Internet.
They make presentations to social and special-interest groups, arrange advertising
displays, and suggest company-sponsored trips to business managers.

Agents face increasing competition from travel and airline websites for low-cost
fares, but travelers still prefer using travel agents who can provide customized
service and planning for complex itineraries to remote or multiple destinations. To
attract these travelers, many travel agents specialize in specific interest destinations;
travel to certain regions, or in selling to particular demographic groups.

Travel Management Companies


Also known as Mega travel Agencies because of their size and scope are giant chains that
own and control all aspect their operations. they provide complete travel services,
including arranging and booking transportation ,accommodations, and trips and tours.
Consortiums are groups of travel agents that have partnered to maximize their buying
power and share the high cost of today’s computer technology. Independent agencies may
serve areas not covered by major agencies.

Generally speaking travel agents serve three types of travelers. They are
- Business Travelers
- Leisure travelers
- International Travelers

More travel agencies are serving business groups .this trend has lead to the development
of agents or separate department within travel agencies that specialized in business
meetings and groups. Leisure travelers often need more assistance in planning their
destinations than business travelers.buisness travelers they have pre determine
palces.International travelers can be business or leisure travelers.

MEETING THE NEEDS OF TRAVEL AGENTS

Property information

Hotels can provide information to travel agents in a number of ways; they are Global
distribution system, Internet distribution system, Web sites, Faxes, and E-mails, Hotel
directories, Information packages, Familiarizations tours.

46
Global distribution system (GDS s)

Global Distribution Systems in Present Times


-
Four Major GDS Systems;
Amadeus, Galileo, Sabre, Worldspan

October 2002 - The travel marketplace is a global arena where millions of buyers (travel agents and
the public) and sellers (hotels, airlines, car rental companies, etc.) work together to exchange travel
services. Among the “shelves” on which buyers search for travel services are world’s global
distribution systems and the Internet distribution systems. These systems have become electronic
supermarkets linking buyers to sellers and allowing reservations to be made quickly and easily.
Nowadays, more travel is sold over the Internet than any other consumer product. The Internet is a
perfect medium for selling travel as it brings a vast network of suppliers and a widely dispersed
customer pool together into a centralized market place. Nearly 37 million of America’s more than
162-million active Internet users have already purchased travel online. Online travel bookings
exceeded $23 billion in 2001, and are expected to reach $63 billion by 2005.

However, any discussion of the Internet as a distribution channel for travel needs to start with an
understanding of the existing electronic distribution infrastructure, the Global Distribution System
(GDS). The airline industry created the first GDS in the 1960s as a way to keep track of flight
schedules, availability, and prices. Although accused of being “dinosaurs” due to their use of legacy
system technology, the GDSs were actually among the first e-commerce companies in the world
facilitating B-2-B electronic commerce as early as the mid 1970s, when SABRE (owned by
American Airline) and Apollo (United) began installing their propriety internal reservations systems
in travel agencies. Prior to this, travel agents spent an inordinate amount of time manually entering
reservations. The airlines realized that by automating the reservation process for travel agents, they
could make the travel agents more productive and essentially turn into an extension of the airline’s
sales force. It is these original, legacy GDSs that today provide the backbone to the Internet travel
distribution system.

There are currently four major GDS systems:

1. Amadeus
2. Galileo
3. Sabre
4. Worldspan

Amadeus

Founded in 1987 by Air France, Iberia, Lufthansa, and SAS, Amadeus is the youngest of the four
GDS companies. Amadeus is a leading global distribution system and technology provider serving

47
the marketing, sales, and distribution needs of the world’s travel and tourism industries. Its
comprehensive data network and database, among the largest of their kind in Europe, serve more
than 57,000 travel agency locations and more than 10,500 airline sales offices in some 200 markets
worldwide. The system can also provide access to approximately 58,000 hotels and 50 car rental
companies serving some 24,000 locations, as well as other provider groups, including ferry, rail,
cruise, insurance, and tour operators.

Upon its inception, Air France, Iberia, Lufthansa and SAS held equal shares of Amadeus Global
Travel Distribution S.A. Shortly after the formation of the company, however, SAS sold its shares
to Amadeus Data Processing. The three founder airline shareholders currently hold 59.92% of the
company: Air France (23.36%), Iberia (18.28%), and Lufthansa (18.28%). Remaining shares are
held publicly.

As the youngest of the four GDS companies, Amadeus has done remarkably well during its short
tenure. Yet, in many ways, the company remains an anomaly. Amadeus has the greatest number of
travel agency locations with the highest productivity per terminal in the world, yet its booking share
is Number 3, and its revenues are dwarfed by Sabre and, to a lesser degree, by Galileo. While the
company is Number 1 in locations worldwide, serving the greatest number of countries, it provides
the fewest U.S. destinations of the top four GDSs. As with its competitors, the future for Amadeus
will continue to be linked to the technological and structural changes that are revolutionizing the
travel industry. Amadeus appears to be adapting well (albeit cautiously) to the shift of business to
the Internet. Having acquired e-Travel, Inc. from Oracle Corporation in July of 2001, Amadeus now
has a new business unit dedicated to delivering solutions to e-commerce players worldwide. The e-
Travel solutions integrate all components of a managed travel program into a single Internet-based
service that enables travelers to book air, car, hotel, and rail services, all within corporate
guidelines. With its strong company infrastructure worldwide, impressive product set, and growing
customer base, Amadeus is one of the most significant players in shaping the future of the GDS.

Galileo International

Galileo International was founded in 1993 by 11 major North American and European airlines: Aer
Lingus, Air Canada, Alitalia, Austrian Airlines, British Airways, KLM Royal Dutch Airlines,
Olympic Airlines, Swissair, TAP Air Portugal, United Airlines, and US Airways. It is a major player
in the GDS business throughout the world: North America, Europe, the Middle East, Africa, and the
Asia/Pacific region. Galileo International is a diversified, global technology leader. Its core
business is providing electronic global distribution services for the travel industry through its
computerized reservation systems, leading-edge products and innovative Internet-based solutions.
Galileo is a value-added distributor of travel inventory dedicated to supporting its travel agency and
corporate customers and, through them, expanding traveler choice.

In 1997, Galileo International became a publicly traded company, listed on the New York and
Chicago Stock Exchanges. In October of 2001, Cendant Corporation acquired Galileo International
for approximately $1.8 billion in common stock and cash. Currently, the company is represented in
116 countries, and serves travel agencies at approximately 45,000 locations. Other travel suppliers

48
include 500 airlines, 227 hotel companies, 33 car rental companies, and 368 tour operators.

Galileo’s competitive strengths include market share, well-balanced and global presence,
relationships with diverse groups of travel vendors, technologically advanced information systems,
highly skilled personnel, and a stable product line. Compared to other GDS companies, Galileo is a
cautious follower when it comes to technology. However, in response to the growing demand of
web-based travel, the company has established successful relationships with entities such as Go,
UK’s best low-cost airline; subsidiaries such as Highwire, Inc., providing Internet-based tools and
services to the corporate travel market; and Sheperd Systems, an industry leader in the provision of
sales and marketing intelligence systems and services within the travel industry. Additionally,
Galileo has sponsored membership to the THOR Worldwide Negotiated Hotel Rates Program, and
has a state-of-the-art development center supplying information and systems support to travel
agencies operating more than 178,000 computer terminals, all of which are linked to the Galileo’s
Data Center. Galileo’s primary weakness, its singular focus on the distribution side of the business,
is also its perceived strength. Based on its competitive strengths, Galileo is pursuing a strategy that
includes expanding its global distribution, strengthening customer loyalty, leveraging technology,
and capitalizing on opportunities created by increasing Internet use. Galileo sees the GDS industry
as having the ability and potential to provide electronic distribution and many components of e-
commerce to other industries, and is utilizing its strengths to provide expanding services to its
growing customer base.

Sabre

For more than 40 years, Sabre has been developing innovations and transforming the business of
travel. From the original Sabre computer reservations system in the 1960s, to advanced airline yield
management systems in the 1980s, to leading travel web sites today, Sabre technology has traveled
through time, around the world, and has touched all points of the travel industry. In July of 1996,
Sabre became a separate legal entity of AMR (parent company of American Airlines), followed by a
successful initial public offering in October in which AMR released approximately 18% of its
shares to be publicly traded. Sabre, represented in 45 countries, is a leading provider of technology
for the travel industry and provides innovative products that enable travel commerce and services,
and enhance airline/supplier operations.

Headquartered in Southlake, Texas, Sabre connects more than 60,000 travel agency locations
around the world, providing content from approximately 400 airlines, 55,000 hotel properties, 52
car rental companies, 9 cruise lines, 33 railroads, and 229 tour operators. In addition to being one of
the leading GDS companies, Sabre also provides a broad range of products and services that
enhance travel agency operations and their ability to serve the traveler.

Sabre-connected travel agencies use Sabre web- based technologies and low-fare finding solutions
to create new sales opportunities, drive operational efficiencies, and improve customer service.
Among the company’s recent innovations is Sabre Virtually There, a personalized web site service
that automatically gives travelers up-to-the-minute details about itineraries, while also providing a
wealth of information about their destinations. Sabre owns Travelocity.com, the industry’s leading
online consumer travel web site. In 2001, Travelocity.com’s 32 million members used the site,

49
generating more than $300 million in revenues. Travelocity.com offers innovative technologies that
help consumers find the best air, car, hotel, and vacation reservations. Sabre also owns Get There, a
provider of web-based corporate travel procurement, including the purchase of air, hotel, car, and
meeting planning services. Customers include more than 800 leading corporations.

Sabre’s competitive strengths include market position, global reach, stable product line,
diversification of revenue streams, and intellectual capital. The Sabre business model is a strong
one, and continues to make significant progress in advancing both its electronic travel distribution
and its information technology solutions businesses. Revenues have been growing steadily, and the
company has embarked on a strategy that fully embraces diversification of its customer base and
revenue streams. Sabre is considered to be one of the most significant and competitive GDSs due to
the fact that it anticipates and takes advantage of the changes in the information economy and
develops innovative practices, leveraging both human resources and technology systems.

Worldspan

Founded February 7, 1990, Worldspan was originally owned by affiliates of Delta Air Lines, Inc.,
Northwest Airlines, and Trans World Airlines, Inc. It is currently owned by affiliates of Delta Air
Lines, Inc. (40%), Northwest Airlines (34%), and American Airlines, Inc. (26%). Since its 1995
advance into the world of Internet technology for the travel industry, Worldspan has successfully
developed the strategies, solutions, and services to ensure the company’s long-term success in the
new web-based world of travel distribution. Worldspan provides worldwide electronic distribution
of travel information, Internet products and connectivity, and e-commerce capabilities for travel
agencies, travel service providers, and corporations. Worldspan currently serves 20,021 travel
agencies in nearly 90 countries and territories. Headquartered in Atlanta, Georgia, Worldspan
connects approximately 421 airlines, 210 hotel companies, 40 car rental companies, 39 tour and
vacation operators, and 44 special travel service suppliers.

To escalate the delivery of web-based technologies and services to its customers; Worldspan has
forged a number of new partnerships and equity agreements with leading travel technology
companies. Resulting technologies, joint developments, and an expanded realm of solutions and
Internet travel products are enabling the company and its customers to participate in a spectrum of
e-business opportunities. Some of the successful partnerships have been with companies such as
Datalex, a leading provider of e-business infrastructure and solutions for the global travel industry;
Digital Travel, a global online tour provider; Kinetics, Inc., developer of technology and solutions
for the airline industry; OpenTable.com, an Internet-enabled restaurant management tools system;
and Viator, a major provider of Internet-based content, technology, and distribution services,
including data management, hosting, and e-commerce. Additionally, in 2001, Orbitz LLC was
launched on the Internet, using Worldspan as its Internet Booking Engine, and in 2002, the launch
of Worldspan ePricingSM made Worldspan the first GDS to introduce a revolutionary new multi-
server-based technology, offering an unprecedented selection of pricing options to all of
Worldspan’s customers.

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Worldspan has a legacy of industry firsts that are not well known. The company therefore has an
opportunity to raise the industry’s awareness of its accomplishments and more importantly, its
future strategy. Worldspan continues to look at benefits of creating its own consumer brand and has
been partnering with different companies to expand the services that it can provide to its customer
base. Worldspan believes in focusing on its core competencies, and is determined to be perceived
as a distribution facilitator across all channels. It is increasingly getting a clearer sense of its
capabilities and building its appetite for technical and commercial challenges. Through the
company’s revolutionary e-world ideas, offerings, and services, along with its agility and eagerness
in meeting the needs of the travel distribution market on a global scale, Worldspan and its
customers are transforming the way travel is distributed, bought, and sold.

Global distribution system

Internet Distribution SYSTEM

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Karyon strategically partners with internationally respected travel industry companies to
provide you with the services, products and connectivity to build the operational
backbone for single or multi-property distribution management. As a result, Karyon
enables you to increase revenue, improve guest loyalty, and reduce costs by centralizing
and streamlining your operations while maximizing existing technology investments.

Our distribution relationships enable Karyon to use the software products internally and
offer you robust and flexible services. These services and underlying technologies have
been designed and developed to manage a wide and diverse range of lodging properties’
entire rate, availability, and booking information through one system – regardless of your
property management system – while maintaining complete control of a variety of
individual distribution channels.

Internet Distribution System ("IDS") connectivity encompasses hotel inventory


distribution to hundred's of today's most popular Web sites and travel portals driven
through our connections to alternate channels such as the Pegasus Online Distribution
Database (“ODD”) (e.g. Travel Web, Hotwire, Expedia, etc.), and Hotel Booking
Solutions Demand Partner Network (American Airlines Vacations, Group Travel Planet,
Liberty/GoGo Travel, etc).

Web sites
Another way to use computers is to create a chain or property web site either as part of
travel related net work or as an independent site.

Faxes and E mails


Updates on property promotions and special rates can be sent via fax as well as over the
internet.

Hotel directories
Hotel directories provide the detailed information travel agents need to properly service
clients. An agent can compare one property’s costs, location, amenities, and facilities with
each other.

Brochures
A property can also include large quantity of for agency clients in its information
package.

Familiarization tour
Many properties offer familiarization tours to travel agents. These tours can be conducted
during during slack periods are an effective way to promote the property.

SERVICE

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The kind of service agents receive from a property is an important factor in whether they
will recommend that property again. Service to travel agents also includes service to their
clients.

1. Toll free numbers


2. Travel agents clubs
3. commission payment plans
4. Providing good service for travel agents clients.

FINDING TRAVEL AGENTS

There are five resources that can help a property identify travel agents and agencies it
may want to do business with
1. The official air line guide
2. The world travel directory
3. In house records
4. Industry mailing list
5. Travel industry trade shows

REACHING THE TRAVEL AGENTS

You can reach travel agents through hotel directories, trade magazines, direct mail,
trade shows, and membership in travel agent association, personal sales and public
relation efforts.

THE FUTURE OF THE TRAVEL AGENTS

With the evolution of electronic ticketing, self-booking over the Internet, and the
emerging trend of point-to-point airline services that can only be booked via telephone
(including some that do not pay agency commissions), the question arises...

What is the Future of the Travel Agent?

The future for travel agencies is very positive ... just not in the "mode" of today's
operations. Today, agencies are largely "order takers" and "ticket distributors" ... even the
majority of the leisure stores provide little more than these services. Agent's "skills" are
in the ability to access inventory -- and to issue a document (tickets in the case of air;
voucher or itinerary in the case of tours, cruises, hotels, etc.).

In today's travel world, agents are the "link" between the human consumer and the
inventory systems that distribute the "product" manufactured by travel vendors. Airlines
dominate the agent distribution system mainly because the airlines were the first to
provide a fully automated distribution system, and more importantly, airlines provided an

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automated settlement process long before credit cards. Other travel vendors have simply
"piggy-backed" on the existing systems.

The evolution of automation and technology being applied in the travel industry is
rapidly assuming the very high "labor-driven" costs of providing "interface" to the
inventory (and in the case of airlines, settlement) systems. Effectively, technology is
decreasing or eliminating the need for "inventory access" and "ticket delivery". The
"role" of today's agent is being replaced.

However, the need for travel information is increasing with the explosion in distributed
information and related expectations. The need for marketing "packages" that integrate
travel information with destination (really, fulfilling consumer "dreams") is concurrently
increasing as information becomes more readily available and the "ease" of booking at
lower prevailing costs further enables fulfilled consumer "expectations".

With "expectations", comes the need to "consolidate" travel or build offerings that enable
"flexible" travel opportunities. This type of travel product into some form of "mini-
packages" that meet broad specific demographic, niche, or business market demands ...
but retain some flexibility in length of stay or other related destination needs. With "mini-
packages", the need to distribute related information and access will increase.

None of these are services easily performed or provided by the manufacturing "vendors"
of travel product, even in today's automated world. It is logical, therefore, to expect
agents (and agencies) to assume these information and marketing services ... and to take
"risk" in providing "mini-packages" to the demographic, niche, or business markets.

This would suggest that many agencies will shift their "selling" efforts to higher yield
commissioned distribution of tour and cruise packaged products -- and to service fees for
becoming pure information providers or providing "unpackaged" booking services for
simple destination travel. It would also suggest that other agencies, particularly those
with a large corporate base, will begin to negotiate "risk positions" with travel vendors
for the virtually guaranteed destination travel of their known customer or client base (i.e.,
these agencies will buy the seats, rooms, and car rentals at discounted prices in advance
and offer them in "mini-packages" -- thus reducing the vendor's risk and allowing the
vendors to stabilize pricing).

As certain agents consolidate air today, the theme presented above would suggest that
agencies which serve specific destinations or demographics (ski, mountain, sea, desert,
old, young, married, single, etc.) will also "mini-package" travel solutions focused to
serve these target markets.

The "mini-packages", along with the today's conventional tour and cruise "package" --
will still need to be inventoried and distributed. Some agencies that are automation
literate, will evolve these automation skills and play an increasing role in "decentralized"
inventory "warehousing" of "mini-packaged" products (and in providing links to the
varied and many distribution channels that are evolving).

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For the next five to seven years, the GDS/CRSs will continue to provide the core travel
distribution access. It can be reasonably expected that as the distribution channels
expand, so too will the consumer base of travelers (as they have expanded to meet the
increased air availability for lower priced point-to-point travel. However, with the shift to
direct booking of simple travel, the GDS/CRSs will focus increasingly on distributing the
sophisticated packaged and "mini-packaged" products -- and in providing "switching"
access of the "mini-packages" and other non-air related travel product.

The GDS/CRSs will certainly continue to offer air ... because the "information providers"
will need that resource to "package" their fee compensated itineraries. But the lowering
of commission revenue combined with the increasing cost of labor at the GDS/CRS's
traditional "point of sale) will force a shift in the compensation revenue streams. The
GDS/CRSs will "fight a balanced" shift in responding to the increased distribution
alternatives such as direct vendor access, Internet, telephone, interactive television, etc. --
and in a separate arena, with the banking system for the settlement of travel purchases.

Still, with the "bullets flying overhead", the need for "agents" will not go away. What will
change is the role that an "agent" plays in the distribution of travel product changes. For
the agents and agencies that recognize and adapt early to these shifts -- there are major
profit opportunities. For those seeking the "traditional" security of commissioned sales,
they only need to shift their focus from airlines to the "packaged products" of tours,
cruises, and in the immediate future, "mini-packaged" target market offerings. For travel
agents (or consultants, if you prefer the term), the future looks bright!

LHS - INERNATIONAL HOTEL MANAGEMENT

LESSON – HOSPITALITY SALES & MARKETING

55
Lesson no 11 Date…………

MARKETING TO MEETING PLANNERS


Definition of "business tourism"
The tourism industry can be divided into leisure tourism and business tourism. IMEX
uses the following definition for business tourism: "Business tourism is the provision
of facilities and services to the millions of delegates who annually attend meetings,
congresses, exhibitions, business events, incentive travel and corporate hospitality".
Please note that as is the case for many terms in the meetings industry, there is not
one commonly used definition.

Group meeting business can benefit a proper


ty in number of ways, such as
- Additional revenue
- Ease in filling slow periods
- Ease in employee scheduling
- Repeat business

THE GROUP MEETING MARKET

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Group meeting market can be divided in to two segments. They are associations and
corporation. The needs of these two segments may be the same in some areas
related to the nature of the meetings.

ASSOCIATIONS
An association is an organization of persons having common interest of purpose

Types of associations
1. Trade associations
2. professional scientific associations
3. Non profit Organizations

1. Trade associations
Trade associations are made up of Individuals and companies or corporations in a
specific business or industry organized to promote common interests. Trade
associations are usually consider as the most lucrative source of group meetings
business because of their memberships consist largely of successful executives. Most
trade association hold conventions in conjunction with trade shows, trade fairs etc...

2. Professional scientific associations

Are closely related to the trade associations but differ in regard to the meeting
frequency. Most Professional scientific associations have regular meeting schedules.

3. Non profit Organizations

A nonprofit organization is formed for the purpose of serving a public or mutual


benefit other than the pursuit or accumulation of profits for owners or investors. "The
nonprofit sector is a collection of entities that are organizations; private as opposed
to governmental; non-profit distributing; self-governing; voluntary; and of public
benefit”. The nonprofit sector is often referred to as the third sector, independent
sector, voluntary sector, philanthropic sector, social sector, tax-exempt sector, or the
charitable sector.

The National Taxonomy of Exempt Entities classifies nonprofit organizations into nine
major groups:

• Arts, culture, humanities

• Education

• Environment and animals

• Health

• Human services

• International, foreign affairs

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• Public societal benefit

• Religion related

• Mutual/membership benefit

Planning factors for association meetings

- Timing
- Lead time
- Geographic pattern
- Geographic restrictions
- Attendance
- Site selection requirements
- Whom to contacts

CORPORATIONS

A legal entity that is separate and distinct from its owners. Corporations enjoy most
of the rights and responsibilities that an individual possesses; that is, a corporation
has the right to enter into contracts, loan and borrow money, sue and be sued, hire
employees, own assets and pay taxes.

The most important aspect of a corporation is limited liability. That is, shareholders
have the right to participate in the profits, through dividends and/or the appreciation
of stock, but are not held personally liable for the company's debts.

Types of corporations
Corporations are greatly in size and purpose. There are local, state, national, and
international corporations that sell products, services or both.

Type of corporation meetings


1. National sales meetings
2. Regional or district sales meetings
3. Training seminars
4. New product introductions
5. Management meetings
6. Stock holder meetings
7. Incentive trips

Planning factors for corporation meetings also same as the association meetings

Reaching to associations and corporate meeting planners

Following ways will help to reach above sectors. They are,


- BY giving Personal sales calls

58
- By attending Trade shows
- Print advertising

LHS - INERNATIONAL HOTEL MANAGEMENT

LESSON – HOSPITALITY SALES & MARKETING

59
Lesson no 12 Date…………

MARKETING TO SPECIAL SEGMENTS

INTENATIONAL TRAVELERS------------------------------------------------------------------------

One of the fastest growing and most profitable special segments is the international
traveler market. International travelers are travelers originating from points outside
the United States and are divided in to three categories. They are,
- American travelers
- European travelers
- Other international travelers (Asian, Africans etc...)

They look for following characteristic in a place before they book the holiday. They
are location, facilities, price, services offered by the hotel etc. (refer page 420)

The decision maker will be one of the following


- Individual guest
- Local or foreign company managers
- Tour operator and wholesalers
- Travel agents
- Receptive agents

MEETING THE NEED OF INTERNATIONAL TRAVELERS

Following needs will accept by the guest from travel agent or hotel

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- Making reservation
- Language barriers
- Transportation to the hotel
- Methods of payment
- Special appliances

How to reach international travelers?


- joint advertising with air line
- personal selling in different destination
- Advertising in international market
- Participating to trade shows and exhibition
- Advertising in international magazines and journals

HONEYMOONERS -------------------------------------------------------------

This market can be extremely profitable for the hospitality industry. Honeymooners
are usually loyal guest; many return to their honeymoon property for anniversary
visits or recommend it to friends. They look for more privacy on their honey moon.
Another trend that can prove profitable to properties interested in attracting this
market is the destination wedding. More people can attract for this event.

The decision maker is almost always some one in the wedding party.

Meeting the needs of honeymooners

- look for romantic atmosphere with more privacy


- lot of activities in affordable price
- Special packages including all the services
- Destination tours

Reaching for honeymooners


- participating bridal promotions and shows
- Advertising in young people magazines
- Direct mail and advertising
- Advertising in bridal magazines

THE SPORT MARKET-------------------------------------------------------------------

Sport tourism is a multi-billion dollar business, one of the fastest growing areas of
the $4.5 trillion global travel and tourism industry. By 2011, travel and tourism is
expected to by more than 10 percent of the global gross domestic product. The
economies of cities, regions and even countries around the world are increasingly
reliant on the visiting golfer and skier or the traveling football, rugby or cricket
supporter. In some countries, sport can account for as much as 25 percent of all
tourismreceipts.

Sport tourists are passionate, high-spending, enjoy new sporting experiences and
often stimulate other tourism. Their direct benefit to a destination is cash - their
indirect benefit can be years of follow-on tourists. Sport tourism is now a tool to

61
make achieve many things - to make-money, create thousands of new jobs and even
help change cultural perceptions such as in the Middle East and South Africa

EXPECTATION OF SPORT MARKET

- Location
Hotels closer to sport arena
- Facilities
Block booking facilities of rooms, Group function rooms, 24 hrs room service, extra
facilities like game rooms, sauna, and swimming pool, secure
- Price
Amateur teams look for low rates, professional team look for higher rates and some
are looking for group rates
- Services
Preferred services include discount club, preregistration, late check-outs
complimentary news papers, special balance and healthy food menus, bus parking
facilities, take away meals
- Decision maker
Decision maker will be the coaches, athletic directors, panel of directors or chairman

Reaching the sport market

- Personal contacts
- Direct mail
- Advertisement in college magazines
- Promotion on the internet
- News paper advertisements

GOVERNMENT TRAVELLERS

Federal, state and local government provides numerous opportunities for properties
to increase room occupancies through out the year.goverment business automatically
go to the lowest bidder. The final decision is also based on the property’s ability to
contribute to the efficiency and effectiveness of government operations by providing
quality accommodation and services.
Before bidding for government business, you should be aware of the requirements
involved in establishing a business relationship with the government. You should
aware of how expense money is allocated to government travelers.
Straight per dim is dollar figure allocated to cover lodging, meals, local,
transportation and gratuities when government employees travel on official business
The actual and necessary per dim is the maximum amount and employee may
spend regardless of location and usually equal to or higher than the Straight per dim
rate.
The contract per dim is the pricing arrangements and d incorporates the total cost
of accommodation, meals, gratuities, travel expenses and so on.

Reaching the government market


- Direct sales

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- Direct mail
- Advertising in government journals and magazines

Disability travelers

People those who travel with disabilities comes under this segment
DDA (Disability Discrimination Act) will facilitate equal opportunity to enjoy hotel
benefits for those who travel under above category. Individual with disabilities are
divided in to three categories, they are

- Those with mobility impairments


Hotel will facilitate easy access facilities, widening doors, providing special parking,
ground floor rooms

- Those who with hearing impairments


Hotel will facilitate amplified phones, special telecommunication services, visual alert
system etc

- Those who with visual impairments


Hotel will facilitate access to directories and menus printed in Braille, raised room
numbers, Braille labels in elevators etc...

OTHER SPECIAL SEGMENTS

1. Reunion attendees- consists of family , class and military reunions


2. Travel crews and directresses passengers
3. Truckers
4. Construction crews
5. Movie crews
6. Military personnel

LHS - INERNATIONAL HOTEL MANAGEMENT

63
LESSON – HOSPITALITY SALES & MARKETING
Lesson no 13 Date…………

MARKETING RESTAURANT AND LOUNGES

Restaurant Marketing and Public Relations

Restaurant marketing, though often overlooked and under funded, is crucial to both
startup success and the building and maintaining of critical sales levels. While there
are many things you can do in house and direct and community marketing is always
a good idea, I have found a public relations campaign essential to building large
scale awareness of a restaurant quickly and effectively.

The Restaurant Business Plan

The business plan is essential to any new restaurant venture. Your odds of
succeeding are greatly increased when you study and report your idea. It is your
business resume and map to success. It is the document that most of the
important startup connections will demand to see.

Restaurant Startup Products

Starting any business is always a challenge. Its not only a lot of hard work, its not
always obvious what needs to be done and when. If you are planning (or even just
dreaming) of opening a restaurant, some of the products below could be the
difference between failure and success.

Restaurant Operations

The products below have been created or chosen to help the restaurant owner
manage the day-to-day operations more easily and effectively. Each one of these
items is designed for a specific aspect of restaurant operations or management.

64
We have also combined some similar and related products into special offer combo
packages. Be sure to check that you don't "double order" products that are
already included in the combo sets.

Restaurant Back Office

The products below have been created or chosen to help the restaurant owner
manage back office tasks more easily and effectively. If you use QuickBooks as
your bookkeeping system, the Restaurant Operators Guide to QuickBooks is
an invaluabletool.

Restaurant Training & Manuals

Formal training of your employees is usually considered an unnecessary luxury.


Most come with experience and you may say that these jobs aren't exactly
rocket science. However, the benefits of proper and periodic training and clearly
stating company policies are huge and long-lasting. You will save money, have a
happier staff, a more contented clientele, and may even avoid some legal
problems.

Special Offers

These products have either been discounted form the original price or
combined with similar products to create a utility package that we can offer at
substantial savings.

Some of the trends that are affecting the food and beverage industry as follows

1. Celebrity involvement
2. Theme restaurant
3. Dining entertainment options
4. Increased competition
5. Take out and delivery
6. Hotel and restaurant branding partnership
7. Multiple branding among restaurant

Positioning Restaurant and lounges

65
It means introducing the revenue centers among customer. Before positioning you
have to see whether the restaurant or lounge is met following requirements.
- physical location
- Atmosphere
- Considerable prices

If it is free standing restaurant there will be big competition with others. Here you
have to find unique characteristic to suit to your place and use that as selling tool

POSITIONING RESERCH

Positioning research should become an ongoing part of the operation of any


restaurant. Positioning research falls in to following basic areas

1. Guest trading area research


It covers the research about guest and where they come from and catchments
area of guest, their lunch and dinner behaviour

2. Guest profile research


Study about guest’s age, gender, employment, spending power, loyal customer
or not etc...

3. personal conversation or observation


The host or food server can get information by conversing with guest

4. Special promotion
Conducting special promotion by giving benefit to the customers

5. Guest surveys
Get the guest comments and feed back in order to make changes

6. Situation research
Situation research can be used to identify market segments.

7. Competition analysis
Here study about all the competitors an their strengthens and weakness
MERCHANDISING FOOD AND BEVERAGES
Food and beverage can be merchandised by special packaging and pricing,
promotional materials such as posters and table tent cards and suggestive selling by
food servers.

CREATING MENUES
A menu must reflect the restaurant’s position or image, provide information and
serve as suggestive selling tool. While this may seem like a monumental challenge, it
is actually quite easy when you follow a menu development cycle that includes
image, price, message and design.

Image:

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The menu development cycle begins with the restaurant positioning or image.
Restaurant image refers how your restaurant is perceived by your patrons. What
image does your restaurant create? What type of ambiance or atmosphere do you
offer?

Price:
Price information is critical menu consideration. Your pricing strategy should be
determined long before your menu is designed. What price does you guest expected
to pay for menu for menu item? Will items be priced individually or as full meal? How
much will be the preparation cost? What will be the profit margin?

In addition to that the following factors should be considered when pricing menus
- Type of operation
- Guest perception and demand
- Competition

Message:
Make sure your menu is organized, readable, and convey the tone of your restaurant

Design:
The menu message is only part of the presentation. An attractive design will enhance
the copy and draw guests to featured items and specials

Refer basic menu lay out exhibit 05 and 06

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