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Optimizing Sales Systems:Revenue Management andSales & Catering Automation
John Bradway, The Breakers Palm Beach
Ernst Wolfinger, Opus Communications
John Eslick, Gaylord Hotels
Produced by Hospitality Financial and Technology Professionals
System
People
System
Culture
People
System
Process
Culture
People
System
Vendor
Process
Culture
People
System
How well do people in your organization
understand revenue management?
Identify relevant sourcesDevelop pricing strategiesDetermine distribution strategyForecast DemandApply yield filtersMeasure results
Revenue ManagementMaximize Revenues from All Available Sources
A. ADR?B. Occupancy? C. RevPAR?D. RevPAC?E. All of the aboveF. None of the above
What are your objectives?
Revenue Management CultureDevelop organizational understandingInvolve key influencersEvaluate organizational chart
Develop and deploy a strong revenue managerEvaluate and communicate opportunitiesDeliver consistent and meaningful informationBe honest - - - develop trust
Purchase Decision & Installation
Involve key influencers & usersDon’t over- or under-promise resultsTrain more vs. lessSet realistic expectations of results
System Optimization
Know when to question decisionsKnow when to trust decisionsDetermine appropriate level of system manipulation and human interfaceEmpower Revenue ManagerBeware of behavioral regressionEnsure integrity with customer sales process
Integrate the Marketing Element
MarketingGeneratesDemand
RevenueManagement
FiltersDemand
Sales TeamConvertsDemand
Identify periods of opportunityInterface marketing & revenue management teamsSynergize objectives
Measurement
What Benefits will you derive from installing a revenue management system?– Intangible Benefits
• Difficult to measure exactly but have a direct impact on the hotel’s success
– Tangible Benefits• Measurable and provable
Measurement
Intangible Benefits– Automated deployment of decisions
several times each day• Allows the team to focus on sales
techniques and strategies– Management information from the
User Interface– Demand Monitoring
• Allow the team to focus attention on days that need attention!
Measurement
Tangible Benefits– Changes in Occupancy
• Increased occupancy on ‘shoulder’ nights– Changes in Revenue per Available
Room• Increased overall RevPAR
– Group Evaluation• Better pricing & placement of groups
Measuring the Benefit
Management Decisions
Marketing Campaigns
Health of the Economy
Revenue Management
Sales Team Efforts
What factors impact the hotel revenues?
Opus Communications
Consulting Services for the
Hospitality Industry
Ernst Wolfinger303-584-0595
Man vs.
Machine
Quantum leaps intechnology meet human inertia for change
Back to basics
Relationship drivenFluid & diverseInconsistentFlexible & adaptable
The Master
The Human Factor
TechnologyData drivenStandards & consistencyAccurate if kept currentFixed, yet versatile
Performance
80/20 Rule80% of users benefit from only 20%
of the available technology
Common PitfallsLack of direction, timeinvestment & commitmentReliance on shelf-productdefault applicationsSystem’s unfamiliarityInsufficient training & maintenance
Management Objectives
Return-on-InvestmentMeaningful reportsBusiness pulseMarketing dataSales effectiveness
Commitment & Tenacity
Essential QuestionsWho are the sales people calling on and why?Who is the most profitable customer? What is it that they want to buy?When do they want to buy it?Who has business for your urgent need periods?How much of their business can you expect?
ROI & Performance Measurements
Business volume, flow and yieldimprovementsPreservation of intellectual capitalMarketing enhancements & savings Lead source effectivenessBooking conversion ratiosData accuracy monitorsSales force longevity
User Objectives
Ease & efficiency Informed communicationTerritory managementSales funnelsCustom mailingsAccountability
Professionalism
Sales Process IntegrationInfo gathering sequenceFocused listening Mapping & profilingWhat, when & whereOpportunity & quality ratingFollow-up communicationE-mail, merging & tracing features
Time Investment & Discipline
System Set-upSystems integrationDesignate a strong system administratorEstablish clear standardsMaximize merge & link featuresCustomize optional featuresProvide support equipment
Forethought & Planning
Data CollectionMindset & Culture
Information capture vs. data entry Overcoming reluctanceWhat’s in it for mePerformance evaluationIncentives
If it isn’t entered – it didn’t happen !
Training
An Ongoing ProcessPaced in reasonable incrementsLearning curve & retention rateCD based and personal training Practice intervals and reviewsAdvanced training & short-cutsAnnual refresher courses
0%10%20%30%40%50%60%70%80%90%
100%
IntroductionPracticeBasics ReviewPracticeAdvancedPracticeRefresher
Training Retention & Proficiency
Applications SummaryKnowing the customerHistoric dataTrends & opportunitiesInventory managementDirect mail listsInter-departmental communicationReports & measurement tool
Information is Power
John Eslick, Director of Information [email protected]
Yield Management Integration Techniques
Bridging the Gap between Group Sales &
Conference Services Yield Management
Yield Management in a Sales Environment
Group Histories AnalysisMarket Segmentation AnalysisForecasting - High Demand versus Opportunity Periods
Existing Group Yield Techniques
Transient DemandGroup CeilingsSeasonal RatingHigh Demand/Special Events Rating
From Standalone to Integrated Yield Management Systems
PMS – Group Blocks, Remaining Transient Demand; Distribution Channel YieldSales & Catering Systems – PMS to Yield integration
Sales Re-Engineering Preparedness
Key Factor – Operational Management “Buy-In” on Yield Philosophy, both yield concepts & specific vendor approachSales Incentive ProgramsIntegrate into the Selling/Approval Process and Compensate
Emerging Integration - Futures
Enhanced Group ServicesLead Delivery to Prospect Contract NegotiationsRoom Rating – Available & Alternate Dates AnalysisImpact of Ancillary Revenues Factor
Emerging Integration – Futures
Conference Management Events Management – Automated Suggestive Selling StrategiesGuestroom to Function Space RatiosUpgraded Banquet Menu OfferingsIncreased Pre - and Post - Function EventsInfluence Delegate “Free Capacity” Behavior
Emerging Integration - Futures
Room Sets & Rotation/Utilization RatiosGuest Traffic Flow Analysis –Anticipate, Service & SellSeize Opportunity - “Captive” Audience into a more aggressive self promotional toolConvert the Group Experience into a Personalized Delegate Experience = Return Transient Guest
Enhanced Group Services
Marketing MessagingAdditional Event PromotionsGroup & Facilities Management IntegrationExtended Stays IncentivesPromote “Next Special Event” CalendarMonitor & Modify Conference Services Scheduler
Conclusion
Yield = Capacity versus Capability ManagementEmphasis on Group Sales Conversion to Individual Guest Experience via enhanced yield of Conference Services management
Optimizing Sales Systems:Revenue Management andSales & Catering Automation
Questions&
Answers
