Selling Hospitality
Chapter 16
Sales Channels and Intermediaries
Connecting products with markets profitably
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Gaining Competitive Advantage
“For a business to be viable at all, it must do something
well. For it to win in a competitive market, though, it has
to do something better than its competitors.”
To achieve competitive advantage, you have to be
better than your competitors at something your
customers consider important.
That something could be a better product or service, a
lower price, or providing customers what they want and
how they prefer to acquire it.
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Hilton’s Sales Channels
A mixture of
a hotel-specific sales force
a national sales force
the Internet
telephone sales centers
centralized reservation centers supported by national marketing
campaigns
sales intermediaries such as travel agencies and tour wholesalers
strategic alliances with airlines and credit card companies
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Chapter 16 Outline
What channels are being used in the hospitality
industry and why?
What implications do these channels have for
the hospitality sales professional?
How should the channels be managed to make
them an integrated go to market system?
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Types of Travel Agencies
Vacation stores
Commercial agencies
Direct response agencies
Cruise only agencies (no airline accreditation)
Consolidators
Meetings, incentive, convention, and expositions
(MICE)
Tour operators
1. Preformed versus FIT
2. Inbound (receptors) versus outbound
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Channel Mixes Come in
Three Forms
Intensive
Selective
Hybrid
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Example of Intensive versus
Selective Channel Coverage
‘Intensive’
High
Value
of
Med
sale
Internet
Telemarketing
Direct sales
Low
Low
Med
High
Need for customization
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Example of Intensive versus
Selective Channel Coverage
‘Intensive’
‘Selective’
High
High
Value
of
Med
sale
Value
of
sale
Internet
Telemarketing
Direct sales
Med
Direct sales
Telemarketing
Low
Low
Internet
Low
Med
High
Need for customization
Low
Med
Need for customization
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High
Hilton Hotel Corporation is looking for a marketing intern that
would work directly with the DOSM on various projects such as:
• Web marketing and design
• Ad development and placement—intern would need to be familiar
with PageMaker or similar software
• Package research, design, and implementation
• Tracking of package results
• Travel agent incentives and tracking of the results—Hilton Hotel
programs
• Group incentives and tracking of the results—Hilton Hotel
programs
• Market segment report development and analysis
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Example of a
Hybrid Channel Coverage
High
Sales force
Value
of
sale
Travel agencies
+
Internet
Telemarketing
Call centers
Med
Low
No coverage
Internet
Telemarketing
Call centers
Low
Medium
Need for customization
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High
So Why Not Use All Sales Channels?
Multiple sales channels may end up chasing the
same sales (channel shift versus channel lift).
Not all channels will be profitable in every
product-market segment.
Channel conflict problems arise.
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Re-Engineering the Sales Process
Figure 16.4: Classic Sales Process
P rospecting
Account
Qualif ication
Exploring
Needs &
P roposing
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Closing
Af ter Sale
Service &
Support
Re-Engineering the Sales Process
Figure 16.5
Multiple Channel Sales Model
Task
Channel
P rospect ing Quali ficat ion Expl oring
Needs &
P roposing
Closing
Aft er Sales
Servi ce/Support
Sales
Force
Convention
Services Mgr.
Telesales
Internet
Reduces costs; improves quality
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