Subject
Year
: V0206 – Administrasi &
Operasional Kantor Depan
: 2009
Promoting In House Sales
Week 12
Subject
• Role of the front office in a hotel's marketing program
• Planning a point-of-sale front office
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Objectives:
On completion of this lesson, the students will be
able to:
- explain the roles of front office in promoting hotel
products/ facilities and point-of-sale front office
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Opening Dilemma
• The F&B mgr. has spent several thousand
dollars on a marketing study to determine the
dining needs of in-house guests. The chef
has rewritten each menu to reflect those
needs. However, the bell staff and front desk
clerks continue to recommend the MidTown
Deli around the corner as “a nice place to get
something good to eat anytime of the day.”
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Sales Attitudes of FO Staff
Sell room to guests
who have not made
prior reservation
Sell the hotel’s
facilities to the
guests
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Obtain guest
feedback
Upsell
Ensure that
maximum revenue
is generated from
the sale of rooms
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The Role of the Front Office in Marketing
• The Role of the Front Office in Marketing
• The traditional role of the front office staff as information
givers and order takers.
• Narula - “As market conditions have changed, the nature
and importance of the functions performed by the front
office have also changed from being an order-taking
department to an order-generating or sales department.”
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Planning a “Point-of-Sale” Front Office
•
Point-of-sale front office - a front office staff which
promotes other profit centers of the hotel.
•
Narula - goals for the front office.
• Sell rooms to guests who have not made prior
reservations
• Upsell to guests who have made prior
reservations
• Maintain the inventory of the product
• Convey information to guests about other
products available for sale at the property
• Utilize overbooking
• Obtain guest feedback
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Planning a “Point-of-Sale” Front Office
• Brainstorming areas for promotion in the hotel
•
•
•
•
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Front office
Food and beverage department
Gift shop
Health facilities
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Planning a “Point-of-Sale” Front Office
• Role of Incentive Programs in Assuring a Point-of-Sale
Front Office
• Entails understanding employees’ motivational
concerns (needs and desires) and developing
opportunities for employees to achieve their goals.
• Discuss examples of incentive programs as listed in
chapter.
• http://www.hotelonline.com/News/PR2006_2nd/Apr06_GreatestBellm
an.html
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Planning a “Point-of-Sale” Front Office
• McGregor’s Theory X and Theory Y
• Maslow’s theory of motivation – 5. Selfactualization, self-realization, and selfaccomplishment; 4. Self-esteem and the esteem
of others; 3 .Love, affection, and belonging; 2.
Safety; and 1. Food, clothing, and shelter
• Mayo’s theory of motivation Supervisor
recognizes an employee as being special
• Herzberg’s theory of motivation Positive factors in
developing job attitudes are achievement,
recognition, for achievement, responsibility,
interesting work, personal growth, and
advancement.
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Motivation Theories
Theorist
McGregor
Theory
Theory X
Application
Human beings have an inherent dislike of work
Work is as natural as play or rest
Theory Y
Maslow
Satisfying individual
Used a triangle to indicate various levels of human
Mayo
Recognition of
in employees
Supervisors who recognized each employee as being
greater results than supervisors who treat employees
Herzberg
Hygiene factors
The factors that lead to positive job attitudes are
achievement, responsibility, interesting work, personal
advancement
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Planning a “Point-of-Sale” Front Office
• Discuss the application of motivational
theories.
– Each employee is different and presents an
opportunity for human resource
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Planning a “Point-of-Sale” Front Office
• Training Programs for a Point-of-Sale Front Office
• The need for training in sales skills.
– Fear of rejection
• Discuss adopting the attitude “presenting
opportunities to the guest to improve or enhance
the guest visit.”
• Let employees experience hotel services
– They speak with authority.
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Planning a “Point-of-Sale” Front Office
• Discuss methods for training – refer to week 11
– Videotaping of role-playing episodes
• Outline the skills and behaviors needed to
promote various products and services
• Schedule production time for video filming
• Review planning session in chapter for video
production
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Planning a “Point-of-Sale” Front Office
• Discuss aspects of budgeting for a “Point-of-Sale Front
Office
• Cost of incentive programs
• Cost of producing training materials
• Cost of planning time
• Budget math model in text
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Budgeting for a POS FO
• TIMES HOTEL: Sales budget – Front Office
Anticipated Increase in Sales
10 lunches @ $8 = $80/day x 365
$ 29,200
15 dinners @ $25 = $375/day x 365
136,875
5 room service @ $20 = $100/day x 365
36,500
5 room rsvn @ $90 = $450/day x 365
164,250
5 gift shop @ $20 = $100/day x 365
36,500
TOTAL $ 403,325
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Budgeting for a POS FO
Anticipated Increase in Costs
Incentives (cash awards)
$ 15,000
Management planning time
2,000
Staff overtime for producing 3 videos
3,000
Photocopies
300
Rental of video equipment
500
Hardware accessories
50
Purchase of VCR & monitor
500
Miscellaneous
500
Subtotal $ 21,850
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Budgeting for a POS FO
Anticipated Increase in Costs
Related cost of good sold:
Food: Lunches
29,200 x 0.35 = $10,220
Dinners
136,875 x 0.35 = 47,906
Room service 36,500 x 0.35 = 12,775
Room prep [5 x 365 = 1,825 x $15 = $27,375]
Merchandise
Total [$21,850 + $109,226]
Anticipated profit [$403,325 - $131,076]
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$ 70,901
27,375
10,950
$109,226
$131,076
$272,249
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Planning a “Point-of-Sale” Front Office
• Objective for feedback system “to develop feed back
systems concerning employee performance, employee
attitude, guest perception, and profitability.”
• Methods to attain this feedback system.
– Standard guest test – an outside person (known as
the plant) is hired by the hotel to experience hotel
services and report the findings to management.
– Development of pointed question concerning pointof-sale promotion techniques on comment cards.
– Evaluating the actual financial results it achieves
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Planning a “Point-of-Sale” Front Office
• Discuss planning example included in the chapter.
• Brainstorming
• Incentive programs
• Video training program
• Budget
• Feedback mechanisms
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Planning a POS Front Office Program
(an example)
FO Manager plan an informal meeting with the Sales & Marketing
Director, F&B Director and a few frontline employees
F&B: Promotion for
S&M: Increase Room Sales
Dining Room
•Valentine special in February:
Dinner for two with choice of
•Increase convention bookings
appetizer, dessert & house wine
with I’ve Been There referrals
at no charge
•Develop weekend in the City
•Luncheon special in March: Soup
packages
& salad bar free with entree
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Planning a POS Front Office Program
(an example)
• After discussing a various promotions, all team members
agree that Valentine Special & I’ve been there promotions
should be the targets of the front desk sales efforts
• Incentives such as cash awards to FO employees for
participation in those promotions will be used
• The team agrees that an in-house video should be
developed to assist in training employees
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Group Discussion
•
•
Cynthia Restin, night auditor at the Times Hotel, has been discussing the
decreased sales in the restaurant with Lorraine DeSantes, director of
marketing & sales. Ms. DeSantes recently developed a plan whereby the FO
staff would start promoting restaurant sales. This plan was well thought out
and even included an incentive plan in which all front desk clerks (several of
whom are college students) would receive dental care. Lorraine approaches
Ana Chavarria, FO Manager and asks her, “What’s the problem with your
staff? Why aren’t they pushing restaurant sales like we planned?” Ana asks
Lorraine what plan she is referring to. Lorainne reminds her of the plan to
increase sales in the restaurant with the assistance of her front desk clerks.
Ana says she vaguely remembers her talking about this at a staff meeting, but
there wasn’t any follow up.
What parts of Lorraine DeSantes’ plan were missing? How would you
revise her plan for reimplementation?
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Activity: Budgeting for POS FO
•
•
•
Dream On Hotel plans to increase the sales by selling 5 breakfast, 15 lunches
and 20 dinners at the price of $6.5 for breakfast, $12 for lunch and $25 for
dinner. The room sales will be 25 rooms at $150 each and the other sale will
come from the health club with the target of 6 at the price of $10.50.
The cost for the management plan is $3,250, incentives for cash awards
$7,500 and other incentives $ 12,500. Copy and stationary will cost $400,
video making $2,800, training program $500 and miscellaneous $500. The
food cost for breakfast is 30%, lunch and dinner 35%, and the cost for room
prep is 10% from the room rate. The merchandise costs $11,500.
Prepare the budget for POS Front Office.
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THANK YOU AND
HAVE A GOOD DAY
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