Chapter 4
Selling Hospitality
Women in Hospitality
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Women are rising in management in all areas of
business
1/3 of all businesses in America are owned by
women
Almost ½ of the labor force is made up of
women
The hospitality industry is in need of good
managers and is selecting women to fill these
positions
Women in Hospitality
The search for effective managers
provides opportunities for talented women.
 Many scholarship programs and
competitions are available for women
 Customers are more likely to be women
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Marketing the Hotel or Restaurant
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Selling hospitality
 More
than renting rooms or tables
Ranking of hotels and restaurants is based on
price
 Most ranking systems use stars
Or diamonds
 A five star or diamond refers to the highest
quality, best-in-class
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Hotel Ranking:
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4-star or diamond hotels represent excellent
service
3-star or diamond hotels are associated with
very good properties
Good Hotels and restaurants are given 2-star
ratings
A 1-star or diamond hotel is usually a budget
property.
A beautiful facility does not
assure guest satisfaction!
The Internet
Is having a huge impact on how
individuals conduct business
 Is redirecting customer attention to new
sellers of products
 Infomediaries are third parties used to
make reservations on the Internet
 Infomediaries are replacing travel agents
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The Internet
Uses software to match buyers and sellers
in the hospitality business
 The balance of power is shifting from the
seller to the buyer because they have
more choices with the Internet
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Industry Challenge
One of the greatest problems in the
industry is finding, training, and keeping
good people in the industry that can
respond to the demands of the changing
technology environment
 Developing leaders that have a strong
commitment to customer-relations
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Traditional Sales Techniques
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Brochures: convey a message of quality and
price, kept in high traffic areas, include
property highlights and promotions
Mailings: target customers, mailing lists of
previous guests, travel companies, include
special promotions, sales
Bulk distributions: sent to masses, also
noncompetitive properties such as chamber
of commerce, shopping malls, rest areas,
departments of tourism, etc.)
Tracking Quality: What Works!
Sales departments realize that there is a
direct relationship between customer
satisfaction and repeat business
 Sales departments gather information on
customer experiences at the properties
 Psychographic information is gathered to
identify particular types of people and what
they like
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Demographics
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Data compiled on customers
that may include
 Age
 Home
location
 Spending habits
 Employment
Surveys
Questions that may be included on the
hotel or restaurant bill
 Gain more information about the customer
 May be on the registration cards
 Once information is gathered and studies
a marketing strategy is chosen to help get
the guests to return.
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Success today does not assure
success in the future
Hotel Reservations
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There are a variety of ways to reserve a
room
 Mail
 Telephone
 Fax
 Face
to face
 Web site
How do travelers determine where
to stay?
Recommendations from friends
 Advertisements in newspapers, radio, tv
 Tour brochures
 Travel guides
 Hotel reference books
 Internet
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Regular Reservation:
Non-guaranteed
 Usually held until 6:00 p.m. on date of
arrival
 If guest does not arrive by 6:00 p.m. the
room is made available for other guests
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Guaranteed Reservation
Guest must pay for the first night prior to
arrival
 Credit card number usually used
 Advance payment guarantee may be used
 Guest given a conformation number
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Room availability is easily
determined by using a
computerized reservation
system.
Reservations: Cyber Marketing
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PriceLine.com gives
consumers the power to
negotiate prices for good
and services.
Consumers can bid
prices on airlines tickets
and hotel rates.
Today’s market is more
customer-driven
because of the ability to
negotiate price
Cancelled Reservations
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Courteous travelers call the hotel when they do
not plan to use the reservations
Non-guaranteed reservations are normally
revoked or “pulled” at 6:00 p.m.
Stay-overs or overstays are persons staying
longer than the length of their reservationsometimes causing booking problems
Due-outs: persons expected to check out today
Third-party Reservations
Travel agents and the Internet
are third-party distribution
channels for reservations
 Hotels can save money by
reaching customers directly
instead of paying commissions
to third party intermediaries.
This is where technology pays
off for the hotel.
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Sales and Event Planning
Most cities realize the financial
importance of tourism
 Many build convention centers
and hotels to attract business
 Some cities issue tax bonds to
pay for the convention centersgood or bad?
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CVBConference and Visitors Bureau
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Organization that tries to
attract more travelers to the
area
Usually has membership of
local businesses that work
together
Examples of members:
hotel/motels, amusement
parks, museums, restaurants,
tour companies
Selling Hospitality
Direct mail
 Publicity
 Public relations
 Advertising
 Sales promotions
 Use market research to
target market and set
forecasts
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Potential Markets
Vast
 Different
 Each have special needs
 May be large or small groups
 All expect high quality service
 Thousands of professional
associations
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