Learn why the sales of large-scale hotels demand high expertise, multi-level strategy and an ideal balance between B2B & B2C deals
Hotel Sales is a complex and multi-level procedure, as the various distribution channels are constantly multiplying, while the importance of direct reservations becomes more and more obvious. New generation sales managers have to have a full knowledge of all the terms and specifications of the B2B market, but, at the same time, they need to be fully qualified in the very important fields of online sales and digital marketing. Moreover, the sales of additional hotel services, such as the restaurants and the spa, are many times the key to a hotel’s success.
However, when it comes to large-scale hotels, the sales strategy becomes even more chaotic and complex. The increased operational costs demand bigger occupancies and increased revenues. The balance between B2B and B2C sales becomes also very important, particularly because of the Tour Operator’s role in the property’s overall turnover. At the same time, the guest satisfaction, which is reflected on positive reviews as well as on additional service sales, requires constant supervision and evaluation.
In order to provide solutions and ideas regarding the sales strategy of larger hotels, we collaborated with the company CHC Hotels. Together, we recorded the Top Tips that can make a big hotel more autonomous and profitable, and guarantee its positive and long-lasting results.
CHC Hotels, also known as Chnaris Hotel Management, Development & Consulting S.A, is one of Greece’s most powerful companies in the hotel industry, with a high expertise in hotel management & sales for large-scale properties.
Having a great experience in hotels in Crete, one of the most competitive destinations in the country, CHC Hotels deliver significant results for demanding properties.
Some of CHC Hotels’ key-points of success regarding the sales strategy of big hotels, are:
- Successful contracts with Tour Operators, maintaining the right balance between Β2Β & B2C.
- Day-to-day Yield Management in online channels, for increasing the profit window.
- Enhancing of the hotels’ Online Reputation and Brand Awareness to the end travellers, as well as Travel Agents.
- Maintaining the high quality of the hotel’s various departments, like the Restaurants and the Spa, that leads to an increase of the property’s additional sales.
The success of Hotel Contracting is mainly determined by the contracts’ quality — not their quantity
One of the most important parts in a bigger hotel’s sales strategy, is the contracting with Tour Operators & Travel Agents. However, as Hotel Contracting is a difficult and complex procedure, the hoteliers must pay particular attention in the final terms of each agreement. Very often, the hotels strive to achieve a large number of different contracts, while, the secret to the success lies on signing quality and clearly specified deals.
Simply having a new contract does not guarantee that the hotel will receive maximum results. After all, each deal demands constant evaluation and communication. For example, a regular B2B communication can keep the hotel on the various buyers’ top-of-mind, while potential B2B offers can make the hotel stand out and increase its contracts’ effectiveness. Finally, a strategically selective contracting will allow the hotel to have increased availabilities for B2C sales, thus increasing its profit window.
A correct organization chart plays a significant part in the Hotel Management, and affects the hotel’s overall profitability. This is CHC Hotels‘ indicative organization chart:
B2C distribution channels and direct sales increase, demand a careful strategy
As mentioned above, the direct sales are one of the most important topics when it comes to hotel sales. However, it is vital to maintain the right balance with the property’s active B2B deals. Having room availabilities in the various OTAs as well as in the hotel’s official booking engine (which seems to be the most beneficial sales channel) is very important, as it can affect the overall hotel revenue.
On the other hand, Yield Management is another very important factor that can affect the property’s profitability. The day-to-day online price management can influence the final number of reservations, as it can highlight offers and opportunities but also increase the profit window as it shaped by the competition.
The right Hotel Management that leads to the increase of revenue as well as the clever reduce of costs, can determine the level of a hotel’s independence
In addition to the hotel sales, what is also vital in a hotel’s overall profitability, is the administration of the operation and management costs. A common mistake is to reduce quality (especially when it comes to the F&B), thinking that this will increase the property’s profit. This method has clearly shown that in the course of time, the results will be negative.
The hotel’s management is expected to find ways to reduce the various costs, without affecting the guests’ experience. After all, it is more than obvious that a satisfied customer is more likely to write a positive review, that will support future reservations as well as additional service sales — and all that will lead to an overall increase of the hotel’s revenue.
The additional services’ (restaurants & spa) high quality has a great effect on the overall hotel revenue
In many cases, a hotel’s sales & marketing department focuses only on bringing more reservations to the property. This is, of course, vital, however, we must not forget about the important sales opportunities that rise from the property’s current guests. The F&B sales are clearly the second most important source of revenue for a hotel, which means that the sales & marketing department must closely work with the hotel’s operation and management departments, in order to boost the various outlets’ sales. This cooperation can also assist the sales’ negotiations with the B2B & B2C channels, since the property will offer advanced additional services to its potential guests, and not just pretty rooms.
At the same time, having a clear strategy in regards to the promotion of the various departments towards the current customers, can significantly increase the sales. And since many hotels already enjoy satisfactory occupancies, the focus on the so called ‘Hotel Upselling’ appears to be more vital than ever.
All the photos used in this article are from hotels working with CHC Hotels on a management level, or even for one-off services, like reservation monitoring and hotel contracting.