How to boost hospitality sales

Posted by Chris on 8/24/2017 to Advanced Business
How to boost hospitality sales

How to boost hospitality sales

Sales and marketing across the hospitality industry has dramatically changed in the last fifteen years. In 2002 the majority of hotel reservations, restaurant and activity bookings was made by phone/telex/fax generated by a tour operator. Today the fastest growing hospitality company – Airbnb – does not own or maintains a single room yet in 2017 it values over US$ 31bn. Booking.com on the other hand has become the top advertiser of the industry spending over US$ 40bn on Google Adwords in 2013.

Sale plan effectiveness in hospitality depends on the level and the number of foreseen income sources, how people, effort, money and time are distributed on each stage of every individual sales cycle. No single business can specialize on everything but not utilizing the full extent of the existing potential can be catastrophic. The plurality of the market segments that can significantly boost sales can be achieved by focusing 50% of the sales efforts and the sales budget on the elements that have generated profits in previous years balancing the rest of the budget to include additional segments like:

·         Retail

  • o   Weddings / communions
  • o   Religious events
  • o   Family / school reunions
  • o   Concerts / shows
  • o   Activity / leisure services
  • o   Breakfast sales
  • o   Tea time sales
  • o   Restaurant sales
  • o   Exhibitions
  • o   Festivals
  • o   Retail events
  • o   Thematic tours
  • o   National holiday specials
  • o   Sports events
  • o   Cultural hot spots
  • o   Unique selling point exploitation
  • o   Seasonal occasions

·         Wholesale

  • o   Corporate events / corporate training / product or service launching
  • o   Business meetings
  • o   Congresses
  • o   Team building - experience events
  • o   Trade shows,
  • o   Business contests
  • o   Business networking  events
  • o   Public service events
  • o   Educational (school – college) events
  • o   Media events (press releases, interviews, media covered celebrations)
  • o   Award ceremonies

The list is endless and new things are added as conditions change but if we aim to add at least two new sources of income each year we will manage to generate more sales for our hospitality business.

To get ahead of competition 

A target market that would include second and third sales (recurring sales) on existing and old customers can be added even hiring or outsourcing a re-sale account manager or agency with specific aims. Re-sales from satisfied retail and business customers can generate up to 70% of the total turnover in the industry. Waiting for the call to ring or the reservation to arrive online is not the only option. Never forget to include active practices like online approaches, calling a potential client or design and manage an event. Active channels are the only ones we can have total control of the complete sales process. Aggressive practices like aiming to penetrate in competitors dominated market segments or expanding market share in existing segments should also be pursued whenever a success rate over 50% can be predicted. 

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