Marketing Advice For Any Moment
By Jeff Weinstein, Editor in Chief -- Hotels, 8/31/2008 11:00:00 PM
Believe it or not, discounting is back, as occupancies slip and owners demand you fill perishable rooms. No one seems to want to admit it, but I have heard and seen the word “discount” used a lot lately. Business is getting tougher to find—even in Dubai, where 50% occupancies have been reported this summer—and uncertainties in the economy and the geo-political world are causing consumer and business travelers to take some pause.
At moments like this, marketers are put to the test and guerrilla tactics start to emerge. What's your “staycation” offer, last-minute savings package or limited-time offer? Taj isn't ignoring the slide and is publicizing its high-definition video-conferencing abilities at five hotels in India, the United States and London. We have seen this trend before, too, haven't we?
Conventional wisdom dictates discounting does not induce demand, so don't slash rates. Well, it sounds good in theory, but those of you negotiating next year's corporate rates might be facing a different reality. So, I reached out to a few people to get some solid advice about how to market in a choppy operating environment that is expected to last well into next year—and it also gives me a chance to give a plug to our new marketing blogger on hotelsmag.com, Bart Berkey, director of talent acquisition-sales and marketing/finance for The Ritz-Carlton Hotel Co. Bart offered me some sage wisdom I would like to pass along.
Bart told me to tell you to stick with the basics and be as personable as you can to your customers. Have your general managers call all “tentatives” to convince them to sign. Have your vice president of sales do the same. Find out your client's favorite coffee drink and personally deliver it first thing in the morning. Deliver a contract with a pair of movie tickets and a copy of the latest review of a recent movie they wanted to see. Instead of just inviting someone to lunch, establish a deeper bond by inviting them and their family to an event with your family—take it to a new level and have them like you as a person, not just as a sales representative. “We can't lower our standards (or service levels or rates) now, because things will get better. Stick with the basics,” Berkey says.
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| Jeff Weinstein |
Bob Gilbert, president and CEO of Hospitality Sales & Marketing Association International, adds that sales and marketing people should be closest to the customer; they have a responsibility to communicate to management a customer's needs and wants; and they even have the ability to influence product and service design and standards. Now is the time to measure your true effectiveness, if you are willing to be proactive.
I know many of you are going to cut rates, and it might not be your decision. But while sticking to the basics and making business practices more personal might not be trendy, it sounds like solid strategy every day. The days of mailing it in are over for now, and there is no room for complacency with marketing strategies or service standards, regardless of where you are in the cycle.
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