Chapter 3 Organizing for Convention Sales

1. Chapter 3 Organizing for Convention Sales Convention Management and ServiceEighth Edition (478TXT or 478CIN)

2. Competencies forOrganizing for Convention Sales • Identify factors to consider when organizing for convention sales. • Describe typical sales and marketing staff positions, and outline the roles of regional and national sales offices and independent hotel representatives. (continued)

3. Competencies forOrganizing for Convention Sales (continued) • Explain how to manage the efforts of the sales team in terms of establishing standard operating procedures, conducting sales meetings, assigning account responsibility, and evaluating the sales effort. • Explain the various records and filing systems maintained by a sales office. • Describe technological applications for a sales office.

4. Organizing for Convention Sales Sales Structures • Hotel chains with multiple brands are consolidating and relying more on regional and national sales offices • Chains are assigning a single salesperson to represent all brands in their company to meeting planners • Revenue managers and revenue departments are becoming common as hotels look to maximize revenue—property wide—from convention groups (continued)

5. Organizing for Convention Sales (continued) Small Properties • Salesperson and general manager will solicit all market segments Large Properties • Hotels tend to specialize and assign sales staff to specific meeting market segments

7. In convention-oriented hotels, the sales office works closely with three key departments: • Convention services • Banquets/Catering • Revenue Management

9. Convention Sales Sales Manager: “We sell the dream.” Services Manager: “We service the Nightmare!” • Sales and Events do work very closely but have significantly different approaches to the clients. • Sales has a responsibility to drive “head in beds” and Services to drive “food and beverage revenue”. • This lack of unified goal and lack of empathy for each other often creates a tense relationship. (continued)

10. Convention Sales • Sales usually has a stronger relationship with the client and can be your best ally or worst enemy. • The turnover is crucial to building the trust with the client. • Often sales will hear the “bad’ before you and not always willing to share the “glory” of a successful program. • Events expects the Sales Manager to meet clients on site and intervene when necessary during the planning stages. • NOTE: After all sales wrote the contract and are responsible for it (continued)

11. Sales and Marketing Staff Positions within Sales • Director of sales and marketing—leads the sales effort by setting objectives and monitoring action plans • Director of sales—executes the marketing plan, coordinates and directs the efforts of the sales staff • Convention sales manager—solicits convention trade for the hotel • Convention service manager—coordinates and services the conventions booked by the property • Tour and travel sales manager—develops group and charter business for the hotel (continued)

12. Sales and Marketing Staff (continued) • Advertising and public relations director—coordinates all promotional materials and public relations • Sales staff—prospect, set appointments, and call on prospective clients • Clerical support—maintain records, provide support, assist in follow-up Supplemental Sales Staff • Regional sales offices—provides a central information point that directs meeting planners to the property that will best meet their needs • Independent representatives—represent the property as a “long arm” of the sales department

13. National Sales Offices • Solicit business for any hotel in the chain • One-stop shopping (similar meetings) • Computer banks on clients and chain properties • Intermediary between client and local sales. • NOTE: Typically the NSM will have little interaction with hotel or group unless high profile client or issues arise.

14. Independent Hotel Representatives • Used when in-house staff cannot cover all areas • Services offered vary widely • Represent more than one property (but rarely similar clients) • Hired on a contract basis • Must work within the scope of the property's marketing plan and familiarize themselves with the property 

15. Standard Operating Procedures • Describe how recurring business actions should be handled • Act as a reference that helps banquet and sales staff handle functions consistently • Cover such things as function book control, booking policies, organizational chart, and reservation cut-off dates

16. Areas Covered by SOPs • Function book control and procedures • Guestroom control book procedures • Booking policies • Rate guidelines for high and low demand periods • Credit/deposit/cancellation policies • Policies regarding VIP and complimentary rooms • Meeting room rental fees and procedures • Banquet and room reservation cut-off dates • Convention service standards and procedures • Organization chart and job description for sales department

17. Types of Marketing andSales Meetings • Weekly staff meetings • Weekly function meetings • Weekly revenue management committee meetings • Annual or semiannual sales meetings for all employees

18. Assigning Account Responsibility Methods and Fairness • Accounts could be assigned by market segment or by specific accounts. • CSM is also assigned this way • The director of sales will distribute based on sales manager markets. Key Account Management • Prioritizes accounts based on profits • Helps identify the accounts with the highest profit potential

19. Evaluating the Sales Effort The director of sales should: • Evaluate each salesperson’s weekly activity report and his or her reader file • Periodically review the organizational structure of the sales office

20. The Importance of Relationships • Meeting planners value personal relationships with hotel salespeople • Choice of hotel is frequently based on relationships with convention sales personnel and with the convention service manager • Technology (e-mail, voice mail, Internet, text messaging) has tended to depersonalize the sales process • Salespeople should strive to develop lifelong relationships with clients • Seek to “own the planner’s business”

21. Sales Filing Systems and Forms Elements of Sales Filing Systems • Master card • Account file • Tickler file Control Books • Function book • Guestroom control book Sales Forms • Tentative booking sheet • Definite booking form • Working file • Change form • Cancellation form • Lost business form

22. Master Card • Summarizes sales efforts • Serves as prospect database • Often color-coded • Trailer cards hold information ondivisions of large companies • Details contact names, months in which group meets, size of group, where the group has met in the past, and key decision-makers

23. Account File • Serves as the basic group business record • Folder that includes all correspondence and related materials • Started at initial contact • Also color-coded with cross-reference to master card • Information in the file includes tear sheets, past convention programs, and contracts

24. TicklerTrace File • Also known as a trace file, bring-up file, or follow-up file • Helps ensure effective follow-up • Filed by month/day in accordion-style files • Entry in the pocket for the day or month you want to contact prospect • Software programs such as Delphi and SEIBEL are valuable tools for sales. Integrate into other applications.

25. Control Books—Function Book • A master control of all banquet space; each page or computer screen lists the property’s meeting space and allows for recording of meeting activity by day • A page for every day of the year • All function rooms represented on each page • Entries under function rooms include name of organization, type of function, attendees, rates, etc. • Most hotels have computerized their function book • One person should control and maintain the function book (manual version) • Prevents is designed to prevent overbooking …

26. Control Books—Function Book • Double Booking does happen in some cases. • Tentative Bookings (Prospects) • Larger Programs booking at last minute and smaller groups have the space • Contracted group is not “picking up” as expected and may drop space due to decreased attendance. • Expected “wash” of meeting space / rooms

27. Control Books—Guestrooms Control Book • A master control of guestrooms available for sale to groups; each page or computer screen lists the booking activity and status of group guestroom blocks • Helps monitor guestroom allotments to groups • Lists rooms available to groups • Format consists of a monthly report sheet with space for group's name and guestroom commitment by day • Both tentative and definite bookings are noted • Computerized guestrooms control books allow salesperson access either in-house or from a remote location

28. Control Books—Guestrooms Control Book • With city wide groups there are typically many sub-blocks • These are allocated by the main meeting planner or housing company for purposes of tracking individual companies. • Sub Blocks sign individual contracts and relieve the burden of attrition from the main group. • Housing Companies are responsible for receiving the individual reservations and will download to hotel on the contracted cut-off date. • This creates a lot of work for in-house group coordinators

29. Sales Forms • Tentative booking sheet—documents that the meeting planner has been given an option on the space and a hold has been placed on the room(s); used if a date has not been confirmed or if details have not been worked out • Definite booking form—used after business has been confirmed • Working file—established once a group “goes definite”; includes only information relevant to the event • Change form—documents changes in dates and/or room requirements • Cancellation form—confirms cancellation • Lost business form—details reasons for cancellation

30. Advantages of an Automated Marketing and Sales Office • Tedious tasks accomplished quickly and efficiently • Instantaneous access to sales information • Personalized mailings • Risk of human error reduced (@) • Easier to reorganize client or guest data on the basis of zip code, desired time periods, areas of interest, etc. • Faster preparation of mass mailings (continued)

31. Advantages of an Automated Marketing and Sales Office (continued) • Enhanced communication among properties in large chains (CRM SYSTEMS) • Frees salespeople from the office; laptops, e-mail, text messaging, and cellular phones allow salespeople to work on the road • Mostly National Sales Office not local • Facilitates yield and revenue management

32. Technical Components of theVirtual Office • Laptop computer • E-mail • Blackberry/cellular phone

33. Yield and Revenue Management • Yield management—a technique used to maximize hotel revenue/profits by basing prices for guestrooms and banquet space on supply and demand. • Revenue management—the practice of assessing a group’s overall contribution to hotel revenue/profits by measuring its impact on guestroom, meeting space, restaurant, and retain revenues, as well as its potential for future business. • Meets weekly with CSMs to review current room pickup and gain insight into possible loss / gain of rooms.