Promoting In House Sales Week 12

1. Promoting In House Sales Week 12 Subject : V0206 – Administrasi & Operasional Kantor Depan Year : 2009

2. Subject Role of the front office in a hotel's marketing program Planning a point-of-sale front office

3. Objectives: On completion of this lesson, the students will be able to: • explain the roles of front office in promoting hotel products/ facilities and point-of-sale front office

4. Opening Dilemma • The F&B mgr. has spent several thousand dollars on a marketing study to determine the dining needs of in-house guests. The chef has rewritten each menu to reflect those needs. However, the bell staff and front desk clerks continue to recommend the MidTown Deli around the corner as “a nice place to get something good to eat anytime of the day.”

5. Sales Attitudes of FO Staff Upsell Sell room to guests who have not made prior reservation Sell the hotel’s facilities to the guests Obtain guest feedback Ensure that maximum revenue is generated from the sale of rooms

6. The Role of the Front Office in Marketing • The Role of the Front Office in Marketing • The traditional role of the front office staff as information givers and order takers. • Narula - “As market conditions have changed, the nature and importance of the functions performed by the front office have also changed from being an order-taking department to an order-generating or sales department.”

7. Planning a “Point-of-Sale” Front Office • Point-of-sale front office - a front office staff which promotes other profit centers of the hotel. • Narula - goals for the front office. • Sell rooms to guests who have not made prior reservations • Upsell to guests who have made prior reservations • Maintain the inventory of the product • Convey information to guests about other products available for sale at the property • Utilize overbooking • Obtain guest feedback

8. Planning a “Point-of-Sale” Front Office • Brainstorming areas for promotion in the hotel • Front office • Food and beverage department • Gift shop • Health facilities

9. Planning a “Point-of-Sale” Front Office • Role of Incentive Programs in Assuring a Point-of-Sale Front Office • Entails understanding employees’ motivational concerns (needs and desires) and developing opportunities for employees to achieve their goals. • Discuss examples of incentive programs as listed in chapter. • http://www.hotel-online.com/News/PR2006_2nd/Apr06_GreatestBellman.html

10. Planning a “Point-of-Sale” Front Office • McGregor’s Theory X and Theory Y • Maslow’s theory of motivation – 5. Self-actualization, self-realization, and self-accomplishment; 4. Self-esteem and the esteem of others; 3 .Love, affection, and belonging; 2. Safety; and 1. Food, clothing, and shelter • Mayo’s theory of motivation Supervisor recognizes an employee as being special • Herzberg’s theory of motivation Positive factors in developing job attitudes are achievement, recognition, for achievement, responsibility, interesting work, personal growth, and advancement.

11. Motivation Theories

12. Planning a “Point-of-Sale” Front Office • Discuss the application of motivational theories. • Each employee is different and presents an opportunity for human resource

13. Planning a “Point-of-Sale” Front Office • Training Programs for a Point-of-Sale Front Office • The need for training in sales skills. • Fear of rejection • Discuss adopting the attitude “presenting opportunities to the guest to improve or enhance the guest visit.” • Let employees experience hotel services • They speak with authority.

14. Planning a “Point-of-Sale” Front Office • Discuss methods for training – refer to week 11 • Videotaping of role-playing episodes • Outline the skills and behaviors needed to promote various products and services • Schedule production time for video filming • Review planning session in chapter for video production

15. Planning a “Point-of-Sale” Front Office • Discuss aspects of budgeting for a “Point-of-Sale Front Office • Cost of incentive programs • Cost of producing training materials • Cost of planning time • Budget math model in text

16. Budgeting for a POS FO • TIMES HOTEL: Sales budget – Front Office Anticipated Increase in Sales 10 lunches @ $8 = $80/day x 365 $ 29,200 15 dinners @ $25 = $375/day x 365 136,875 5 room service @ $20 = $100/day x 365 36,500 5 room rsvn @ $90 = $450/day x 365 164,250 5 gift shop @ $20 = $100/day x 365 36,500 TOTAL $ 403,325

17. Budgeting for a POS FO Anticipated Increase in Costs Incentives (cash awards) $ 15,000 Management planning time 2,000 Staff overtime for producing 3 videos 3,000 Photocopies 300 Rental of video equipment 500 Hardware accessories 50 Purchase of VCR & monitor 500 Miscellaneous 500 Subtotal $ 21,850

18. Budgeting for a POS FO Anticipated Increase in Costs Related cost of good sold: Food: Lunches 29,200 x 0.35 = $10,220 Dinners 136,875 x 0.35 = 47,906 $ 70,901 Room service 36,500 x 0.35 = 12,775 Room prep [5 x 365 = 1,825 x $15 = $27,375] 27,375 Merchandise 10,950 $109,226 Total [$21,850 + $109,226] $131,076 Anticipated profit [$403,325 - $131,076] $272,249

19. Planning a “Point-of-Sale” Front Office • Objective for feedback system “to develop feed back systems concerning employee performance, employee attitude, guest perception, and profitability.” • Methods to attain this feedback system. • Standard guest test – an outside person (known as the plant) is hired by the hotel to experience hotel services and report the findings to management. • Development of pointed question concerning point-of-sale promotion techniques on comment cards. • Evaluating the actual financial results it achieves

20. Planning a “Point-of-Sale” Front Office • Discuss planning example included in the chapter. • Brainstorming • Incentive programs • Video training program • Budget • Feedback mechanisms

21. Planning a POS Front Office Program(an example) FO Manager plan an informal meeting with the Sales & Marketing Director, F&B Director and a few frontline employees F&B: Promotion for Dining Room S&M: Increase Room Sales • Valentine special in February: • Dinner for two with choice of • appetizer, dessert & house wine • at no charge • Luncheon special in March: Soup • & salad bar free with entree • Increase convention bookings • with I’ve Been There referrals • Develop weekend in the City • packages

22. Planning a POS Front Office Program(an example) • After discussing a various promotions, all team members agree that Valentine Special & I’ve been there promotions should be the targets of the front desk sales efforts • Incentives such as cash awards to FO employees for participation in those promotions will be used • The team agrees that an in-house video should be developed to assist in training employees

23. Group Discussion • Cynthia Restin, night auditor at the Times Hotel, has been discussing the decreased sales in the restaurant with Lorraine DeSantes, director of marketing & sales. Ms. DeSantes recently developed a plan whereby the FO staff would start promoting restaurant sales. This plan was well thought out and even included an incentive plan in which all front desk clerks (several of whom are college students) would receive dental care. Lorraine approaches Ana Chavarria, FO Manager and asks her, “What’s the problem with your staff? Why aren’t they pushing restaurant sales like we planned?” Ana asks Lorraine what plan she is referring to. Lorainne reminds her of the plan to increase sales in the restaurant with the assistance of her front desk clerks. Ana says she vaguely remembers her talking about this at a staff meeting, but there wasn’t any follow up. • What parts of Lorraine DeSantes’ plan were missing? How would you revise her plan for reimplementation?

24. Activity: Budgeting for POS FO • Dream On Hotel plans to increase the sales by selling 5 breakfast, 15 lunches and 20 dinners at the price of $6.5 for breakfast, $12 for lunch and $25 for dinner. The room sales will be 25 rooms at $150 each and the other sale will come from the health club with the target of 6 at the price of $10.50. • The cost for the management plan is $3,250, incentives for cash awards $7,500 and other incentives $ 12,500. Copy and stationary will cost $400, video making $2,800, training program $500 and miscellaneous $500. The food cost for breakfast is 30%, lunch and dinner 35%, and the cost for room prep is 10% from the room rate. The merchandise costs $11,500. • Prepare the budget for POS Front Office.

25. THANK YOU AND HAVE A GOOD DAY