Optimizing Sales Systems:Revenue Management andSales & Catering Automation

John Bradway, The Breakers Palm Beach

Ernst Wolfinger, Opus Communications

John Eslick, Gaylord Hotels

Produced by Hospitality Financial and Technology Professionals

John Bradway - Director of Strategic Marketingjohn.bradway@thebreakers.com

Setting The

Foundation

System

People

System

Culture

People

System

Process

Culture

People

System

Vendor

Process

Culture

People

System

How well do people in your organization

understand revenue management?

Identify relevant sourcesDevelop pricing strategiesDetermine distribution strategyForecast DemandApply yield filtersMeasure results

Revenue ManagementMaximize Revenues from All Available Sources

A. ADR?B. Occupancy? C. RevPAR?D. RevPAC?E. All of the aboveF. None of the above

What are your objectives?

Revenue Management CultureDevelop organizational understandingInvolve key influencersEvaluate organizational chart

Develop and deploy a strong revenue managerEvaluate and communicate opportunitiesDeliver consistent and meaningful informationBe honest - - - develop trust

Purchase Decision & Installation

Involve key influencers & usersDon’t over- or under-promise resultsTrain more vs. lessSet realistic expectations of results

System Optimization

Know when to question decisionsKnow when to trust decisionsDetermine appropriate level of system manipulation and human interfaceEmpower Revenue ManagerBeware of behavioral regressionEnsure integrity with customer sales process

Integrate the Marketing Element

MarketingGeneratesDemand

RevenueManagement

FiltersDemand

Sales TeamConvertsDemand

Identify periods of opportunityInterface marketing & revenue management teamsSynergize objectives

Measurement

What Benefits will you derive from installing a revenue management system?– Intangible Benefits

• Difficult to measure exactly but have a direct impact on the hotel’s success

– Tangible Benefits• Measurable and provable

Measurement

Intangible Benefits– Automated deployment of decisions

several times each day• Allows the team to focus on sales

techniques and strategies– Management information from the

User Interface– Demand Monitoring

• Allow the team to focus attention on days that need attention!

Measurement

Tangible Benefits– Changes in Occupancy

• Increased occupancy on ‘shoulder’ nights– Changes in Revenue per Available

Room• Increased overall RevPAR

– Group Evaluation• Better pricing & placement of groups

Measuring the Benefit

Management Decisions

Marketing Campaigns

Health of the Economy

Revenue Management

Sales Team Efforts

What factors impact the hotel revenues?

Opus Communications

Consulting Services for the

Hospitality Industry

Ernst Wolfinger303-584-0595

ewolfinger@qwest.netwww.opuscommunications.com

Man vs.

Machine

Quantum leaps intechnology meet human inertia for change

Back to basics

Relationship drivenFluid & diverseInconsistentFlexible & adaptable

The Master

The Human Factor

TechnologyData drivenStandards & consistencyAccurate if kept currentFixed, yet versatile

Performance

80/20 Rule80% of users benefit from only 20%

of the available technology

Common PitfallsLack of direction, timeinvestment & commitmentReliance on shelf-productdefault applicationsSystem’s unfamiliarityInsufficient training & maintenance

Management Objectives

Return-on-InvestmentMeaningful reportsBusiness pulseMarketing dataSales effectiveness

Commitment & Tenacity

Essential QuestionsWho are the sales people calling on and why?Who is the most profitable customer? What is it that they want to buy?When do they want to buy it?Who has business for your urgent need periods?How much of their business can you expect?

ROI & Performance Measurements

Business volume, flow and yieldimprovementsPreservation of intellectual capitalMarketing enhancements & savings Lead source effectivenessBooking conversion ratiosData accuracy monitorsSales force longevity

User Objectives

Ease & efficiency Informed communicationTerritory managementSales funnelsCustom mailingsAccountability

Professionalism

Sales Process IntegrationInfo gathering sequenceFocused listening Mapping & profilingWhat, when & whereOpportunity & quality ratingFollow-up communicationE-mail, merging & tracing features

Time Investment & Discipline

System Set-upSystems integrationDesignate a strong system administratorEstablish clear standardsMaximize merge & link featuresCustomize optional featuresProvide support equipment

Forethought & Planning

Data CollectionMindset & Culture

Information capture vs. data entry Overcoming reluctanceWhat’s in it for mePerformance evaluationIncentives

If it isn’t entered – it didn’t happen !

Training

An Ongoing ProcessPaced in reasonable incrementsLearning curve & retention rateCD based and personal training Practice intervals and reviewsAdvanced training & short-cutsAnnual refresher courses

0%10%20%30%40%50%60%70%80%90%

100%

IntroductionPracticeBasics ReviewPracticeAdvancedPracticeRefresher

Training Retention & Proficiency

Applications SummaryKnowing the customerHistoric dataTrends & opportunitiesInventory managementDirect mail listsInter-departmental communicationReports & measurement tool

Information is Power

John Eslick, Director of Information TechnologyJEslick@gaylordhotels.com

Yield Management Integration Techniques

Bridging the Gap between Group Sales &

Conference Services Yield Management

Yield Management in a Sales Environment

Group Histories AnalysisMarket Segmentation AnalysisForecasting - High Demand versus Opportunity Periods

Existing Group Yield Techniques

Transient DemandGroup CeilingsSeasonal RatingHigh Demand/Special Events Rating

From Standalone to Integrated Yield Management Systems

PMS – Group Blocks, Remaining Transient Demand; Distribution Channel YieldSales & Catering Systems – PMS to Yield integration

Sales Re-Engineering Preparedness

Key Factor – Operational Management “Buy-In” on Yield Philosophy, both yield concepts & specific vendor approachSales Incentive ProgramsIntegrate into the Selling/Approval Process and Compensate

Emerging Integration - Futures

Enhanced Group ServicesLead Delivery to Prospect Contract NegotiationsRoom Rating – Available & Alternate Dates AnalysisImpact of Ancillary Revenues Factor

Emerging Integration – Futures

Conference Management Events Management – Automated Suggestive Selling StrategiesGuestroom to Function Space RatiosUpgraded Banquet Menu OfferingsIncreased Pre - and Post - Function EventsInfluence Delegate “Free Capacity” Behavior

Emerging Integration - Futures

Room Sets & Rotation/Utilization RatiosGuest Traffic Flow Analysis –Anticipate, Service & SellSeize Opportunity - “Captive” Audience into a more aggressive self promotional toolConvert the Group Experience into a Personalized Delegate Experience = Return Transient Guest

Enhanced Group Services

Marketing MessagingAdditional Event PromotionsGroup & Facilities Management IntegrationExtended Stays IncentivesPromote “Next Special Event” CalendarMonitor & Modify Conference Services Scheduler

Conclusion

Yield = Capacity versus Capability ManagementEmphasis on Group Sales Conversion to Individual Guest Experience via enhanced yield of Conference Services management

Optimizing Sales Systems:Revenue Management andSales & Catering Automation

Questions&

Answers