Howard Said What?
Using National and Regional Sales Offices Can be an Asset
Howard Feiertag
Faculty Member
Dept. of Hospitality & Tourism Management
Pamplin College of Business
Virginia Tech
howardf@vt.edu
IF YOU ARE IN THE BUSINESS of selecting sites for meetings, regional and national sales offices of hotel chains, management companies, and hotel representation firms can save you a great deal of time.
The hotel industry is enjoying higher occupancies and room rates because of the increase in demand and the lack of new supply. Some destinations are seeing an increase of room supply starting the real possibility of renewed competition. But we know it is tough getting space when and where you want it.
It appears that 2008 will see another small increase in new construction (1-2%) with about the same increase in demand -- so the sellers’ market will most probably continue.
Even though occupancies and rates have increased, hotels still need the higher-rated business, and every property is going after it. Hotel groups have found that having their sales offices in major cities will help put them in a better position to develop beneficial long-term relationships. These satellite sales offices are a “one-stop shop.”
Through Global Distribution Systems, sales personnel in their national offices can access rooms and meeting space availability at most of their larger hotels with a touch of their laptops. And, most brands have allowed these sales people to act as a key contact.
This means not only can they search for space and rates but they can also confirm and enter into an agreement with you on the spot.
Of course, not all companies with national and regional sales offices may be so equipped, but all are in a position to work for you whether it is through phone calls to their properties or by e-mail.
We are already seeing a redistribution of the sales force, driven by technology, need, and partnership development. The buyer/seller relationship will become closer through the long-term strategic alliances that are being developed.
The idea of national sales offices is certainly not new. What is new is that there are so many more facilities for you to chose from, so many new venues, and more people are out selling their properties.
Getting the sales person closer to you is the key to doing more and better business. We all want more information quicker, but we need to deal with someone who has the authority to make the deal. .
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