One of the biggest opportunities across our industry to raise revenue per available room is right there in our lobbies. This opportunity does not require a capital expense and can show immediate results. It exists across all segments of the industry and has a proven record of performance. What is it? It is how we train our front-desk associates. Many of these associates are focused on getting the business, which is good. What is not good is that often they use only one of the available levers to get that guest to stay in your hotel, and that lever is fading or discounting rate. While effective in closing the deal, your profitability suffers.
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William Edmundson
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The better lever to use is value selling. When you set the rates at your hotel, you thought about what you offer and how that compares to your competitors. If you did the right thing and set the rate accordingly, why would your front-desk associates sell a discounted rate rather than value?
Here is a proven example of how value, not rate, can be sold:
- When guests come into your hotel or call your hotel, your team should ask if they have stayed there before, then qualify the type of traveler they are—business traveler, leisure traveler, part of a group or part of a company with a negotiated rate. If they have stayed with you, start by saying “then you probably already know that our rate includes …” if they have not stayed with you, start with “Our rate includes …”
- Then, go through a list of features and benefits based on their answers to your qualifying question “rooms with king-size pillowtop beds with luxury linens, flat-panel televisions, high-end amenities, etc.” Our lobby features … and we have a 1,500-square-foot exercise room with …”
- Remind them of your frequency program “You will earn 500 points in the Priority Honors program.”
- If your hotel has an unconditional guarantee, tell them about it and explain how it works. “Plus, we offer an unconditional 100-percent satisfaction guarantee—If you are not completely satisfied with any part of your stay, your night’s stay is on us.”
- Now that the value has been spelled out, you are ready to give them the rate. “… and that is all included in our rate of (US)$109.”
- Now, go for the close; “May I book your room for you now”? Or “Would you like me to put your reservation on American Express or Visa?”
Remember, guests likely will make a decision based on the facts that they have. If rate is the only information your team gives the guest, that is how the guest will compare your hotel to your competition. While this seems like simple information, it works. I have spent more than 20 years in the industry watching the hotels that follow these steps enjoy a higher rate for walk-ins and phone inquiries, and a higher closing rate.
William Edmundson is a hospitality executive with more than 20 years experience in brand building, culture creation, innovative marketing and sales, operations, and franchise relations. He has worked on industry leading brands for Holiday, Promus, Hilton and Choice. William is currently consulting, speaking and writing for the hospitality/travel industry and can be reached at williamledmundson@yahoo.com or 301-653-0506.
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