Just this week I was on the phone with a hotel partner that was new to his position and unfamiliar with our services. He was asking me some great questions about our “why.” Why are we so focused on lead generation for hotels? What are the challenges hotels are facing? We were specifically discussing the Select Service Hotel Sales Mode, and as I was bringing him up-to-speed it seemed like a great topic for a post that could address the issue for a wider audience. Below are the top eight reasons we see hotels struggle with consistency & building sustainable sales pipelines.
1. Consistent Revenue Is A Challenge
As a small business owner myself, I know that nothing keeps us up at night more than inconsistent revenue, as this directly effects cash flow! That’s why I am so passionate about providing solutions for business leaders & hotel owners that are tailor made to find top line revenue.
2. The Sales Team Turnover Conundrum
Finding and retaining top sales talent is a growing struggle as competition & costs continue to increase. We get calls every week from hotels that have had a recent departure of a sales team member, or have been searching for months and are finally ready to look at more creative options. Think about this… On average the gap of employment is 90 days, which is followed by another 90 days of training and acclimation to the property. There is a risk during half the year, which also negatively effects future months when there is not a full effort on proactive sales.
3. There Is A Struggle To Keep Up With Inbound Leads
The #1 complaint of B2B buyers & third party lead distributors in the hospitality industry is lack of response or poor timeliness from hotels they would like to do business with. So, every day that you are without someone to respond to inbound leads or you don’t have a clear process to review business and respond to rate requests, you are likely missing out on revenue!
4. Lack Of Current Account Management
We are not in a “if you build they will come” era of business. Many hotels struggle because they believe simply entering a business travel account into their property management system means the account will book rooms with them. In reality, the hotel may be losing share to the competition, because these accounts are not receiving the proper attention & care! Just as you want to be “loved” by your vendors, so do your customers! A hotel simply cannot survive by only communicating with accounts when they reach out to book a room… You must keep them happy & engaged with the hotel year round!
5. A Dry Sales Pipeline
When it comes to proactive prospecting, consistency is key! We all want to uncover the “diamond in the rough” so to speak, but we know that unfortunately those are few and far-between. Your hotel must continue to prospect & reach out to new business opportunities at all times, so you don’t get stuck riding the peaks & valleys of your current revenue cycle.
6. In A Vicious Cycle To Reacquire Lost Lead Opportunities
Similar to #5, when it comes to lead nurturing, consistency and persistence are crucial! You cannot simply make one phone call to a prospect and call it quits. Your sales team must be persistent in their efforts, realizing that 80% of sales are made on the 5th to 12th contact! Meaning, there are five to 12 opportunities to build a relationship with the prospect. So stick to it, get to know them & understand their needs so when the time comes you are ready!
7. The Sales Resources Needed Seem Financially Out Of Reach
Hiring and training a new sales team, purchasing new software, and implementing systems can come at a high cost. Unfortunately for many hotels, specifically in the select service market, this is a cost that they simply cannot justify, especially when there is a lack of sales revenue. Therefore, they are left “spinning their wheels” on revenue generation and the hotel continues in a cycle of inconsistent revenue.
8. Your Hotel Is Being Commoditized
Commoditization happens when your hotel is lumped in with everyone else, in the mind of the consumer, and winning their business simply becomes a “rate game.” Without any relationship with a specific hotel or brand, the consumer is left doing his or her own research, making assumptions, and reaching out with RFPs the hotels they feel are a “good fit” for their needs. Thus your hotel has been commoditized!
Does your hotel situation fit any of the eight descriptions above? We “get it” and would love to connect, and explore how we may be able to serve your hotel. And if we’re not the right fit for you, we are always happy to refer to someone in our network, who might provide a more ideal solution.
Plan B Consultants, Inc. provides “done-for-you” hotel sales solutions in the form of Right Fit Lead® Prospecting, Plan B Activation™, which is our follow-up and nurturing phase of the Right Fit Lead® Process, Plan B Sales Safari™ Sales Blitzes, and our suite of Sales4Hire™ services. To view our full-menu of services CLICK HERE.
To see how we can help your hotel generate more, consistent revenue, schedule a FREE consultation call with our Founder, Amy Infante!
Or Contact: amy.infante@planbconsultants.com (312) 636-7384
