refers to the efforts of RESERVATION & FRONT DESK AGENTS to Convince
guests to rent rooms in categories above standard accommodation and
sales efforts to increase Hotel Revenue.
To up sell, front office and reservation staff must be trained to be
more than simply order takers, they must be trained to be Professional
Sales People as upselling is a Marketing & Sales act. The personnel must
see that they can up sell rooms in much the same way that a food server
can sell extra items such as – appetizer or dessert.
F.O. staff should learn effective techniques for suggesting room options
to guests. This involves knowing how & when to ask for a sell in a
non-pressured way and to direct the sale from the guest perspective.
Offering guest room options are the key to reservations & Registration
sales process and it requires thoughtful planning and practice.
Although the majority of up selling is conducted during the reservation
process, the F.O. desk agents are likely to have a similar sales
opportunity with Walk-in guests.
UPSELLING AT F.O. CAN BE DONE IN TWO WAYS:
( I ). BY INCREASING OCCUPANCY
( II ). BY INCREASING ROOM RATE.
( 1 ). BY INCREASING OCCUPANCY:
A. Persuading unrelated singles to occupy twin rooms
Eg. – Conference Delegates.
B. Splitting Down – This technique is used when business is slow and
rooms plentiful. In this case you have to pick up your customers very
C. If the rooms of the hotel desired/asked is occupied try following:
1. Offer a different type of room
2. A different date
3. A companion hotel
4. Another hotel
D. Repeat Business: satisfying guest with facilities and services
offered by the hotel.
E. No Shows:
1. Cutting the no. of no shows
a. By putting a clause for no show.
b. By checking the guest stay and unconfirmed bookings.
2. Imposing financial penalties by –
a. Non refundable deposits
b. Cancellation Fee
3. Finding last minute replacement booking
b. Contact an organization which receives last minute enquiries
(II). BY INCREASING AVERAGE ROOM RATE
1. Sell hospitality: Involves using the appropriate body language,
smiles, calling guest by name (Eg. Mr. _____________)
2. Sell Value: You can always find something good to say about the
facilities and services on offer.
3. Show the Room:
b. If not possible physically then show photographs.
c. Sales person’s descriptive power.
4. Sell High
5. Know the product.
6. Believe in your product
OWNERSHIP & AFFILIATION
I. INDEPENDENT HOTELS
I. INDEPENDENT HOTELS:
Independent hotels have no ownership or management affiliation with
other properties and have no relationship to other hotels regarding
policies, procedures or financial obligations. Eg. Family owned &
operated hotels (called Mom & pop hotels).
The biggest advantage to these hotels is their AUTONOMY to run the
Independent hotels can be operated under two forms:
1. Sole Proprietorships
A chain is usually classified as operated under a :
1. Management Contract
3. Referral group
Management Concept Franchise Referral Groups
Management Fee Management Lease
CHAINS – AH & LA defines a chain as any group of two or more properties
operated under a common name.
Chain impose certain minimum standards, rules, policies & procedures on
their affiliates. Several different structure exist for chain hotels.
Some chains have strong control over the architecture, management and
standards of their hotels. Other chains only concentrate on advertising,
marketing and purchasing.
OPERATIVE ADVANTAGES OF CHAINS
1. Expertise in site selection
2. access to capital
3. economies of scale (purchasing, advertising, reservations etc.)
4. appeal to the best management talent
5. brand recognition
A management contract is an agreement between the hotel owner and the
management company. Under this contract the management companies are
paid to operate the hotel whether the hotel is profitable or not.
Profits & losses accrue to the owners, who pay the management fees as
they pay other expenses such as insurance, taxes and interest.
When business is good and profits high, a lease may be negotiated. The
management co. pays a rental to the owner for the privilege of operating
the hotel. Profits & losses in this case accrue to the management
Management companies are organization that operates properties owned by
other entities. These entities range from individual business people and
partnerships to large companies. Eg. For taking loan from leading
institutions the group could contract with a professional hotel
management company to operate the proposed property on long-term basis.
Management companies appear to offer a unique advantage to property
owners and managers because of their expertise in operations, financial
management, staffing, marketing and sales and reservation services.
Franchising means selling the right to a name, a product, and a system
along with exclusivity for a specific area. In the lodging industry most
organizations offering franchises have first established the quality of
their PRODUCTS & EXPERTISE in operations by developing parent co. hotel
(THE FRANHISOR). Franchise organizations have typically set standards
for design, décor, equipment and operating procedures to which its
properties must adhere. This standardization enables franchise chains to
expend while maintaining a consistent, established product and level of
Franchising allows the small businessperson (Franchisee) to operate as
an independent, but provides many of the benefits of the chain. For a
fee, the hotel adopts the name and trademarks of the seller (Franchiser)
and receives services in turn. The franchiser helps with:
1. Feasibility studies.
2. Site selection.
4. Design and planning
5. Mass purchasing
6. Management consultation
7. Wide advertising
8. Central Reservation system
The franchisee and the parent company are so alike that the guest cannot
differentiate between the two. The basic differences observed between
the two are:
1. The chain (Franchiser) does not own the franchise property, the
2. The chain does not manage the property, the franchisee does (Under a
separate management contract, the franchisee could hire the chain to
manage its property).
For the support – the franchisee pays both an initial franchise fee and
a percentage charge per room night. But that’s not all, the franchisee
also pays a rental for Company Sign; a percentage of volume fee (Or as
per room basis) for advertising; a fee for access to the reservation
system; and a per reservation fee for each room booked.
Following are the best-known franchise companies:
1. Carlson Hospitality Group – Radisson, Colony & Country Inns, TGI
2. Choice Hotel International – Clarion, Comfort, Econo, & Quality.
3. ICHG – Intercontinental, Holiday Inn & Crown Plaza.
4. Hospitality Franchise System – Days Inn, Park Inn, Howard Johnson,
Ramada & Super 8.
5. ITT Sheraton
6. Marriott – Countryard & Residence.
Referral groups consists of independent hotels which have banded
together for some common purpose. While each property in referral system
is not an exact replica of the other, there is sufficient consistency in
the quality of service to satisfy guest expectations.
The referral organizations offer a way to fight back with less loss of
identity than the franchise. Referrals are cooperatives structured to
provide one service only – MARKETING. CRS, standardized quality, joint
advertising, and are recognizable logo where the original, limited
objectives of most referral groups. There is no interlocking management,
no mass purchasing, no common financing – nothing but an UNIFIED SALES
The referral is a means by which small entrepreneur can compete. It has
been especially popular with small motel operators.