In tough times, maintain or bolster your sales staff

When managing a hotel in a down economy, you can only make so many cuts to your operating expenses. And while most line items are fair game, there’s one area in particular that stands as an exception: sales and marketing.

Maintaining a strong sales front is more important than ever before—a necessity whether hanging on to your existing customer base or attempting to gain market share, according to panelists earlier this month at Perkins Coie’s Navigating Troubled Times in the Hotel Industry conference at the Fairmont Chicago.

Jeff Kolessar

“It’s very important when you’re looking at making cuts, you can only make so many operating cuts along the way,” said Jeff Kolessar, senior VP of development for Philadelphia-based GF Management. “ … One area that we’re really focused on is keeping the sales and marketing intact.”

And not just keeping it intact. With so many great employees in the job market, there’s never been a better time to bolster your existing ranks or make an upgrade, he added.

That’s exactly what Aimbridge Hospitality did at several of its 54 properties, said Richard Sprecher, VP of business development for the Carrollton, Texas-based company.

“Having a sales person is crucial to success,” he said, adding how important it is to send staff on the road to maintain or build relationships.

“You’ve got to knock on doors,” Sprecher said. “We can’t do this all by phone. … We want our people out of the office. … It’s still a relationship business. It’s sales 101.”

Kolessar shared a similar sentiment: “The relationship side of the sales and marketing is so critical in today’s market. … You can lose that business very, very quickly. It’s just so important to keep your arms around the relationship.”

The sales team at the soon-to-be-opened Elysian Hotel hasn’t been holed up in the office a solid week during the past four months, said Kevin Robinson, GM of the Chicago property. But even then, meeting with clients face to face is only part of the equation.

“As we get people into the doors, it’s up to us at that point,” he said.

“The basics have not changed,” added Sprecher. “We still have to have good customer service.”

Brands, cash flow, and saving green

Throughout the 50-minute session focused on sales and marketing, the panelists discussed a number of other topics ranging from the importance of updated cash flows to the benefits of “green.”

Updated cash flows. Operators should look at their expenses and volumes every day, because they must react to them on a daily basis, according to Sprecher.

Doing so will help avoid unpleasant surprises, said Kolessar. “That’s why it’s so important you don’t get overly aggressive on your budgets going into next year.”

“Green” money savers. Are green initiatives a gimmick? Not so, said panelists.

“They are money savers,” Sprecher said. “I think they’ll continue in the future.”

Regardless of savings on the bottom line, sustainable practices also could add to the top line going forward.

“If you’re not involved in it, you’re going to be precluded from being involved in any type of business from certain agencies,” Kolessar said, adding some states will even give you incentives for certain eco-friendly programs.

Brands bridging the debt-equity gap. Brands are still struggling to get deals done today, but don’t expect them to put money into transactions to bridge the chasm between buyers and sellers, panelists said.

“We still haven’t seen brands willing to pony up to bridge that gap,” Kolessar said.

Sprecher had yet to see it either. “I’ve heard rumors, but actual reality, I’m not seeing the brand put money into anything.”