Rethinking Sales
In the ever-evolving landscape of hospitality, does Sales truly hold the key to a hotel’s success? This might sound contentious and could ruffle some feathers, but bear with us.
To delve deeper, we need to first understand what drives hotel room sales. Generally, there are two scenarios: In the first, the hotel’s product, services, location, and F&B offerings are so exceptional that they essentially sell themselves, particularly when the competition is lacking. This hotel would probably be able to just sell itself as the demand itself would be enough to fill it.
The second scenario is more challenging—here, the market conditions demand an extra push, either because the hotel’s product is outdated or simply not as competitive, or because the competition is equally strong, forcing the hotel to fiercely contend for its share of the market. Here, the market would need a hotel expert to drive business, the operative word here being “a hotel expert” and that could be an Operations Executive / Manager.
Traditionally, a sales team has been seen as the driving force behind filling rooms, organising events, and forging partnerships. But as the industry evolves, this conventional wisdom warrants a closer examination. Let’s consider a few key reasons why a dedicated sales team might not be as crucial as once thought.
Operations Managers as Brand Ambassadors: Who better to sell the hotel than the people who run it? Operations managers have an intimate understanding of the hotel’s strengths and weaknesses, guest preferences, and operational intricacies. They can provide authentic, detailed insights to potential clients, which can be more persuasive than a sales pitch. Their direct involvement in day-to-day operations also means they can quickly adapt offers and services to meet guest needs, ensuring a personalised approach that resonates with today’s travelers.
Thinking Out Loud: In that case then, is sending the Sales representative to pitch or close the deal ideal? An operations manager taking the lead could facilitate immediate decision-making, especially when a potential client has detailed or unique requirements. This could reduce the back-and-forth that sometimes occurs between Sales and Operations teams when questions arise. The Sales team has limited operational knowledge like that of room category availability, logistical challenges such as room configurations, staff capacity, service timing, or the feasibility of fulfilling specific requests practically.
The Rise of Digital Marketing and Distribution Channels: Today, a significant portion of hotel bookings is driven by online platforms—OTAs (Online Travel Agencies), metasearch engines, and even direct website bookings. These platforms not only provide global reach but also offer sophisticated targeting and analytics tools that a Sales team simply cannot match. With well-optimised digital strategies, hotels can attract and convert guests without the need for a large sales force.
Thinking Out Loud: With the AI driven data available, does one really need the Sales team to decipher it and decide rates (with the revenue management team, of course) or can the operational team take decisions on the spot? AI can analyse vast amounts of data to identify guest preferences and behaviour. By analysing factors like search behaviours, booking history, social media interactions, and even location-based data, AI can predict which demographics are most likely to book a stay. This enables hyper-targeted marketing, ensuring the Sales team reaches the right audience. AI can help personalise offers and promotions by understanding individual guest choices, such as favourite room types, dining preferences, or even preferred travel times. Tailored marketing messages can be sent to potential guests at the right time, increasing the chances of conversion. AI can dynamically adjust room rates based on demand, competitor pricing, and guest behaviour. This maximises revenue and attracts the right guests at the right time, creating a balance between filling rooms and optimising price points. AI-powered CRMs can provide the Sales team with real-time insights into guest preferences and booking behaviour, allowing for more personalised conversations. When a Sales representative reaches out to a potential guest, they’ll have detailed information at their fingertips, including which amenities or services are most appealing to that particular guest. AI systems can provide Sales teams with actionable recommendations based on guest data. For instance, if a potential guest prefers luxury services, AI can suggest premium packages or upsell opportunities during the sales pitch. This would allow the Operations team to deliver a more compelling and relevant offer.
Customer Experience as the Ultimate Sales Tool: In an era where reviews and word-of-mouth can make or break a hotel’s reputation, the focus should be on delivering an exceptional guest experience. A great experience naturally leads to repeat business and positive reviews, which are powerful drivers of new bookings. By investing in training and empowering staff to provide outstanding service, hotels can create brand advocates out of their guests, reducing the reliance on traditional sales efforts.
Thinking Out Loud: What would work better – cold calling or delivering exceptional service? Delivering exceptional service often has a far more lasting impact, especially in the hospitality industry where personal experiences matter. While cold calling might help bring in leads, it can feel impersonal and lacks the trust that comes from actually staying at the hotel and experiencing great service. On the other hand, when a guest receives exceptional care, they’re more likely to remember it, tell their friends, and come back again. An operations manager plays a key role in making sure the promises made by the Sales team are realistic and achievable. By avoiding over-promising, operations managers help ensure guests aren’t disappointed, which is crucial for maintaining trust. When guests get exactly what they were told to expect—sometimes even more—it builds a sense of reliability and loyalty that no cold call can match. People are more likely to return to a place that delivers on its promises, and word-of-mouth from satisfied guests is one of the most powerful tools a hotel can have.
Cost Efficiency and Resource Allocation: Maintaining a dedicated Sales team can be expensive, especially for smaller or independent hotels. These resources could potentially be better allocated to areas that directly impact guest satisfaction, such as room upgrades, staff training, or technology enhancements. In many cases, these improvements can have a more direct and sustainable impact on occupancy and revenue than sales efforts.
Thinking Out Loud: Would re-looking at budgets and allocations for the Sales team make sense so that resources could be better used in guest areas?
Leveraging Data and Analytics: Modern hotel management systems provide detailed data on guest behaviour, preferences, and trends. This data can be leveraged to create highly targeted marketing campaigns and personalised guest experiences, often with better precision than traditional sales tactics. Operations managers, with their hands-on approach, are in a unique position to use this data to drive both occupancy and guest satisfaction.
Thinking Out Loud: AI is not just the future anymore, it is the present. How well we are able to leverage this tool is what will define our scope of possibilities in the future.
While Sales teams have traditionally played a key role in hotel success, the evolving dynamics of the industry suggest that their role might not be as pivotal as before and the time may have come to rethinkthe need for a dedicated hotel Sales team.
The key question to ask is why hotels predominantly hire Sales executives and managers from within the hospitality industry, rather than tapping into dynamic Sales professionals from other sectors like telecom, insurance, or FMCG—industries known for their aggressive, target-driven sales approach. Salespeople in these fields are conditioned to “walk the talk” and hustle for business, often in high-pressure environments. Their core competencies lie in closing deals, building client relationships, and consistently driving results. In contrast, hotel Sales teams can sometimes become too comfortable, working from the air-conditioned comfort of their offices and luxury hotels, focusing more on relationship management than aggressively pursuing new business. Bringing in fresh talent from outside the industry could inject a sense of urgency, energy, and new sales tactics into the hospitality sector. These professionals from sales-centric industries are often adept at overcoming tough objections, managing high volumes of clients, and thinking outside the box—all skills that could be highly beneficial to hotel Sales teams. By broadening the talent pool and embracing a more dynamic sales mentality, hotels could potentially unlock new opportunities and a more aggressive approach to growth.
Not making the Sales team entirely redundant, another thought could probably be to build a more agile, nimble, or perhaps even smaller Sales team that is more in touch with what’s happening on the ground. Possibly creating a roadmap on how divisions can work together to ensure better effectiveness would reflect the gaps and loopholes in the Sales teams’ structure and culture. Adding people from other industries could be another way to stir things up a bit! In our humble opinion, currently in hotels, Sales Managers are mostly capable of selling themselves and not necessarily the hotel.
For more information, please contact Manav at [email protected] and Aatreyi at [email protected]
