To maximize revenue at your property, a hotel lead management strategy is essential. We all know that when hospitality is booming, working in hotel sales is a blast. The RFPs are rolling in and the sales team is able to cherry pick the leads they want to work with and can lean on FITs to increase their overall sales stats including the hotel’s ADR and occupancy. Business can be flowing in at such a high rate that turning down group business is almost easy.
But what happens to these hotels when there’s an economic downturn or an uncontrollable disruption to the industry? These hotels end up reacting to the climate, resulting in missed out opportunities and potential sales. Slumps are an unfortunate reality in any market, but they’re also a reminder to be proactive. Properties should constantly be prospecting, managing leads efficiently, and nurturing their current relationships to ensure they’re maintaining a certain level of leads in their pipeline at all times. It all looks simple on paper but how do you put this into action?
Here are 4 simple steps to increase your hotel leads and event bookings.
1. Connect with planners
Winners seek out opportunities rather than sit and wait for them to fall into their laps. Find out what platforms planners are currently using and have a strong presence there. Once you’ve found the right platforms, create an engaging portfolio and provide as much information as possible. Spotio found that 90% of buyers are impacted by online content when making a purchasing decision.
Your profile should sell an experience to the planners through video tours of your hotel and facilities as well as 3D floor plans. Provide them access to case studies and referrals and, if possible, a link for them to be able to easily submit an event form. The easier you make the research and planning process, the more likely they are to book with you. Effective hotel lead management is about more than pushing sales through your sales pipeline. It's about finding ways to add value for your prospects through each step of the sales and event planning process.
2. Leverage current opportunities within your hotel
According to a report by Kalibri Labs and Price Waterhouse Cooper, 40-60% of group business is organized through multiple third party sites starting at the point of sourcing all the way to execution. As a result, hotels end up paying 15-35% of group and event sales in commission and fees.
How can hotels increase their leads and group sales without paying these fees? Start by looking within your 4 walls.
Be present at as many events or group check ins as possible and use these as opportunities to introduce yourself to a new market. If this seems like an overwhelming addition to your workload, you can implement or use your current lead scoring system to identify and attend key events that could potentially draw other planners. EventMB found that 82% of corporate booking attendees are there solely for the purpose of networking. The events that score high on your scale could be an untapped lead resource for your property.
Don’t underestimate your community as a lead source. Stay after work at your hotel’s restaurant or bar and get to know the regulars and big groups that come in weekly like recreational sports teams. Buy them a drink or offer them a team discount. Hotel lead management and generation is about more than just digital marketing or prospecting, it's also about building relationships in your community.
Support your Destination Marketing Organization (DMO) and local businesses in your area. You can do this by hosting complimentary networking events or providing gift cards for giveaways. You’re not only able to connect with others in your community, you’re also able to showcase your property’s food and beverage department, hotel rooms and hospitality.
3. Use your current customer base and community for lead generation
It seems obvious - you’re more likely to go to a restaurant recommended by a friend and even more likely to go to a restaurant with amazing online reviews AND referred to by a friend. This is true in the world of hospitality sales - 92% of people trust brand recommendations and are 4 times more likely to convert when referred by friends.
Create a referral or affiliate program for your current customer base and local businesses. Word of mouth marketing is an under utilized resource in the hospitality industry and generates twice as many sales than any other form of paid advertising. You can be creative with the perks you offer - complimentary rooms, discounts on future events, or even cash rewards. When building your affiliate program, find out what’s important to your local planners and community and build around those recommendations.
Develop a strong partnership program with local planners and vendors. You’ve probably heard the saying “you scratch my back and I’ll scratch yours”. This concept is profitable when executed properly. In order to have a successful partnership program, you both have to believe in each other’s product. Start by identifying key partners and inviting them to your property for complimentary services or hotel stays and begin building your relationship from there.
4. Focus your energy on customer retention & re-bookings
The cost of customer retention is 5 times less expensive than the cost of customer acquisition and yet 44% of businesses focus their marketing energy towards new customers compared to the 18% that focus on retention (Invesp Consulting). There are many benefits to retaining customers like organic referrals and potential case study subjects. Furthermore, a Harvard Business Review found that businesses capable of increasing their customer retention by 5% resulted in an increase in profits of 25%-95%.
How can you encourage current customers to rebook at your property?
Offer perks for rebooking as a form of hotel lead management and generation. This can include a rebooking discount, complimentary rooms when a minimum spend is reached, or include special services for the organizer.
Provide your current customer base with valuable content. Work with your marketing team to segment your customer base and develop content that your customers want. Send out monthly newsletters to deliver that content. You can also include any special offers towards those segments to boost off-season or mid-week bookings.
Never underestimate the value of showing your appreciation. A simple personalized thank you card, a small gift or even a letter to their boss can go a long way in nurturing that relationship.
By implementing these simple yet effective hotel lead management tactics, you will be able to generate more leads into your pipeline. Now it’s time to look at how you can manage your pipeline to drive more sales and increase your property’s revenue.
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