RFP season for corporate transient  business is right around the corner.  I’m not so sure we can call it a “season” anymore, as the process lengthens each year.  However, we typically see preparation with the major hotel chains begin in June or July.  It’s not as simple as increasing rate over 2010 or just shopping your competitors’ rates.  Regardless of the reports for a stronger 2011, clients will still be looking for value in their rates in 2011 and the negotiations will be competitive.   

Here are some key items to ensure you’re prepared:

•  Update all RFP sites with hotel profile information:
  • Ensure your property is listed on ALL key sites used by your chain and customers
  • Ensure information is consistent on all sites.  Don’t ignore questions about green initiatives and safety.
    
• Complete “shop calls” of all competitors for specific accounts. 
  • Don’t just shop for rates; in 2010, value adds were big!  Hotels were adding parking, breakfast, internet, transportation, upgrades and even cocktail hour to help show value in the rate and entice buyers. 
  • It is important to note that in many markets seasonal rates are popular, so shop calls should be done throughout the year, and not just right before rate negotiations begin.
  • Try to make shop calls consistent by asking for specific rates and length of stay at all competitors.  Have a strategy going in and know what you will be asking before the calls are made.
    
• Be aware of changes in your competitive set.
  • Has a new hotel moved into the market? 
  • Has anyone completed a major renovation?
  • Have they changed pricing of parking, internet or upgrades, etc? 
  • Have they changed their strategy with a specific key account or corporate travel in general?
  • When was the last time you toured your competitive set? 
    
• Review the year-to-date Hotelligence Report and complete a thorough analysis of the accounts.
  •   Prioritze the information from the report, as the information is vast and can become overwhelming to some managers.  Do not get caught up in “analysis paralysis”.  It’s important to DO SOMETHING with the information.  Take Action!
  • Review any new accounts from the report.  Shop the competitive set for those accounts, research their local offices and why they travel to the market, uncover their feeder market office locations and touch base with any influencers locally or in those feeder markets. 
  • Review accounts you currently work with that you are not receiving fair share.  Connect with travelers and influencers to understand where they are staying and why. 
  • Put a plan in place for your top target and key accounts, and stay focused on that plan.  Too many sales professionals get caught up in the data and research and never get to the point of the sale or actions necessary to close the business on these accounts. 
  • Write a business case for any key global or national accounts that educates your company’s account manager on your hotel’s specific needs and strategy for the client.  Remember that your key account manager probably has several hotels approaching them for help.  Keep the business case concise and factual, and clearly state what you need from them.

Additional questions you must answer:

Is production up or down vs. last year?  Do you know why?  What are the peak seasons for your key accounts?  Knowing this information will assist with setting a rate strategy for the new year. 

Have a conversation with your clients to understand their expectations for 2011.  RFP season should not be the only time of year you speak with your clients. 

Preparation is key to a successful RFP season.  Regardless of how much corporate transient business your hotel does in a year, you must have your homework complete before you receive your first RFP.  This saves time, and ensures a smooth process.  It will ultimately give you an edge versus the competition.  

“Let’s get back to the basics.”  How many times have you heard that phrase in your career?  It seems as though many talk the talk when it comes to the basics, but very few companies invest in the practice.  We tend to ignore the obvious or assume our teams are using basic strategies…especially when we have seasoned vets on the team. 

Plan B had the pleasure of working with a company this year that walked the walk, and took their sales force back to the basics by conducting local market sales blitzes and conducting training prior to those sales calls.  We were fortunate to be chosen as the company to assist them with this grand task of organizing the logistics of these “basic” blitzes in over 30 markets across the country in just a few short months.  It was a daunting task, but one I look back on with pride, as we did what some said couldn’t be done. 

In any case, this true devotion to going “back to the basics” is paying off for the company.  By canvassing these markets in a short amount of time, and delivering key messages to potential clients in those markets, they were able to uncover opportunities, steal business from competitors and forge new and lasting relationships. 

It wasn’t easy for this company to devote time, energy and resources to this task.  They certainly went after it on a grand scale, but it doesn’t have to be done that way.  Your individual hotels can certainly devote a short amount of time each week to focusing on the basics and it will pay off. 

1.       Review “basic” sales practices in each weekly sales meeting

2.       Have a “back to the basics” email reminder with key tips sent to your sales team each morning

3.       Assign a “back to the basics ambassador” on your sales team to conduct a 5-10 minute presentation once a week for the sales team.  Keep it fun, light and upbeat

4.       Organize a ½ day or full day refresher course for your team

5.       In your daily or weekly business review, ask the sales team to explain how they used the basics in their approach to winning the business, or discuss basic sales approaches that can be used for business the team is trying to obtain

6.  Schedule quarterly sales blitzes in your local market.  Implement creative messages and commit to a schedule.  Review key sales tactics with the team prior to their sales calls, and join them to provide on-the-spot training

These are just a few tips, but the more creative and fresh you keep it, the more it will sink in with the sales team and be used on a daily basis to win business.  Remember, even seasoned sales professionals need reminders.  Make sure to keep bad habits at bay by making “the basics” a daily ritual for your team.   

It may sound strange, but I count myself as fortunate to have started in the industry in a very difficult market where I had to fight for every piece of business and prospect daily to meet some lofty goals.  From that small, tertiary market, I moved to San Francisco just after 9/11.  Business was slow, and I didn’t know any better.  While some colleagues were looking back and longing for the days of high ADRs and big bonus checks…I was doing what I always had to do…prospect prospect prospect.  I wasn’t a master at prospecting and cold calling.  I was just fearless, and maybe a little naïve…but mostly driven to not let the economy hold me back.  I often look back on those days, and use it as an example when working with hotel sales managers who are struggling with the idea of prospecting and cold calling.

It can be difficult to work up the courage to place a phone call to a prospective client, or walk into an office for a cold call.  Sometimes hotel sales professionals become timid (yes, even ones with many years experience).  It is OK.  We all have insecurities.  Even the clients we are calling on have their insecurities.  However, as sales people it is our job to uncover new business opportunities, and in this economy we can’t wait for those opportunities to knock on our door.  We have to knock on a lot of doors, and invite ourselves in.  How do we work up the courage, and make the best of a “cold” call? 

1.       Have a purpose to your call and a compelling reason for the client to listen.  Make a list of a few things you want to uncover from the call.  Don’t expect to close the business on the first call.  If you capture a little more knowledge about the customer needs, you have had a successful call.  Even if it is finding out that they don’t have needs!

2.      Practice your opening line.   Many sales professionals think it will just come to them when they are in front of the customer.  Practice in front of a mirror, in your car on the way to work, or in front of someone with whom you feel comfortable. 

3.      Research the company prior to the call.  This gains credibility, and allows you to understand what possible objections or challenges you can assist to overcome.  I’ve always found that doing research helps me to gain confidence before the call.   

4.      Believe in your purpose.  If you don’t believe that you can assist the client with a need…it will reflect in your tone and in the outcome of the call.  Clients do pick up on a lack of confidence (even over the phone).

5.      Hold yourself accountable.  Don’t wait for leadership to give  prospecting goals, or ask for weekly call reports.  If you wait for someone else to hold you accountable…you’ve waited too long, and chances are your replacement is waiting in the wings.   

Many markets have seen dramatic downturns this year, and those sales managers that have been order-takers have had to change their mind-set and become more actively involved in the sales process.  Prospecting is a skill that can be taught, but it’s the attitude that cannot.  Managers that embrace the new environment and see it as an opportunity to improve their prospecting skills will be the ones that out-last this downturn.  My advice:  be fearless in your prospecting, don’t dwell on the past, and turn adversity into an opportunity to grow as a sales professional.