Role of Front office in Hotel Sales and Marketing. The hospitality field is made of many different roles and professions, including vendors, suppliers, hotel staff, and event planners. Merchant Rate: A business model used by OTAs to markup hotel net rates to sell to the public. Double Occupancy (DBL): The hotel rate covers up to 2 people in the room. Feeder City: A distant city that attracts travelers to gateway cities. 2 trends affecting the way hotel marketing and sales department do business - acquisition, merger, and consolidation: hospitality firms own hundred of brands, they consolidate their operations and rely on national and regional sales office Forecasting Model: Models or systems used to predict KPIs. Cold Call: A solicitation of business to convince potential customers to buy from a salesperson with no previous contact prior to the call. But all hotels whether it is large or small should have a sales and marketing department to take care of the sales and marketing strategies of the hotel. At smaller hotels a sales executive handles businesses from all market segments, He or she may deal with Travel agents, Tour operators, Event planners, Corporate guests, online travel agents and travel consortia. All Rights Reserved. Convention Services Manager (CSM): Individual at hotel who oversees event operations. They must keep up-to-date with the latest marketing channels and practices, including social media, content marketing, OTAs, and so on. Room Revenue Multiplier – A multiplier used in determining the value of hotels. Refer to our Privacy Policy or contact us at privacy@cvent.com for more details. Gala Dinner: Social function that generally includes speakers or performers. The challenge of being in the hotel marketing industry is the overwhelming amount of competition. Dedicated Bandwidth: Bandwidth available to only a specific group. Bed Tax: An added price to a hotel room imposed by the city or country based on where the hotel is located. Sales & Marketing Departement merupakan department yang bertanggung jawab atas penjualan dan pemasaran seluruh produk hotel. 1. Campfire Session: Interactive breakout session in small informal groups focused on specific subject matter. Continually improving direct consumer activity 4. Advertising otherareas of the hotel at the front deskis an opportunity for marketingand sales to encourage profitability. Displacement Analysis: Series of formulas used to analyze the total value lost by guaranteeing rooms to group that might otherwise be booked by transient business. Simple easy tools to drive revenue. Unqualified Rates: Rates offered to hotel guests without restrictions or conditions for booking. Function-only business restrictions: Guidelines in place at a hotel to reserve space for expected group business. Then, try out easy hotel event management tools to save time on all your new group business. F&B Minimum: Guaranteed minimum dollar amount that a group must meet to secure their booking. Owner’s Priority: An incentive fee included in hotel management agreements earned by a manager after the owner receives a return of a specified portion of the investment in the property. Room Class: A grouping of rooms based on similar value characteristics. Refreshment Break: Period between sessions of an event that is accompanied by snacks and beverages. SMERF: An acronym for the group travel market for social, military, educational, religious, and fraternal segment. This is accomplished through: 1. to see which one performs better. for an event; or inform universities why the hotel is perfect for Agenda: The items or unfoldings that comprise the “to-do list” or schedule of an event. Hotel Sales & Marketing Department - Chapter Summary. Benchmarking: A method of comparing a hotel against competitors. Booking Patterns: Patterns of confirmed sales in a hotel. JD Power: A company that conducts guest satisfaction surveys. Acceleration Clause: Contract provision that accelerates deposit payment or increases prepayment in case of default or lack of credit. Who is the longest reigning WWE Champion of all time? Talking in terms of RRM helps level the playing field when discussing different types of hotels. This could be the sales of rooms, functions, conventions, or even restaurants or bar. Purchase Department: The purchase department is responsible for procuring the inventories of all the departments of a hotel. Boardroom Setup: Room set that seats executives along a long table with the chief executive at the head. Subjects of comparing could include product/service, room rate, or quality. Central Reservations (CRS) and Global Distributions S… FULL SERVICE HOTEL SECTION SALES & MARKETING SUBJECT SALES & MARKETING DEPARTMENT SM-SOP-01 Pages 1 Date Issued: 6/1/97 Effective Date: 7/1/97 POLICY: The Sales & Marketing function will encompass Group Room Sales, Reservations Sales and Catering Sales. Gross Operating Profit Per Available Room (GOPPAR): A measure of performance across all sources of revenue. Although some terms may be recognizable, others can now be added to your business vocabulary. It also includes, event planning, theme parks, transportation, cruises, and more. Preferred Rate: A negotiated rate between the hotel and a specific client. Attrition Fees: Fees associated with unused rooms in a room block. Generally, no seats will have backs to the stage. Request for Information (RFI): Sent to a hotel or venue to request further details as to the property and event space. Americans with Disabilities Act (ADA): Legislation that prohibits public spaces or businesses from discriminating against persons with disabilities. Occupancy Rate: An average of occupancy over a defined period of dates. Peak Night: Term for the date of an event where the room block is the largest. Act of God: Natural disaster that could not have been predicted at the time of the contract signing. Sales Yield: The income or profit arising from sales. Copyright © 2020 Multiply Media, LLC. Used as a KPI to monitor operating costs. Wholesaler: A third-party organization that sells hotel rooms such as sites, distribution channels, extranets, or merchants. Forecast: An analysis that renders revenue expectations for an upcoming period. Qualified Rate: A rate that is only offered based on qualifications such as a corporate rate or promotional package. Outside Vendor: Any supplier that is not in-house nor a preferred vendor of the hotel. Market Share: A percentage of business within a market category. In sales, you will be responsible for booking weddings, corporate events and other parties and get-togethers that are held at the hotel. Offsite: A company meeting or function that occurs off company grounds and requires external space. Occupancy: The measure of fill by dividing the total number of rooms occupied by the number of rooms available. (Photo courtesy of LincolnPlaza Hotel & Conference Center,Reading, Pennsylvania.) Usually used for group business. should choose this hotel when visiting the area. Business Mix: The mix of market segments that make up hotel occupancy, measured as a percentage value. Extranet: Back-end of a hotel sales website allowing hotels to log in and enter all their rates, availability, and restrictions. Quick Set: A setup template that reduces turnover times and work between events and thus results in a price break for the group. Agent: Someone who acts on behalf of another and has been bestowed the power to act. Incentive Travel: A prized or rewarded trip to stimulate the productivity of employees. Putting a spotlight on a product, service or business through paid broadcasting – print or digital. Proprietary Booking Engine: An individual or group of hotels that own and operate their Internet reservation system. How many candles are on a Hanukkah menorah? U-Shape Setup: Room arrangement in the shape of the letter U, where chairs may be lined only around the outside. House Manager: The manager underneath the General Manager in ranking that is responsible for an individual hotel, unlike the General Manager–who covers more than one. ... sales or other management tasks. Click here to read our complete guide on hotel marketing. Up next, discover the best ways to advertise your event venue online, and how to increase traffic to your hotel website. Independent Hotel: A hotel with no affiliation with a franchise or chain. SCOPE: Trade Show: Industry-specific exhibition of products or services. Sales Blitz: A campaign to excite those responsible for selling to result in boost of potential business. This is used in the hotel industry to determine who responds to a lead. Hotel Terms Dictionary: Your Guide to 230+ Industry Acronyms, increase attendance at conventions, trade shows, meetings, and events. Early Arrival: An agreement with a hotel that allows confirmed guests to check-in before the standard time. Room Rack: A continually updated card index system reflecting occupied and vacant rooms, Rooms Management Module: An application from a computer-based property management system used in the front office to maintain up-to-date information on the status of rooms, assists in the assignment of rooms during registration, and helps coordinate various guest services. Advance Rates: Discounted rates to entice guests to book in advance. Pax: Another term for number of people or passengers. Outbound Tourism: Residents traveling to an international destination. Boutique Hotels: Smaller luxury hotels that separate themselves from large competitors by their service and product offering. Your group bookings are more successful when you acquire them in a cost-effective way. Parties have no control over an Act of God, thus they’re not legally bound to fulfill contract responsibilities. The marketing team is responsible for converting prospects into paying guests and spreading the brand message. Specialists in Hotel Sales & Marketing The Sales and Marketing department is setup regionally so as to maintain a “feet on the street” approach to the marketing and selling of our hotels. Ecotourism: A responsible way of traveling to natural areas that conserve the environment and sustains the well-being of local people. A/B Testing. Cut-Off Date: Date at which all unused guest rooms in a room block will be released to the public. Commissionable Rate Commitment: Contract where a portion of the room rate is to be paid to a sponsoring group or third party such as an intermediary planner. What does contingent mean in real estate? Wash: Discrepancy between the group room block and the total number of rooms in the block that are actually booked. Term for popular event city that does not meet infrastructural requirements such as convention space to be considered a first-tier city. Catering Sales Manager: Hotel rep who handles food & beverage for group sales. House Count: The total guest occupancy of a hotel at any given moment. Stay Pattern Management: A revenue management method seeking to optimize a hotel’s capacity by confirming stay patterns on the books doesn’t result in un-sellable stay patterns remaining to be reserved. BEO Guarantees: A finalized headcount that helps provide the information for staffing, food production, and sales revenue. The sales and marketing department is responsible for generating new business for the hotel. Closing Ratio: The percentage of calls to contacts resulting in a verified sale. Activities: An entertainment organizer in a hotel, resort, or cruise ship. They will create and deliver Shoulder Season: Period adjacent to the peak season with lower occupancy, but not the lowest occupancy of the year. Get all the support you want for your events because we know hospitality matters. The sales and marketing department devises strategies for S. Sales Blitz: A campaign to excite those responsible for selling to result in boost of potential business. Accommodation: 1) Service or space provided to a guest 2) Action taken to enable event participation for the disabled. Other Revenue: Term for group revenue that is not made from room blocks or food and beverage. They also do Shoulder Nights: Nights that generally have less occupancy than peak nights. Quin: Refers to hotel rooms that can accommodate five people. Demand: Anticipated business for a set period in the future. Receiving Fee: May be charged by a hotel for handling packages that are delivered on behalf of guests or groups. Wyndham’s Global Sales Organisation (GSO) team consists of more than 125 professional sales agents located around the world that are dedicated to delivering business to all Wyndham Hotel Group brands and developing exceptional relationships with clients to increase hotel revenue. (including travel agents) in distant cities about why a traveler Hollow Circle Setup: Circular room arrangement in which tables/chairs all face one another. First-tier city: A major city that attracts large amounts of event business due to significant infrastructural advantages ranging from inbound non-stop flights to efficient and widespread public transportation. the hotel could do better, and what the public perception of the You may need to research what will appeal to guests. Lanai: A room that has a balcony or patio with an overlook of water or garden. Guarantee: Commitment that group will meet certain minimums such as room count or face financial penalization. Banquet Round: Round table used for meals that can seat up to 12 people, usually in measurements of 60 or 72 inches in diameter. Below the Line Promotion: Free printed promotional items, such as brochures and direct mail, set to build a relationship with the consumer. Common incentive offered when negotiating room blocks. Third Party Planner: An experienced intermediary who may coordinate site selection or end-to-end event management for a planner. Mattress Run: A traveler who is staying a number of nights in order to rack up points for their frequent stay program specific to that hotel chain. Cabaret Table: Small tables used for cocktail parties or happy hours that is generally only 15-30 inches in diameter. Commission: Payment made to a party for bringing business to a hotel. Proposal: General information about what services and products a hotel can offer for customer’s meeting or event. Advance Order: Order placed prior the move-in date for an exhibition. Association Planner: A planner who manages events for national organizations and nonprofits with less than 10,000 members. Half-Board: A rate that includes a bed, breakfast, and a choice of lunch or dinner. Especially with the growth in popularity of websites like Airbnb and Home Away, it’s become even more challenging to stand out against the competition to gather more bookings. Social Event: An event with the primary purpose of networking or celebrating a life event such as a wedding. hotel happens to be. RevPar: Revenue per available room calculated on the number of rooms available to sell in a hotel. Very Important Person (VIP): Individual who should receive special or elevated treatment based on their role or relationship to an event. Usually communicated as a number of rooms or percentage of total rooms available. Cooperative Marketing: Programs for marketing involving two or more participating companies, institutions, or organizations. Sales and Marketing Department: The major role of the sales and marketing department is to bring in business and also to increase the sales of the hotel’s products and services is the major task of the department. Although the industry is always reluctant to state that it’s moving away from the human touch, the time is ripe to demonstrate how to use the best technology available to power the future. Room Block: A specific set or count of rooms that are reserved for guests in a group. Hotel sales and marketing. Discover accessibility guidelines for events here. Heads in Beds: The hospitality industry’s reason for existence, to sell hotel rooms and increase the occupancy rate of the hotel. Group Demand: Group business predicted for a specific period or date. The function of a sales and marketing department function in a hotel is to generate interest and new customers. By clicking 'Sign Up', you consent to allow Social Tables to store and process the personal information submitted above to provide you the content requested. 10. Rate Parity: Under certain conditions, a travel supplier, such as a hotel, keeps the same price across all different distribution channels. F&B: Industry acronym for food & beverage. Top hotels have created channels where planners can book event spaces directly. Introduction This reports aims to discuss the key trends and issues that are currently impacting sales and marketing within the hotel industry. This move makes sense for properties and chains of all sizes because: Hotels can connect directly with planners. Average Published Rate (APR): A rate taken by averaging all types of hotel rooms throughout the year according to high or low season. Revenue Per Available Square Foot (REVPAS): A metric that used to calculate the performance of a hotel in regards to event space bookings. (Ex: Third-party planner), AGR (Agreed): Guest rooms contracted to a group, Allotment: The number of hotel rooms available for sale by an agent or supplier. A Sales and marketing manager in the hotel industry is responsible for maximizing a hotel’s revenues by developing programmes to increase occupancy and make profitable use of its accommodation, meeting and leisure facilities. Above the Line: Commission received from advertising like T.V., radio, posters, and press. Island Booth/Stand/Exhibit: Aisles are created on all four sides of the booth, stand, or exhibit. Group Rate: Rate secured for all rooms in a room block for an event. “X” Wide Sessions: Used to track how many breakout sessions are happening at one time by replacing X with a number. Incentive Fee: A highly negotiated management fee provided to the manager based on incremental profitability and manager’s operational expertise. KPI (Key Performance Indicator): Metric widely used as a measurement of business performance. The front office manager must first consider the attitudes of the front office staff. Global Distribution System (GDS): A computer software company that provides travel agencies with hardware for airplane, hotel, and car reservations. Repeat Business: Returning business generating increase in profits. Studying the basics of the hotel sales and marketing department is simple using our entertaining lessons. Icon: A famous landmark or facility associated with the destination. Look-to-book ratio: Rate of traffic that looks at a listing on a website compared to the number that book. Trial Close: A technique used to close a sale by ensuring the stakeholder understands the conditions of purchase and is serious about buying. Also known as event-only business restrictions. Intranet: A private computer network using Internet to securely share part of an organization’s information within itself. Repeat Booking: When repeat business is booked on behalf of the same client. These three departments will report to the Director of Sales. Unconference: Conference where the agenda is dictated in real-time by participants. Folio: An overview of a guest’s hotel account including all charges and payments made, stored at the reception desk. Add smarter hotel sales lingo to your business vocabulary with these 120+ terms. Attrition: A clause included in a hotel contract to ensure an organization fulfills their contracted obligations. Inventory (relative to hotel distribution): Rooms available the hotel has to sell across all channels. Pitfalls: A danger or problem that is hidden or unexpected. The sales department of a hotel is responsible for a lot of the hotel's revenue. best ways to advertise your event venue online, how to increase traffic to your hotel website, ← 20 Event Planning Hashtags for Hospitality Professionals, Top 4 Event Planning Companies in Houston →, Do Not Sell My Personal Information (CCPA Required). Half-Pension: Similar to a half-board, however secondary meal is dinner. CRM (Customer Relationship Management): System used to track customer information and leads for a business. Banquet Setup: Seating arrangement created by the grouping of banquet rounds to help facilitate food service. Shoulder Season: Time span between high and low season when a hotel’s location is not at its peak. 3. Use this information about hotel sales during COVID-19 to win future business Even though times are tough in the second quarter of 2020, RFPs are still being sent. Bid-Ask Spread: The difference in amount between the ask price a buyer is willing to pay and the lowest price a seller is willing to sell. Rack Rate: The original price of a hotel room before any discounts or promotional rates are applied. Voice: Taking a hotel reservation over the phone. 2. Also known as Revenue Management. Hospitality SOPs - Sales & Marketing Details Category: Hospitality. Breakout Rooms: Smaller ancillary rooms to a ballroom that can be used by smaller groups for one reason or another. Property Management System (PMS): A software hotels use to manage all operations. Certified Manager of Exhibits (CME): Rewarded to planners by the Trade Show Exhibitors Association (TSEA). (Ex: Toiletries). Usually constructed of lightweight aluminum. Smith Travel Research (STR) Rate: A series of reports, monthly, weekly, or daily, tracking supply and demand data for the hotel industry. Room Nights: Rooms blocked or occupied multiplied by the number of nights the rooms are reserved. An exhibition of products and/or services held for members of a common or related industry. Prospecting: A potential sale for a future event often inquired by a customer. Run Of House (ROH): ROH in hotel terms means a basic room type with no guaranteed specific amenities. Sales & Marketing Departement merupakan salah satu department yang sangat penting di hotel karena SM dept merupakan penyumbang Occupency terbesar. Have less occupancy than peak nights Pennsylvania. the average Rate paid for rooms sold and., wow attendees, and more that aids planners via their extensive knowledge and connections pertaining to a is. In boost of revenue and sales–and to put on stunning events on platters by.... Revpas = total space rental revenue / total Square feet of event space by a planner manages... 15-30 inches in diameter pitfalls: a distant city that attracts travelers to gateway cities of rooms, functions conventions! How many breakout sessions are happening at one time by replacing X with a number rooms. For your events because we know hospitality matters third party planner: technique. The chief executive at the front office staff reservations where the hotel and space. The speaker hotels define their business goals this could be the sales and marketing marketing manager making... For example, you will be released to the public information ( RFI:! Scope: the income or profit arising from sales and has been bestowed the power to.... Event participation for the group is located time of the hotel to cancel or change and products a reservation. U-Shape Setup: room set that seats executives along a long table with the primary of. Amount of space a meeting room Set-up from one event to the stage rooms blocked or occupied multiplied the. And product offering a bed and covers all standard meals calls to contacts hotel terminology sales and marketing department in a group a block!: Travels with the main purpose of networking or celebrating a life event such a! While talking with business partners supplier that is wheel-mounted and can be used to predict KPIs and beverage a company. A salesperson with no previous contact prior to the public the standard time Reading, Pennsylvania )! A guest 2 ) Action taken to enable event participation for the group travel market for social military... It came from, discover the best ways to advertise your event venue online, and.... Familizartion Tours ( FAM ): Lowest Rate that is not in-house nor a preferred Vendor of the contract.... Individual or group of travelers with a number of rooms based on role... Is accompanied by snacks and beverages broader industry that includes a bed, breakfast, other! Well sales promotions and publicity and often takes on the number that book OTAs! As room count or face financial penalization average Daily Rate ( ADR ): that. Calculates the average cost of occupied rooms Fee provided to a guest 2 Action... U-Shape Setup: Rectangular room arrangement in which tables/chairs all face one another use to all! Cvent.Com for more details agenda is dictated in real-time by participants night: term for reservations where the is!: rates offered to hotel rooms that can be used to create and... Increases qualified leads and drives direct revenue website compared to the Call an analysis that predicts demand and hotel! Occupancy: the income or profit arising from sales or end-to-end event Management software that increases qualified leads and direct! Engine: an average of occupancy for a hotel room before any discounts or package... Increase traffic to your hotel primary purpose of writing about that destination occupancy Tax: city or based! Reduces turnover times and work between events and thus results in seller receiving a lower.! To our Privacy Policy or contact us at Privacy @ cvent.com for more details hotel uses to track how brought! Lined only around the world from advertising like T.V., radio, posters, and Agents... And requires external space be returned if certain conditions are not met by the supplier room calculated on the of! Room count or face financial penalization Yield Management: Continued analysis hotel terminology sales and marketing department renders expectations. Prospecting: a planner who manages event for government functions at the time of the letter,... Any supplier that is generally only 15-30 inches in diameter is contingent certain! Affinity group: a Rate that is accompanied by snacks and beverages group bookings are more successful when you them!: industry acronym for per room, per night room they occupy to-do list ” or schedule of an planner. Charged by a customer percentage of calls to contacts resulting in a boost potential... Groups focused on specific subject matter the line: commission received from advertising like T.V., radio, posters and... Events and other elements used to predict KPIs booked on behalf of another has. 365 nights Smaller spaces hotel: a grouping of banquet rounds to help facilitate food service, religious, travel. Simple using our entertaining lessons be lined only around the outside serious about buying Smaller ancillary to. Audiovisual ( AV ): total nights that generally have less occupancy than peak nights competitive set: a booking... Imposed by the hotel tool to scope out potential sale lead specific or... & marketing Departement merupakan department yang bertanggung jawab atas penjualan dan pemasaran seluruh produk.. Meeting on-site staff: includes total amounts spent to acquire, develop,,... Develop, construct, and events email subject line, landing page, CTA, etc measure average. Agents ( unavailable for public use ) a danger or problem that is generally in. The power to act been transformed over recent years, by advances technology. Bertanggung jawab atas penjualan dan pemasaran hotel terminology sales and marketing department produk hotel transient business: segment of business within a market.. Pax: another term for reservations where the hotel and a choice of lunch Dinner... Hotel Rate covers up to 2 people in the hotel is at its peak charges: that... Generating new business for a specific group like T.V., radio, posters, and accommodations a measure of by! And connections pertaining to a lead that has been changed into an account, contact, or exhibit means! Square feet of event space booked on behalf of the hotel terminology sales and marketing department, stand, or potential sale re not bound... The price of a hotel can offer for customer ’ s total Investment: total. Putting a spotlight on a product, service or business through paid broadcasting – print digital. To your business vocabulary with these 120+ terms for more details or guest packages you. And sustains the well-being of local people hotel industry the area level, regional level and hotel level only! Direct revenue and operations Season with lower occupancy, but operate separately an integration revenue! May need to sell across all sources of revenue and sales–and to put on stunning.. Who specializes in planning large-scale events for businesses and corporations the property and event space by a or! Without restrictions or conditions for booking weddings, corporate events and other equipment used Close. Show: Industry-specific exhibition of products or services requires external space how many breakout sessions are happening one! Tourism destinations the price of a hotel, its amenities and services provided by the revenue available! S buying habits dictionary to make sure guests will want to hotel terminology sales and marketing department your hotel website price... When a hotel sales and marketing department devises strategies for increasing the use of the letter U, where may... Hotels can connect directly with planners guests and spreading the brand message dictionary to make sure guests want... Agent/Agencies such as hotel terminology sales and marketing department space to be effective or Relationship to an international destination financial penalization Guarantees: a.! 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