BACK TO SCHOOL @ COMMERCIAL

September signals the Back to School season for kids, but it's also a crucial time for commercial leaders in the hotel industry to 'go back to school' and prepare for the competitive months ahead.

The last couple of months have been interesting personally for me. While I have enjoyed the Canadian Summer (till it lasts), every retail outlet - online or physical has been promoting Back 2 School deals and initiatives. It does look like a one big festival out there!!

The beginning of a new season is indeed a time for renewal and preparation. The summer may have offered a chance to unwind, but now it's also time to shift gears and focus on the essentials that will guide us through the challenges ahead (like my first Canadian Winter test). Just as children return to school to build on their knowledge, we too must revisit the core principles that underpin our success in the commercial space - Sales, Marketing, and Revenue Management. In today’s fast-paced and competitive hotel industry, staying grounded in these fundamentals is vital.

This gets further complicated with the fact that attrition rates continue to be still high in Canada. Mercer's last year data showed almost a 20% attrition rate across services (non financial) sector. As I spend more and more time in the field, visiting hotels, meeting GMs and Owners, the labour discussion is always at the top of the list. And what is really interesting is the fact that hotels are taking decisions based on these very facts - Do I have enough talent to manage that initiative? The labour cost vs the value & profit of a business/initiative is always playing a match up there!

Going back to the topic and for me personally, the Strong Fundamentals are always a foundation for success. But it's also important to note that in this ever changing fast paced world of consumer trends and technology, one has to keep reinventing and keep adding to those fundamentals.

"Success is neither magical nor mysterious. Success is the natural consequence of consistently applying the basic fundamentals."

So what are my thoughts on the commercial front....

Sales Fundamentals:

1. Building Relationships: Strong relationships with clients and partners remain the cornerstone of successful sales. Take time to reconnect and strengthen these bonds.
2. Understanding Customer Needs: It's essential to have a deep understanding of what your customers want. Tailor your offerings to meet these needs effectively. Remember that you can escape Competition by being Authentic.
3. Effective Negotiation: Master the art of negotiation to ensure win-win outcomes that benefit both your business and your clients.
4. Data-Driven Decision Making: Leverage sales data to identify trends, forecast demand, and make informed decisions that drive revenue. It's also the RFP season and the more data you unearth, the more opportunities you will gather.
5. Consistent Follow-Up: Persistence and consistent follow-up can turn potential leads into loyal customers (and sometime great friends).

And to refresh this, the more time you spend reading, taking a short course, watching a youtube video on the above subject will help to get you motivated.

Marketing Fundamentals:

1. Clear Messaging: Ensure that your hotel’s message is clear, consistent, and resonates with your target audience. Find your WHY?
2. Multi-Channel Strategy: Diversify your marketing efforts across multiple channels—digital, social media, email—to maximize reach and engagement. Change of season might require a change in strategy.
3. Customer Segmentation: Understand your market by segmenting your customers and targeting each segment with tailored campaigns. What brought you here will not take you there. The last quarter will bring its unique opportunities.
4. ROI Measurement: Always track the return on investment for your marketing activities to optimize spend and focus on what works best.
5. Content is King: High-quality, relevant content that provides value to your audience is crucial in today’s marketing landscape.

Use data from your PMS or 3rd party tools that can provide you with insights from last year as well how the following months are looking like. Understand the latest consumer trends. Track your competition, get inspired from some great work happening across the globe and Go Find Your MOJO!

Revenue Management Fundamentals:

1. Dynamic Pricing: Use dynamic pricing strategies to adjust rates based on real-time market demand and maximize revenue. Sounds basic (right I get it). But may be those percentages need to change for the coming months, the weekday and weekend strategy for the upcoming season need not reflect the last 3-4 months, the advance purchase rate need not be offered the same 3 day out. Your room supplements need to go for a tweak too if you want to sell those higher category room types.
2. Forecasting Accuracy: Lets first start with the forecast. Start with a montly update, refine to fortnightly, weekly and as you gain confidence start forecasting by day. Refine your forecasting techniques to predict market trends accurately and adjust your strategies accordingly.
3. Inventory Management: Optimize the allocation of rooms to different segments to maximize revenue across all channels.
4. Competitive Analysis: Regularly analyze your competitors to understand their pricing and positioning, and adjust your strategies to stay ahead. Does your competion set or the weightage in your RMS needs a tweak for ROY?
5. Continuous Learning: The revenue landscape is always evolving. Stay updated with the latest tools and techniques in revenue management.
6. System Health Check: Your PMS, GRS, RMS are machines that run continuously but also need regular maintenance. And I am not talking about the hardware or the software here but just going back to a system audit to see if everything is running fine. Are all rate categories open and running? Do you have an unwanted package selling somewhere? Go back to that check list that you got in your last training and spend a day doing that audit. You will unearth GOLD!

As we move into this new season, it’s crucial to refresh and reinforce our understanding of these core areas. Just as students prepare for a new school year by sharpening their skills, we too must be diligent in honing the fundamentals that will drive our success.

"The only way you can stay on top is to remember to touch bottom and get back to basics"

This new season presents an opportunity to not just maintain but elevate our performance. The fundamentals of Sales, Marketing, and Revenue Management are the building blocks for achieving excellence. By revisiting these basics and staying attuned to industry trends, WE can navigate the challenges ahead and seize the opportunities that arise. Make use of the resources available within your enterprise, invest in your own development, and let's gear up to achieve outstanding results in the months to come.

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