The Impact of Hotel Sales Representation
Guest article by Rosa Maria Perez, World Hospitality Alliance
“Trust those who are passionate about what they do and watch your business grow because they will sell your hotel in an unbeatable way”
It’s a basic premise that to drive business growth and boost revenue, hotels must strengthen their positioning in current markets, explore new ones, and establish a well designed segmentation strategy to outpace competitors in attracting corporate accounts, leisure travelers or groups.
So the pivotal question is: “ What’s the optimal strategy to achieve this while retaining control over budgets?”
The importance of reducing dependency on one or two markets is indispensable to mitigate the risk of having a reduced market niche as well as diversify the customer base.
However, achieving these goals requires more than just prioritizing sales; it demands empowering your sales teams through strategic collaboration with an external representation company capable of opening new markets and seamlessly integrating with the hotel’s sales team.
Yet, finding the right partner presents a significant challenge.
Independent and regional hotel groups, aiming to grow their presence in competitive target markets amidst the expansion of global chains, frequently encounter obstacles when managing their sales strategies independently. To tap into global markets, hotels may choose to partner with well-established global representation companies . However, this often comes with hefty fees, commissions, and marketing expenses, which can strain the budget of independent or small-scale properties. Additionally, in certain cases, this collaboration may heighten competition among multiple hotels represented by the same company in a given area.
Hotels may face challenges in maintaining control over branding, pricing strategies, and customer interactions when collaborating with large representation companies This lack
of control can potentially affect their ability to uphold brand consistency and ensure high levels of customer satisfaction.
Alternatively, they can consider hiring independent sales representatives. These representatives provide tailored and adaptable strategies, empowering hotels & groups to
retain control over their budgets and improve their investment returns.
After the impact of crises like COVID-19, the importance of having sales partners in global markets that allow hotels to react quickly and redirect efforts towards markets that were
not targeted before is seen. Only with a team of experts in those markets could one be agile and react before the competition.
At World Hospitality Alliance, we’ve undergone this scenario and demonstrated that we could provide agile support for a hotel group to enter markets where they previously had
limited presence. This approach enabled them to gain significant brand awareness and capitalize on leisure and group business opportunities swiftly.
What are the primary criteria hotels should consider when selecting a representation partnership?
You have to consider several factors and conduct thorough research and due diligence, to choose a representation company that aligns with your hotel’s values, and objectives and
maximizes your chances of success in target markets.
Start to strategically consider mid to long-term partnerships. This is essential for fostering effective collaboration and mutual benefit, offering stability and consistency in business
relationships, reducing uncertainty, and instilling a sense of reliability for both parties, as well as in the markets and among customers where they represent your hotel.
If a representation company fails to meet expectations or engages in unethical practices, it can potentially damage the reputation of the hotels it represents, leading to a loss of trust
and credibility in the market. Therefore, making the right decisions is crucial, with market reputation being the foremost key indicator.
When contacting representation companies, starting with an introductory call including the key market heads in this call. This is typically the best approach to understand their
services fully. At WHA, we routinely offer these calls at no charge. We focus on collaborating with hotels where we identify potential business opportunities to drive new
demand and we anticipate cooperation synergies before considering onboarding them.
Hereby the list of factors you should evaluate when looking for the right sales partner:
- Expertise in the field: Seek representation companies with a team boasting extensive experience in the travel & hospitality industry, particularly within your
hotel’s market segment and target regions. Look for a proven track record of success in representing properties similar to yours. At World Hospitality Alliance,
all our members have represented some of the best hotels and resorts worldwide, having worked with leading global representation companies in the past. This
expertise significantly aids in guiding independent hotels toward the right segments and markets. - Deep understanding of market dynamics: Consider representation companies with deep knowledge of your target markets, including market trends, customer
preferences, and competitor analysis. Their familiarity with local cultures and business practices can greatly aid in effectively promoting your hotel. - Network and Connections: Evaluate the representation company’s network within the travel industry, including relationships with travel agents, tour
operators, corporate clients, industry associations, memberships and other key stakeholders. Only a robust network will enhance your hotel’s visibility and drive
bookings. At World Hospitality Alliance, we are members of reputable local travel industry associations and even some team members are on the board of some
associations in their regions, which can immediately assist hotels in accessing these audiences. Additionally, linking with reputable associations will bring brand
benefits. - Shared values and ethics: This is a crucial aspect to consider. Since they will carry your hotel image in their markets, prioritize partnerships with those who
best align with your core values. They will act as an extension of your sales team, so ensure your sales team is part of the hiring process at some stage. Alignment of
empathy and synergies is crucial for effective day-to-day collaboration. - Reputation and References: Research the reputation of the representation company and its sales associates through client testimonials, case studies, and
industry reviews. Request references from past or current clients to gain insights into their experiences and the results achieved. - Communication and Support: Assess the level of communication and support provided by the representation company. They should offer regular updates,
reporting, and transparent communication channels to keep you informed about their activities and performance. Poor communication between the hotel and the
representation company can lead to misunderstandings, missed opportunities, and disjointed marketing efforts. - Customized Approach: Look for representation companies that offer personalized and tailored strategies to effectively showcase the unique attributes
in developing marketing and sales plans aligned with your brand identity and target audience. - Contract Terms and Flexibility: Review the contract terms carefully, including the duration, termination clauses, and any exclusivity agreements. Ensure the
contract provides flexibility and allows for adjustments based on changing market conditions or business needs