Hospitality sales and marketing management Flashcards
(22 cards)
Market Segmentation:
Dividing the market into groups of consumers with similar needs, wants, backgrounds, incomes, buying habits, and so on.
Demographic Segmentation:
Geographic Segmentation:
Psychographic Segmentation:
Behavioral Segmentation:
Benefit Segmentation:
Feeder Market:
Refers to a smaller market that supplies customers, business, or traffic to a larger, primary market. It acts as a source of demand, talent, or reources that flow into a bigger hub.
Yield Management:
A practice adjusting prices based on demand, availability, and market conditions to maximize revenue per available room
Conversion Rate
The percentage of inquiries or leads that result in an actual booking or sale.
- Formula for Conversion Rate:
Conversion Rate = (Conversions / Total Visitors or Leads) ×100
Upselling
refers to encouraging customers to purchase a higher-end product, premium version, or add-ons to increase the overall sale value. The goal is to enhance the customer’s experience while maximizing revenue.
Sales Cycle
The sequence of steps from intial contact with a prospect to closing the sale.
Familiarization Tour (FAM Trip)
A complimentary or reduced-rate travel program. A familiarization tour is designed to acquaint travel agents, meeting planners, travel writers, and others with a property or destination in order to stimulate sales
A complimentary or discounted visit for industry professionals to experience a property firsthand
Direct Sales
Definition: Selling directly to customers without third-party involvement.
- No intermediaries (e.g., wholesalers, retailers).
- Higher profit margins but requires more effort in customer acquisition.
- Direct interaction with customers, allowing personalized service.
Indirect Sales
Definition: Selling through third-party channels or intermediaries.
- Involves wholesalers, marketplaces, or delivery services.
- Lower profit margins due to commission or fees.
- Expands reach to customers who may not directly visit your restaurant.
Relationship marketing
Relationship marketing is a long-term strategy focused on building strong connections with customers to increase loyalty, retention, and repeat business. Instead of just focusing on one-time sales, the goal is to create lasting relationships that encourage customers to return and promote your brand.
SWOT analysis
- Strengths
- Weaknesses
- Opportunities
–> Market trends and guest feedback - Threats
–> Changes to agreements or sudden increase in airbnb or new hotel openings
Marketing Mix
The combination of the Four P’s of marketing - - product,
place,
promotion, and
price- that is used to achieve marketing objectives for a target market
Tourism Behavior 3 centric
- Psychocentric: Stick to the yearly vacation
- Mid-centric: Branch out a little bit but with package deal and someone telling them what to do
- Allocentric: Do whatever they want, go with the flow, one way ticket
4- step sales process
- Prepare sale
- Make sales call
- Overcome objectives
- Follow up
The goal of revenue management
To maximize overall revenue and profitability by strategically managing pricing, inventory, and distribution channels.
Psychographic Segmentation
Segmentation based on internal motivations and circumstances: technical, situational, psychographical
Technical
Understanding the technology needed in the sales process.
Situational
Maximizing
Pyschographic segmentations
Segmenting based on lifestyle, values, interests, or personality traits.
- Generational segments
3 marketing segments in hotels
- Corporate: last minute business trips
- Association: book in blocks
- S.M.E.R.F
Social
Military
Education
Religious
Fraternal
Sales funnel
- Awareness: The customer becomes aware of the brand or product
- Interest: The customer researches the brand and its competitors
- Evaluation: The customer compares options to find the best fit
- Decision: The customer chooses an option
- Action: The customer becomes a paying customer
A model outlining the journey from initial awareness to a confirmed booking
Transient
Individual customers who visit on their own, without being part of a pre-arranged group.
Group Business
Pre-arranged groups that dine together, often requiring reservations.
Characteristics:
- Large parties (e.g., corporate meetings, wedding brunches, family reunions).
- Often book in advance and may require customized menus.
- Higher revenue potential per booking but requires more preparation.
Product life cycle- destinations
Introduction, growth, maturity, and decline
REV PAR
A key performance indicator measuring the average revenue generate per available room
REVPAR= Total room revenue / total available rooms
