No matter what industry you are in we are all experiencing the “Bear Market” right now. We as Sales People, are forced to get more creative, lower rates and offer more concessions to capture or steal potential business. There are not many companies or organizations out there that will pay “top dollar”. They are experiencing the decrease in revenues as much as our industry is.

We as Sales People need to remember – most companies are cutting back staff, spending and travel expenditures. With access to the worldwide web, companies can offer training right at their employees desk with webinars and training modulars. Why should they travel if not necessary?

Most government agencies won’t release funds now or commit to off site events for 2009 until their budgets are approved. So if you have bids out there for the government, expect to have to wait for your signed contract.

The Sales Person will have to work harder, smarter and longer hours to keep on their game. Even though your prices maybe competitive, the clients are going to go for the Sales Person who they connect with. This is especially true for the SMERFE Sales Market. The relationship between the client and Sales Person is crucial in this type of market.

It is recommended that you take a look at your Star Report to make sure your property is in line with your competitive set. If the Sales Person books too much at a low rate, you will be able to identify that based on your Star Report. But, remember to look at the “whole” report before making any decisions or future Sales actions. Your rate might be down, but how does your occupancy compare?

Just because your rate is down but your occupancy is up – meaning you are booking more in room nights, does not mean that your property has made more in revenues. Higher occupancy is more wear and tear on the rooms, more in labor costs and more in utilities charges. So the Sales Person must learn to book what is “smart” to the property and will need to consider the “whole” picture.

Low occupancy but a higher rate. This property may make as much in revenues as the “lower rate, higher occupancy” competitors. The true bottom line and balance is in the REVPAR. The Sales Person should be fully educated and know the monthly budgets for REVPAR.

It’s a roll of the dice for most of us hoteliers. You will come across business opportunities that you will have to decide if you can turn a profit on them. Don’t just get stuck on rate. If you have nothing on the books then I suggest you take a good look at it before you turn it away.

Sales efforts must increase in a “Bear Market” like this. They must be successful to keep the revenues coming in. In most cases, the profits are slimmer and the bottom line is breaking even. The Sales People must expand their horizons and exhaust their expertise to keep the revenues coming in.

There is much more at stake here. A decrease in revenues will mean layoffs. Sales People need to remember that they are not only working for themselves and their families, they are working for all of the staff and their families. If they fail to continue to book, then the revenues will fall. It is the recipe for cutbacks and layoffs.

Good luck!

Pure Energy