It was a long day. I started my follow up calls early for last minute changes in groups and to get my contracts back that were due. The funeral for our Owner that passed was at 9:30am today that I made sure I attended.
The funeral luncheon was at our hotel, of course. The Banquet Room looked nice, peaceful and was perfect. We had plenty of staff on so I wasn’t as worried. Some of the Management Team stood at the door and greeted them as they came in after the burial. Myself and a Banquet Manager stood near the entrance of the Banquet Room to show them were to go. It was a sad moment and we all were effected. He was a good man.
My property is only at 33% mtd and I’m sick over it. Since I am the SMERFE Manager now, I don’t pay too much attention to the few transient accounts that we have. Our bread and butter has been with Airline Distress, Airline Crew and everyone’s favorite Corporate Lodging………. what fun they are and good luck trying to keep them out of 120 days for payment.
But things have changed here at our hotel. The new Management Team is from a Corporate 3/4 star well known property and product. Our hotel is a 2 star Franchise with a bad reputation. We are struggling to pull it all together.
I think that one of the reasons that we are down, and this is using common sense since the numbers have decreased….is that we increased our rack rates too high and priced our self out of the market for our BRAND. This increase effected all of the other rates such as, and you probably know already, AAA, AARP, Travel Agents…etc.
We lost transient accounts mostly because of our poor service skills and even the ones with crappy rates effected us and our bottom line. We have not replaced them and revenue is down. ADR is up, occupancy is down. I will need to calculate our RevPar. I’m almost afraid.
We have two Airport Parking Packages and they have been increased as well. Sure we are competitive but to the big boys, not.
I know ADR, RevPar and Occupancy are all important. I know that our ADR has been horrible in the past but it has increased enough to have you raise an eyebrow or two. The potential is there…..goldmine in the rough. Just need to get it to work right and we are there. But the bottom line is REVENUE.
Sometimes you will have to sacrifice ADR if the business makes sense and they are qualified to be profitable. You will have to keep that bread and butter low rated crap….simply to pay the salaries and pay some bills. While you are restructuring, you work on your game plan. You will have to decide……What Accounts make you the most profit? What Accounts do not pay on a timely basis? What Accounts are more or less labor intensive? Etc….
If you are going to “get rid” of an account for whatever reason….including their rate…..find a replacement first. Why would you not replace the business before you end the relationship? Maybe in the meantime you can get a couple more dollars in rate out of them. I don’t ever recommend “getting rid” of any account that produces volume due to their rate unless you have a replacement account. You are only taking away from the bread & butter of the hotel. Who and what will replace the loss in revenue?
As you capture new business, slowly and surely you can replace unwanted but necessary accounts such as Corporate Lodging. Although companies like this do produce, the rate is a crusher.
It’s not a perfect world, we are not perfect Sales People and there is no perfect hotel. Every hotel has some sort of issue or in my hotel’s case….issues. Every hotel has disadvantages and advantages. We as Sales People have the ability to make a difference. Do it!
Pure Energy
