MARKETING: Selling Cycle Description

Selling Cycle

The selling cycle will be based on the following objectives, with each objective representing a stage in the cycle:

1. To create awareness and knowledge  of the hotel and its unique features
2. To secure purchase of guestrooms year round
3. To secure and grow market share
4. To solidify the hotel’s market presence in Atlanta and the United States and prevent erosion market share

 Initially, to create awareness and knowledge of the hotel’s and its products and services, the hotel will engage in personal selling where sales employees will contact potential clients, their agents and intermediaries (distribution channels) and conduct presentations about the hotel in an effort to inform and generate sales. Specific intermediaries will be targeted, for example travel agents who cater to the needs of sports teams and the entertainment community will be contacted and informed about the hotel and its services.  The sales staff will also have a booth at the annual hotel show in New York (the largest hotel trade show) in the tears preceding and following the opening of the hotel.  During this stage, the message from the hotel will be, personalization or service, exclusivity and elegance.  Printed and electronic (internet) advertising will also be utilized to create awareness and product knowledge.  A highlight of the phase to secure sale is invite intermediaries (travel agents) to the hotel on familiarization trips for overnight visits to try the hotel.  To grow and solidify market share, a combination of personal selling, advertising, sales promotion and personal selling will be utilized on an ongoing basis, year round.  It should be noted that the hotel will engage in public relations during all states of the sales cycle.  The hotel will identify and support a cause and will ensure that all initiatives are reported in the media.   

Sales Tactics

As an independent hotel, the hotel will have its own sales force which will promote and sell the hotel to clients, their agents and intermediaries.  The initial plan is for the sales force to focus on different segments.  The sales team will be divided into the following accounts: members targeting the sports market; members targeting the motion picture market; members targeting the commercial market and; members targeting other market.  The sales team will comprise two   members who will receive fixed and incentive based compensation.

Every effort will be made to recruit sales team members who have at least five years of experience in hotel sales. Hence, these sales employees will be recruited from hotels.  We will target employees from large hotels with large sales teams that have few opportunities for advancement.  We will sell them on the idea that they can grow their careers with us and furthermore, we will give them autonomy for their respective accounts.   All sales team members will receive the following training:  product service training; policies, procedures and planning training and; sales technique training.  Despite their experience, they will receive sales technique training with specific emphasis on:  prospecting; conducting the sales dialogue and; following up.  These steps will ensure that all sales agents are on the same page, and importantly, this approach will ensure that the company develop a consistent sales culture. 

Selling Schedule for first 18 Months

Time	Activities
6 months before opening	Advertising and direct selling Print and electronic advertising Develop and launch website
Opening Day	Opening party Media invited Travel agents/counselors invited Travel magazine and travel writers invited
3 months after opening	Advertising and direct selling Print and electronic advertising Public relations events
6 months after opening	Advertising and direct selling Print and electronic advertising Public relations events

Advertising and Sales Promotion

The company will utilize a mix of advertising medium.  However, since the company will engage heavily in the use of travel agents and other travel intermediaries, travel trade media will be important.  As such, advertisements and hotel listings will be placed in the following:  OAG Travel Planner, Hotel & Motel Redbook, Travel Weekly, Travel Agent and Hotel and Travel Index.   These advertisements and listings will be placed with these medium from six months before opening and after opening and will be evaluated each month to ensure that we are obtaining a return on our advertisement investment.  The company will also rely on internet advertising.  The company will develop its website which will be used to advertise the company’s products and services.  The site will be optimized to ensure that it appears in searches for extended stay and luxury hotels in Atlanta. Printed sales kits will be developed and will be used by the sales staff to provide information to clients about the hotel’s products and services, especially when they are engaged in their direct selling activities.  Regarding sales promotion, value all-inclusive packages will be developed and will be available during the first three months of operation as well as during periods of slow demand.  Selected travel agents and travel counselors will also be invited to the property on familiarization trips. 

We intend to use a chameleon as the company’s logo.  On our website and in all our electronic advertising, we will graphically display a chameleon that transform into a room of many colors. 

 Publicity

The hotel will engage in a publicity event on the date of the opening of the hotel.  There will be a grand opening where local tourism, chamber of commerce, business leaders and the mayor will be invited.  The sales staff will ensure that the media is invited to the event.  In addition, guest staying at the hotel on the first night the hotel opens will pay $1.00 but must book and pay for at least five nights.  These guests staying the first night will become lifetime founding members and can stay at the hotel on the hotel’s anniversary for $1.00, but must stay at least 5 nights during the week of the anniversary (based on availability).  This lifetime founding membership can be transferred to family members.  Since the hotel hope to attract high profile clients, and further since the hotel will assure clients that their privacy will be protected, publicity events will be kept at a minimum. 

Distribution Strategy

The hotel will distribute or sell its guestrooms via the following channels:

1. Internet distribution system (IDS):  The includes the hotel’s online reservation systems and travel portals that utilize the Internet to connect travel intermediaries such as travel agents to the hotel’s reservations system.  The hotel will also use third party merchant and opaque internet distribution systems such as Expedia and Orbitz. 
2. Travel agents/counselors:  These travel agents will connect to the property via their global distribution systems. 
3. Sales managers/sales team
4. The hotel’s reservations department