Module 4 hotel marketing department

WHAT IS HOTEL MARKETING

Hotel marketing is an umbrella term, which refers to the various marketing strategies and
techniques that hotels use, in order to promote their business and make a positive
impression on customers.
Essentially, it is about making a hotel as appealing as possible, in order to attract as many
guests as possible.

FUNCTION OF MARKETING DEPARTMENT

1. Gathering and Analysing Market Information:
Gathering and analysing market information is an important function of marketing Under it,
an effort is made to understand the consumer thoroughly in the following ways:

(a) What do the consumers want?

(b) In what quantity?

(c) At what price?

2. Marketing Planning:
In order to achieve the objectives of an organisation with regard to its marketing, the
marketeer chalks out his marketing plan to effectively sell the services in the hotel

3.Product Designing and Development:

Product designing plays an important role in product selling. The company whose product is
better and attractively designed sells more than the product of a company whose design
happens to be weak and unattractive.

In this way, it can be said that the possession of a special design affords a company to a
competitive advantage. It is important to remember that it is not sufficient to prepare a
design in respect of a product, but it is more important to develop it continuously.

4. Standardisation and Grading:

Standardisation refers to determining of standard regarding size, quality, design, weight,
colour, raw material to be used, etc., in respect of a particular product. By doing so, it is
ascertained that the given product will have some peculiarities.

5. Packaging and Labelling:

Packaging aims at avoiding breakage, damage, destruction, etc., of the goods during transit
and storage. Packaging facilitates handling, lifting, conveying of the goods. Many a time,
customers demand goods in different quantities. It necessitates special packaging. Packing
material includes bottles, canister, plastic bags, tin or wooden boxes, jute bags etc.
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6. Branding:
Every producer/seller wants that his product should have special identity in the market. In
order to realise his wish he has to give a name to his product which has to be distinct from
other competitors

7. Customer Support Service:

Customer is the king of market. Therefore, it is one of the chief functions of marketer to
offer every possible help to the customers. A marketer offers primarily the following
services to the customers:

(i) After-sales-services

(ii) Handling customers’ complaints

(iii) Technical services

(iv) Credit facilities

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ORGANISATIONAL CHART OF HOTEL MARKETING DEPARTEMENT

BACK OFFICE AND FUNCTIONS

A hotel back office is a room or space in a hotel that is set up to deal with some of the
higher-level financial work and other issues facing this type of business.

This section of the hotel also usually houses the offices of higher-level
management personnel. Larger hotels or franchises in a chain may have more elements set
up in the back office than smaller independently run hotels, which sometimes might not
have a back office at all.
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Functions of back office

 It include settlements, clearances, record maintenance, regulatory compliance,

accounting, and IT services.
 Maintaining accurate accounting documents In the hotel
 Helps in effective cost controlling
 Forecasting the financial condition of the hotel
 Creating budgets
 Handling credit requests
 Managing payroll of hotel employees
 Planning hotel financial future
 Analyse the income of the hotel for an estimated period
 Prepare financial reports of the hotel
 Supervising the account staffs in matters of hotel accounting

VARIOUS ACCOUNTING TOOLS USED IN HOTEL INDUSTRY

Accounting is the process of recording and reporting a company’s financial information.

Small businesses often use accounting to determine how well they are generating profit
compared to the amount of money spent on business inputs or resources Accounting also
provides several tools small businesses can use for managing their financial operations.

The following are common accounting tools used in hotels

Budgets
Budgets represent a written guideline for how much money small business owners expect to
spend on various economic resources or business functions. Many businesses create
budgets on a semiannual or annual basis. This allows business owners to the focus on
developing the budget and outline financial goals for the year
Cost Allocation Analysis
Cost allocation analysis is a management accounting function used to determine how a
small business allocates specific costs to its goods or services. Costs commonly allocated to
goods and services include raw materials, employee labor and overhead.
Financial Statements
Financial statements are the primary result of accounting. The income statement, balance
sheet and statement of cash flows are three financial reports small business owners can use
to determine how well their business is operating
Forecasting
Forecasting is a detailed and sometimes complex accounting tool small businesses can use
to determine potential sales in the current economic market. Forecasting may be completed
by reviewing the small business’ previous sales history, target market or demographic
information
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EXAMPLES OF ACCOUNTING TOOLS

HOTEL ACCOUNTING SOFTWARES

1. FreshBooks
This is the top accounting programs used in the hotel industry today. It can be used to
handle accounting for hotels. FreshBooks is capable of streamlining routine accounting
activities such as billing and making them seamless in nature.

This hotel accounting software can prepare professional invoices and financial reports. It can
also track your hotel expenses, issue invoices, keep an eye on accounting periods as well as
perform client follow up

2. NIMBLE PROPERTY
 this accounting & analytical solution leverages automation and integration. It stands as
unique and remarkable for its significant features & functionality which helps in managing
group of hotels. Easy-to-use interface lets you monitor daily sales, check occupancy %,
RevPar, review GSS info, import STR, compare budgets, revenue & expenses, reconcile bank
accounts and do much more.
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3. Sage Intacct
This is accounting software which is specially developed for hotels. Capable of handling the
financial information and tasks for other hospitality institutions such as restaurants, clubs
and resorts.

This bookkeeping tool also performs accounting activities automatically. In addition to that,
this accounting software for hotels can deliver the financial information for specific hotel
locations and properties on demand. It also allows you to create flexible charts of financial
information that are available as free download.

 
4. Hotelogix
This software is capable of providing bookkeeping facilities for hotels. Maximizing on
automation, Hotelogix is comprehensive solution. It makes accounting activities simpler to
perform. The software also boosts the collection of revenue and assists with managing hotel
property. An interesting feature of this digital tool is that it can be integrated with a web-
booking engine.

Human Resource In Hotel Industry

The human resources department serves no customers, books no business, yet it plays a
very important role in the hotel’s efficient operation.

The three major functions of the human resources department are employee recruitment,
benefits administration and training

Human resources department recruits, interviews and screens prospective employees, the
final hiring decision rests within the department in which the employee will be working.

The same is true of promotion and disciplinary decisions. The human resources
department’s input is, in most hotels, limited to advice and interpretation of legal questions.
The human resources department’s effectiveness depends on its manager’s ability to form
effective working relations with managers of other departments.

Human Resources Manager

The Human Resources head oversee the daily operation of the Human Resources office.
Responsible for areas of Recruiting, Employee Relations, Benefits, Events, Workers
Compensation and other employee-related tasks.

HR Manager Duties and Responsibilities:

 To ensure that the company HR operational policies and processes are adhered to
and continually improved.
 To assist in all activities concerning the sourcing & recruitment of staff, performance
management, staff discipline and HR administration.
 To coordinate all matters of employee work permits and visas.
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 To coordinate and / or conduct departmental training and conduct new hire hotel
orientation program. 
 Implement corporate policies and procedures on compensation, incentive, bonus
and benefits.
 Continually assesses employee morale by analyzing absenteeism and turnover
records, lateness and resignations.
 Coordinate and oversee all matters related to staff accommodation, facilities, and
transport.
 Coordinates, controls and inspects employees accommodation, staff canteen, rest
rooms etc. ensuring it is of the highest possible standard of cleanliness and comfort.
 Coordinate employee wellness and safety programs.
 Conduct needs analysis, develop, implement, and monitor training programs and
materials.
 Encourages a good standard of employee conduct and behavior and coordinates
disciplinary procedure as and when necessary.
 Ensures appraisals are carried out for every employee every 12 months or as per
hotels management policy, and also reviews all appraisals and follows up on
development needs, if required.
 Assist in communication of key messages to all staff.
 Assist in recruitment and hiring of all employee.
 Ability to remain calm and courteous in demanding situations.
 Assists other department heads / HOD's in the formulation of HR policies and
procedures for their respective departments.
 Assists with and ensures that all procedures concerning promotion, transfer and staff
resignation is carried on within Company policy and also within legal boundaries.
 Assists in developing and conducting management training on a variety of leadership
and HR topics.
 Assists in overseeing preparation of reports required by government agencies.
 Oversee Workers Compensation programs, ensuring claims and reports are
submitted in a timely basis.
 Support operational efforts through proper staffing and training of associates.
 Assist with planning, coordinating and executing employee activities and events,
including monthly staff meeting, food festivals, annual picnic, holiday party, Wellness
Fair, farewell party, community services etc.
 Issue staff or training experience and conduct certificates.
 Assists in the administration of the Hotel's social and staff benefit programs Eg:
Employee of the Month, Leader of the Month, and other staff incentives.
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 Provide guidance to the leadership team regarding employee morale, employee

relations, coaching, counselling and discipline.
 Promote employee communication activities and channels, to encourage and enable
feedback from staff.
 Maintain a positive relationship with staff representatives and ensure any employee
grievances are monitored and resolved.
 Responsible for all back office and administration tasks of the department.
 Oversee the management of the recruiting process including position management,
advertising, working with community agencies.
 Develops and maintains confidential departmental staff and associated files,
documents, pay scale details and/or other important databases. 

ROLE OF MANAGERS IN HOSPITALITY INDUSTRY

1 . HOTEL MANAGER OR GENERAL MANAGER

The General manager is responsible for all aspects of operations at the hotel, to day-to-day
staff management and guests.
He / She should be an ambassador for the brand and your hotel. Provide leadership and
strategic planning to all departments in support of our service culture, maximized
operations and guest satisfaction. Work Very closely with the hotel owners and other stake
holders.

THE FOLLOWING ARE THE VARIOUS ROLES THAT THE MANAGER PERFORMS IN THE HOTEL
 Oversee the operations functions of the hotel, as per the Organizational chart.
 Hold regular briefings and meetings with all head of departments.
 Ensure full compliance to Hotel operating controls, SOP’s, policies, procedures and
service standards.
 Lead all key property issues including capital projects, customer service and
refurbishment.
 Handling complaints, and oversee the service recovery procedures.
 Responsible for the preparation, presentation and subsequent achievement of the
hotel's annual Operating Budget, Marketing & Sales Plan and Capital Budget.
 Manage on-going profitability of the hotel, ensuring revenue and guest satisfaction
targets are met and exceeded.
 Ensure all decisions are made in the best interest of the hotels and management.
 Deliver hotel budget goals and set other short and long term strategic goals for the
property.
 Developing improvement actions, carry out costs savings.
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 A strong understanding of P&L statements and the ability to react with impactful
strategies
 Closely monitor the hotels business reports on a daily basis and take decisions
accordingly. 
 Ensure that monthly financial outlooks for Rooms,Food & Beverage, Admin &
General, on target and accurate.
 Maximizing room yield and hotels / resort revenue through innovative sales
practices and yield management programs.
 Prepare a monthly financial reporting for the owners and stake holders.
 Draw up plans and budget (revenues, costs, etc.) for the owners.
 Helping in the procurement of operating supplies and equipment, and contracting
with third-party vendors for essential equipments and services.
 Act as a final decision maker in hiring a key staffs.
 Coordination with HOD's for the execution of all activities and functions.
 Overseeing and managing all departments and working closely with department
heads on a daily basis.
 Manage and develop the Hotel Executive team to ensure career progression and
development.
 Be accountable for responsibilities of department heads and take ownership of all
guest complaints.
 Provide effective leadership to hotel team members.
 Lead in all aspects of business planning.
 Respond to audits to ensure continual improvement is achieved.
 Corporate client handling and take part in new client acquisition along with the sales
team whenever required.
 Assisting in residential sales as and when required and development with strong
sales prospects.
 Responsible for safeguarding the quality of operations both (internal & external
audits).
 Responsible for legalization, Occupational Health & Safety Act, fire regulations and
other legal requirements.

SERVICE TIPS FOR HOSPITALITY PERSONNEL

SMILE
wearing a smile is at the top of the priorities list to get you on your way to providing an
exceptional standard of customer service – and one of the easiest parts to get right
SUPPORT THE TEAM
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Delivering great customer service comes down to having a hard working and cooperative
team around you. Even if you are not working with someone else directly, having the
support of well-functioning team around you can help to ensure fantastic customer service.
HAVING PERFECT PRESENTATION
Hospitality personnels should look well-groomed got to look the part! What you say & do is
just as important as how you present yourself. If your presentation is on-point, then your
standard of customer service will follow suit and be happy with the service
LISTEN TO THE NEEDS OF THE CUSTOMER
to provide the best standard of customer service, let your customer talk and show them
that you are listening and understanding their needs. Make sure you update them on how
long they’ll need to wait and in the meantime, check if there is anything else you can do for
the
ALWAYS BE HELPFUL
Whether for the client or customer, offering your assistance is bound to get you noticed.
Does the customer need a refill on their champagne, or does the manager look like they’re
struggling with a busy event? Simply asking “How can I help you?” can make all the
difference.

SHOW SOME INITIATIVE

As important as it is to follow instructions, anticipating the customers needs is a vital part of
customer service. Whether the customer needs a canape, is waiting for a top up.. Or even
trying to find the toilet! Special attention from you will make them feel at ease.

DEAL WITH ANY COMPLAINTS

No one likes hearing complaints, and many of us will want to run away from the problem it
if scares us. If you give a complaint your attention and understanding you can show the
customer that their feelings are important to you. Of course, always let your manager know
if you need help 

ALWAYS GO THE EXTRA MILE

Whatever the extra step may be, if you want to provide great customer service, take it. Even
if the customer does not directly ask for it,  people notice when you make an extra effort
and will tell other people. That good word of mouth will get back to your manager and
ultimately get you great feedback!

HOTEL SALES METHODS

Sales techniques are key when it comes to making sure goals are achieved. In regard to
hospitality marketing, proven and useful means of increasing and stabilizing sales are essential
in making sure your property or service is one that is used time and time again. Hospitality
marketing's goal is bringing in both new and repeat business to beef up the bottom line.
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Multiple Fronts
Hotels often advertise the same property in several different ways to attract key parts of the market that
they would like to gain as customers. You may see a glossy fashion magazine advertisement showing the
suite-level rooms in a particular hotel with copy and images aimed at the higher end of the market. The
club level rooms in the same hotel may then appear in a financial magazine with a completely different
presentation to attract the business traveler.And the hotel may run specials in local tourism guides aimed at
families and budget travelers who may prefer the hotel's standard rooms. In this way the same hotel can
reach a broad audience in an attempt to keep rooms at all levels occupied.
Travel Agents
Travel agents have long been a key part of the hotel sales strategy. Travel agencies provide an easy way to
multiply your advertising and brochure market presence at very little cost. In most cases, national travel
agencies create annual brochures, promotional fliers, TV and radio commercials and signage that feature
key properties in key destinations. Hotels that are able to secure such placement enjoy broad exposure to
the many travelers reached by all of these campaigns. In some cases, additional incentives are given to
agents and travel companies to secure a large number of reservations.
Membership Rewards
Hotel chains often have membership programs that cost nothing to join and reward frequent guests with
extra amenities, upgrades and free nights. Loyalty is an important sales tool for hotels, especially large
chains with locations around the country or even the world. If a hotel company can manage to create
loyalty in its guests, they are likely to look for and use the same brand every time they travel, if not for the
experience, then for the rewards they earn by doing so. Either way, the hotel wins.
Online Discounts
Many hotels and hotel chains offer special rates for online or smartphone bookings. Online bookings save
the time and effort of a real person at the hotel who must answer the phones and take the reservation. They
also tend to attract younger customers who are more tech savvy and who have a long life filled with future
hotel stays to come. Hotels ultimately are trying to build long-term relationships with their clients, and
online discounts are one important way to start it off. Smartphones also allow the hotel company to reach
you at anytime, anywhere, and this marketing tool can lead to more future bookings. The main drawback
to online-only rates is that travelers already on the road can't access them if they don't have the right
technology in tow.
Low Season Specials
Some destinations have clear high and low seasons. Hotels that thrive during the high season may find a
majority of rooms open during their low period. In response hotels may promote low-season rates to attract
guests to rooms that would otherwise be empty. While the rates may be far lower than in-season prices, the
hotel is happy to offset the loss of empty rooms. The hotel also might recoup the difference through other
charges and purchases, like room service meals, parking fees, tours and concierge services and in-room
Internet fees. None of these fees would be collected if there were no bargain-rate guests present.
Cross Promotion
Hotels sometimes use popular events, movies or other pop culture tie-ins to promote their rooms, special
amenities or motivation for traveling in the first place. For example, the popular book "Fifty Shades of
Grey" and others in the series have led some hotels located in Washington state -- where the books are set
-- to promote stays at their properties. The hotels combine the theme of a secret getaway for amorous
couples with accouterments used by characters in the books, like a certain type of wine or a re-created
scene. With popular tie-ins, hotels are able to turn the focus away from their rooms and convince guests
they are buying something of a fantasy escape instead.
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Off-Season Specials
Pricing and promotions are used throughout the year in hospitality marketing to attract
guests and customers. One way you can capitalize on seasonally slow periods to keep sales
high is through working with your accounting and management team to offer deep
discounts and specials during the off season. This practice generates income and also is a
step toward building a larger repeat customer base by bringing guests in at a lower rate and
impressing them with your property.