Hotel and Venue managers/owners can take three main approaches to develop their market:

1. Sales Representation (eg: Fusion)

Advantages

  • constant sales representation over a long period of time
  • in-depth market knowledge and experience
  • established sales tools and techniques
  • established database and marketing tools eg: website, newsletter, social media channels
  • no training requirements – sales representation already in market
  • cost – split across clients this can be a highly cost effective way to drive results
  • clients can balance the right offering to match their event needs

Disadvantages

  • do not have exclusive rights to an individual single dedicated salesperson
  • allocated ‘paid for’ time needs to be spent on areas of value

2. In-Market Sales (local employee)

Advantages

  • exclusive dedicated presence in market
  • can control an employee’s activity more easily

Disadvantages

  • salary costs for an experienced and knowledgeable employee is high
  • infrastructure costs – need to pay for all expenses (cannot be shared)
  • training & marketing tool development
  • Individual sales managers can feel isolated and de-motivated working solo
  • database development –often from scratch

3. On-Site Sales (from your hotel/venue)

Advantages

  • low cost

Disadvantages

  • no market presence
  • Multiple States results in split attention to different markets
  • Turnover in sales roles result in lack of continuity for clients and lost opportunities
  • relationships cannot be effectively developed and nurtured
  • out of sight, out of mind – not on the client’s consideration set
  • cannot attend important and immediate client meetings easily
  • lower revenue returns than local representation
  • lack of trust (nothing beats face-to-face contact and human nature is to prefer working with local account managers)

So how do I choose?

Sales success is about relationships, trust and having a constant in-market presence. All experienced industry operators implicity know it is impossible for on-site sales to deliver the best results. Put yourself in our client’s shoes, wouldn’t you also want a local account manager? Simply, you have to ‘fish where the fish are’.

So that leaves sales representation versus a local employee. Both can work. But the reality is that an investment in an employee with the right market knowledge and experience is at a far higher cost than sales representation. We can provide you with the sums so you can make a balanced comparison.

You may be weighing up your approach right now. It might be time to contact Mary-Jane for a discussion as to the best path forward for your business.