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CH. 11 Case Study Conventions and Events

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CH. 11 Case Study Conventions and Events
Sales Underperforms Even While Meeting Budget

The Christopher Hotel is a business and economy style hotel which should have a large focus on traveling groups, budget travelers, and business travelers. The hotel seems to be under-performing when compared to area competitors, based on its original targets however it seemed to be doing well. Comparable hotels seem to be selling more rooms while selling them at a higher rate. The Christopher’s market penetration is only at 84% of its fair share of the market based on their amount of rooms. The penetration is calculated by dividing the hotel’s actual market share by its fair share (its proportion to rooms available in the local market). The new general manager of the Christopher Hotel will need to consider many points when planning a strategy to increase the hotel’s market penetration rate. One of these points is the performance and marketing strategies of local competitors, if the competitors are out-performing with higher rates then they are utilizing a niche in the market which is something the Christopher should consider. Networking with local businesses will also be crucial. Corporate rate agreements can drive business even with discounted prices they add great revenues to a hotel through food and beverage as well as convention space. Another focus should be the sales staff of the hotel. As a sales associate you must be able to contribute greatly to a hotel and accommodate guests better than all others since you are the one selling a property, often site-unseen. As mentioned above, forming corporate rate agreements can really drive group business and add more revenues to a hotel. Another way of gaining more group sales is to offer group rates, discounting rooms for convention guests, and adding points systems specifically for travelling groups that have to book multiple rooms each stay. Offering special military, AARP, airline, frequent stay rates and other unique rates are also ways to increase group

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