Sales management in the tourism and hospitality industry


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Sales management in the tourism and hospitality industry

  2. 2. Success or failure within thehospitality industryultimately rests on the abilityto sell Salesperson covers awide range of positions fromorder taker to order getterresponsible for relationshipbuildingThe Function of Sales
  3. 3. Sales person can be define as aperson employed to represent abusiness to sell its merchandise tocustomers in a store or to customersto make the visited.Definition of Sales Person
  4. 4. AccountExecutiveSales personhas manynames namelyAgentsSalesConsultantsTourismDevelopmentRepresentativesSalesManagerSalesCoordinatorMarketingRepresentativesSalesRepresentatives
  5. 5. Sales personnel serve as thecompany’s personal link tocustomer.Personal selling is the mostexpensive contact andcommunication tool usedby the company.Nature of Tourism Sales
  6. 6. Sales representatives perform one or more ofthe following tasks for their companies:Prospecting~ Salesrepresentatives find andcultivate newcustomerTargeting~Salesrepresentativedecide how toallocate theirscarce timeamongprospect andcustomerCommunicating~Salesrepresentativecommunicateinformationabout thecompany ‘sproduct andservicesSelling~Salesrepresentativeknow the art ofsalesmanship:Approaching,presenting,answeringobjection andclosing sales.
  7. 7. Cont…Servicing~ Provide variousservices to thecustomerconsulting ontheir problems, rendering, technicalassistance, arranging financingand expeditingdeliveryInformationGathering~ Conductmarketresearch andintelligencework and fill itcall reportsAllocating~ Decide whichcustomers toallocate scarceproducts toduring productshortagesMaintainingStrategicPartnership~ Seniorsalespeopleincluding thesales managerprovide valuableplanningassistance toclients
  8. 8. Objective ensure thatcorporate goals are met. Goalsinclude revenue, market share, improving corporate , imageand many othersObjectives assist sales forcemembers to plan and executetheir personal sales programs.Objectives also ensure that asales persons time andcompany support resourcessuch as personal computers areused efficiently.Sales Force ObjectivesSales objectives are essential for TWO reasons:
  9. 9. Defined as a personemployed to representbusiness and to sell itsmerchandise to customers ina store or to customers whomake the visited.Definition of Sales Representative
  10. 10. Identified thedecision maker,decision processand search forpotential buyer.Get informationabout thecompetitorspromotionMaintain therelationshipwith customersTo increase salesat point of sales.Prepare acomplete andrecentinformation forcustomers.Promote and sellto othercompany, touragencies andother groups.Roles of Sale Representative
  11. 11. Prospecting andQualifyingPre-ApproachApproachPresentationandDemonstrationHandlingObjection &ClosingFollow upSteps in Selling Process
  12. 12. Where they stand with the customerWhat they need to do nextImportant of Closing Sales
  13. 13. 1. Prepare well in advance2. Assume closing the sale is good for both you and the customer3. Create opportunities for prospects to disclose objections4. Team close5. Create urgency6. Cut to the chase7. Listen for the close8. When you can close, ask for a confession9. Close on the relationship, not product10. Communicate a passionate belief in your product and service.10 strategies to Close Sales
  14. 14. Prevent erosion ofkey accountsGrow keyaccountsGrow selectedmarginal accountsObtain newbusiness fromselectedprospectsRetain selectedmarginal accountsbut provide lower-cost sales supportEliminate selectedmarginal account.General Sales Strategies
  15. 15. Sales ManagementDefined as themanagement process ofestablishing, directing andcoordinating the salesdevelopment activities forthe company products.
  16. 16. Planning StaffingSalesTrainingLeadingControllingOrganizationalResourcesFunctions of Sales Managements
  17. 17. • Image• Attitude• Depth of Knowledge• Breadth of Knowledge• Sensitivity• Enthusiasm• Maturity• ProfessionalismEight Qualities of a Professional Salesperson
  18. 18. Marketing Channels in Tourism• Defined as a set ofindependent organizationsinvolved in the process ofmaking product or serviceavailable to the consumer orbusiness user.
  19. 19. Level 1PrincipalWholesalerRetailerConsumerLevel 2TourOperatorTravelAgencyTouristDistribution channel
  20. 20. TravelAgencyWholesalerTourOperatorsIncentivesTravelHousesIndependentMeetingPlannersConventionand VisitorsBureausType of Marketing Channels in Tourism Industry
  21. 21. Travel Intermediaries• Defined as any person orentity that assists in thedistribution or travelproducts to travelers
  22. 22. Information- Gathering and distributing marketing research and intelligenceinformation about the marketing environmentPromotion- Developing and spreading persuasive communications about anofferContact- Finding and communicating with prospective buyersMatching- Shaping and fitting the offer to the buyers needs, including suchactivities as manufacturing, grading, assembling and packaging.Role of Travel Intermediaries
  23. 23. Cont…Negotiation- Agreeing on price and other terms of the offer so that ownershipor possession can be transferred.Physical Distribution- Transporting and storing goods.Financing- Acquiring and using funds to cover the costs of channel work.Risk Taking- Assuming financial risks such as the inability to sell inventory atfull margin.
  24. 24. • Bulk buy from principals• Prepare tour packages• Costing, designing and packaging• Give Travel Agent for further sellingTourOperator• Buy from the wholesalers and sell totourists for commission• Link wholesalers and tourists• Closer to market and build personalrapport with consumersTravelAgenciesRoles of Tour Operator & Travel Agencies
  25. 25. Standard Package Customized PackageAppeals to mass markets that are pricesensitiveAppeals to tourists who look beyondeconomic value and want the package tooffer extra facilitiesCosts are less as benefits of bulk purchaseof inputs are obtainedCosts increaseProfits increase through high volume sales Profit increase through value as higherprocess can be chargedBetter quality can be offered as focusconfines to limited packagesQuality improves because of useful inputsreceived from buyersIt can be effective if market isundifferentiatedIt is used when market is differentiatedComparison of Standard and Customized Packages
  26. 26. Act a single localcontact point andeliminate the need tocontact many suppliersMake all arrangementsat the destinationAdvise on itinerarypreparation andpackagingGive local expertise Simplify paymentThe function of Inbound operator/agents
  27. 27. Tour Operator Travel AgenciesCreate and/or market inclusive toursand/or subcontracts their travel agentsand/or directly to clientsIntermediaries between tourist(individual/group/businessman) and tourwholesaler and operator, transportationand hotel agent that organize the tourpackage cooperationGet a commission from hotel, recreationpark and shopping mall for the tourpackage they organizeIt is serves as a negotiator/advisorbecause it can suggest the attractivedestinations, hotel and types of suitabletransportation for certain touristDifferent Roles of Tour Operator and Travel Agencies