HSMAI PERSPECTIVE: Why Cutting Sales, Marketing, and Revenue Optimization Is Short-Sighted
By Robert A. Gilbert, CHME, CHBA, President and CEO, Hospitality Sales & Marketing Association International (HSMAI)
As the hospitality industry does its part in the global response to coronavirus, hotel owners and asset managers are looking for areas to conserve cash. Some companies have already made the decision to furlough employees. Recently I received an email from an HSMAI member who had to furlough her entire sales team for four-six weeks due to the sudden drop in demand that we’re witnessing across brands and destinations.
There is no denying that this is a crisis situation of possibly unprecedented scope. The U.S. Travel Association estimates that total travel spending in the United States will drop by 31 percent — $355 billion — for the year, while the American Hotel & Lodging Association is projecting a loss of 3.9 million hospitality jobs over the next few weeks. During such a time, each hotel company and property has to balance its own unique set of demands, with the greater good being everyone’s top priority. While I understand that liquidity is a challenge for some owners with this dramatic drop in business volume, decisions on where to cut need to be weighed carefully. In my opinion, any decision to disrupt the vital roles of hospitality sales, marketing, and revenue optimization professionals is ill-advised. Why?
1. This is your revenue infrastructure. Sales, marketing, and revenue optimization are the front line of every current and future revenue stream for every hotel or hotel company. They are communicating with your active and potential customers, ensuring your brand messaging is appropriate for the current environment, and leveraging every distribution channel available to capture market share. These functions are essential to any business that intends to participate in the recovery, whenever it happens...see more
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