How Important is a Local Sales Strategy?

The hotel industry is not a “build it and they will come” business model. It requires an active sales strategy to ensure the hotel has profitable base business throughout the year. Hotels without this focus will likely be the last to fill, be heavily reliant on OTA’s and underperform in their market.

In our experience, when clients first engage with us to help them with their sales strategy, they are typically over indexing in OTA reservations and lacking  corporate base business. They tend to do well on weekends with leisure, sports teams and events; however, they are not getting their fair share of the B2B weekday business.  In the absence of a sales strategy, this is a common problem that has real consequences for the success of a hotel and its profitability.

Costs for client acquisition are rising and more owners, operators and sales teams are paying attention to profit, not just top line revenue. The success of a hotel’s commercial strategy (sales, digital marketing, revenue and distribution) is getting the best mix of business that is profitable across all channels. According to Kalibri Labs, an OTA reservation on average is $12 more per room compared to loyalty member rates.

When it comes to corporate travel post pandemic, there has been a major shift in who is traveling. The fortune 1000 companies that made up the bulk of the demand pre pandemic are not the companies driving the demand today. The companies driving the corporate market today are local and regional accounts. They are largely unmanaged accounts. Meaning, not part of a large managed hotel program booking through a travel management company and having a formal RFP process. These travelers are typically not using the GDS to book and are booking through digital channels and direct to the hotel.

Hotel teams and brands need to rethink their legacy sales structures to adapt to these corporate buying trends. Relationships with local and regional companies are more important than ever before while staying on top of local demands generators.

According to Kalibri Labs 2022 Special Report, in every prior industry recovery cycle, revenue growth was driven by occupancy growth with ADR following later. The current recovery is just the opposite, with ADR growth leading the way and demand lagging.  In other words, demand isn’t growing, hotels have to go and shift it way from their competitors to successfully compete.

In summary, it’s not enough for hotels to simply have “rates on the shelf” with various companies and hope travelers will book. Getting on the shelf is the starting line. It’s critical that hotel teams have a strategy to target the right customers while activating the local and regional accounts in their backyard. Hotel teams that figure this out will be the ones that come out on top.

Some of Our Clients

Proudly Serving Clients throughout US & Canada

"As a management company with 4 smaller hotels in busy transient markets, we have struggled to keep our sales and marketing costs relative to the size of our hotel.  The cost and time invested in attracting, training, and retaining good salespeople with the current job climate can be not only daunting but frustrating with turnover.  With varying demand in the market, a sales manager needs to recognize when to take the business, and when to say no to it.  The right rate, at the right time!

We have solved all these problems through turning this demanding role in 3 of our hotels over to Gillis Sales.

Gillis is a trusted, credible partner who has supplied me with experienced professionals who know the fastest route to the business I need.  This has become our most effective resource, and I 100% recommend the Gillis solution to my colleagues."
Patti Barker -

Vice President of Hospitality, Metropolitan Hospitality Management

We have the pleasure of working with Gillis Sales, and couldn’t be happier with the results. Their expertise in the hospitality industry, combined with their innovative sales strategies, have delivered exceptional revenue growth for our property. I highly recommend Gillis Sales to any hotel looking to boost their sales and increase their bottom line. Their commitment to excellence and personalized approach make them a valuable partner in the competitive world of hotel sales.
Preena Patel -

Preena Patel, Administrative Director,  A-1 Hospitality

"The math is simple: Gillis equals heads-in-beds!

The sales pro's at Gillis have been instrumental in building occupancy at Motel 6 and Studio 6 hotels in Canada over the past several years.  Working collaboratively with owners and managers, Gillis takes the time required to find and convert prospects to guests.  Gillis provides a best-in-class solution for hotels that don't have a dedicated, well-trained sales team."
Irwin M. Prince -

Irwin M. Prince, President & COO, Realstar Hospitality

“We had the good fortune of engaging Gillis after years of managing our sales effort inhouse. They came highly recommended through brand leadership and seasoned sales professionals – and they haven’t disappointed. Despite only a few months into our relationship, they have had an immediate impact on our hotels and key account relationships. The Gillis team has already established themselves as one of our most valued and trusted advisors and partners. They have always displayed the professionalism, passion and accountability demanded by their profession. The Gillis team is well prepared, highly engaged and goal orientated. To this end, they have solidified accounts, delivered new bookings and helped to diversify our business drivers. As a result, they have earned the deep respect and trust of our organization. I would not hesitate to recommend Gillis for any organization that requires the highest levels of sales performance, execution and professionalism.”
Perry Batke -

CHA, General Manager, Denham Hospitality Organization

“Tammy Gillis and her organization have been nothing short of amazing! We have seen an approximate ROI of 10x at our BW PLUS hotel as well as a ROI of 4-5x at our BW hotel. The sales team is so dedicated, passionate and driven to deliver revenue to hotels. I just wish we started sooner with Gillis!”
Hitesh Patel -

President, Colorado Hospitality, Inc.

Contact Us for a Complimentary Sales Consultation

800.296.2962 | sales@gillissales.com

 

Sales is the life blood of your organization.

No business has ever succeeded without sales. Knowing where to start can be overwhelming.

The good news is, we can teach you how to do it OR we can do it for you.

Our services will help you sell more rooms, stand out and succeed in a competitive market, and train your staff to implement sales more effectively.

Interested to learn how this applies to you? Contact us for a complimentary consultation.

 




    DYNAMIC SALES SOLUTION

    CURRENT CHALLENGES

    OPERATING WITHOUT A PROPERTY LEVEL SALES PERSONINCREASED COMPETITION IN YOUR MARKETTOO RELIANT ON OTA'S TO PROVIDE BASE BUSINESSDIFFICULTY FINDING QUALIFIED SALES PROFESSIONALS TO HIRE