Size and location remain important considerations
Size and location remain important considerations
Satyasuryawan, Contributor, Jakarta
The rewards of any marketing effort are seldom seen within a
short time. Though the end result is an increase in revenue,
selling is only a small part of the entire marketing exercise.
This is particularly relevant in the marketing of services, as in
selling function rooms of star-rated hotels.
Hotel sales are usually measured by occupancy rate as well as
revenue from the restaurants and function rooms. Normally, the
occupancy rate contributes more. However, during non-holiday
periods or when room occupancy goes down, the contribution of
function rooms becomes more vital. The function rooms of Hotel
Shangri-La -- located close to Jl. Sudirman -- for example,
contribute 70 percent of its total revenue.
A problem exists, however, in successfully marketing function
rooms, given the current fierce competition among star-rated
hotels. The competition is tougher when one takes into account
the giant-sized Jakarta Convention Center in Senayan. Size and
location of venue are certainly main considerations. However, one
has to remember that marketing is an ongoing activity to satisfy
consumers and meet their demands, which keep changing rapidly.
Better services and lower rates provided by competitors always
lure customers away.
Hotel management needs to be aware of consumers' needs and
desires. To meet different kinds of demands, hotel management has
to plan its specific target market. The market segment served by
star-rated hotels is clearly different to that preferring the
convention center, which is more suited to a larger number of
invitees. Star-rated hotels obviously have a certain image and
appeal to the organizers that opt for these venues. Apart from
luxurious facilities and its interior, each hotel has a
reputation for its special menus.
Today's customers and event organizers are quite smart and
demand more and better facilities. "The choices in the market are
many and they are very demanding," said assistant communications
manager of Shangri-La Hotel Tania Walla, in describing the fierce
competition in marketing the function rooms of star-rated hotels.
The marketing of function rooms is very much like that of
restaurants. Even a small mistake resulting in customer
dissatisfaction can mar a hotel's reputation. Understanding
consumers' demands is vital, for otherwise it might cause major
loss to a hotel's business and consequently they will never
return due to the disappointing service or food. Clearly, one of
the keys to successful marketing of services is providing
customers with a memorable and satisfying experience. That's why
hotel managements should try to know their customers more
personally.
"We offer alternatives and give suggestions to create
successful and memorable events. We also provide a wide range of
flexibility to ensure that their events run smoothly," said
Uraini Umarjadi, PR director of Hilton Hotel, Jakarta, in
highlighting the hotel's commitment to its customers.
Besides adding a personal touch, hotel managements just cannot
afford to passively wait for orders. If the marketing department
is not aggressive enough, then the hotel will certainly lose out
to its competitors. There are a number of marketing packages that
are offered by certain hotels. Hotel Sahid Jaya, for instance,
provides a specially packaged meeting-cum-leisure offer. Hotel
Borobudur, meanwhile, uses its close relationship with various
event organizers and travel agents who handle meetings,
conference and exhibitions. The hotel also works closely with
bridal companies for weddings, using a "one-stop shopping
package" concept.
"We add more elaborate benefits for the satisfaction of our
clients," said Maria Costafina, director of catering sales for
Hotel Borobudur Jakarta.
To maintain its customers's loyalty, the Shangri-La hotel
management constantly visits them and the hotel also continuously
introduces new menus so that the customers do not get bored.
Marketing is essentially about managing demands. When demands
go down, marketing managers should find out whether they can be
revived by reformulating or making new targets. Or, perhaps, as
Shangri-La Hotel does, change one of its product features: the
menu. Any new changes, of course, have to be communicated to the
customers. Creativity in marketing is also necessary, like the
uniques packages offered by Hotel Sahid Jaya, which combine
meetings for fathers with a holiday for their families.
During periods of irregular demand, hotel managers should also
offer various discounts or extra facilities at competitive rates.
In short, flexibility is the name of the game: in providing
facilities and in price.
Marketing managers of hotels should be alert all the time,
both during low demand periods and when the demand is at its
peak. This is not a simple task as it involves continuously
scrutinizing consumers' behaviour and their change of preference
as well as competitors' strategies. In order not to lose out to
competitors, each hotel management tries to find out what the
other hotels are offering and strives to outdo them.
On top of all these, each employee also plays a vital role and
greatly contributes to the hotel's reputation. Its promises would
come to nothing if, for example, the attitude of the front office
or kitchen personnel did not support it. Even the service of a
bell boy can greatly contribute to sales figures. Each employee
should note down the customers' reactions and pass this
information to the higher management. This way the management can
soon find out whether the event has been a success or failure.
This information helps the management to integrate the marketing
plans with the day-to-day operations for better results.
If each employee is actively involved in implementing the
marketing plan, it becomes easier for each to realize that
everyone is playing an important role and making an important
contribution to the entire business. Naturally, when revenues go
down, employee welfare is also affected. By involving each and
every employee in the whole marketing framework, it is also
easier for each to understand sales trends.
Apart from creativity, marketing needs time. Results of
marketing efforts cannot be seen in a short period and cannot be
evaluated according to sales figures.
Sales figures, according to a marketing guru, Philip Kotler,
are only "the tip of the marketing iceberg". In the case of
hotels, once a marketing plan is set, each part of a hotel's
operations should be consistent in providing its entire services
at a given quality level, including the food served. Each
employee taking part in the marketing process is required to have
a solid commitment. The level of customer satisfaction is the
measurement gauge. To satisfy customers is a major task that
cannot be performed overnight.