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.