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Outsourcing Sales In The Hospitality Industry - Can It Work?
- Door Vineeth Purushothaman
- Geplaatst 10-02-2008
- Business Management
- nvt
Vineeth Purushothaman
Vineeth Purushothaman is a strategic sales specialist with over 15 years of hospitality industry experience. Until last year, he headed Global Sales Development for Le Meridien hotels and currently runs Hospitality Sales Solutions. You can find out more at <a href="http://www.hospitalitysalessolutions.co.uk" title="http://www.hospitalitysalessolutions.co.uk" target="_blank">http://www.hospitalitysalessolutions.co.uk</a>
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Sales representation companies and GSA's - are they a boon or a bane? Can they be as productive as your own salesforce? Everyone agrees that they are a necessity but no one can really agree on their effectiveness and efficiency. And having dealt with GSA's from the hotel side until recently, I have found that getting the best out of them consistently and optimizing results can certainly be challenging.
Why does this happen and are there viable solutions?
First of all let us look at the reasons why a professionally run hotel company requires or uses sales representation in the first place. The most common reason is usually the high costs of accessing new and distant, but lucrative markets through a sales office of their own. This involves the formation of a new company entity and additional legal requirements followed by extensive training of a local expert as well as capital costs involved in setting up a new office.
Except for global corporations, many small to medium sized businesses resort to using an already existing platform in these 'far and away' markets. And these existing platforms are the GSA's or sales representation companies who are usually present in the target market and have a sales force able to sell multiple products to a varied client base. Many of them have a travel agency function attached, which means that they can directly make individual reservations as well. So far so good - a ready solution at the right place at the right time.
What usually goes wrong?
One of the biggest challenges is getting your outsourced representative to live and breathe your brand. So a customer may very well feel the discrepancy in the quality and standard of services received while dealing direct with the hotel company and with the representative.
Another related area is relevant product knowledge and training. This in turn then causes a gap in communication and achieving full potential while working together to sell the same product and services.
Cultural differences can also introduce yet another twist into how deadlines are met and communication lines are maintained.
However, above and beyond all this is the question of whether the amount of money, time and efforts in managing such an outsourced relationship is really worth it, in terms of achieving improved brand presence as well as increased sales.
What makes an ideal sales representation organization?
Of paramount importance is the transparency with which the sales representation company operates in terms of the sales activities undertaken and committed to, as part of the agreement between the two parties.
This in turn calls for adequate and open communication channels. A style of functioning which most closely reflects the goals of the hotel company represented is important to achieve the common targets.
Of great importance would also be the partner approach to growth and all the work undertaken should reflect this underlying need. From a hotel perspective, this means that they look to sales representation companies to not only access new markets on their behalf but also to contribute new ideas and routes to achieve accelerated sales.
Unfortunately, a conventional sales representation organization misses this point too often leading to a lot of missed opportunities as well as resulting in dissatisfied clients.
These days most companies are looking to holistic growth and this requires holistic solutions which do not just cater to the basic needs of clients but to work together as partners in growth - and the ideal sales representation company will do just that and provide the ultimate platform for their business partner to GROW!
Why does this happen and are there viable solutions?
First of all let us look at the reasons why a professionally run hotel company requires or uses sales representation in the first place. The most common reason is usually the high costs of accessing new and distant, but lucrative markets through a sales office of their own. This involves the formation of a new company entity and additional legal requirements followed by extensive training of a local expert as well as capital costs involved in setting up a new office.
Except for global corporations, many small to medium sized businesses resort to using an already existing platform in these 'far and away' markets. And these existing platforms are the GSA's or sales representation companies who are usually present in the target market and have a sales force able to sell multiple products to a varied client base. Many of them have a travel agency function attached, which means that they can directly make individual reservations as well. So far so good - a ready solution at the right place at the right time.
What usually goes wrong?
One of the biggest challenges is getting your outsourced representative to live and breathe your brand. So a customer may very well feel the discrepancy in the quality and standard of services received while dealing direct with the hotel company and with the representative.
Another related area is relevant product knowledge and training. This in turn then causes a gap in communication and achieving full potential while working together to sell the same product and services.
Cultural differences can also introduce yet another twist into how deadlines are met and communication lines are maintained.
However, above and beyond all this is the question of whether the amount of money, time and efforts in managing such an outsourced relationship is really worth it, in terms of achieving improved brand presence as well as increased sales.
What makes an ideal sales representation organization?
Of paramount importance is the transparency with which the sales representation company operates in terms of the sales activities undertaken and committed to, as part of the agreement between the two parties.
This in turn calls for adequate and open communication channels. A style of functioning which most closely reflects the goals of the hotel company represented is important to achieve the common targets.
Of great importance would also be the partner approach to growth and all the work undertaken should reflect this underlying need. From a hotel perspective, this means that they look to sales representation companies to not only access new markets on their behalf but also to contribute new ideas and routes to achieve accelerated sales.
Unfortunately, a conventional sales representation organization misses this point too often leading to a lot of missed opportunities as well as resulting in dissatisfied clients.
These days most companies are looking to holistic growth and this requires holistic solutions which do not just cater to the basic needs of clients but to work together as partners in growth - and the ideal sales representation company will do just that and provide the ultimate platform for their business partner to GROW!
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