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Local Sales and Marketing Reference Guide |
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Hotels
The hotel market segment offers many different opportunities to develop the local market. As with the replacement industry, in many cases a person from the hotel is recommending your company for their customers’ car rental needs. The hotel market may or may not be a big profit source for a location, depending on the area. If the location is in a heavy travel or tourism market, a salesperson who focuses exclusively on hotels may be needed. Both the hotel staff and the person renting the car are your customers. There are a number of ways to work with hotels, the most common being a referral program. Pick up service at each of the hotels is a necessity to be competitive in your market. We will discuss the following methods to capitalize on the hotel industry. Not all of these methods will be available at every hotel. You need to be aware of different opportunities at different properties.
This segment’s customers fall into two main areas. Those who know they need a car before they reach their destination and make reservations, and those who wait until they get to their destination and decide they need a vehicle. Different tactics are used to reach the customer depending on the situation. Referral Program An important part of calling on hotels is to develop a good rapport with the bellmen and concierges. A referral program is a process of providing an incentive/commission for concierges, bellmen and front desk employees. This program is used to attract the customers who did not reserve a car before they reached the hotel. The bellmen are often asked by the hotel’s guest to recommend a car rental company and in turn receive a commission from the company. The referral commission will vary from market to market depending on the competition. There are two basic types, a flat fee or a percentage of time and mileage. For either, you should establish an accounting system to verify all referral fees paid. Depending upon your situation you can develop a manual or automated system. Below is an example of a manual system. A referral log should be developed and kept current by the salesperson. This is the type of information that it contains. REFERRAL LOG
When the guest brings his receipt to the counter, the CSR keeps the receipt and collects them in a predetermined place. The salesperson collects the slips, enters them into the log and pays the bellmen. This can be done in any time frame you choose (daily or weekly) but remember, your competition is out there on a daily basis. Not paying in a timely manner could cost you the account. Attached to the log is the slip that the customer brought in. A cross check between the slips and the log to ensure equal one another. Referral books may be ordered by faxing the order form located in the back of the section. Another method is to pay the bellmen as you go to pick up the customer. Still use the receipt and log system, but now the counter is paying the referrals, usually from a petty cash fund, which may create an added responsibility of cash management. Automated With Bluebird you can eliminate the manual log, but you should keep the referral book. With source referral and agent I.D. you can capture the information at the time of rental and display reports through the interface abilities. These reports will show which hotels and bellmen referred business to you; however, you will still need to manually account for referral fees paid. Hosting a Concierge Party A concierge party is a great way to build loyalty and it can be done without incurring a lot of cost. One way of doing this is to go to a new restaurant in town and tell them you can bring in a room full of concierges. They should be very interested in having this group of people visit their establishment. They are familiar with the business and the concierges can refer the hotel guest to the restaurants. Restaurants often pick up the entire bill and the concierges have a great time, while Thrifty comes out clearly ahead. Promoting the Program The hotel will be of great assistance in promoting this program. There are a number of ways to go about this. Hold an "open house" at the hotel for accounts in the area. Working with the hotel, develop invitations to local businesses inviting the travel decision maker to become familiar with the property. If possible put a business card in the room and have raffles for free car rental days and nights at a hotel. An evening like this will get you a lot of leads/business. Your best opportunity to obtain the support of the sales department is to have a location on-site or offer pick-up service. The following are a few examples of the type of programs you could develop:
Let’s walk through an example of how the transaction could work. The customer checks in at the front desk with a car/room package of $99.00 on the hotel’s check-in form. They go through the normal check-in procedures for the room, then go to the car rental counter where a rental agreement is opened with a credit card or billing number, but no dollar amount except for fuel, PDW, etc. The hotel collects payment at check out and you bill the hotel for the car rental. Group Business If the hotels you work with have sizable meeting spaces, they probably have a program designed to attract meeting planners to their property. We will discuss this issue in further detail in the Meetings and Conventions section of the reference guide. Generally in hotels, the groups contacted are through companies (small meetings) and are the same contacts as for their commercial business. Be sure you address this area with the hotel’s sales department. Signage and Phones Regardless of whether you’re on-site or not, the more exposure you can get, the more business you will get. Direct line phones provide an opportunity to not only get exposure, but are a convenient way for guests to make a reservation. There may be several other opportunities to get exposure in the rooms, such as:
Hotel Reservation Usually if the property has a local sales reservation center, you need to be on-site to have them promote car rental. Generally, what they can do is ask a customer who calls if he/she will need a car rental. This is where you will book the packages, because it is the phone number most likely advertised. Do promotions and hold contests with the reservation center. Get them involved and excited about your products and services and you will see more business. Shuttle Buses Many hotels offer shuttle rides from the airport to the property. Look into an opportunity to provide vans to the hotels on a permanent or temporary basis for shuttle transportation. Trade Outs A trade out is when you allow the use of one of your vehicles for something in return. The most common example is to use a trade out as rent for your on-site car rental location. When you get the general manager of a hotel in your vehicle, you get his/her support. When you have the support of the general manager, you have the support of the entire hotel, but you do have to work at it. Attend manager and employee meetings, get involved. Donate free car rentals for their annual gatherings. Don’t be misled that just because you have a location in a hotel, you are getting all of the business from that hotel. On many occasions, sales reps have gone into hotels while our competitors are in the lobby and paid the front desk or concierges referral fees. Hotel Promotion Ideas There are several ways to work with hotels in your area to increase business. Take a look at some of the examples provided that other Thrifty locations have used in the past. Think about how you can implement them into your own market. Also included is an example of the hotel referral confirmation with an order form for the booklets. |
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