Unit II

ROOM SELLING TECHNIQUES

Introduction
The sales function has become an important and vital part of front office work. with more and more
companies entering the hotel and catering field, the public now have a much wider choice ,so it is essential for
an establishment to present and attractive and economic product. Hence it is very important that we are so
geared that we are able to sell the rooms at all the time, and if not we are able to sell maximum number of
rooms at all the time & not only that we are able to sell them at the optimum revenue generation situation.

What actually a hotel is selling to its customer/guests? Is it a product such as room, or is it services? Is it
attention and pampering or is it the facilities and amenities, or is it both service as well as product? Actually a
hotel is different things to different people. To be able sell better a hotel sales person must understand the
specific needs of the customer

Example-A receptionist shall be able to sell a room to a walk in guest only if he is able to judge and assess the
requirements of the guest.

Elements of Marketing-

Marketing Consists of activities that are concerned with attracting the customers and further are able to
motivate them to buy. Marketing basically has three elements:

A) Product
B) Pricing
C) Promotion
Product: Anything that is offered for sale is a product for example a room in case of hotel.
The Hospitality product in fact here is not the physical room but is the experience created by the
physical surrounding and all the associated services that the hotel staff provides during the guests stay.
Pricing: The Main basics of pricing are costs & Competition. The term cost in relation to room means
construction, furnishing, maintenance and operation cost, while Competition means, the price study of
other Hotels of the same category and with same guest and product profile. The Pricing usually
depends on distribution channel and end user also.
Promotion: Promotion basically means attracting more and more customers.
Promotion activities are usually classified into four basic groups:
i) Advertising- attention of buyer by signboard, print media
ii) Public Relations-this include press releases, general speeches of awareness of the product and
charity sponsorship.
iii) Sales Promotion-promotional activities slides presentation or videotapes
iv) Personal Selling: efforts made by the staff by their conversation s top customer to persuade
customers to buy.
Personal Selling
Each & Every employee of the hotel is a salesperson, and it is not only the reservation section or marketing
and sales division or the front desk staff who is responsible for the promotion of room sales. All activities be it
opening of the door, carrying of luggage or registering of guest or installation of luggage and guest in room,
have opportunity to sell the hotel to the guest. Every action and word of the employees of the hotel in the
presence of guest is considered as SELLING.
Personal Selling involves the following processes follow:
Sales preparation: A thorough knowledge and understanding of the hotel product lines benefits and
features is very important for sales team and only on the basis of the this , a presentation can be prepared.
Knowledge of market and personalities involved: The Salesperson must research Product Knowledge and
then only he will be able to make a good sales offer to the prospective buyers.
Establishing Rapport: For Communication to occur a feeling of mutual trust must be established and for this it
is important that an understanding is established between the sales person and the buyer. People prefer to do
business when they feel comfortable with the people with whom they are dealing. This trust band is called
rapport. The establishment of rapport can be done both by verbal and non verbal communication. Establishing
a rapport requires taking time to establish comfort zone in which the buyer and seller feel at ease with each
other. Effective sales person should ask questions & be a good listener. Asking questions indicates interest in
the client and listening to answers given by the prospective buyer, indicates respect and attentions to the
client’s needs.
Determining Client Needs: It is important and critical in any selling activity. This Process is called qualifying
the client and involves careful accurate analysis and sensitivity to the personal, social and financial aspects of
buying behavior. The Guest needs can be studied under following headings.
1. Presented Needs: It is the apparent need that is initially expressed by the client. In case of a
company or an organization. It is important that the sales person understand the nature and
size of the company and the event for which the booking is needed.
Further the group rates and availability of room are based on seven factors:
 Preferred room category and bedding
 Arrival & Departure dates
 Estimated Number of rooms
 Estimated number of guests
 Function space required (Party Room etc.)
 Type of function (to decide about the type of party room)
 Budget
The Presented needs of users are usually less complex and are based on four main factors-
 Arrival and departure dates
 Room occupancy or preferred bedding
 Preferred room location or type
 Extra options, meal plans, or packages
2. Underlying Needs: Also called hidden needs, these may not be immediately apparent but have
an influence on clients satisfaction. A common underlying need of both users and organizations
is a monetary benefit. Regardless of clients stated objective, the sales manager or reservationist
must be capable of quoting competitive rates while also satisfying the clients priorities.
3. Expandable needs: In addition to presented and underlying needs many clients also have
expandable needs. An expandable needs also called exchangeable need. An expandable need is
one that can be traded or supplemented. Occasionally a client’s presented need can be
expanded or exchanged by stepping up. Another way to accommodate a clients expandable
 needs is by adding on service. An important responsibility of the hotel staff is to educate guests
about services, facilities and product offered by the hotel .These “add on product lines”
enhance the groups event and add value to sale.

Education Clients: One of the obstacles as explained earlier is knowledge. This may be over come by educating
the prospective buyer. The process of presented the benefits of the product in such a way that it fulfills the
two needs(underlying and presentable) of the guest is called educating the client.

PRODUCT KNOWLEDGE (Know what you are selling)

For efficient and profitable selling “Product Knowledge” is essential.
Product Knowledge for a receptionist is following:
The Receptionist is selling the whole hotel. So the product knowledge in this case will be, rooms, services and
amenities and facilities:
1. Various types of rooms-
Facilities, situation, amenities, etc. and the U.S.P of rooms
2. Services-
Bank, T.A. Courier, IRS, CRS, etc
3. Facilities:
Medical, shopping, travel and tour, sports, conference facilities
Book and magazines, etc
Modern trend is, know the product you are selling by your own firsthand experience
4. F & B outlets and banquets
5. Meeting abs exhibition facility
6. Entertainment
7. Transport Service
DIRECT CONVERSATION TO SALES LEAD
Sales Lead: Utilizing every opportunity that the receptionist get during conversation with the guest to sell
the hotel by providing information about hotels services, facilities and amenities and product to him,
Because:
 Customers may not always ask for what they want
 They may not realize what is available
 Products and services may have changed since their last visit
 They may not have made up their mind
 They may be embarrassed to ask
 They may have forgotten what is available
So in order to create sales lead you may need to:
 Tell them what is available
 Describe what is available
 Suggest or recommend
 Ask what they would like
 Offer alternatives (if needed)
UNDERSTANDING WHAT YOU ARE SELLING
Try to understand why customer is making an inquiry or visiting the establishment.
Selling will become easy when the receptionist understands his:
 Culture (nationality,etc.)
 Business standing (position be holds in working life)
 Social class( His perception and experience of what is socially acceptable)
 Group influences (desire to be seen to be doing the right things)
 Colleagues friends and associates
Overcoming obstacles to sales:
Various factors which may be considered as hindrance to sales may be summarized as the prime and the most
important is-
 The Price- Price is biggest obstacles to sales. Even though the price may be Competitive , yet when it is
told to the prospective buyer, he gets a psychological feeling that it is high. While quoting the price the
receptionist / sales person should give it in such a way that the guest gets a feeling that he is getting
product for a reasonable price.example- 4990/- instead 5000/- plus taxes.
 Space and Time- the space and time obstacle are important in case group sales allotment is not
enough to accommodate the requirement of the organization
 Knowledge- when the client does not have enough information about the product and hence is
hesitant to commit then this is termed as knowledge obstacle.
 Value- when the client does not agree to the price and object to the price , then is called value
obstacle finally.
 Ownership- when the organization is not willing to pay advance (requested by the hotel ) than the
hindrance is termed as ownership obstacle.
It is important to remove these obstacles for making a sale and this can be achieved by the efforts of the sales
person by his focusing the attention of the prospective buyer on the benefits of the product and still if he is
not satisfied then by making alternative offer. The positive attitude of the seller about the obstacles makes it
easier to deal with them.
Features and Benefits
Features- These are general characteristics/traits of a product.
Benefits- When a feature if of some use to a prospective client then it is benefits to the customer.
For example- A hotel having secretarial service and swimming pool both. Now swimming pool is just a
features to a business traveler while secretarial service feature is also a benefits to him. At the same time the
secretarial service is just a feature for a sportsman while swimming pool will be benefit for him.
-A feature can be perceived as negative or positive, whereas a benefit is always positive
- Features deal with the product / services where as benefits deals with customers needs and wants.
-A features can do without any reference to the customers’ needs ( wants), where as a benefits always has
reference to customer needs and wants.
-A client / guest purchases a product because of the benefits he drives from them and not because of the
feature , for example the business man takes room in the hotel because of the benefits he would derive from
sectarian services, restaurant not because of swimming pool.
- A feature is of no use unless it is used as a benefits by the guest. For a tennis court (feature) of a hotel is of
no use unless utilized by the guest.

Objective
The objective is to understand the difference between features and benefits and to translate the features
of your product into benefits which should be fact finding as well as feel finding
1. Fact finding questions. Demanding a yes or no answer
i) What type of room you want?
ii) Which date you are arriving?
2. Feel finding questions. Try to find out emotion of person
i) You enjoy playing golf?
3. Why is it necessary to know fact finding questions early in conversation? It gives the basics first.
4. Once we know some facts is it necessary to find feel finding questions?
Yes, so that the features may be converted into benefits.
5. List some features/facts of a typical package.
T.V. fridge swimming pool, indoor and outdoor games etc.
6. Try and convert the above features into benefits for a customer.
7. Features are objectives (factual)?
8. Benefits are subjective (open to interpretation)
9. Features can be presented without any reference to customers want/needs.
10. Benefits must deal with a customer's wants/needs.
11. A feature of your hotel can be perceived as a benefits or as a negate
12. Features focus on a product while benefits focus on a clients need
13. People don’t buy product because of its features but because they perceive certain benefits that
satisfy their needs or wants
14. Your hotel may have best feature in market but if it is not perceived as satisfying guests needs and
demands we will not enjoy this business
15. You need to be a catalyst in converting your features into benefits.
16. To make an effective presentation of benefits , we need to understand four basics criteria-
Understandable
Interesting use of words, pictures, stories, analogues, colourful words help in painting a picture
To the guest of the product.
Believable
Persuasive
17. Persuasiveness is the beginning of a close.
Sales Presentation
Sales presentation has the following characterstics
- Understandable
- Interesting
- Believable
- Persuasive
PREGNANT PAUSE
Sales person also earns the right to close if there is state of “ pregnant Pause”
It is stage when the guest is concerned about the amount of benefits he is going to obtain from the
features. For example- a corporate client has been given the talk about the executive club facilities of a
hotel by a sales person. After the client is convinced, there is a pause and then the sales person knows
that he can close.
CLOSE
The concluding phase of every sale is known as the “close” when you ask for business you are
presenting close. It is something which elicits a positive response from the guest. Process of ending the
transaction at the end of a well carried out sales presentation . it is “zeroing in” on the sales. “Close is
not an abstract term “ A close is binging a guest to the point that you make him buy and do the
business now. It is a realistic and desired step in a sales presentation.
Steps of close:
Assumption Close: It is one where there is no need to sell. The customer needs it and is willing to buy
it.
For Example- a customer comes to the counter with a “confirmed reservation”. There is no need to
sell. Similarly when the prospect know about the product and asks for a specific room.
Choice Close: offering the customer a choice.
For example- “would you take the American plan or modified American plan, sir”? and the closing
the sale. Another example can be asking “sir, do u want room of 1st or 5th floor?
Narrative Close: A detailed narration of the features of the hotel and benefits they provide i.e.
explaining to the guest the facilities available in the hotel.
For example- we have 3 specialty restaurants for your choice, an indoor heated pool, 24 hrs room
service etc.
“let me suumarize , you want a room on top floor, away from elevator, and facing swimming pool,
Sir”?
Minor Point Close: Here the customer has a small request such as a wheel chair, a baby cot, etc.
meeting to these demands of the guest and finally closing the deal. Also small obstacles in close like
billing procedure for the guest, etc.
Physical Action Close: Closing the deal by asking the customer to do something specific like, ‘please
send advance for 3 days by the end of week’ (i.e.) to say “send me confirmation sir “ and you send me
deposit sir.
Asking the customer: Actually asking the customer “would you like to buy ?”
For example- sir would you take the room if we offer you 3% discount?’
EARN THE RIGHTS TO CLOSE:
1. You earn the right to close when needs of the customer can be meet with the features and benefits
of the organizations that is when you are able to convince the guest that your features meets his
needs.
Example – a businessman (customer) walks up to the hotel and asks for a room and at the same
time requests for early breakfast, secretarial service, telephone facilities, etc.
Hotel earns the rights to close if it has such facilities otherwise not.
HOW CAN THE SALES MAN CONVINCINGLY SHOW THAT WE HAVE WHAT THE CLIENT NEEDS?
The following words, EESO and AIDA show the essence of this discussion
E- Explore Needs A- Attention
S-Spark some interest (describe the benefits) I- Interest
S-Show and Explain D- Desire
O- Obtain action A-Action

WHEN WILL THE SALES MAN KNOW WHEN TO CLOSE

a) When the customer has no further question
b) When there is nothing more to tell
c) When the guest says “O.K sounds good to me”
d) When there is a pregnant pause
e) When all the benefit have been explored
Explain the possibilities of close with questions, any “No” Means more work is required to sell.
Create an opportunity to close: Summarize the benefits .you can ask if there are any more questions? Yes, by
creating a situation when your benefits matches his need. Closing is merely the last step in a well organized
and well presented sales story told to a guest.
Follow Up:
Selling does not end with the close. Follow up is essential to making clients happy and keeping them happy
over a long period. Happy clients will be a repeat business, while unhappy and disgruntled ones will never
return and they will damage the hotel’s reputation by speaking ill about the hotel to their friends, relative
and known people.
Marketing Communication
This basically means how the prospective buyer is made aware of production. Effective hospitality marketing
requires the knowledgeable evaluation of communication , medial along with their related cost and
effectiveness.
Advertising is any printed or spoken message that praise a business or persuades customer to buy a product.
Advertising has 4 basic objectives:
1. Spread awareness
2. Educate the client
3. Create an image of superiority over competitors
4. Stimulate response
There are various advertising media that help in achieving the above mentioned 4 aspects of advertising:
TELEMARKETING: Selling by phone or fax transmission. CRO plays an important role in making a guest aware
of the benefits and features of the product over a large distances. They are cost effective and through this
hotel has a large reach.

HOTEL DIRECTORIES – This media reaches of wide audience at almost no cost. Hotel directories are of three
types 1. Consumer hotel reference ( these list hotel offereing 1 hour sold to general public)
1. Travel Industry Reference ( Publications that are used by travel agents , tour operators and airlines
personnel)
2. Chain Directories ( These are directories that are published by large chains for their own properties)
TELEPHONE DIRECTORIES – Many hotels advertise in telephone directories and yellow pages and though thus
this hey reach all households at very low cost but only in the local city and does not reach out stations
prospective buyers who normally makes a good percentage of business.

BUSINESS PUBLICATION – Advertising through business publication can be beneficial in getting business
traveler client for hotel.

NEWSPAPER - Advertisement in local as well as outside newspaper will be useful in attracting budget as well
as affluent class client depending upon the types of advertisement.

MAGAZINES – Advertisement both in trade and general magazines will also get a good business for the hotel.

CO-OPERATIVE ADVERTISING – It is a new concept and in this case the hotel with airlines and travel agent
extra together put up in advertisement in yellow pages, trade magazine etc. for a package tour of 3 days 4
night stay , + airline fare + fare continental bf + transfer and sightseeing etc. for a fixed price. All the agents like
hotels airlines and travel agents etc share and bear the cost of advertisement .

POINT OF SALE ADVERTISEMENT – An internal efforts to promotes the hotel . Poster in lobbies and elevators
etc. for promoting lounge and restaurant etc. menus, napkins, matchboxes with hotel names and logo’s are
used.

DIRECT MAIL/ MAIL SHOOTS – Sending letters to the guest particularly to repeat guest and also to regular
guest to update them with the latest additions in services and product of the hotels. The disadvantages is that
mailing list quickly becomes outdated and hence the expenditure on mail may be waste. This can reach a
longer audience but the cost is high.

ELECTRONIC ADVERTISING – This group includes advertising through electronic media such as radio, television
and internet this can reach a large audience but the cost is high.

Front Office Selling Tips –

The Procedure used to sell a room –Basically three ingredients are needed to make a sell
1. Product
2. A customer
3. A salesman
The term of knowledge of product for a front office person not only includes the knowledge of room
(location, type, size, furnishing and rate etc.) but is selling the hotel in totality. It is for the front office staff to
make the guest aware of the other services, amenities and facilities etc. to a prospective guest.
- The basic concept of selling is to relate the values that the business offers to the values demanded by its
customers. Productive salesmanship is very essential for this.
-The productive salesmanship involves a continual exchange of values.
- The values in terms of a hotel product room covers usually, convenient location, distinctive accommodation,
good ambience and atmosphere, and courteous service.
The productive salesmanship is the exchange of values plus a room in such a manner that a continuous,
mutually advantageous relationship is established- the guest wants to returns again and again to the same
hotel because the receptionist in addition to a room has given his other benefits and values through his
personnel contact with him.

Telephone salesmanship-The person handling the telephone call is able to give a warn and courteous
telephonic reception to the caller, and is able to convey the same through his voice, which become sales tool.
Since the prospective guest is on telephone the receptionist/reservationist must be able to communicate to
the prospective guest the product or service in such a way that the guest is able to perceive a picture of this
product which matches his requirement and is immediately ready to buy it.
Selling rooms to prospective guest who is concerned about the price – a guest who is not ready to pay more
but at the same time expecting a superior product is very difficult job, and hence it becomes very important
for the receptionist to picture or describe the product when quoting any rate. The receptionist should not
begin with quoting a lower rate, and he should offers a range of product with ranging price and should allow
the guest to make the selection. Don’t under sell, try up-selling , if the receptionist is a good salesman and is
able to high light features and facilities he would always be able to make a higher sales, while up selling be
careful that you are not pushing the guest towards a higher rate because if the guests gets a feeling that he
has been cheated then although the hotel might get the higher rate sale it but will not get the repeat business.
Selling during rush hours –
Usually hotels have set pattern of arrivals loads, for example in case of an airport hotel the load of the guest
usually is in night and there is heavy load of arrivals during night periods. The selling ability and skills of a
receptionist, to an unannounced guest, are put to test in such rush hours. His patience with the guest and how
calmly and efficiently, he is able to deal with such guest is of great importance. The organizing capability of the
staff is also important. Give guest your individual, undivided attention. In order t be able to attend to
unannounced guest efficiently the hotel may open a new and extra arrival registration counter for the heavy
check-ins.
An undecided guest.- this category guest provides an excellent opportunity to the receptionist to up-sell the
room.
When such a guest arrives without any prenotion it will be easy for the receptionist to convenience him to buy
an higher priced room.
For such a guest, the receptionist should first try to find out why is he in the city. This could provide him lead
for promoting certain types of accommodations . Offer the guest a variety of rooms, explaining the features
and merits of them, Always promote a higher rate accommodation first, as it is easier to back down somewhat
rather than to try to sell up.

Sales and Marketing teams

For improving sales of rooms it is important that a large hotel has a separate marketing and sales divisions
which usually headed by a marketing and sales director , assistant sales director and a team of executive
marketing executives. Marketing and sales director is the highest rating officer of marketing division. He is
responsible for supervising , evaluating and coordinating the performance of staff of the department. Makes
both short and long term marketing plans and strategies. He establishes the goals of the department he holds
regular meeting with FOM , Reservation Manager, Food and Beverages Manager and General Manager for
marketing strategies . The hotel face in the market is the team of sales executives which covers the market.
Sales managers usually behind the scene. Size of a team will depend upon size of a hotel and business of hotel.
Assistant Manager is a link between executive and Managers. He must have sharp intelligence and product
knowledge which includes technical knowledge also must have basic attributes.
Below are the steps involved in making sells with ethical code.

Profile of a salesmanship –
1. Courtesy – combination of friendliness , politeness, tempered by consideration, respect and interest in
the other person
2. Deportment – Physical posture
3. Appearance – Dress sense
4. Knowledge of product and services- Learning to tell sales stories.
5. Willingness to work – That is continuous work.
6. Personality –Sincerity and all other above mentioned attributes.

Ten Commandments of a good sales persons-

1. Speak to people
2. Smile at people
3. Call people by name
4. Be friendly and helpful
5. Be cordial
6. Be genuinely interested in people
7. Praise
8. Considerate with others feelings
9. Be thoughtful of others feeling
10. Be alert to give service.

Salesman’s By Laws
A. Common faults to guard against in conversation.
B. How salesman kills sales.
C. Points to remember in selling
D. Faults to guard against in the sales presentation.
E. Physical faults.
A. Common faults to guard against in conversation
- Don’t imitate any style of speech. Be natural.
- Monopolizing the conversation or trying to direct or control the trend when the prospect wishes to
direct the flow of talk.
- Interrupting the prospect
- Lacking attentiveness when the prospect is talking.
- Wasting words(i.e.) talking without saying anything.
- Bringing subjects in conversation that have nothing to do with the purpose of the call.
- Talking too fast, rushing the sales talk conversational high pressure
- Talking with chewing gum or cigarette etc. in the mouth.
B. How salesman kills sales
- talking too much.
- Failing to stick to a planned sales presentation.
- Getting into an argument with the prospect.
- Failing to answer question that prospects raise.
- Knocking the competitor.
- Failing to have a sales argument to prove their product is worth more money when the competitors
quote lower rates.
- Not asking the prospect to give a definite order.
C. Points to remember in selling
- The prospect is interested only in himself and what your services can do for him.
- Reflects real enthusing for your merchandise always agree with the customer. Even if he raises an
objection you know is not true, say “Yes”, “But” AND Tactfully explain the other side of the story. Never argue.
- Listen carefully.
- Never apologies for a calling on a prospect. Lead him to think that this is a special call and you came all
the way to his house just to see him. Never tell that you just dropped in
- Use references and use the names of important persons or organization who are using your product or
service.
- The prospect who is tough can be a best customer. Don’t give up on first call. The customer who is
hard to get along with. Will invariably turn out to be one of your most loyal customers.
- Familiarity breeds contempt. The customer wants to be left on a pedestal at least at least a shade
above the salesman. Don’t try to be pally.
- Never show anger even if he infuriates you. You are there to get his business.
- Keep record of what happened on the last visit of your prospect. What transpired on each follow up.
You can stay away from possible sore areas or hav3e the answer ready for an objection you might have failed
to answer satisfactorily before. Have confidence in yourself and think of the successes you have already
achieved and establish a success pattern.
D. Faults to guard against in the sales presentation
- Never make a promise which you can’t fulfill. There is no surer way to kill repeat business than to fail
to live up to promise.
- Don’t try to be tricky or unusual. The “solid, stout. Feet” on the ground approach is always best. Don’t
try to fool the customer.
- Don’t try to be a big shot. Not matter what your position is in your organization. Don’t try to impress
the customer with your importance. He is the only important person is the deal.
- One strong sales point is better than a dozen “so-so” sales points. If your product has one outstanding
quality, emphasize it.
- Don’t hope that the prospect will hand an order, Plan to build upto actual point of signing an order.
Don’t leave the actual order for sometime in future.
- Don’t loose your nerve. Ask him to buy.
E. Physical Faults- this grouping lists things which can be corrected, but which are sufficiently glaring
faults in a salesman to nullify or damage his sales presentation no matter how good his sales “Pitch” might be.
- Sloppy clothes.
- Decayed teeth.
- Fingers heavily stained with nicotine.
- Offensive breath.
- Shifty eyes.
- Serious grammatical errors.
- Poor carriage, drooping shoulders, hollow chest. Any physical action that reflects laziness or
sloppiness- slumping when standing sprawling out in chair when sitting, walking lazily.
- Speech impediments.
Usually the job of a salesperson covers the following three main areas:
A. Product (which he is selling)
B. Process (of selling).
C. The result that he must achieve.
The two of the most important out of these three seems to be the selling process which consumes most of
time and ultimately the result that he must achieve, but both these factors depends upon the product. Apart
from spending most of his time on developing selling skills he should spend his time on helping the production
team on product development, product analysis and also on forecasting of results. There never is either a
perfect customer or a perfect product and it is the job of the sales man to bring together the product and the
customer with whatever imperfections there might be, at the best possible price.

Service and Service Selling

- Service is something that is a feeling and hence is essentially intangible and cannot be seen but can be
felt only.
- Does not result in ownership.
- Service is something which is offered by one party to another.
- It may or may not result in, or be tied to a physical product.
- It should provide satisfaction to a guest. i.e. should provide satisfaction to a guest. i.e should provide
the buyer value for money.

Code of Quality Services

1. Greet the customer immediately.
2. Give the customer your undivided attentions.
3. Make the first and last 30 seconds, count.
4. Be energetic and cordial.
5. Be natural, not phony or mechanical.
6. Be the customer agent.
7. Think-Use your common sense.
8. Bend the rules sometimes (only in exceptional cases)
9. Stay up- Take good care of yourself.
Service standards are usually classified as, Superb service, O.K. Service., Bad Service
provided
Expected by
to the Expected by guest provided to guest Expected by guest provided to guest
guest
guest

Superb Service O.K Service Poor service

Types of Services - Various types of services can be classified in to following three groups.
A. A Tangible good with accompanying services - For example, warranties, repair and maintenance
service offered by the manufactures. The service provided by the product operator in terms of giving training.
B. A Major service accompanying minor goods and services - for example, airlines passengers buy
transportation service and arrive at their destination without anything tangible to show for their expenditure.
However the trip includes certain tangibles like airline magazines, ticket stubs souvenirs and food and
beverage served during the flight, while the air-hostess smile during the passing of food and beverage to the
passenger is service.
C. A Pure Service - For example a psychiatrist or lawyer who provides his professional guidelines for
future to the patient or client is termed as pure service, as no goods are exchanging hands in such cases.

Unique Characteristics of Service

- Intangible - unlike physical products, in most cases they can’t be seen, felt, tasted and smelt before
they are utilized.
- Inseparability - Because of intangibility services have to be produced and sold simultaneously.
- Variability - service are highly variable because they depend on
 Who provides them.
 What are the frame of mind of both server and service.
 Where are they provided
 Environment in which they are provided.
- Perishability –Highly perishable and can’t be stored.
- Fluctuating Demand – most services experience fluctuating demand based on faction such as season,
day of the week, hour of the day.
- Customer Involvement- Customer involvement in the production fo service is very high
- Inability upon which the service strategy will depend – if temporarily produced the service cannot be
recalled corrective action cannot be taken on the service that has already been produced.

Factors upon which the service strategy will depend

a. Nature and type of service
 Accommodations (quality and Quantity)
 Comfort (A/c, T.V., Fridge, Carpet, Telephone,etc.)
 Décor (Colour, articles kept in a room)
 Size (single, double a etc)
 Location (Floors, view outside the room)
 Furnishing (Bed, tables, chairs,etc.)
 Special needs (hard bed
b. Guest and his needs-
 Who is the guest?
 His needs and wants
 Nature and types of guests(business class, tourist class, conference and meeting customer etc)
 Security and safety
 Confidence in the hotel.
 Hygiene and whole some meal
 Caring and helping staff
c. Location of property
 Down town
 Uptown-suburban
 Resorts
 Transit . etc

Some Example
1. In Hongkong even if the taxi driver does not know English, his endearing smile and flickering eyes and
nods speaks of welcome and guests become comfortable. Customer
2. Smiling lift operators sometimes even escorts the guest in the corridors.
3. Staff morale is high and staff has high self esteem

The Service Pyramid

System

Basic Concept- People Service Strategy

 Customer as basis for defining our business. This means that we define the objectives of our business
on the basis of our customers’ profile and needs.
 Business exists to serve the customers that is to say that we are in existence only because of our
customer to whom we have to serve and satisfy his needs.
 Organization exists to serve the needs of people who are servicing the customer.
 Service model is based on the assumption that we have a clear conceptions of the motivational
structure of the customer, what the customer wants and what has motivated him to buy and his main motive
in buying this service.
Customer perception – the only reality in the hospitality business
Model Explained
 Each line in the model represents an important dimension of impact.
 Line connecting the customer and the service strategy around the core needs and motives of the
customer.
 Line that flows from service strategy to t6he customer represents the communicating process of the
strategy to the market-customer has to know it for a fact.
 Line connecting the customer and the people of the organization represents crucial point of contact
and the continuing interplay/interaction. This interplay present greatest opportunity for gian/loss and for
creative effort.
 Line connecting customers to systems that are supposed to deliver the service systems should be
designed keeping the customer in mind and clearly avoid mediocrity and dissatisfaction.
Three outer lines of the service triangle highlights interplay between:
1. System and people - even if people are highly motivated and want to give excellent service are
presented because of nonsensical administrative structure procedure-illogical task assignments, regression,
work rules or poor physical facilities
2. Service strategy and systems. Suggests that the deployment of physical and administrative system
should follow logically form the definition of service strategy.
3. Line between the service strategy and people - suggests that the people who delivers the service
must have a clearly defined philosophy form management with clear definition of focus clarity and priority.

Discount and Discounting Fixation Policy

The word discount means deduction from nominal value or price of anything for payment before it is due or
for prompt payment.-When we talk about of the term discount with relation to sales, this can called selling
techniques, Sphere headed by the sales manager of a hotel. Discount rates of many types are offered to
achieve maximum occupancy and ultimately maximum possible profit.
Conference, tour, and travel agency business is chased to increase the occupancy of rooms particularly at low
business time
The Main aim of variance of in the room rate from the room rate, i.e. the discounting is to get more business
and to make the product as closely as possible to the needs of the prospective buyer.
It is entirely on the discount policy of the hotel as to how many discounted categories of tariff for different
group they form, which mainly depends on the market segment.
The accommodation manager, room division manager with sales manager should be taking decision as the
rates to be quoted to large groups or business customers and will be personally involved in formulating the
discounting policy.
the principal of giving discount is same in all cases-organizations which give the most of business to the hotel
are given discount.
For Example- In off season when the hotel is not able to book its rooms to capacity then the hotel may offer
the vacant and available rooms at various discounted rated to various prospective clients to attract more
business and gradually over a period of time. But hotel has to be careful that reduction and ultimate
withdrawal may not spoil the hotel occupancy position of " off season" period .
The Main idea behind this is that the sale of room which is a perishable commodity at a low rate is better then
no sale at all.
If we cut the rates the effect will be reduction of revenue generation but for discount it's important to
increase the occupancy percentage to achieve same revenue i.e. increase more occupancy percentage and
hence achieve more revenue generation for the hotel.
For example-
suppose, we have 10 Rooms
room tariff of a hotel is Rs.1000/- i.e. for 1 night we get Rs. 1000/-
 Rs.1000/-(includes Fixed cost+ marginal cost+ net profit)
now, Fixed cost is fixed while marginal cost will sold only once the room sold like- cleaning & guest supplies
etc.
marginal cost Rs.100/-
Rs.1000 - Rs. 100=Rs. 900/-Room Rate
Average occupancy % is 80%
revenue will generate,
80/100*10*900= Rs. 7200/-
Now we have to reduced rate of 20% is Rs. 1000*20% = Rs.800/-
Now Room rate is Rs. 800 and marginal cost is Rs. 100 i.e. 800-100= Rs. 700
so we have to increase the occupancy % which should be the same % what we deducted from room rates to
get same revenue after discount i.e. from 80% to 103% in order to generate the same revenue
hence,
103/100*10*700=Rs.7200/-

Up selling
The word up selling is basically meant to describe the activity of the front desk staff is being able to sell a
higher priced room to a guest who might have come with a concept of hiring a comparatively a lower category
room. It is also called as sell high. Up selling is also called suggestive selling. The role of receptionist is very
important up selling is an art and skill of good salesmanship. for a walk-in guest the up selling is easy as
compared to a guest who has made a advanced booking.
The process of up selling basically creates a need and want for the new product or service by highlighting its
benefits and the comparison with the initial product benefits also making him feel that if h did not buy the
product now he is going to lose a great opportunity.
Down sell
Selling a product or service at a little bit less than the actual price or the product or service, or for a shorter
duration may also benefit financially in the long run for example, number of rooms being booked for
conference by a conference organizer.
Down Selling may appear to be a process of loosing revenue initially, but carefully planned a down. Selling
programme may prove to be quite good business for the hotel particularly when dealing with groups such as
conference, meeting and seminar groups as they will make it a point ot patronize the hotel for their future
conferences and conventions also.

Substitute Selling
 Up selling and down selling-both are example of substitute selling
 Sell something different to them from what they initially wanted.
 Substitute selling can be done
 When the product/ service the customer asks for is not available.
 When the product/service the customer is asking for is not, provided by the establishment.
 In case of substitute selling
Watch , listen, questions to find out customers motives and needs and then if substitute selling is essential
then
Explain that the product service asked for is not available or not provided.
Select alternative product to be offered
Describe the product using characteristics and benefits and comparison of the product.
Reinforce the customer decision t buy the substitute product.