Sales Framework

Item Title Source RevisionDate ActivityLog Synopsis Describes the excel based tool used to plan negotiations for contracting rates. The tool also functions as a RFP rate tracker, whereratesolicitationsarerecordedandtrackedforreference.

& Behavior
Description TBC

Table of Contents Sections Aim Procedure Manager IndividualUsers AcquisitionStatusTable Negotiations

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AccountManagementGrid
HotelStandardsandProcedures

06Dec2010Referralformupdatedto reflectNGSVersion

AIM TheAccountManagementGridisanexcelbaseddocumentusedtoplanthenegotiationprocessforcontractingratesfora new period and to measure the progress of RFPs / rate solicitations through typically the last quarter of each contracting season when most clients conduct their rate negotiations. The grid is maintained through out the year for accurate record keeping. ThisdocumentprovideshotelswiththefollowinginformationonAccountsthatarecontractedfromalocal/regional/global perspective. Thethreepricebandsforratenegotiation:Wishtheaspirationalrate;Wanttheidealratetoachieve;Walkthe minimumratetoaccept. KeepshotelsinformedofprogressduringRFPs/ratesolicitations,namelyfocusingontargetvs.contractedroom nights,ADR,marketshare,yieldpolicy. Tracks performance against the budgeted sales commitment (as agreed through the IBPSSRP process) by market segment. Details any new business or existing business placements that have been tendered and contracted above what has beencommittedpreviously. Highlightsaccountswith ahighpercentagechanceofconversionandfavourableaccountgradingscoresthusdraws ourattentiontoaccountsworthsignificantattention. GuidesdecisionmakingandfutureRFP/ratesolicitationactivity. IncludesanAcquisitionStatusgrid,whichprovidesatoplinesummaryofcontractedprogresstotarget. Providesclearcompetitorinformationonanaccountbyaccountbasis. PROCEDURE PriortoproceedingpleasecheckwithyourRegionalDirectorofSales&MarketingiftheAccountManagementGridis atoolusedinyourregionasregionalvariationsexist. The excel spreadsheet should feature the hotels entire account portfolio, individually as well as cumulatively per accountandperaccountholder.(Pleaserefertoattachmentforfurtherreference) As contracts go to tender, details of this are manually fed into the document by a Sales Coordinator or nominated owner/s.Detailsaddedincludethehotel/ssubmitted,iftheyareneworexistingplacementsfortheaccount,pricing platform,rate,roomnightsandinclusions.
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Once contract details have been finalised, a results notification is issued and details of the agreed contract are updatedintotheAccountManagementGridandstatusoftheplacementisupdatedaccordinglytoeitherAccepted orDeclined.

& Behavior

Manager 1. ADOSM/DOSMtoupdatethepicklist(worksheet3)andmakerelevanttoassignedhotel/s. a. ColumnAListallmarketsegmentstobetracked. b. ColumnBListrelevantbookingchannels. c. ColumnCListthenamesofallsalespeople. d. ColumnINotetheregion,country,statethataccountswillbesourcedfrom. e. ColumnNListtheHolidexcodesforassignedhotel/s. f. ColumnsOtoUNotestheaverageBFRforassignedhotel/s. 2. ADOSM/DOSMtoupdatetheAccountGradingTool(worksheet2)andmakeitrelevanttoassignedhotel/s. 3. ADOSM/DOSMtoenterontheAccountManagementGrid(worksheet1)inrow4budgetroomnightsandrevenue for all market segments. Average rate will automatically calculate as will all the other cells in the acquisition status table.UpdatetheyearthegridreferstointheAcquisitionTable;row19columnK;row19columnM. 4. AverageBFRinrow19columnCwillautomaticallypopulatefromthepicklist. 5. ADOSM/DOSMtoprotectsheetsothattheaboveinputpointscannotbemodifiedbyendusers.Templatepassword currentlyexistsasACCOUNTGRIDhoweveritisstronglyadvisedthatthepasswordismodifiedoncepoints1to3have beencompletedtoprotectformulasandcertaincellsofinformation. IndividualUsers The excel spreadsheet should feature the hotels entire account portfolio, individually as well as cumulatively per accountandperaccountholder. Ensurethatallcellsnotedasmandatory(M)havethecorrectinformationentered. UsethefollowingstepbystepguidetobuildtheAccountManagementGrid. Enterusingeitherapicklistifavailableorfreetext. Wish,want,walkratesaretobeapprovedbytheADOSMorDOSM.Anyproposedfreezeordecreaseonrateneedsto be supported with a business case and approved by the direct report. Inflation should be the minimum increase sought. LastRoomAvailability(LRA)isonlyusedasanegotiationtoolandshouldbereflectedintherate.Roomallocations defeat the objective of LRA and should be approved before contracting the account. Concessions not rate related shouldbeconsideredandproposedinordertosecurethebusinessduringnegotiation.Rememberweneedtogaina win/winsituation.

Column A Title Hotel InformationRequired HolidexCodeofthehotel.(M) B Segment Marketsegmenttheaccountwillbetrackedagainst/ pertainsto.(M) C Region Region / country / state that the key decision maker residesin.(M)

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D

Company/enduser Company/endusersname.(M) E Channel Channel e.g. name of travel management company, direct,other.(M) F Accountmanager AccountManagersname.(M) G Monthprocessed MonththeRFP/ratesolicitationwasreceived.(M) H Neworexisting Iftheaccountisneworexisting.(M) I Validity Validityofthecontracte.g.01Jan08to31Dec08. (M) J Preferredhotels List all of the hotels currently preferred with the account. K Preferred contractedrates L Totalvolume Totalvolume/roomnightsintodestination.(M) M No.ofroomtypes Note the number of room types contracted e.g. if both the standard and deluxe rooms are contracted note2inthiscolumn.(M) N Potentialroomnights Note potential number of room nights if hotel is successful.(M) O
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hotels Listexistinghotelsrates.

ProposedrateflatLRA

IfyouareproposingastaticLRArate,notetheratein thiscolumnotherwiseleaveblankifnotapplicable.If
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Sales Framework

& Behavior
P

youareproposingseasonalratesnotetheaverageof therates.(M) ProposedrateflatNonLRA If you are proposing a static NonLRA rate, note the rate in this column otherwise leave blank if not applicable. If you are proposing seasonal rates note theaverageoftherates.(M) Q Proposed%offBFRLRA If you are proposing a discount off the hotels best flexible rate with LRA, note the % discount in this column i.e. 10% otherwise leave blank if not applicable.(M) R Proposed % off BFR Non If you are proposing a discount off the hotels best LRA flexibleratewithNonLRA,notethe%discountinthis column i.e. 5% otherwise leave blank if not applicable.(M) S Buyuppremium Noteonaveragewhat%ofbookingswouldbuyupto the next available room type, that is room types higher than the leading room category contracted. (M) *This information should be loaded in SSRP for existingaccountsandtakenfromtheAccountCPC. Leavethiscolumnblankifnotrelevant.(M) T Contractedrate Notetheratewhichinallprobabilitywillbeaccepted. Iftheclientisleaningtowardschoosingorcontractsa static / flat rate, the rate must be noted in this column.(M) Iftheclientismostlikelytochoosedynamicpricing/ %offBFR,leavethiscolumnblankensuringhowever
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U Contracted%off

youhavepopulatedthe%offincolumnU.(M) Note the % off which in all probability will be accepted. Iftheclientisleaningtowardschoosingorcontracting adynamicrate/%offBFR,the%offmustbenotedin thiscolumn.(M) Iftheclientismostlikelytochooseastatic/flatrate, leave this column blank ensuring however you have populatedtherateincolumnT.(M) V Yieldpolicy Notetheyieldpolicymostlikelytobeaccepted.(M) Ifyounotea%offincolumnU,youwillneedtonote dynamicpricingincolumnV.(M) Ifyouhavenotedastatic/flatrateincolumnTthen ColumnVshouldstateeitherNonLRAorLRA.(M) W Breakfastincluded If breakfast is included in the rate, note the amount built into the rate to cover the cost of breakfast e.g. $15.(M) Normallywhenwebuildbreakfastintoarateitisata discountedpricevs.thenormalretailprice. X Otherinclusions Notes any other inclusions built into the rate e.g. internet,carparking.Enter$amount.(M) Y Potential room revenue This cell will automatically populate and calculates (incl. tax, inclusions & buy thegrosspotentialroomrevenue. up)
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Z

Contractedrate(excl.tax& This cell will automatically populate and calculates inclusions) thenettcontractedrate.

AA Potential revenue (excl. This cell will automatically populate and calculates thenettpotentialroomrevenueinclusiveofbuyup. tax,inclusions+buyup) AB RateonIBPSSRP(incl.tax) Enterthebudgetedgrossrate.(M) AC VarianceonIBPSSRP This cell will automatically populate and calculates the variance between the budgeted gross rate and thecontractedrate. AD Commissionable Note if the rate is commissionable to a third party, enteringyesorno.(M) AE %chanceofconversion Note the likely chance of winning the business i.e. 60%chanceofconversion/success.(M) AF Accountgrading Using the Account Grading Tool, note the weight scoredbytheaccount.(M) AG Accepted Note the RFP / rate negotiation status: won, lost, pendingusingeitheryes,noorpending.(M) AH Monthaccepted Enter the month the RFP / rate negotiation was completed.(M) AI Solepreferred Note if the hotel is sole preferred / the only hotel selectedinthecityusingeitheryesorno.(M)

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AJ AK Reasondenied

Hotelssharingprogram List the additional hotels chosen, rate and potential volume. Notethereasonthehotelwasnotsuccessful.(M) AL Furthercomments Enteradditionalcommentsasnecessary. AcquisitionStatusTable Theacquisitionstatustablewillreturnerrorsifthefollowingpointsarenot correctly notedin thetendergridagainsteach account. HotelsHolidexcode Segment Neworexisting Potentialroomnights Buyuppremium Contractedrateiftheclientisleaningtowardschoosingorcontractsastatic/flatrate,theratemustbenotedin thiscolumn.Otherwiseleavethiscolumnblank. Contracted%offiftheclientisleaningtowardschoosingorcontractingadynamicrate/%offBFR,the%offmust benotedinthiscolumn.Otherwiseleavethiscolumnblank. Yieldpolicymustnotetheyieldpolicythattheclientisleaningtowardschoosingorcontracts.Ifyouhavenoteda% off BFR in column U then Column V should state dynamic. If you have noted a static / flat rate in column T then ColumnVshouldstateeitherNonLRAorLRA. Breakfastincludediftherateincludesbreakfast,theamountbuiltintotherateforthebreakfastcomponentmustbe notedinthiscolumnasa$figure. OtherinclusionsIftherateincludesinclusionse.g.carparking,broadbandtheamountbuiltintotherateforeach componentmustbenotedinthiscolumnasonetotalamountandasa$figure. Acceptedmustnotedeitheryes,noorpending.

Negotiations Negotiation is a critical part of the strategic sales process and requires preparation and planning before entering any sales negotiationsituation.Thefourstageprocessofnegotiationisasfollows(Pleaserefertoattachmentforfurtherreference)
Page 1 of 7 Hotel SOP Account Management Grid c1.0.doc Preparingyour negotiation Planningfora Negotiation Meeting Conducting Negotiation Meeting Implementthe Negotiation

Sales Framework

& Behavior

Prior to conducting the negotiation and as part of the planning stage, use the Account Management Grid to build your negotiationstrategy. 1. 2. 3. 4. Recordhistoricaldataroomnightproductionandcontractedratesforpreviousyear. Reviewcurrentyearproductiontodateandforecastendofyearproduction. Notelocalcompetitormarketshareandaverageratefortheaccount. Forecasttheforthcomingyearroomnightexpectation. Determineyourrevenueobjectives: a. Yourwishyouridealpricelevel. b. Yourwantthepriceweareexpectedtoachieve. c. Yourwalkthepriceatwhichweagreetodisagree. LRAyesorno. Determinewhatconcessionstheclientwillaskfor. Determinewhatconcessionsyoucanofferandthecostsrelatedtothem(agreewithGM&ADOSMlistofconcessions ideallyhighcustomerperceptionlowvaluetohotel). Consider potential value of business to your hotel i.e. C & I, F & B, days of the week, project potential, non repeat demand,customerrequirementsandcompetitoractivity.

5.

6. 7. 8. 9.

Priortoenteringanegotiation,thefollowingpointsshouldbeconsidered: 1. Setaclearbroadbasedobjectivetoprovidefocusanddirection. 2. Considerwhatyoubelieveyourclientsobjectivetobeandconsiderthegap. 3. Ensure you take account of your business strategy, the market environment, competitor situation and client opportunities. 4. Determineyourfallbackposition. 5. Prioritisethenegotiableissues. 6. Determineyourrevenueobjectives: a. Yourwishyouridealpricelevel. b. Yourwantthepriceweareexpectedtoachieve. c. Yourwalkthepriceatwhichweagreetodisagree. 7. Determinewhatconcessionsyoucanofferandthecostsrelatedtothem: a. Aconcessionissomethingyoutrade. b. Itisnotsomethingyougiveaway. c. Youshouldalwaysgetsomethinginreturn. d. Smalleritemsratherthanmainnegotiableissues. e. TheidealconcessionissomethingthathasalowcosttoIHGandahighvaluetotheclienttradewin/win concessions. f. Choose concessions that are of real benefit to the client and sell the benefits of the concession you are trading. g. Rememberthefinancialandoperationalimpactofconcessions. 8. Followthefourstageprocessofnegotiation(refertoattachedNegotiationProcess). Strategic Selling Level III training covers the negotiation process in detail and provides skills and techniques of successful negotiation.
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