With the shortage of labour in the hospitality industry and budget constraints, the role of the sales and marketing department is of unprecedented importance, however it is easy to forget that front desk agents play an integral role in maximizing sales. By selling walk-in reservations at rack rates and up-selling guests to more lucrative room categories, the front desk assumes a substantive role within the realm of sales, without being part of the designated sales team.
Motivation is key for employees in fostering sales of any given type of product or service. As in other industries, in order to increase revenue and occupancy potential, it can be a great benefit to have a fun and exciting incentive program in place to motivate front desk agents in selling their hotel. Those delegated the responsibilities have the pleasure of knowing that they help maximize revenues and aid the hotel in meeting its monthly sales quotas.
Incentive programs differ from hotel to hotel and can be monetary or recognition based. Personal recognition, awards, mention in newsletters and other recognition of effort and performance are common. Up-selling and raising guest awareness is indeed a part of the job. Nevertheless, it is not uncommon to see properties create special incentives for specific goals. For example, some hotels offer a percentage or specific dollar amount per rack room rate sale or room category up-sell as part of incentive-based strategies. There are examples of hotels that have recently implemented periodic or specialty incentives of 2% to 4% of rack room rates or 10% to 13% on up sell amounts, depending on the type of hotel and its current rack rate, or in other cases flat amounts ranging from $2.00 to $10.00 per room sold at a rack rate. Up-selling is a great opportunity to generate extra revenue, most specifically during periods when the lowest room category is oversold, a time when front desk agents have the opportunity to up-sell a guest into a higher room category. By doing so, agents are generating extra hotel revenue, making commission on the sale or gaining recognition, and reducing the shortage within the oversold room category.
In one chain of hotels in Canada, the front desk agent who generates the most revenue each month has their name entered for an end of year draw in which prizes such as a flat screen television are available to be won. In one specific hotel, front desk agents who had met their up-sell and walk-in revenue goals were rewarded with iPods.
Another cash based incentive program used by one Canadian chain is a ballot system where front desk agents receive one ballot for each of the following tasks: up-sells, walk in sales at rack rate, signing up new members to the brand loyalty program, making reservations for guests in the hotel’s restaurant, and any other task that management has included within the program. Each month a prize that usually ranges anywhere from $50 to $100 in cash value is awarded to the winning front desk agent. With the ballot incentive program, the front desk is able to influence restaurant revenues, increase guest retention, and contribute to room revenue.
An incentive system can be implemented for more reasons than just to increase revenues and occupancy rates. An incentive program could be beneficial in helping managers motivate employees to meet other goals such as pride in exceeding hotel and brand standards whether it is in the housekeeping, front desk or the food and beverage department. Goals are different from hotel to hotel and any incentive program developed must be tailored to management objectives. Whichever model is used, it is important that the selected incentive system has measurable goals.
Incentive programs serve to boost employee morale and motivate front desk agents to take on sales-related goals. Of equal significance is management recognition of the sales potential at the frontline level within a given property, and how incentive-based opportunities for employees can have a positive effect on hotel revenue performance. Such programs contribute to the nurturing of positive relations between the employee and the company, creating a winning situation for all parties involved. The implementation of an incentive based program may just be the missing link for your hotel in reaching its optimum revenue potential.
Cindy Schoenauer, Consultant
PKF Consulting, Vancouver
