Insights Type: Articles

As part of HSMAI’s Commercial Strategy Week in Charlotte, HSMAI hosted a roundtable for ownership executives. Industry experts pinpointed five main challenges and offered tactics to tackle them. Below are the identified challenges and their corresponding strategies:

1.Rising Costs and Profitability Challenges

Challenge: Rising sales, marketing, and operational costs are outpacing revenue growth, creating profitability challenges. Innovations and fundamental revenue management are needed to address these increasing costs. Accurate forecasting and strategic cost management are essential to maintain profitability.

Strategy: Implementing advanced revenue management systems and techniques can help mitigate rising costs. Focusing on accurate forecasting and strategic cost management, hotels can optimize resources and improve profitability. Regularly reviewing and adjusting operational practices to align with market conditions is also crucial.

2. Data Management and Utilization

Challenge: Organizations face difficulties in prioritizing and effectively analyzing the growing amounts of available data. There’s a struggle to derive actionable insights from this data, necessitating sophisticated analysis and integration. The acceptance of AI and algorithms is increasing to enhance decision-making processes.

Strategy: Investing in advanced data analytics tools and training staff to utilize these technologies can help extract meaningful insights. Integrating AI and machine learning algorithms into data analysis processes can improve accuracy and decision-making. Creating a centralized data management system ensures consistency and accessibility.

3. Talent Acquisition and Development

Challenge: The lack of skilled talent to drive revenue and make informed decisions is a significant issue. The post-pandemic workforce has seen a decline in quality, with many skilled professionals leaving the industry. Developing business acumen among staff is crucial for effective negotiation and strategic implementation.

Strategy: Establishing robust talent development programs and offering continuous learning opportunities can attract and retain skilled professionals. Implementing mentorship initiatives and career advancement opportunities fosters growth and loyalty. Focusing on business acumen training for staff enhances their ability to negotiate and implement strategies effectively.

4. Customer Preferences and Market Trends

Challenge: Understanding and adapting to changing customer preferences is critical for maintaining competitiveness. Normalizing leisure demand impacts profitability and necessitates adjusted revenue strategies. Staying ahead of market trends and evolving expectations is essential for success.

Strategy: Conducting regular market research and gathering customer feedback can help hotels stay informed about changing preferences. Adapting marketing and revenue strategies to align with current trends ensures competitiveness. Offering personalized experiences and flexible booking options can meet evolving customer needs.

5. Alignment and Collaboration within Organizations

Challenge: Misalignment between property management, brands, and ownership on success metrics is a major challenge. Effective communication and education about profitability and long-term goals are needed to align stakeholders. Fostering collaboration and breaking down silos is vital for strategic alignment and improved performance.

Strategy: Establishing clear communication channels and regular alignment meetings between stakeholders can improve collaboration. Educating all parties on the importance of profitability and long-term goals fosters a unified approach. Encouraging cross-functional teams and shared objectives enhances strategic alignment.

Thank you to the companies sponsoring this roundtable Dragonfly Strategists and FLYR. This Roundtable was attended by ownership groups such as Apple REIT Hospitality, Ashford Hospitality Trust​, Hospitality Investors Trust​, Newcrest Image, Noble Investment Group, Ohana Real Estate Group, Summit Hotel Properties, and Trinity Investments.

HSMAI hosts this unique by-invitation forum annually for executives from ownership groups who specialize in a commercial role at their company. If you are interested in being invited next year, please email Bob Gilbert.

Katie Davin, CHBA, Associate Professor, Johnson & Wales University College of Hospitality Management 

Companies with high levels of employee engagement have higher productivity and profitability and lower turnover and absenteeism, according to Gallup research. I asked the Sales Advisory Board how they keep their teams engaged. 

Hands-on learning 

The HSMAI Foundation’s special report on talent identified hands-on learning as a way to engage staff. The Board agreed and described examples.  

One SAB member described the practice of identifying Subject Matter Experts and having those experts teach classes to the team. This method can work across departments, too; for example,  the revenue strategist teaches strategy to the sales team. Another approach is to have someone who doesn’t know something teach a class, which compels that person to learn about the topic so that they can teach it. Another SAB member keeps it simple by rotating the leaders of the weekly sales meeting, providing each team member a regular opportunity for leadership. 

Several sales leaders described opportunities for staff to opt into leadership development programs. One in particular encourages participants to complete projects. When the director needs projects done, she sends details out to the people in the development program. They can choose a project, which helps them learn and demonstrates commitment and growth.  

Collecting feedback 

In his article “How to boost your team’s engagement,” Michael Papay said that collecting input from employees resulted in increased engagement and trust and an improved company culture. Several SAB members provided examples of successes with collecting feedback, adding that analysis and implementation of the results is as important as collecting the information. One member’s company forms focus groups based on employee survey results, and each focus group develops an action plan that the company must execute. Progress is checked quarterly, with mini-surveys – five questions that can be easily and quickly answered on the respondent’s phone. The board agreed that if employees have a stake in the solution, they will embrace it and want it to work. 

Training  

Training is essential for employee engagement, particularly for companies or groups going through change. However, “one-and-done” training is not particularly effective. Training cannot be a “to-do” list item to be checked off; spaced repetition to reinforce training is necessary. 

Self-assessment of skill levels can identify training needs. In order to truly identify such needs, leaders must encourage employees to be vulnerable and say, “I don’t know.” That sentence can be scary to say at work, but several SAB members explained that their companies have built a culture that supports such expression, even applauding colleagues who say “I don’t know” in meetings.  

Several sales leaders stressed the importance of team members’ willingness to learn. Some leaders take this philosophy to the hiring process, identifying and selecting applicants who express an interest in learning. 

Defining engagement 

Engagement does not mean all work, all the time. Engagement on the job can be improved by making sure that people have time away from it. Leaders must communicate that time off is essential; they should encourage their teams to use their vacation time, and model this behavior by taking vacations themselves.  

How workers define and demonstrate engagement can vary by generation. An SAB member summarized the philosophy of younger workers, that they “work to live, not live to work.” They can get their work done during work hours, then they leave work and have a life. They may not be interested in after-hours team-building activities, because their time outside of work is really their time. To older generations, that might look like disengagement, when in reality those employees are fully engaged when they are at work. 

Further reading: 

HSMAI Foundation (2024). HSMAI Foundation Special Report: The State of Hotel Sales, Marketing, and Revenue Optimization Talent 2023-2024.  

Papay, M. (2021). How To Boost Your Team’s Engagement: Employee voice, a critical element of organizational success. HCM Sales, Marketing & Alliance Excellence, 20(2), 38–39. 

HSMAI Global recently launched its Certified Hotel Sales Leader (CHSL) certification. This new program is designed to recognize the expertise of hotel sales leaders, emphasizing the most up-to-date sales and commercial principles, practices, and strategies.  

The CHSL certification is tailored for hospitality sales leaders who are proficient in leading high-performing teams, demonstrating overall commercial acumen, applying best practices in hotel sales to drive revenue growth, and more.   

Approved applicants will receive a digital copy of the study guide, The Hotel Sales Playbook: Winning Strategies for Success, and complete an online examination covering essential functions of hospitality sales. Here we share excerpts from Chapter 2: Leadership Essentials, contributed by Ciara Feely and Amy Infante. 

Chapter 2: Leadership Essentials 

Cultivating Ownership Mentality 

At the heart of exceptional leadership lies the ability to instill an ownership mentality within the sales team. Encouraging team members to take ownership of their responsibilities fosters a sense of accountability and pride in their work. By viewing themselves as stakeholders in the organization’s success, sales professionals become more invested in achieving goals and delivering exceptional results. 

Start by building your and your team’s business acumen. As silos in hotel organizations continue to erode, and as sales professionals engage at a higher level with owners, asset managers, general managers (GMs), revenue management teams, and marketers, they are increasingly expected to demonstrate their knowledge of the sales discipline as well as operations and other functions. 

• Sharpen the team’s understanding of the acronyms, jargon, and terminology used in and around the business of hotels. It will help strengthen their skills and build their reputations as knowledgeable team members. This book’s Glossary is a great place to start. It includes more than 300 terms every hotel sales professional needs to know to better communicate with their GMs, asset managers, owners, and colleagues in other commercial disciplines. 
• Provide education and coaching to help the team understand how financial statements (P&Ls, balance sheets, cash flow statements, and more) are used to make business decisions. HSMAI’s Certified in Hospitality Business Acumen (CHBA) program is a highly effective online course on this topic. 

 

Another best practice for every sales team — whether reporting directly to the owner/operator, a management company, or a brand/chain — is to devote time to the exercise of putting themselves in the owners’ shoes. Consider facilitating a monthly or quarterly “ownership mentality” discussion with your team to talk about questions like: 

• What keeps our stakeholders up at night? 
• What risks are they taking to pay for our team and resources to support us? 
• What expectations do they have for our team? 
• Why are those expectations set that way? 
• Why might sales not be their biggest priority? 
• Why and when does the owner’s attention focus on sales? 
• What is the owner’s level of sales acumen and why does that matter to us? 

• Why is accurate, timely, consistent, and clear reporting so critical? 

 

The most effective way to cultivate an ownership mentality is to be transparent with the hotel’s goals, the “why” that is the root of those goals, and how the revenue and management teams agree the sales team can help reach those goals. Diving into these topics and making them a part of the blueprint for how a team conducts business can be a game-changer in the team’s willingness and ability to embrace a stronger ownership mentality. 

In Start with Why: How Great Leaders Inspire Everyone to Take Action, Simon Sinek shares, “Passion alone can’t cut it. For passion to survive it needs structure. A why without how has little probability of success.” 

A Powerful Monthly Sales Meeting Agenda1 

Use this sample agenda as part of your strategy to build a culture of intentional communication and innovative collaboration. 

 

The purpose of time limits on the agenda is to ensure that there is enough time to resolve significant issues, go beyond simple updates, and enhance a culture of solving challenges together as a team. Adjust the recommended time limits for the size of your team, frequency of meetings, and other unique needs. 

 

Personal & Professional Celebrations (5 minutes) 

Each team member shares one personal and one professional update they want to celebrate. This builds comradery among the team and starts the meeting focused on a positive note no matter the noise, pressure, or stress occurring around the business. 

 

Scorecard Review (5 minutes) 

Review the team’s high-level scorecard of key performance indicators (KPIs).2 Quickly review results in a fact-based manner. Any underperforming KPIs can be discussed more in depth later in the meeting. 

 

Key Strategy Review (5 minutes) 

Review the 3-5 core strategies for the hotel and sales team and how they intersect with the entire organization. This is the opportunity to drive the “why” behind the strategy, as well as reiterate everyone’s role in the strategy. 

 

Customer and Employee Updates (5 minutes) 

Team members share updates on customers and/or employees. These updates will be diverse — from announcements of departures and promotions to new hires, customer moves, and customer sentiment alerts. 

 

Last Meeting’s To-Do List Review (5 minutes) 

Every meeting produces a series of next steps and to-dos. It is important that these are documented and then addressed in the following meeting to ensure tasks stay on track and there is accountability within the team. 

 

Issues Discussions (35 minutes) 

Designed to resolve issues, this is the longest portion of the meeting. When a team is moving quickly, the root cause of issues often becomes clouded. The issues discussion is for solving challenges and focusing on what the team in the room can control, so that the issues do not continue to bubble back to the surface. 

 

Conclusion (5 minutes) 

Recap the to-dos that came out of the meeting, review any messages that need to go out to other departments or missing team members, and rate the meeting allowing team members to give feedback on the quality of the meeting and ways to improve. 

HSMAI members who attain the CHSL certification will gain professional recognition, career advancement opportunities, and the ability to contribute more effectively to their organizations’ success. For more information, visit hsmaiacademy.org/certification-hotel-sales-leader or contact Kathy Tindell at kathy.tindell@hsmai.org.  

HSMAI honored the 2023 Top 25 Extraordinary Minds in Hospitality Sales, Marketing, Revenue Optimization and Distribution — recognizing leaders from hospitality, travel, and tourism organizations for their accomplishments. Barbara Karasek, CEO, Paradise Advertising and Marketing, Inc., is one of these honorees.

Purpose-driven with global influences, Barbara lived in eight countries and traveled to more than 20 countries while leading global marketing, entertainment, licensing, and operations for SeaWorld Parks & Entertainment, PGA TOUR, NASCAR, USOPC, and a prominent hip-hop clothing manufacturer. She has negotiated nearly $500 million in global marketing and partnership contracts. She graduated from Furman University where she played Division I volleyball, served as Team Captain, and holds many records and honors. She earned an M.A. from the University of South Florida and is Six Sigma Certified and completed Harvard Business School Strategic Marketing Management courses.

 Q&A with Barbara Karasek

What advice would you give to your younger self?

Dear younger self,

I want to share some advice with you that I wish someone had reinforced more when I was in your shoes. First and foremost, always remember the importance of purpose. Find what truly drives you and fuels your passion. When you align your work with a sense of purpose, it becomes more than just a job – it becomes a calling.

Stewardship is another key aspect to focus on. As you navigate through your career, remember that leadership is not just about personal success, but also about the responsibility to positively impact others and the world around you. Use your position to create meaningful change and contribute to the greater good.

Never compromise on your core values. In times of uncertainty or when faced with difficult decisions, let your values be your guiding light. Stay true to who you are and what you believe in, even if it means taking the road less traveled.

Read more about Barabara Karasek and all the 2023 Top 25 honorees in the full report.