This is a notes on B. Voc HM Students, 5th Semester

1. ROOM SELLING TECHNIQUES
PRABAL MUKHERJEE
FACULTY
INDIAN HOTEL ACADEMY

2. 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:
1. Product
2. Pricing
3. promotion
A) Product : Usually a term “Room is sold” to the guest is used when we refer to a
guest occupying a room in the hotel, but actually this guest occupies it only
temporarily and does not assume any physical ownership. The hospitality
product in fact here is not the physical room but is experience

3. ELEMENTS OF MARKETING
created by the physical surrounding and all the associated services that the hotel staff
provides during the guest’s stay. It is important to note that a product based on
experience depends largely on the ability and the personality of the seller (the
receptionist). Now since the experience (which may be grossly negative) can not be
reversed the attitude of the selling staff is very important. Customer needs are satisfied
by the benefits and not by the products themselves, for example, the security, comfort
and convenience provided to the guest when stays in the room.
B) Pricing : This is another element of marketing. The main basics of pricing is costs and
competition. The term cost in relation to room mens construction, furnishing,
maintenance and operation cost, while competition means the price study of other
hotels of the same category and and with same guest

4. ELEMENTS OF MARKETING
product profile. Here it is important the accommodations and furnishing may range
from basic to luxurious and more the services and luxury the hotel provides, the higher
will be the room rate. Another important point to note here is that the same may be
sold at different rates to different guests. For example, the same room may be sold at
to a F I T while at a discount to a guest sent by travel agent or a corporate company.
Not only this, the room may be sold at a higher rate during full season and at a high
discount during off season. The pricing usually depends on distribution channel and
end user also.Yield management principles acts as an important guide in pricing
policy.

5. ELEMENTS OF MARKETING
C) Promotions : Promotion basically means attracting more and more customers.
Promotion activities are usually classified into four basic groups : i)Advertising : This means
attracting the attention of a buyer by signboard, print media such as newspaper,
magazines and brochures etc. and the audio visual media such as radio, television and
cinema etc. It also includes giveaway items such as pens, match boxes and stationery
with hotel names etc.

6. ROOM SELLING TECHNIQUES
Client behaviour and the buying decision
The buying behaviour can be viewed in three basic categories as following:
⮚ Complex buying decision : Selection of a convention or conference site, for example, is a
complex buying decision and involves various factors which must be very carefully
evaluated. A complex buying decision has the following five stages:
1. Need Arousal : This means the prospective buyer realizes that he has a need or set of needs
to be fulfilled. Basic need, of course, shelter and a desire for for recreation or change is
sometimes important in need arousal. Further it is important to note that a prospective guest
searches for a property to stay on the basis on his needs. For example matching the needs of a
business traveller the [property choice may be a downtown hotel while for a recreational tourist
it may be a hill station.

7. ROOM SELLING TECHNIQUES
2. Information Processing : This refer to the probing and information which a prospective buyer
collects about various properties, once the guest has need. The information is usually collected
from media, friends, directories, travel agencies and other such sources of information. In
collecting the information, three basic phases occur:
i) Specification : In this phase, the guest breaks down the overall needs into more specific
underlying needs. For example, the basic needs of a doctor attending a conference shall be a
room near the conference centre(presented need) and other needs shall be food and
beverage and other needs may be tennis court or a golf course.
ii) Information gathering should be toll free call to a CRO or a study of various property offers
through internet surfing or by directories or through yellow pages etc. Services of a travel
agency may be engaged in comparison shopping before recommending a particular site.

8. ROOM SELLING TECHNIQUES
iii) The comparison phase of information process involves interpreting the
information and if necessary, gathering additional data. Empirical data is
based on first hand observation or an experience as opposed to merely
reading or hearing about a product. Data that is acquired from
advertisement, reviews or recommendations by other parties, is perceptual.
3. Evaluation : This factor is also very important in making a complex buying
decision. It is in this stage, that the prospective buyer will evaluate the
collected information on the basis of plus and minus points.
4. Selection : After evaluation, the next step is selection from the available
products. i.e. various conference and convention sites.
5. Outcome : The last stage is making an outcome, i.e. finally going to buy the
selected site.

9. ROOM SELLING TECHNIQUES
⮚ Low Involvement : A simple process where the client does not have any specific need
and objective of buying the product and selection is based on what best is available
within the price range. A little adjustment between the perceived image of product
and what is offered also be made. Here, in this case, the selling comparatively
becomes easy for the salesperson and his salesmanship and wit may result in good
business.
⮚ Repetitive : This is the simplest way of selection, and the selection of the product by the
guest is based on the previous experience and if the buyer has good past experience
about the product, his behaviour is predetermined and he buys a pre-tested and
trusted product.

10. ROOM SELLING TECHNIQUES
Pricing Strategies
From a guest point of view this factor means how much he will have to pay for the
product (room) which is offered by the seller (hotel) and from the seller’s point of view the
term price means what the hotel feels that at what money the product should be sold so
that the total price covers cost of the product plus a reasonable percentage of profit. In
every transaction, the buyer pays other costs besides the monetary price.Product costs
fall into the same categories as benefits and they include:
a) Monetary Costs : The term monetary cost is purchase price plus cost of taxes and
freight etc. In case of rooms, this can be explained as daily room rate plus taxes.
b) Location Cost : The location acs involves the cost involved in transportation in coming
and going to and from the hotel.

11. ROOM SELLING TECHNIQUES
c) Time Costs : The time cost means the value in terms of money of the time spent by the
buyer in travelling to and from the hotel.
d) Sensory Costs : The sensory cost is a difficult thing to assess as it involved the intangible
aspects of the guest and means the experience in adjusting to unfamiliar surroundings.
e) Psychic Cost : The term psychic cost also is an intangible aspect of the guest and covers
the aspects such as stress, discomfort and fear etc. It is important that when making a pricing
strategy all the above mentioned factors must be considered.
Pricing Influences
The pricing strategy of a hotel is influenced by basic three factors:
a) Costs(total), b) Competition (other hotels in city/town) c) Market demand

12. ROOM SELLING TECHNIQUES
a) Cost : As explained above all the costs of a hotel room, construction cost, daily operating
expenses, utility costs, payroll expenses, and so forth are included in total costs. Total costs are
divided by total number of rooms expected to be sold to determine average cost per room. It
is important to note that the construction cost must be amortised over a period of several
years.
b) Competition Influence : The competition factors include the competition level from property
to property, type of hotel to hotel, region to region etc. and rates vary on all these as well as
the local economic conditions factors such as :
1. Direct Position Competition : This means competition from other properties that have
adopted a market position.
2. Direct Non-position Competition : The type of competition the hotel faces from other
properties that have different market position.

13. ROOM SELLING TECHNIQUES
3) Indirect Competition : Under this category, the hotel faces competition from alternative
lodging properties such as camping grounds, cruise ship and other such sector like trains used
for overnight journey, which eliminates the need of hotel.
Pricing is a powerful competitive feature and by itself creates a monetary benefit. As
competition increases the prices fall down and if there is no competition, the price of the
products(room) tends to be high.
Market Demand : This factor has the application of the theory of economics., the more the
demand, the higher the price can be or vice versa. Further the influence of demand
depends on the extent to which changes in pricing affect the willingness of the users to buy.A
hotel more in demand may set price at a high level, but the hotel must be careful that the
price should not be so high that it will cause damage to the demand and th demand may
fall.

14. ROOM SELLING TECHNIQUES
Similarly, a hotel with low demand, should fix lower price but again being careful that it is not so
low that it may create a losing situation. The process of lowering and raising of price to influence
is called price elasticity.
Low price will obviously result in high occupancy but not necessarily high revenue yield. Price has
a strong influence on hotel target market.Rates are set to attract clients with particular income
levels and income patterns.
Price Strategy for group business : First of all it is important to understand that shall the hotel take
group business or not? The obvious answer to this question is that if the hotel is able to get good
business without goods throughout the year then why ask for group business? (where naturally
the price has to be discounted or special). Many hotels of this category take group business at
normal room rate but at the same time give discount on conference rooms, meeting space and
on food and beverage service.

15. ROOM SELLING TECHNIQUES
Some hotels add up to the benefit to the benefit of the group by providing one or two rooms
either complimentary or at a reduced rate to accommodate the meeting/conference
planner.
In case the hotel decides to formulate a special price for groups then usually it is on the basis
of reduction in normal room rate by a fixed percentage, say 30% as a standard policy.
Some hotel quote a special price which is based on the total cost factor of holding a
function.
Further hotels which have a profile of group business may have a fixed policy of pricing for all
groups, and a which uses group sales primarily to supplement transient sales, the sales
department is more likely to offer attractive group discount. In general, it can be said that
pricing influence, cost, competition and demand all must be considered while making a
pricing strategy for a group as well as transient.

16. ROOM SELLING TECHNIQUES
SERVICE AND SERVICE SELLING
@ Service is something that is a feeling and hence is essentially intangible and can not 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 the buyer value for money.

17. ROOM SELLING TECHNIQUES
CODE OF QUALITY SERVICES
1. Greet the guest immediately
2. Give the guest your undivided attentions
3. Make the first and last 30 seconds impressive
4. Be natural, not phony or mechanical
5. Be energetic and cordial
6. Be the guest agent
7. Think and use your common sense
8. Bend the rules sometimes (only in exceptional cases)
9. Stay fit. Take good care of yourself.

18. ROOM SELLING TECHNIQUES
service standards are usually classified as:
# Superb Service
# OK Service
# Bad Service
Types of Services:
Various types of services can be classified into following three groups:
1. A tangible good with accompanying services, for example, warranties, repaire
and maintenance services by the manufacturers.

19. ROOM SELLING TECHNIQUES
2. A major service accompanying minor goods and services, for example, airlines
passengers buy transportation service and arrive at their destination without anything
to show for their expenditure. However, the trip includes certain tangibles like airline
magazine, ticket stubs, souvenirs and food and beverage served during the flight while
the air - hostess smile during passing of food and beverage to the passenger is service.
3. A pure service, for example a psychiatrist or a lawyer, who provides his professional
guidelines for future to the patients or clients is termed as pure service, as no goods are
exchanging hands in such cases.

20. ROOM SELLING TECHNIQUES
UNIQUE CHARACTERISTICS OF SERVICES
Intangibility : Unlike physical products, in most cases they can’t be seen, felt, tasted or smelt before
they are utilized.
Inseparability : Because of intangibility, services have to be produced and sold simultaneously.
Variability : Services are highly variable, because they depend on :
# Who provides them
# What are the frame of mind both server and service.
# Where are they provided
# When are they provided
# Environment in which they are provided

21. ROOM SELLING TECHNIQUES
Perishability : Highly perishable and cannot be stored. (if a service is not utilized when offered,
it cannot be stored.)
Fluctuating Demand : Most services experience fluctuating demand based on factors such as
season, day of the week, hour of the day etc.
Customer Involvement : Customer involvement in the production of service is very high.
Inability to Recall : If temporarily produced, the service cannot be recalled, i.e. corrective
action cannot be taken of the service that has already been produced.
FACTORS ON WHICH THE SERVICE STRATEGY WILL DEPEND
A. Nature & Type of Service :
# Accommodations (Quality & Quantity)

22. ROOM SELLING TECHNIQUES
# Comfort (AC/TV/Fridge/Telephone etc)
# Decor (Color/Articles kept in a room)
# Size (single, double etc.)
# Location (Floors, view outside the room)
# Furnishing (bed, tables, chairs etc,)
# Special needs (hard bed etc.)

23. ROOM SELLING TECHNIQUES
Guest and his needs :
# Who is the guest
# His needs and wants
# Nature and type of guest ( business class, tourist class, conference and meeting customers
etc.)
# Security and safety
# Confidence in the hotel
Hygienic and wholesome meals
Caring and helping staff

24. ROOM SELLING TECHNIQUES
C) Location of property :
# Downtown
# Uptown-suburban
# Resorts
# Transits etc.
Some examples of service :
1. In Hongkong, even if the taxi driver does not know English, his endearing smiles and flickering
eyes and nods speak of welcome and guests become comfortable.
2. Room maides fold clothes of guests neatly and put the inner ware etc. in the laundry bag
without being asked.

25. ROOM SELLING TECHNIQUES
3. Smiling lift operator sometimes escort the guest in the corridor.
4. Multitasking (Receptionist, Reservationist and concierge, the same person to perform various
duties.
5. Aggressively selling staff, missing no opportunity to sell tea etc. in the lounge.
6. Staff morale is high and the staff has high self esteem.

26. ROOM SELLING TECHNIQUES
THE SERVICE PYRAMID
Basic Concept
# Customer as basis for defining of 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.

27. ROOM SELLING TECHNIQUES
# Organization exists to serve the needs of people who are serving the customer. This is a very
important aspect of running an organization or comparing that we take good care of all those
who are working in the company for providing services to the guest.
# Service model is based on the assumption that we have a clear conception 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. Motivational structure of the customer service
and a concept of service and how we organize our service to see that customers’ motives are
fulfilled.

28. ROOM SELLING TECHNIQUES
CUSTOMER PERCEPTION - THE ONLY REALITY IN THE HOSPITALITY BUSINESS
Model explained
# Each line explained
# Line connecting the customer and the service strategy represents the critical importance of
building the service strategy around the core needs and motives of the customer.
# Line that flows from service strategy to the 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(inner customers) of the organization represents
the crucial point of contact and the continuing interplay/inteteraction. This interplay presents
greatest opportunity for gain/loss and for creative effort.

29. ROOM SELLING TECHNIQUES
# Line connecting customers to systems that that are supposed to deliver the service. System
should be designed keeping the customer in mind and clearly avoid the mediocrity and
dissatisfaction (e,g, tables in restaurants, etc.).
Three outer lines of service 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.
(front line employees are better prepared than their managers to improve the system they
use every day.)

30. ROOM SELLING TECHNIQUES
2. Service Strategy and Systems: Suggests that the deployment of physical and administrative
systems should follow logically from the definition of the service strategy.
3. Line between the service strategy and people suggests that the people who delivers the
service must have a clearly defined philosophy from management with clear definition of focus
clarity and priority.