Independent hotels often face unique challenges. Chief among them is distribution. Without the brand recognition and resources of larger chains, independent hotels must find creative and effective ways to not only attract and retain guests, but to convert these guests from “lookers to bookers”.
One of the most overlooked yet crucial aspects of this distribution strategy is the performance of the in-house reservation sales team. In today’s technologically advanced state of distribution, we sometimes forget that millions of people still prefer to call hotels to make reservations. The so-called “voice channel” is still an important part of the overall distribution strategy. Investing in the training of your reservation sales team, and potentially partnering with a professional call center, can significantly boost conversion rates, enhance guest satisfaction, and ultimately drive revenue growth.
The Critical Role of the Hotel Reservation Sales Team
The reservation sales team is often the first point of contact between a potential guest and your hotel. This initial interaction sets the tone for the guest’s entire experience, especially if they are a potential new guest. A well-trained sales team can not only secure bookings but also upsell rooms, promote special packages, and create a positive first impression that enhances the guest’s perception of your property.
For independent hotels especially, the impact of a high-performing reservations sales team cannot be overstated. Yet, too often, these teams are undertrained and underutilized, leading to missed opportunities and lost revenue. In fact, many hotels have done away with in-house reservations departments to cut costs or streamline operations, choosing instead to rely on their front desk teams to handle these duties. This can be a disservice to both the hotel and its guests.
The Downsides of Relying on Hotel Front Desk for Reservations
Overburdening Front Desk Staff
Front desk teams are already tasked with a wide array of responsibilities, from checking guests in and out to handling inquiries, resolving issues, and managing the day-to-day operations of the hotel. Adding the responsibility of managing reservations to their workload can lead to overwhelmed staff. When the front desk team is stretched too thin, the quality of service in all areas, including reservations, can suffer.
Also, front desk teams will almost always prioritize or place more importance on the person standing in front of them compared to a caller on the phone. Phone lines may go unanswered or be placed on hold for long periods of time when the front desk is busy. All of this can result in missed opportunities, lower conversion rates, and ultimately, lost revenue.
Inconsistent Sales Focus
Unlike dedicated reservation sales agents who are trained to focus on converting inquiries into bookings, front desk staff may not have the same level of sales expertise. Their primary role is often operational, not sales oriented. This can lead to inconsistencies in how reservations are handled.
On the other hand, reservation sales agents are trained to engage with potential guests, understand their needs, and offer tailored recommendations that enhance the guest’s experience, often resulting in higher conversion rates, upselling, and greater guest experience.
The Importance of a Dedicated Reservation Sales Team
A dedicated reservation sales team can focus on the nuances of selling your hotel, ensuring that each guest interaction is optimized for conversion. They can provide personalized service, engage in meaningful conversations with potential guests, and ultimately drive higher bookings and guest satisfaction.
Moreover, having a specialized team allows front desk staff to concentrate on their core responsibilities, ensuring that both the reservation process and the on-property guest experience are seamless and exceptional.
The Benefits of Sales Training for Reservations team
By now, we can see why independent hotels should have dedicated in-house reservations teams. Now let’s dive into why sales training is so crucial. Sales training equips your reservations team with the skills they need to maximize every guest interaction. Well-trained agents are taught the psychology of sales, allowing them to anticipate guest needs, overcome objections, sell features that benefit the guest, and guide conversations toward a booking. They are adept at upselling additional services and packages, which not only increases the average booking value but also enhances the guest’s overall experience.
Ongoing training keeps your team updated on the latest sales techniques, industry trends, and the specific offerings of your hotel, ensuring they can confidently convey your property’s unique value proposition. This level of expertise not only boosts conversion rates but also helps build long-term relationships with guests, often leading to repeat business and stronger loyalty.
Too often, reservations training is only focused on systems, which itself is important. But systems training alone is not enough to increase call conversions.
The Case for Professional Call Centers
While investing in your in-house team is critical, there are times when leveraging a professional call center can provide additional benefits. At TCRM, we recommend Topaz Services as an excellent solution for independent hotels that may not have the resources to staff a large or full-time team. Many hotels have abandoned this concept to save on costs, leaving reservations to the front desk teams, hoping that will suffice.
Here are four reasons to consider utilizing a professional call center like Topaz Services instead of relying on the front desk:
- Extended Availability: Professional call centers can offer 24/7 availability, ensuring that potential guests can always reach someone to make a booking or inquiry. This is particularly valuable for capturing international bookings or catering to guests in different time zones and for providing coverage during holidays and vacations taken by the in-house team.
- Expertise and Efficiency: Professional call centers are staffed with trained sales agents who specialize in the hospitality industry. They bring a level of expertise and efficiency that can complement your in-house team, especially during peak seasons or for handling overflow calls.
- Scalability: As your hotel demand ebbs and flows, reservations call volume can fluctuate. A professional call center provides scalability, allowing you to handle increased call volumes without the need to constantly hire and train new staff when demand is high, while still providing coverage during low demand periods. This flexibility ensures that your sales process remains smooth and efficient, regardless of demand periods.
- Cost-Effective Solution: For some independent hotels, maintaining a full-time, in-house reservation team may not be financially viable. A professional call center offers a cost-effective alternative, providing the benefits of a trained sales team without the overhead costs associated with hiring and managing additional employees.
In the end, outsourcing reservations can improve conversion rates due to the specialized sales focus of call center agents and ability to answer every in-coming call. However, its impact on ADR depends on how well the outsourced team is aligned with the hotel’s pricing strategy.
In a recent conversation with Gabriel Ruiz, VP of Operations at Topaz Services, we discussed ADR. Gabriel stated, “Recently, a property shared with us that the reservations booked by the Topaz Voice Channel have a 10% higher ADR than all other channels. Our clients typically have a ROI at 25x their investment regardless of whether they use us for all their reservation needs or just overflow.” This statement highlights how leveraging a professional call center like Topaz Services can directly contribute to higher ADR and increased ROI, especially when their team is trained and aligned with the hotel’s pricing and revenue strategies.
By utilizing a specialized call center, hotels not only enhance their ability to convert incoming calls but also improve the quality of bookings, driving both revenue and guest satisfaction.
A Balanced Approach
The most successful independent hotels often take a balanced approach, investing in their in-house reservation team while leveraging the expertise of a professional call center. This ensures your hotel is always ready to capture bookings, provide exceptional guest service, and maximize revenue. However, not every reservation call needs to go to a call center. Depending on the cost structure, it may make sense to handle certain calls in-house, such as directions, reconfirmations, or cancellations, while forwarding new reservation inquiries to the call center.
In conclusion, training your in-house reservation team is an investment in your hotel’s success. With the right tools and the strategic use of a call center, you can create a strong voice channel that drives bookings, enhances guest satisfaction, and boosts your bottom line.