Running head: FIELDWORK OBSERVATIONS AND INTERVIEWS 1 Field Work Observations and Interviews; Hotel and Tourism Sector SectorZizhe Cai（101250827） Bilin Chen（101107417） Karen Hagiwara（101167901） Dong Liu（101246966） Chenxu Tang（101254604） George Brown College Host – 3117 Joanne Gellatly 2020/10/02 FIELDWORK OBSERVATIONS AND INTERVIEWS 2 Table of Contents Part 1 …………………………………………………………………………………………………………………………….. 3 Importance of Selling the Company……………………………………………………………………………….. 3 Company Review and Product Offerings………………………………………………………………………… 4 Competitive Advantages ………………………………………………………………………………………………. 4 Part 2 …………………………………………………………………………………………………………………………….. 8 Customer Profiles ………………………………………………………………………………………………………… 8 Locating Prospects and Attracting Leads …………………………………………………………………….. 8 Division of Sales Tasks, Initiating Customer Contact, Determining Sales Forecasts, Biological Sketch ……………………………………………………………………………………………………… 9 Contact Management Systems………………………………………………………………………………….. 10 Prospects, Presentations, and Customer Classifications ……………………………………………….. 11 Major Buying Decisions ………………………………………………………………………………………….. 12 Part 3 …………………………………………………………………………………………………………………………… 14 Presentations……………………………………………………………………………………………………………… 14 Determining Prospect Needs and Preparation …………………………………………………………….. 14 Negotiating ……………………………………………………………………………………………………………….. 15 Dealing with Customer Objections, Skills Needed to Close Sale, and Negotiation Skills … 15 Overcoming Resistance …………………………………………………………………………………………… 16 Part 4 …………………………………………………………………………………………………………………………… 16 Closing the Sale…………………………………………………………………………………………………………. 16 Follow up………………………………………………………………………………………………………………….. 17 Activities done in Follow Up, Expansion Selling, Endorsement and Loyalty Programs …… 17 References …………………………………………………………………………………………………………………… 19 FIELDWORK OBSERVATIONS AND INTERVIEWS 3 Field Work Observations and Interviews; Hotel and Tourism Sector Introduction Four Seasons Hotel Ltd and is a provider for hospitality services. The organization operates a chain of luxury hotels, resident clubs, and resorts. The organization offers a broad array of services which include residences, accommodation, vacation rentals, wedding packages, private jet services, among others. The property business is classified into three primary categories; they are private residences, residence rentals, and residence clubs (MarketLine Company Profile, 2020). The focus of the report will be based on research done on the Four Seasons Hotel in Toronto. It will begin by highlighting the importance of selling to the organization, provide in-depth information on customer profiles, and then focus on sales and marketing strategies such negotiating and closing sales. Part 1 Importance of Selling the Company Comparison of Selling Relationships to Other Company Functions A competitive environment in the hotel and tourism sector has meant that organizations have to establish a dynamic promotional mix for their enterprises. They include functions such as public relations, sales incentives, direct marketing, a sales force among others. A dynamic approach is vital to a successful strategy as it relates to monitoring the needs of the market in establishing and developing various promotional strategies and activities used (Acar, Gullu & Karamustafa, 2012). The main purposes for such promotional activities are to enable the hotels to gain a competitive edge and informing the target customers. It is also to establish good relations with other intermediaries like tour operators and travel agencies and create demand for the hotel services, offering new services and innovations to the industry, and increasing the revenue per guest (Acar, Gullu & Karamustafa, 2012). FIELDWORK OBSERVATIONS AND INTERVIEWS 4 Company Review and Product Offerings Four Seasons Hotel Ltd group of private residences are fully owned by the organization. Luxury homes can be found in different continents across the globe. The residence rentals are a combination of leased properties that have a fitness centre, golf facilities, self-services, housekeeping, stocking services, food and beverages amenities, wireless internet services, among other offerings (PR Newswire, 2020). The organization provides its customers with vacation rentals in luxurious residential properties across Asia, Africa, Europe, and the Caribbean (MarketLine Company Profile, 2020). Four Seasons also operates NetJets which runs and owns one of the largest fleets of aircraft covering more than150 countries across the globe. The private jet services provide a wide range of services. Four Seasons Hotel also provides automotive events and exciting new locations in various spectacular locations to its customers. The business hotel segment accounts for the leading share in the Four Season’s market. Business travellers, small conference, individual tourists, and tour groups are the main target customers (Greco & Rauen, 2017). The residential segment has enabled Four Seasons to solidify its position at the very top as a market leader in luxury branded residential offerings. To further boost its growth, the organization has focused on influencer marketing to boost its brand appeal and become more visible. The hotel launched the Envoy by Four Seasons program to leverage creative storytellers and artists across a wide range of platforms using words, pictures, and videos, using unique stories on the unique and curated travel experience, the organization chose its envoys to leverage its influencer marketing approach (Kostuch Media, 2018). Competitive Advantages The luxury hotel segment that the hotel is in is characterized by less differentiation between brands when it comes to amenities (Tamborine, 2020).For the luxury hotels, the FIELDWORK OBSERVATIONS AND INTERVIEWS 5 differentiation factor leads to a greater rivalry within the hotel classes when compared to the lower rivalry amongst the hotel classes. Several factors drive profitability in the Canadian luxury hotel segment; the increased rivalry in the sector has forced hotel owners to compete on price leading to lower property profitability (Olson, 2015). Constant changes in technology have given more power to the customers as they now have easier access to a lot more information, thus increasing their buyer power and reduced profitability for the organization. Quite recently Mariott International announced that it will bring the W Hotels that is renowned for its luxurious offerings and its bold design features (Hoisington, 2019). The evolution of a 9 story 225 bed capacity to a W Hotel is said to be the first of its kind in Toronto. Some of the expected features include a roof-top terrace restaurant, a unique cocktail and coffee bar, a lounge featuring a DJ booth and recording among others. It will also be surrounded by high-end boutiques, galleries, and design studios (Kostuch Media, 2019). The entry of the W Hotel is bound to have an impact on Four Seasons performance and appeal making the business environment more challenging. Some of the primary advantages that the organization has over its competition are that it has developed a compelling website experience. The website is a strong pillar for the organization’s marketing strategy. It helps it drive any potential guests, and it is a good platform used to generate bookings. The website is also constantly updated, which means that when the visitors are driven to the page, they are not fed with the uninformative or outdated website as is normally the case with other smaller entities. Digital platforms like websites require that when potential guest land on the site they get instant gratification. When they choose the site, they immediately form judgments about the company’s brand. The organization understands that, and that is why they have spent the time to ensure good user experience, they have a page that is both FIELDWORK OBSERVATIONS AND INTERVIEWS 6 stylish and quite easy to access (Greco & Rauen, 2017). They are much easier to navigate, they load faster, and the images that are used show beautiful images of the hotel, which appeals to the user (Greco & Rauen, 2017). They have a wide variety of luxury offerings that sets them apart and include residences, accommodation, vacation rentals, wedding packages, private jet services, among others. In terms of the competitive offering, the organization has developed a curated feature of three jet itineraries that were slated for 2020 with the previous year’s program having been fully booked (Four Seasons, 2019). It features a round trip across the globe from Seattle, Kyoto, Bali, Marrakech, Rwanda, among other destinations (Four Seasons, 2019). The Four Seasons hotel also stands out based on the the per-room rates. When compared to other properties, especially the smaller ones, the marketing costs and advertising is lower given the size of the hotel in comparison to the number of rooms. The organization leverages the economies of scale, given its size and can recognize a cost advantage when utilizing different marketing alternatives (PR Newswire, 2020). Additionally, given that it has multiple locations, the hotel works to raise its brand awareness further (Four Seasons, 2019). The organization also has a loyal following, given its reputable and respected brand when it comes to customer service. The organization has, over the years, creating a strong relationship with the consumer and so has a better advantage and potential when it comes to repeat businesses (Four Seasons, 2019). Four Seasons Hotel has also focused on the use of greener technologies as a way of bringing down its production costs and ensuring that it remains environmental conscious. Such an approach provides a competitive advantage, especially when targeting environmentally conscious visitors (Gürlek & Tuna, 2018). They have managed to target a specific market niche that demands more environmental products and services. Generally, environmental initiatives FIELDWORK OBSERVATIONS AND INTERVIEWS 7 such as the ones used by the organization lead to better productivity and increased competitiveness in the hotel industry. Other indirect benefits include an improved image, health and safety, and better employee morale (Fotiadis et al. 2013; Times, 2014). In the current competitive environment, numerous entities are developing sustainability goals and activities to reduce their carbon footprint and reduce wastage of non-renewable resources. Hotels are known to use a large amount of energy across the facility for keeping people cool or warm depending on the season; some use water resources unsustainably putting a strain on limited resources (Gürlek & Tuna, 2018). The hotel has developed measures to improve energy and water efficiency, which potentially leads to thousands of dollars worth of savings (Fotiadis et al. 2013). Four Seasons has developed systems that have occupancy sensors that automatically monitor and adjust the room temperatures. They have installed low flow showerheads and faucets to reduce water consumption. It has solar systems that ensure there is enough energy stored to heat and cool the property. General Selling Approach and Sales Cycle Studies have shown that the market has a direct effect on profitability. A recent study by Gartner Research demonstrated that companies spend approximately 12 of their annual earning on marketing (Gartner, 2016). A similar study by CMO showed that companies in the tech sector spend 14 percent on average and are considered some of the biggest spenders when it comes to marketing. The hotel industry spends nearly double that amount; it stood at 25 percent according to findings by the (Kalibri Labs Tamborine, 2020). Such high spending show how important marketing is to the organizations and more so those in the hotel and tourism sector. The hotel has an active email marketing campaign, and they can check their performance by tracking the variety of email campaigns. According to the staff, some of the tools to check the FIELDWORK OBSERVATIONS AND INTERVIEWS 8 effectiveness of the campaign include the conversion rates, subscribe and unsubscribe rates, number of click-throughs, or bounce rates. Studies have shown that an average Return on Investment (ROI) of more than 2500 percent is obtained through email marketing irrespective of the industry (DMA, 2014). Four Seasons Hotel understands that the best way it can increase the effectiveness of the sales team and so close more business is in speeding up the hotel’s sales cycle. Their focus has been from the intial stage of touchpoint with the potential customers and the relationship with the hotel, the customer stay, and after through issuance of glowing reviews and referrals (Hotel Management, 2019) As a way of speeding up the cycle, the hotel assesses the entire cycle from time to time and identifies some of the bottlenecks and makes changes. Once they identify the points in the cycle that are lagging, they then move to develop strategies for the team to speed things up (Hotel Management, 2019)For example, the sales staff has a list of frequently asked questions that they pass on to event planners and other groups guests as a way of speeding the processes. The sales reps are also periodically trained and given refresher pieces of training that empower and equips them for better service. By speeding up the process, the hotel has been able to close more businesses, developed a projection of the occupancy rate with better accuracy, and ultimately gets better revenue. Part 2 Customer Profiles Locating Prospects and Attracting Leads One of the approaches that the hotel uses in generating leads is by building relationships with the existing hotel guests (PR Newswire, 2020)Through its service staff and customer service approaches, the hotel engages with the guests. They interact with them in the premise and get to know how their experience and service is and get to know more about their customers and why they are at the hotel (Feiertag, 2014)The sales staff’s interaction with the guest is authentic FIELDWORK OBSERVATIONS AND INTERVIEWS 9 and real, and they ensure that the needs of the guests are met enabling them to have an enjoyable stay. The sales teams also make good use of the PMS when it comes to corporate contacts and guests that they were not able to meet while at the hotel. The focus is on letting them know that their stay is greatly appreciated. The approach acts as a mini referral where the guests are convinced to come back more often and even bring their coworkers, families, and friends. The guests are an important source of information as they provide important insights on what goes on in the market (Sorokina et al. 2016). Four Seasons Hotel has also focused on driving more direct bookings and therefore lower the costs needed to acquire customers. They have, therefore developed different strategies to drive traffic to their websites and make it easier for customers to make reservations and bookings (Rooney, 2012). Studies have shown that many guests may prefer booking online but often prefer speaking directly to credible reservation agents or the hotel (Rooney, 2012)In order to convert more inquiries into bookings, the hotel has trained its staff dealing with voice reservations and other agents to do everything in their power to secure a sale and overcome any resistance (Hotel Management, 2019)They are required to attend to the needs of the potential customers to the point that they can secure a sale, overcome any resistance, and ensure the caller does not hang up before committing. Division of Sales Tasks, Initiating Customer Contact, Determining Sales Forecasts, Biological Sketch With the rise in the number of international events, the market growth for luxury hotels has gone up. Hotels must prepare for any changes in the market by effectively preparing through forecasts (Sorokina et al. 2016). More and more consumers are opting to spend their leisure time in different hotels globally with the goal of experiences luxurious living being offered in the hotels. FIELDWORK OBSERVATIONS AND INTERVIEWS 10 Four Seasons and its ilk offers services such as beauty services, spa, and numerous amenities that provide relaxation and rejuvenation to their customers. Demand for luxurious services has also been driven by the hectic daily lifestyle across the globe. The business hotel segment accounts for the leading share in the Four Season’s market. Business travellers, small conference, individual tourists, and tour groups are the main target customers. Suite hotels are a critical segment for the hotel and feature bedrooms and separate living areas attracting professionals such as businessmen, lawyers, and accountants that prefer such services(PR Newswire, 2020) The airport hotel guests segment is another important group that targets customers of airport hotels such as airline passengers like those whose flights got cancelled or having overnight layovers, airline crew and staff, and business clientele. Contact Management Systems Four Seasons Hotels and Resorts leadership understand that an effective sales management is essential to the growth and long-term stability of their business. Generally, a sales management process involves the development of a sales force, managing sales operations, and using sales techniques that push business towards a sustainable achievement of sales targets (Sorokina et al. 2016).A proper sales management strategy and process monitors and measures the collective ability of the sales force in selling and extending quality sales support for the customers (Rooney, 2012)Four Seasons utilizes an automated management system which ensures better effectiveness and efficiency. An effective sales management strategy comprises of goal setting, sales support and training, and creating and updating the sales strategy, as well as monitoring the results. Sales tracking software is traditionally used to capture sales activities and provide management with useful and relevant sales related information. It enables the user to receive accurate information from the automated system (Commence, 2020). However, for it to work well, it needs to be fed with the right information. Once the information is captured into the system FIELDWORK OBSERVATIONS AND INTERVIEWS 11 manually, it will allow the software to do t …