Key Principles and Techniques for Building and Managing Guest Relations in Hospitality

This document discusses the key principles and techniques for building and managing guest relations in the hospitality industry. It emphasizes the importance of efficiency, communication, and trust in developing strong customer relationships. The document also explores strategies for upgrading hotel rooms and providing exceptional services to enhance guest satisfaction.

Unit – 32
Sales
Management

Table of Contents
INTRODUCTION......................................................................................................................3
TASK.........................................................................................................................................3
P1. Elaborate the key principles of sales management in relation to the importance of sales
planning, methods of selling and sales reporting...................................................................3
TASK 2......................................................................................................................................4
P2. Determine the benefits of sales structures and how they are organised in hospitality
sector.......................................................................................................................................4
P3. Explain the importance of having sales oriented staff within hospitality service............5
P4. Assess the use of different sales distribution channels for hotel......................................6
TASK 3......................................................................................................................................7
P5. Analyse key principles and techniques which contribute to build and manage guest
relation in hospitality..............................................................................................................7
TASK 4......................................................................................................................................8
P6. Explain the importance of developing sales strategies that yield highest profitability
and incorporate account management within sales structure.................................................8
CONCLUSION..........................................................................................................................9
REFERENCES.........................................................................................................................10

INTRODUCTION
The Hospitality is a part of service industry which includes restaurant, hotels, park
amusements, events, cruises, entertainment, travel and tourism-related facilities. It is very
essential for hospitality sector to develop customer relationship management services that
attracts them in maximising revenue and profitability ratios. The organisation which is
selected for this project is Ritz Hotel which is an American multinational company that have
101 luxuries hotels and resorts with 27,650 rooms (Alamäki and Kaski, 2015). It provides
memorable travel experiences in the world’s top destinations. This project elaborates the key
principles of sales management and its importance of sales planning, methods and reports. It
also determines the benefits of sales structures for analysing their organisation in hospitality
sector. This further explains the importance of having sales oriented staff and describes use of
distribution channels in hotel. Additionally, it analyse key principles and techniques that
build and manage guest relation in hospitality. This also explains the importance of
developing sales strategies that yield highest profitability and incorporate account
management within sales structure.
TASK
P1. Elaborate the key principles of sales management in relation to the importance of sales
planning, methods of selling and sales reporting
Sales Management:- It is the ability of managers to co-ordinate and control the
action of sales in order to utilise the scarce resources effectively which maximise revenue and
profits. Managers of Ritz Hotel focus on sales management by directing and monitoring the
performance by restricting cost and positioning the brand in mind of customers that increase
awareness and consumption.
Sales planning:-This refers as to forecast sales targets, quotas, and strategy that
increase sales by through brand positioning and product awareness among buyers. Managers
of Ritz Hotel concentrate on sales planning as they predict all the expenses which will
generate revenues for hotel in future.
Methods of selling:- There are three types of selling methods which are categories as
shown below:-
 One-off Selling
 Relationship selling
 Customer-centric selling
Sales reporting:- It is necessary for sales team to analyse the deviations in the
performance of their workers which is to be rectified by corrective measures. Managers of
Ritz Hotel used to examine the overall actions of sales team to interpret the variance involved
in actual as compared to budgeted target (Balboni and Terho, 2016).

Fundamental principles of sales management:- The key principles of sales
management are mentioned with reference to managers of Ritz Hotel are as follows:-
 Principle of Consistency:- This philosophy is most important for business as to
follow the proper rules and guidelines of managers adopted by the sales management
team. Managers of Ritz Hotel focus on sales person as to perform their actions within
systematic direction and in discipline manner. It is important that consistency does not
mean inflexibility as sometimes little changes take place which is vital to improve
morale of sales team. This is essential in planning of sales as it determines the actions
performed by effective team and to report the variances occurred in respect of
expected target (Byun, 2018).
 Principle of Delegation:- The delegation refers to decentralise the labours in
accordance with division of work. Managers of Ritz Hotel distribute its work at
different departments such as finance, human resource, marketing, sales, production,
etc. It is importance in sales planning as it focus mainly upon the sales manager as to
direct and manage the program with specialisation that increase effectiveness. This
creates accountability sales team to report and take guidance from the manager of
their department which increase efficiency.
 Principle of Equality:- This philosophy of equality states that all the staff members
of sales team must be considered as equal and the action of managers must not impact
in partiality and jealousy. Managers of Ritz Hotel focus on this principle as the
inequality among the sales person adversely affect goal and objectives of hotel by not
able to meet the requirements of guest efficiently. It is important in sales planning by
motivating their salesperson to work with eagerness and to increase guest for hotel
that maximise revenue and profits.
TASK 2
P2. Determine the benefits of sales structures and how they are organised in hospitality sector
Sales leadership:- This is described as the ability to make things done by other
workers of sales team by encouraging them through motivation as to perform collectively for
specific target. Managers of Ritz Hotel focus on sales leader as it is being accountable for the
actions performed by whole team to achieve success.
Designing, organising and selecting the right sales structure:-
 Geographic Organisation structure:- This structure refers as the organisation
discriminate its actions in accordance with the geographical area at local, state and
national. It is also known as territorial sales force structure. Managers of Ritz Hotel
can use this structure as to promote its amenities to their potential customers by
attracting them through electronic equipments, interior designing of room, etc.
Managers of Ritz Hotel are beneficial with this structure as it creates least-cost
effectiveness for hotel which increase efficiency for achievement of success (Cruceru
and Moise, 2014).

 Product sales force structure:- This sales force is responsible for selling the finished
goods to target market by ignoring the geographical areas. Managers of Ritz Hotel can
use this structure to increase awareness of their customers through advertisement and
sales promotion. It is advantageous for hospitality sector by focusing on sales
representatives to develop product expertise which emphasize customers to clear their
doubts regarding hotel management.
 Market-Based structure:- It is also known as customer-sales force structure. This
describes that sales representatives are categorised on the basis of customers or
industry. Managers of Ritz Hotel can use this structure in accordance with their target
market as to analyse their needs, desire and wants in hotel which are to be fulfilled
effectively that increase brand reputation of business. This is useful for hospitality
sector as to meet the requirements of their guest to build customer relationships by
facilitating them with good experience for luxurious and comfortable lifestyle.
 Functional structure:- This structure divides the responsibility of sales person in
accordance with the various departments of sales such as account managers, product
specialist, sales, etc. Managers of Ritz Hotel can use this structure as to discriminate
the actions of sales team with their location and procedure to meet customer
requirements (Deeter-Schmelz, 2015). This is beneficial for sales managers as it
increase effectives through speciation in performance of salesperson and maximise
efficiency with achievement of goal at particular duration.
P3. Explain the importance of having sales oriented staff within hospitality service
Hospitality service:- This refers as the broad category of service industry which
includes lodging, food and drink service, event planning, parking themes, transportation,
travelling and tourism industry. Managers of Ritz Hotel implement these hospitality services
as to enlarge their customers for maximising revenue and profitability ratios.
Sales-Oriented Staff:- It is defined as the staff which is basically related to sales and
emphasize their actions to increase their effectiveness by providing better environments for
their guest to breath and relax. Managers of Ritz Hotel focus on their sales-oriented staff as
they increase their guest by attracting them through their amenities, good environment,
discipline, proper communication, hotel management, etc.
Importance of sales-oriented staff within hospitality sector is mentioned below:-
 Increase supervision:- The sales leader increase supervision by managing and
controlling the actions for effective sales team by meeting the goal of organisation at
particular duration. It increases effectiveness as the task of sales person is divided in
accordance with their proper training and development. Managers of Ritz Hotel
implement this to increase effectiveness of their workers by directing and guiding
them to perform their actions with specialisation. This enhance workforce to engage
with proper training and development that develops their skills for expertise that
increase hotel management efficiently (Johnson and Jaramillo, 2017).
 Achieve organisation goal:- It is the ability of organisation to achieve organisation
goal by managing and directing the actions of their salesperson. This increase

specialisation as the work is divided in accordance with capabilities of individuals that
perform their actions with motive to achieve rewards and organisation objective.
Managers of Ritz Hotel are advantageous with sales-oriented staff as it increase
revenue by maximising their clients that enhance revenue. This enhance market share
by developing customer relationship which increase their support and loyalty to
achieve success by competing with its rivalries.
 Customer relationship management:- This is the capability of hospitality sector as
to develop customer relations by treating their guest as king. It is the duty and
responsibility for every organisation to meet the requirement of their customers that
create opportunity for growth and stability of business to sustain in global market.
Managers of Ritz Hotel are beneficial as this increase competitive strategy of the
business that creates threat for their rivalries such as Hilton, Hyatt, Choice Hotel, The
Peninsula Hotel, etc.
P4. Assess the use of different sales distribution channels for hotel
Sales distribution channel:- This channel of distribution refers as to sale finished
goods by promoting and positioning products to increase brand awareness which increase
sale and create opportunity for growth of business. Managers of Ritz Hotel implement sales
distribution channel that enlarge customers through direct and indirect channel of distribution
which remove the hindrance of place (McClaren, 2015).
There are different types of sales distribution channel which are useful for managers
of Ritz Hotel is as follows:-
 Individual property websites:- It is the promotional activity done by hotel to
advertise their business through websites by providing all the necessary details that
includes hotel name, customer services, electronic devices, etc. Managers of Ritz
Hotel implement this distribution channel as it attracts customers on broad area by
increasing their brand awareness. This consumes less expense for business and
benefits to enlarge customers that maximise revenue and profits.
 Social media:- This distributional channel consists the capability of sharing
information and views on social media such as Facebook, Whatsapp, Instagram, etc.
Managers of Ritz Hotel implement this channel of distribution to determine the
requirements of customers through their liking and disliking of the post and analyse
the rating criteria to increase their awareness. It does not involve high cost as the
social media increase sales through digital marketing which maximise brand
positioning.
 Global distribution systems:- It is the ability of distributing product through
computerised network system that enables transaction between travel industry service
providers, hotels, travel agencies, etc. Managers of Ritz Hotel implement this to
evaluate real-time information and data about the availability of rooms, flights and
other travel services. This increase cost as it is necessary to co-ordinate with other
business for travel agency. It is beneficial for business as it increase convenience for
their customers in travelling and transportation (Monden, 2019).

 Online travel agents:- This channel of distribution mainly focus on indirect channel
as the hospitality sector deals with various travel agencies that provides travel services
and promotes their hotel for reservation. Managers of Ritz Hotel implement this sales
distribution channel as it attracts increase customer awareness through these travel
agencies. It is very costly as there are various travel agencies which charge them that
increase their cost for high promotional activity. It is beneficial as they provide
assurity that they will certain increase their customers through advertising about their
features.
TASK 3
P5. Analyse key principles and techniques which contribute to build and manage guest
relation in hospitality
Guest relation:- This refers as to build customer relationship management by
providing services as to meet requirements of customers that create opportunity for growth
and stability of business. Managers of Ritz Hotel focus on guest relation as they are the king
of business which are to be satisfied with their qualitative services that develop their loyalty
and support for hospitality sector (Panagopoulos and Ogilvie, 2015).
Key principles to build and manage guest relation in hospitality:-
 Increase efficiency:- This is the ability of business by completing the target within
the specified duration that increase efficiency to achieve success to compete with its
rivalries. Managers of Ritz Hotel focus on this as to provide their service within the
particular time that attracts customers to increase consume more.
 Improve communication:- It is described as the communication which consist of
verbal and non-verbal communication skills. It focuses on the communicating in hotel
with their guest through patience. Managers of Ritz Hotel implement this as they
share their information with gestures and words that leads to develop relationship
among one another.
 Develop trust:- This is the capability of organisation that develops trust among their
existing guest that enables them to experience the requirements of customers which
are to be fulfilled already. Managers of Ritz Hotel develop trust through their existing
customers by providing qualitative services to them which develops high level of
satisfaction.
Techniques to build and manage guest relation:-
 Upgrade hotel rooms:- It is the ability of hotel managers to develop beautiful interior
designing of their rooms which attracts customers and develop good relation among
them as they provide good atmosphere to survive. Managers of Ritz Hotel implement
this as it upgrade hotel with good environment and beautiful design of room (Powers,
2016).
 Suggestive selling:- This is the ability of sales manager to suggest the selling
procedure through either direct or indirect channel of distributions that promotes guest

to experience the life of hotel for their luxurious and comfortable life. Managers of
Ritz Hotel implement this as it select the best channel for sales-organised staff that
result in least-cost effectiveness with qualitative service to meet the requirement of
customers.
 Employee incentive program:- It is the procedure of hotel to increase employee
incentive by providing them monetary and non-monetary rewards that includes bonus,
degrees, certificates, promotion, insurance, appraisal, etc. Managers of Ritz Hotel
implement this as it increase effectiveness as the workers are motivated to complete
the task with eagerness to achieve individual and organisational goal and objectives
(Rauch, 2016).
TASK 4
P6. Explain the importance of developing sales strategies that yield highest profitability and
incorporate account management within sales structure
The importance of developing sales strategies that yield highest profitability ratios
and incorporate account management within sales structure are as follows:-
Portfolio management:- This is defined as the art and science of making decisions
for investment mix and policy by matching investments to objectives and asset allocation for
individuals to balance risk. Managers of Ritz Hotel implement this portfolio management as
to take more risk through investment that generates capital with high return in future. This is
the ability to maximise profitability ratios and increase market share. It is referred as to
manage and individual investments in the form of bonds, shares, cash, mutual funds, etc.
Calculating margins:- It is the ability of business to find margin through dividing
gross profit by revenue and to analyse the gross profit percentage it is to be multiplied by
100. This margin is computed from gross, operating or net profit of business. Managers of
Ritz Hotel implement this as to acknowledge their annual growth of profitability ratios as
comparing the actual or current year from the previous. It is beneficial for hospitality as to
analyse and monitor the weakness by restricting the error through corrective measure that
result in delay for achievement of organisation goals and objectives.
Performance management:- This refers as to manage the performance of workers by
directing and controlling the actions of workers to reduce errors through monitoring and
adjourning. This improves efficiency of organisation by effectively performing its actions to
achieve success through its competitive strategies. The internal strength cover weakness and
external opportunities overcome threats (Waiser, 2016). Managers of Ritz Hotel implement
this to develop decentralise roles, duties and responsibilities of workers that increase
specialisation in achievement of organisation goals and objectives. It is beneficial for
hospitality as their staff members are aware of their task and they complete their task with
employee engagement and involvement this develop trust and co-ordination among workers.
The hotel is benefited with increase profitability ratios and market share.

Link between hotel services and revenue management:- The relationship between
hotel services and revenue management is described on the basis for managers of Ritz Hotel
are as follows:-
 Front desk and guest experience:- The reception co-ordinate with guest by
communicating them at their reservation, welcoming them in hotel, provides lodging,
introduce room, and move on, etc. Managers of Ritz Hotel focus on the activities of
front desk and determine guest experience for their luxurious and comfort lifestyle.
This increase revenue as the customers is attracted with good atmosphere of their
hotel and extends to stay in hotel.
 Cook and customer service:- It is the procedure of preparing and cooking food with
qualitative services as per the requirement of customers by making it with fresh
material. It is the ability of chef to cook food with delicious recipe that attracts
customers to consume more food. Managers of Ritz Hotel direct and guide the chef to
prepare meal in accordance with demand of customer within particular duration. It
increases revenue as the customer service is provided effectively and efficiently this
maximise wealth and profits.
CONCLUSION
From the above discussion it have been concluded that sales management plays the
major role in hospitality sector which create an opportunity for growth and stability of
business. It is very essential for hotel to meet the customer requirements with sales
distribution channel that remove the hindrance of place for its buyers. This project elaborates
the key principles of sales management such as consistency, delegation and equality with
importance of sales planning, methods and reports. It also determines the benefits of sales
structures for analysing their organisation in hospitality sector are geographic, product
functional and market-based structure. This further explains the importance of having sales
oriented staff and describes use of distribution channels in hotel. Additionally, it analyse key
principles and techniques that build and manage guest relation in hospitality. This also
explains the importance of developing sales strategies such as portfolio and performance
management by linking between hotel services and revenue management that yield highest
profitability and incorporate account management.

REFERENCES
Books and journal
Alamäki, A. and Kaski, T., 2015. Characteristics of Successful Sales Interaction in B2B Sales
Meetings.
Balboni, B. and Terho, H., 2016. Outward-looking and future-oriented customer value
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Management. 53. pp.181-193.
Byun, D. H., 2018. Development of a Sales Support Application Based on E-Business
Cards. The Journal of the Korea Contents Association. 18(5). pp.464-471.
Cruceru, A. F. and Moise, D., 2014. Customer relationships through sales forces and
marketing events. Procedia-Social and Behavioral Sciences. 109. pp.155-159.
Deeter-Schmelz, D. R., 2015. Personal Selling and Sales Management Abstracts. Journal of
Personal Selling & Sales Management. 35(4). pp.346-357.
Johnson, J. S. and Jaramillo, F., 2017. Meta-analyses in sales research. Journal of Personal
Selling & Sales Management. 37(2). pp.134-152.
McClaren, N., 2015. The methodology in empirical sales ethics research: 1980–2010. Journal
of business ethics. 127(1). pp.121-147.
Monden, Y., 2019. Toyota management system: Linking the seven key functional areas.
Routledge.
Panagopoulos, N. G. and Ogilvie, J., 2015. Can salespeople lead themselves? Thought self-
leadership strategies and their influence on sales performance. Industrial Marketing
Management. 47. pp.190-203.
Powers, T. L., 2016. History of selling and sales management. Routledge Companion to
Marketing History, Routledge, London, New York, NY. pp.225-238.
Rauch, N. A., 2016. Die 7 Disziplinen im Sales-Management: Eine Anleitung für nachhaltige
Kunden-und Geschäftsentwicklung im Vertrieb. Springer-Verlag.
Waiser, R., 2016. Budgeting and Psychological Motivations in Sales Management (Doctoral
dissertation).