Wednesday, June 22, 2011

Sales Tactics and Psychological Warfare

From the time I was 18 years old, up until October of 2006 (so five, almost 6 years) I had never worked anything other than retail. A book store, Rainforest Cafe, Merchandise at Disneyland, a candy store, and then my whole perception of Customer Service was turned upside down when I began working in the hotel industry. Its a world like no other out there. It is a business where you not only have to sell, upsell, and market all in one, but you also have to learn people. Not people skills, because those cannot be taught; you have to learn people. In regular everyday retail, like at Target or Abercrombie, you pretty much have the merchandise out for the vultures to pick over and they take what they want, and leave the rest. They are buying a product, a brand name, a tangible item, not a service. The hotel business is a combination of retail sales tactics, psychological warfare, and Lets Make A Deal. Most people assume that it is pretty cut and dry, you want or need a room somewhere you are traveling to, you call (or go online) and you book it. The end. Wrong.

The whole concept of retail sales tactics, psychological warfare, and Lets Make A Deal is quite simple. It is supply and demand really (thank you to my high school Economics teacher. Yes I was actually paying attention despite the utter boringness that was your curriculum). Retailers know that the average American will almost always choose the "better deal" over any other option, thus the masses of sale and promotion signs everywhere, generic junk mail special flyers in the mail, and the compulsion to clip coupons just to get the most for your money. So when choosing a hotel to stay at, comsumers apply the same strategy to their search. Who has the best deal? Which one offers the most for the least amount of money? Is anyone offering any "specials" like if you book 3 nights, you get the 4th night free? AAA or AARP or Military specials or discounts? And my personal pet-peeve, are they willing to negotiate a better price for me? (seriously, this is NOT Lest Make A Deal, this is not the weekend swap meet. We are in the business of making money, not saving you money) Businesses return this tactic, with what I like to call psychological warfare, and lead the consumer to believe that they are getting the best deal possible for their money, however it depends on the needs of the consumer. Perhaps they really do just want to spend as little money as possible, and don't care about any thing else other than the total cost. Or maybe they are the type of person that doesn't really care too much about having the fanciest room in town, and just want a good price, and good service. Or they are a little more high maintenance than most, and want a room equal to the Ritz Carlton's quality at a Motel 6 price. Each scenario poses different strategical points of attack (I mentioned it is psychological warfare didn't I?). The easiest way to explain is through personal experience. The property I currently work at is small, privately owned, and geared more toward the budget traveler. We are by no means a luxury hotel, there are no valet attendants or bellmen, no room service, not even a jacuzzi. Our "plan of attack" is to show them the quality of service outweighs the lack of amenities and luxury. Simply because the hotel is only rated a 2 star, doesn't mean we provide 2 star service. I don't know of any business that would think that is acceptable by any means. We may be a two star hotel, but we strive to provide 4 star quality service. So for those travelers seeking decent accommodations, with fantastic service, we fit the bill. However, those still seeking champagne and strawberries upon arrival and get coffee and muffins in the morning instead are severely disappointed.

On the flip side, working at a 4 Diamond property also has its own plan of attack. They have to learn to justify the cost of the room with the amenities offered. Not everyone is willing to spend $400 a night for a place to store your luggage, shower and sleep. However there are those that see the price as something worth paying because of what they are getting. Valet, bellmen, 24 hour room service, 3 pools, fitness facility, busniess center, bar/lounge, concierge lounge, fancy room decorations, a fantastic view of whatever there is to look at, close proximity to main attractions, meeting spaces, banquet halls, spa services, VIP services, priority check ins, vacation property opportunities, and the list goes on and on and on (can anyone guess where I am talking about?!).

The point I'm trying to make, is that regardless of the tactics used by the consumer, this whole industry is a big game of give and take. You give the money, the business takes it and in return gives you what they deem worth that amount of money, and you happily take it because you (the consumer) don't know any better. Really, think about your vacation and what you will be doing. Do you come to Disneyland to sit in your $400 a night hotel room and gaze and the cutsie wall paper and carpet or bedspread with characters on it? No, you go to Disneyland to go on rides and have fun. So why spend the extra money? Staying at a less expensive but equally nice hotel costs less, meaning you could even stay longer if you wanted, because three nights at $400 is the same as six nights at $200 a night and the quality would still be good quality, or at least it should be for $200 a night.

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