Hotel Regent

Mr. Arun Mehra, General Manager of Hotel Regent, was concerned about the Hotel’s revenue picture. While the Hotel had grown at a rapid pace during its first few years of operation, revenues had leveled off in last two years. In the light of the fact that, the hotel industry was growing at 15% during the last two years, Mr. Mehra was hard pressed to do something. The Hotel’s revenue had increased by a meager 2% in the last two years. This was totally un-acceptable to the top management and Mr. Mehra knew that, the situation required immediate action. Hotel Regent was established ten years ago and was a five start hotel chain. The revenues were coming from corporate clients, travelers, social gatherings, functions etc. The corporate clients were handled by a team of sales persons and Hotel Regent was successful in retaining these clients.

A detailed analysis of the present situation indicated that, the corporate clients contributed 70% of the revenues, while the rest came from other sources. For travelers, the Hotel had tied up with various travel agents and the growth was good in this sector. The advertisements were released occasionally in the print media and at the airport. The rates of the services provided by the Hotel were competitively priced and the existing clients were satisfied with the Hotel.

The success of the Hotel was largely attributed to the sales personnel and their competent, personalized service. Each sales person was fully capable of working with a potential customer independently. A few accounts were lost to the rivals despite the intense competition. A problem, though, was the small number of new accounts. Mr. Mehra was sure, that, once a new account was obtained, it would be retained. A fact corroborated by the records of the Hotel.

The sales training program developed stressed on customer relationship management and