please answer only question 2

Case Study Overcoming Rate nversations stopped as Fran wall of the 263-room Park View Rate Resistance-Among the Sales Staff ac Fran walked into the meeting room where the sales staff View Hotel had gathered. The director of sales surveyed the that turned toward her as she approached. Is Fran said reassuringly. "This is a strategy session, not aware I had a meeting with the general manager last nake a few changes to our marketing plan. I'd like us to or and brainstorm ways to solve some problems we identified in anxious faces that tur "Lighten up, folks," Fransa e. I know you're all aware I had a me a wake. I knot week, and he'd lik sit down together and brai our meeting." Fran passed around a han crazy!" said Angela. "Most around a handout as the salespeople took their seats. The objec- started as soon as they began reading the agenda id of 5,000 room nights of our corporate contract business? That's Angela. "Most of my best accounts are corporate preferred. I worked get those accounts and I'm not dropping them now." "Where are we going to find the customers to replace these 5,000 room ht?" Michael asked. "You can't just expect that kind of new business to come strolling through the door right away." Murmurs of agreement filled the room. "And how am I supposed to break it to my accounts that they're not going to get their preferred rate anymore?" asked Tanisha. I wouldn't know what to say, and I don't think I could sound real convincing." Fran raised her hands. "Let's take this one step at a time. Here's the situa- tion. The hotel has too much contracted business at a low rate. Some of these accounts have had the same rate for the past two years. We need to replace about a third of this business-about 5,000 room nights - with higher-rated transient and group business. I'm not saying we're going to get rid of all our contract business. I just want to evaluate which accounts we should keep, which ones might accept 182 Chapter 4 a higher-but still discounted-rate, and which ones don't make good sense to keep." stood up next to a flip chart and uncapped a marker. "Let's set up some criteria for reviewing our contract accounts. What kinds of things sho art. She wrote, "Keep accounts with attractive arrival/departure patterns." She continued to write as the staff began calling out ideas. After a coffee break, Fran called the group together again. "Great work Now let's think about how we're going to replace that contract busu new business that will bring in more revenue. I'd like to make a list of market seg ments and sources we could solicit more strongly. Then we can evaluate which areas we should concentrate our sales efforts on. Any ideas?" Fran worked the flip chart again. That job done, Fran turned to the issue Tanisha brought up earlier: how to tell clients about the change in the hotel's corporate preferred rate policy. Together, the staff members decided they would be more comfortable and effective if they had scripts to work from. Fran assigned two of the sales staff to write some scripts that everyone could use when talking with their accounts, whether they were increasing their rate or eliminating their preferred rate. As the meeting adjourned, Fran still heard grum- bles from some of the salespeople. "My work's not done yet," she thought, and began planning her next steps for helping her staff accept these new rate changes. Discussion Questions What are some of the criteria the sales staff could use to evaluate whether a corporate contract account should be retained or dropped? What factors should the staff consider when determining new sources of busi- ness to replace the displaced contract business? What would the scripts look like that the sales staff could use when talking to clients about the rate change? How can Fran help her staff become comfortable with the changes in the hotel's rate structure