There are external factors in all businesses beyond the direct
control of any manager or owner. Then there are internal factors
in all business over which a manager or owner has some degree of
influence or control.
Using creative marketing and out of the
box sales approaches can have big payoffs during the inevitable
tough times.
It may be the creativity of internal responses to external
factors to achieve a more favorable outcome than pure chance.
Let us learn from what one Orlando business owner accomplished
during some recent challenging times.
Harris Rosen is a well known and top shelf Hotelier in the
Orlando market. He graduated from the Cornell University School
of Hotel Administration in 1962 and is now CEO of Rosen Hotels &
Resorts. He owns seven quality properties totaling more than
5,000 rooms. Business in 2008 appears very good.
But when Harris bought his first Quality Inn hotel in 1974
there was a major gas shortage in the US. Folks were just not
traveling to Orlando. Few travelers meant few guests at any area
hotels.
Hotels and restaurants obviously need guests and diners to
literally survive. So what to do?
Well, Harris Rosen used to stand at the highway near the exit
ramp to his Quality Inn and try to use will power to influence
people to leave the highway and check in. He soon found,
however, that his willing powers were lacking, so he came up
with a Plan B.
A Special One Man Sales Program was put into place.
Harris knew that motor coach operators in New York were still
traveling to Orlando. He personally hitch-hiked to New
York and made cold sales calls on the motor coach owners.
"Hi, I'm Harris Rosen. I just hitch hiked up from Florida to
talk with you about a really big benefit for you and your tour
coach customers. I own a nice hotel in Orlando. You just tell me
what nightly rate you want and I'll agree to it," he would say.
This is a paraphrase, but essentially how the sales calls were
made according to the story as recounted by Harris Rosen
himself.
In short order he made friends with many tour bus
owner/operators and cut deals for as low as $5 a night for
guests to stay in his Quality Inn. The contract was a business
card given to the coach operator where Harris wrote 5 dollars
a night and signed his name. "You just give this to the
front desk at check in and they'll honor your special rate for
you and all your passengers," he told the tour bus owners.
Harris gave out enough business card contracts to fill his
hotel. Then he bought an airline ticket to Orlando and flew
home.
After the September 11, 2001 terrorist attack on New York's
Twin Towers the hotel business in Orlando really suffered.
Harris Rosen began dropping rates to as low as $39 at some of
his 4-star properties. He marketed and promoted. Many locals
traveled to Rosen Hotels and helped prop occupancy and thus the
hotel was able to better maximize overall hotel revenue, cover
housekeeping costs, and reduce layoffs.
When the bad times roll in, just roll out some creative
promotions and marketing to not only survive but thrive.