Setting Targets For Hotel Sales Executives.

Specified amount of sales that a management sets for achieving or exceeding within a specified timeframe, and allocates required resources is called Sales Targets. Targets should be set to give a clear indication of what kind of performance is expected, and incentives should be provided to encourage sales staff to meet and exceed those expectations.

 The Authors found out that the targets are divided into mainly three categories namely:

Targets for New clients – This is the main role of sales people, to bring in new clients who have never previously experienced the brand or service of the hotel.

Targets for Existing Clients – It’s likely that there are product or service enhancements that you can sell to existing Clients, known as up-selling. Up-selling is the key to success for any industry and it is the most profitable tool.

 Targets for Past clients – Previous customers should not be considered lost forever. Set targets to encourage sales people to pursue past customers.

 Most of the luxury hotels in Mumbai set targets for the clients according to the territory that they look after. It also gives the proximity of the executives to the hotel. The targets will be higher for those executives who are closer to the hotel and vice versa. Certain other hotels set their target according to the experience and potential of the executives. Target set also depend on the city where the hotels is located. One of the most important points to be noted before setting the targets for a sales executive is to identify the sales or business of the last year. The authors found out that certain hotel also look into the upcoming events and celebrations in the region before fixing the sales target. The sales and marketing heads do also consider the past trends and future competition.

The authors found it very surprising to have found out that even logistic opportunities end up being one of the major parameter in setting the target for the sales executives. For example, if a new flight service is started from an international destination to India, it can increase the potential customers which can also help in increasing the sales of our organization and hence it is also considered while setting the targets for the sales executives.

 Some luxury properties set their targets for the sales executive according to the portfolios. Their prime look out is into the presence of competition and corporate.

The authors found out that several ways or methods are used in setting the target for the sales of the sales executives. Each of these methods is equally relevant and helps in understand the market from a wider perspective so as to set an apt target for the sales executives.