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September 16, 2013

The Lagging Midmarket Hospitality Industry Can Benefit from Outbound Telemarketing

By Tracey E. Schelmetic, TMCnet Contributor


The hospitality industry is an important one to the U.S. economy. By some estimates, the travel and tourism industry is one of the nation’s largest employers and ranks among the top ten industries nationwide. The economic downturn that began in 2008, however, has had significant effects on the hospitality industry. As the middle class is increasingly squeezed, hotel and restaurant chains at the very bottom of the budget spectrum – discount motels and the least expensive restaurants – are doing fairly well, as are the luxury brands as increasing economic inequality concentrates that nation’s wealth in the top 1 percent.


Wrote Hospitality Daily recently wrote, “As the majority of consumers have less and less to spend, fast food restaurants, on-the-go cafes, budget hotels and in particular hostels (as well as bed & breakfast and guest houses accommodations) will see a huge boost to their income – given that consumer will spend less, but reluctantly give up their vacation, eating, drinking, or leisure spending. Also in on the boost will be the top-tier luxury hotels, exclusive nightclubs, distinguished restaurants and premium casinos – given the rise in concentration of wealth.”

What’s being left out of the equation are the mid-level hotel and restaurant chains, which are seeing their profits erode. For companies in this spectrum, it will mean actively pursuing customers in new ways, using new technologies. Rather than waiting for customers to come to them, they will need to be more proactive in reaching out.

In a recent blog post, sales management solutions provider VanillaSoft recommends that companies in the hospitality businesses consider lead management software to help drive sales. This includes using telemarketing software, together with lead management, to drive up customer loyalty and increase the levels of new bookings and group sales through the implementation of an outbound call campaign and lead management system. 

Hotel chains can implement programs that allow them to more effectively reach existing and potential customers through Web-based lead management and automatic lead distribution, e-mail marketing programs, auto-dialing in outbound telemarketing that that can radically increase call activity and logical branch scripting that helps keep sales reps more effective by ensuring they stay on message.

One thing seems clear given the continued lag to today’s economy: if this is the “new normal,” then companies in the hospitality industry will have to adjust to it. Waiting for customers to come to you is never going to work: it’s time to find a way to more effectively go to the customers.




Edited by Rachel Ramsey


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