THE PAR REPORT INSTRUCTIONS
TABLE OF CONTENTS
1. Getting Started FAQ
2. First Steps
3. Key PAR Guidelines
4. Next Steps
5. Evaluate Your Score
6. Weighting
7. Prioritizing Your Path
8. Consultants & Partners
9. Glossary of Acronyms
GETTING STARTED
Congratulations! You are about to undertake an initiative in establishing a performance benchmark for your sales department. The PAR Report is intended to guide you thru a step by step assessment of key categories that should be present in your sales operation. These criteria are to provide you, the owner, general manager, corporate operations and sales/marketing executives, or Directors of Sales and Marketing a compass to guide your efforts. The PAR report is designed to provide you a performance score against a best practices benchmark. Keep in mind the following FAQ’s
FAQ
Q—Who conducts the PAR Report?
A—It depends on your operating structure. For management companies, hotel chains, or asset managers, it would usually be the Regional VP or Director of Sales/Marketing or Regional VP or Director of Operations. It’s recommended that all properties conduct their own independent PAR Report at least twice per year. This can be done by the General Manager, Director of Sales/ Marketing or be facilitated by an outside consultant.
Q—How long will this audit take?
A—The PAR report shouldn’t be rushed and should preferably be done in a relaxed conversational setting. An industry average would be to set aside a full day to answer and score each category as well as to leave ample time to discuss and agree upon corrective action and next steps. The PAR assessment is not meant to be a surprise review of performance. The detail of the PAR Report should be printed and shared with your sales executives prior to conducting the review. There should be substantial give and take.
Q—Why is this necessary if revenue and market share are up and I don’t see things changing?
A—Simply stated, because you’re ostensibly striving to consistently attain your maximum market potential and provide a comprehensively professional sales and marketing environment. Your team wants to grow and they need benchmarks of performance and constructive mentoring and coaching to feel they are moving forward in their careers. They will appreciate the investment you’re making in them.
Q—After this is done, what do we do?
A—The last few pages of The PAR Report deals with next steps and seeks to answer the ‘Now What?’ as well as isolate and interpret categories where you are performing well and areas where you have problems.
Q—I’m not a sales and marketing pro and wouldn’t feel qualified to conduct this audit. Where do I go?
A—Hotel Wise Man has personally conducted hundreds of property audits in his career and is available to do so for your property as available. Additionally, we maintain close alliances with other top tier consultants and would be glad to recommend resources to help you. Just give us a call at 949- 679- 9709 or email us at hotelwiseman@hotelwiseman.com
To get you started with your PAR Report, try following these steps:
1.
Pick a day mid-week, Tuesday, Wednesday, or Thursday to conduct the review. Monday’s and Friday’s are just too busy in most properties. If that is not your case, try to pick a day where you and your team can calmly consider the questions and won’t feel rushed to answer them.
2.
It’s recommended that you simply conduct this review on your laptop or desktop computer in the comfort of the offices in the sales department.
3.
Distribute this document at least one week ahead of the scheduled time to conduct the PAR Report to all that will be asked to participate so that all involved have enough time to adequately prepare.
4.
Familiarize yourself with all of the areas that will be covered. Although this assessment is numbered and weighted, it’s not necessary to strictly adhere to the numbering system. It’s fine to cover subject areas out of this order. But be sure to answer all that apply to your hotel.
5.
Take your time and discuss area’s that need discussion.
6.
Commentary is not criticism. This is an assessment, not a judgement. There are many shades of gray, although some category areas are clearly black and white. Fairness and impartiality are critical to the process.
7.
Before you begin your PAR review, be sure you create a new file by selecting File...Save as—and name and date your review. The PAR Report is designed to be used more than once for your hotel.
KEY PAR GUIDELINES
• PAR scoring is dynamic. As you grade an item in a category, the totals are migrated to the master sheet and totaled with all categories.
• The highest score for any item in any category is 4 and simply averaged by the number of items in that category.
• All categories can be scored in half point increments. I.e. 2.5, 3.0, 3.5, etc.
• Think of the scoring as you did in school. An item scored as a 4 is an A and an item scored as a 3 is a B. An item scored as a 3.5 would normally be a B+ or even a B++ as opposed to an A- or A--.
• Be positive. Think improvement potential. If it’s an A or A-, it’s a 4 and congratulations are in order for that item. If it’s a B, be clear on what it would take to be an A.
• Stay as impartial as possible.
Sample page (see image below)
NEXT STEPS
Now What?
In order to determine the best next step[s] for your sales department it’s mandatory to take a stab at a few macro conclusions and trends. For example, comment on the following?
1.
Without question, the strategic positioning of my property is achievable in a reasonable time period.
2.
Everyone on the exec committee is able to clearly state your positioning. Is it communicated clearly thru out the hotel?
3.
We have the physical product that supports the positioning.
4.
We have the software and hardware systems that we need right now. For example, PMS, POS, Sales Dept Automation, Database, Web site and e systems, Revenue Management and Reservation Systems.
5.
We have the right personnel and demonstrated capability in the sales, marketing, catering, convention services, and revenue management areas. The department heads are leaders and take independent initiative.
6.
Our advertising, PR, and Interactive marketing partners clearly understand our positioning and are additive to our action plans and strategic initiatives.
7.
Our action plans get implemented and measured for results greater than 90% of the time.
8.
We get an honest days work out of our team. They know what to do and are professional in approaching their work flow. We have fun and we work hard. We measure and evaluate.
9.
Per John Wooden, effort is not the same as achievement. The effort being put forth is resulting in the expected achievements.
10.
We know our customers in many ways. Strategically, by market segment, by rate range, by distribution channel, geographically, and by marketing vehicle. Personally, we strive to know them by name. We value individual distinctions and do not presume we know what’s best for them. We take the long term view of these relationships.
EVALUATE YOUR SCORE
To feel secure that you have a solid, well managed sales and marketing department, you need to know your strengths and weaknesses, be impartial, non defensive, and willing to make choices that are both easy and difficult. The first priority though is to place your score on this scale against a total possible of 532 points. This scale represents your basic academic grading model. :ie A=90% and above, B=80% and above, etc.
WEIGHTING
In evaluating your score, it is essential to understand that not all categories are of equal importance and have been weighted to reflect their relative importance.
Consider this table:
As you look at your category totals by weight, isolate and answer where you scored your points. On the big issues, are you solid? How much of your total score was the result of categories with weights of 4 or 5? As you evaluate your score, it’s quickly apparent that to do well overall on a PAR assessment, you must perform well on the big issues. In short, you must be strong or have the potential to be strong in the categories that are more heavily weighted.
WE SCORED POORLY. WHAT CAN I DO?
Hotel Wise Man can help. We consult on a wide variety of hotel related issues including detailed assessments for any category in the PAR report. We are seasoned, well traveled professionals that have worked on property, at the regional level, in the corporate office, for the major chains, and for the major independents. We understand marketing, sales, technology, distribution, the internet, and most importantly, we understand people and their motivations.
Now is the time to prioritize your path. As a first step, you’ve gone thru the PAR Report and have a good idea of where you stand. So, let’s answer the following macro questions and see which areas are critical to address right now. Answer yes or no to the following questions:
1.
Do you have a personnel problem in the key leadership roles? Yes or No.
2.
Do you have a viable ‘GO TO MARKET’ plan? Will your plan work? Is it specific? Is it measurable? Are you floundering because there simply is not a workable plan in place? Yes or No.
3.
Is your property actively and accurately displayed in ALL key electronic distribution portals? Have you looked? In short, do you have a distribution problem? Yes or No.
4.
In direct sales, do you have a good team that can consistently produce or one/two people that carry the load? Yes or No.
5.
Do your marketing dollars pay you a reasonable return on your investment? Do you measure the return? Do you have the right vehicles but the wrong message? Do you hold your agencies responsible? Yes or No..
6.
Do you know your competition and what they are doing? A significant amount of your business comes to you within a 10 square mile radius. What is your knowledge base for everything in that area? Yes or No..
NOW, PICK ONE MACRO PROBLEM TO SOLVE AND IDENTIFY THE RESOURCE TO MANAGE THE SOLUTION.
If you don’t have the right resource in house and are having trouble finding the right one for you, please go to the next page for resources that can help or give us a call.
CONSULTING FIRMS AND PARTNERS
HOTEL WISE MAN ALSO MAINTAINS STRONG RELATIONSHIPS WITH THE FOLLOWING CONSULTING FIRMS AND PARTNERS.
1. Donahue Consulting—All areas of strategic hospitality sales and marketing
2. Hospitality Technology Consulting—All areas of distribution and reservations
3. Buckhiester Management—Revenue Management
4. The Prism Partnership—All areas of sales, marketing, and distribution
5. MFP Consulting—Corporate Identity, Naming, and Brand Development
6. Brand Strategy, Inc.—Strategic Brand Promise Development and Positioning
7. The Kempton Group—Partnership Marketing
8. Crawshaw Design—Creative Development and Design
9. Ranta Consulting—Web site development and hosting
10. Unique Hotels and Resorts—Investment, Acquisition, and Management Services
11. GMA Research—Independent Business and Consumer Research
We are glad to provide you with contact information for any of our partners.
Hotel Wise Man
705 Turtle Crest Drive, Irvine, CA 92603
Phone: 949.679.9709
Email: hotelwiseman@hotelwiseman.com
ACRONYMS YOU NEED TO KNOW
GM = GENERAL MANAGER
DOS = DIRECTOR OF SALES
DOSM = DIRECTOR OF SALES & MARKETING
AE = ACCOUNT EXECUTIVE, ALSO CALLED A SALES MANAGER
DORM = DIRECTOR OF REVENUE MANAGEMENT
DOC = DIRECTOR OF CATERING
CM = CATERING MANAGER
D-F&B = DIRECTOR OF FOOD & BEVERAGE
FOM = FRONT OFFICE MANAGER
RM = RESERVATIONS MANAGER
CS AND CSM = CONVENTION SERVICES AND CONVENTION SERVICES MANAGER
SEO = SEARCH ENGINE OPTIMIZATION
SEM = SEARCH ENGINE MARKETING
SFA = SALES FORCE AUTOMATION [IE. DELPHI]
PMS = PROPERTY MANAGEMENT SYSTEM
POS = POINT OF SALE
GDS = GLOBAL DISTRIBUTION SYSTEM [IE. SABRE]
ADS = ALTERNATIVE DISTRIBUTION SYSTEMS [INTERNET SITES]
ROI = RETURN ON INVESTMENT
CF = CASH FLOW
P & L = PROFIT & LOSS
PR = PUBLIC RELATIONS
BEO = BANQUET EVENT ORDER
NSO = NATIONAL SALES OFFICE
RSO = REGIONAL SALES OFFICE [SAME AS NSO]
CVB = CONVENTION & VISITORS BUREAU
MLOS = MINIMUM LENGTH OF STAY
CTA = CLOSED TO ARRIVALS
ASA = AVERAGE SPEED TO ANSWER
REVPAR = REVENUE PER AVAILABLE ROOM
STR OR STAR = THE STAR REPORT, ALSO SMITH TRAVEL RESEARCH