I sat down recently with a friend and colleague from our previous careers with Hyatt Hotels, and we had an interesting discussion on the current state of hotel sales and marketing today, on attracting and building guest loyalty, and, in particular, what business will look like by end of this year.

“I’m bullish in most of our markets, and I believe we will see far better results by the 4th quarter of this year,” said Steve Pinetti, Senior Vice President, Sales & Marketing, Kimpton Hotels & Restaurants based in San Francisco, CA. “We are already seeing some upswing in most all of our cities”, Pinetti claims.

Kimpton Hotels currently manages 50 boutique hotels and 52 restaurants in 23 cities in the U.S. and Canada (). With the opening of the 292-room Eventi in New York, Kimpton’s total room inventory has reached 9,875. For the record, Kimpton is not a client, there is no conflict, and I am using comments and opinions of Pinetti because my readers - - in particular, hotel owners, asset managers and operators - - should find what he has to say to be of great interest and value.


Steve Pinetti
Kimpton
Pinetti concurred when I shared with him the results of my recent sampling of group booking windows -- at selected hotels, and conference centers throughout the U.S. -- that we are experiencing a return to more of 90 days and beyond.

“Demand is still short term, however. I believe it will continue to be that way until the market realizes it is necessary and viable to plan further out due to availability and rates and believe that 2011 will be a solid RevPAR growth year”, said Pinetti.

“AIG Effect” minimal
The impact the “AIG Effect” has had on Kimpton’s business has been “very minimal”, according to Pinetti. He added that the drive-in market has been strong throughout this recession.

Pinetti told me that Kimpton Hotels have actually gained market share over the past 18 months with almost all Kimpton cities showing increases in both occupancy and average rate. I asked Steve, Of course, how Kimpton did that?

Twitter and Facebook followers
“Well, we are starting to see business as a result of our Twitter and Facebook followers and, too, it has a lot to do with the fact we are a social-conscious company -- it’s baked in. We are able to drive business from those individuals and companies that support our charity partners.”

He explained how the Kimpton sales force “knows how to connect” with clients, and that Kimpton’s sales professionals are smart, quick, and concise, and that they make sure the customer knows that they’re working with someone who “gets it”.

“They promise to do their research on who the customer is, and they listen and then confirm back what the customer’s needs are -- and they do follow the ‘sundown’ rule, responding to any opportunity that same day or never more than 24 hours.”

Technology and building relationships
We discussed how technology has gotten in the way of personally being able to connect with planners, thus making it difficult to really sell and build relationships, and whether or not that “limits” hotel sales professionals’ ability to connect and to produce.

Does Pinetti believe today’s hotel sales professionals are too dependent on technology-based selling skills, and thus neglecting or avoiding altogether using the traditional, relationship-based selling skills?

“You must have balance with multiple skill sets in sales today. Both skills are required for a sales professional and team to become successful. We ‘read’ the customer as to their communication preference -- some demand e-mailing, others prefer telephone calls, and some are most receptive to personal sales calls and meeting face-to-face in the office or at trade shows.”

Curious, I asked what he tells his sales team to do when clients says “no”. “If you’ve done your research, and clearly understand the customer’s needs, you either didn’t explain it properly or you’re not talking with the right person”, said Pinetti.

Pinetti is one of those rare sales professionals able to make a seamless and successful transition from the big box, big group hotel brand culture to marketing a small, startup boutique chain.

Everyone involved with hotels today -- operators, owners, asset managers, and G.M.s alike -- would be well advised to take note of what Kimpton is doing. I have found very few brands and independents that have harnessed the power and energy of new technology, the influence of new social media and social consciousness programs, together with the retention of the traditional relationship-based selling skills, the way that Kimpton has.

No surprise to me at all that Kimpton is doing so well in so many markets.

David M. Brudney, ISHC, Principal
760-476-0830
David Brudney & Associates