A Very Good Time For That Sales Audit David Brudney ISHC Sept 2001

A Very Good Time For That Sales Audit By David M. Brudney, ISHC, September 2001 When is the best time for hotel owners, operators and lenders to contract for an independent, comprehensive sales and marketing audit? The answer? Anytime is the time. A good sales audit is appropriate especially when hotels and resorts everywhere begin to experience the full impact of a soft economy - - a sharp decline in business travel, a reduction in attendance, rescheduling or cancellation of corporate meetings. Along with the traditional “belt tightening,” operators need to make certain nothing is being overlooked in sales and marketing. Isn’t it the operator and/or management company’s responsibility to audit sales and marketing and why does sales require an audit separate from operations? Stakes are too high today and hospitality sales and marketing has become much more sophisticated. Sales and marketing expenditures average between 5 and 7 percent of total revenues with many operators demanding a 20-to-1 ratio, revenues v. expenses. Operators, by nature, tend to become too enamored with their press clippings and over time can develop an unhealthy “know everything” attitude. Given today ‘s competitive climate, vigilante consumerism, Internet shopping, the cost of sales and the staff turnover factor, owners and operators are served best by bringing in a professional consultant with a “fresh set of eyes” to conduct a truly independent audit. This ...