Hard Rock Hotels & Casinos consolidated its sales
efforts by creating a director of sales position to handle group and corporate
transient business across its portfolio. While licensing agreements do not
obligate Hard Rock to provide central sales support, requests from both hotels
and clients drove the company to underwrite the position, according to
executive vice president Michael Shindler.
"We saw a lack of a single point of contact, which I
think businesses, and particularly meeting planners, found very
frustrating," Shindler said. "From a corporate support perspective
for our different properties, this gives us one more degree of robustness that
did not previously exist."
The new position also opens the door for hotel development
opportunities, Shindler added, because the question of sales support often is
part of planning discussions. "Up until about 90 days ago, we didn't have
a good answer for that," he said.
Hard Rock hired hotel industry veteran Greg Naylor to assume
the new role. Naylor's experience includes a two-year stint as director of
group sales for Hard Rock Hotel Chicago and positions with Starwood Hotels
& Resorts and Ritz-Carlton. He most recently served as corporate director
of electronic distribution and sales systems for West Paces Hotel Group, an
Atlanta-based company that operates a small portfolio of luxury hotels
globally, including the Capella and Solis brands.
Naylor recently spoke recently with Business Travel News
lodging editor Michael B. Baker about how his position will affect
relationships with meeting buyers and help Hard Rock become a larger player in
the corporate transient market.
What's the focus of this new role?
There's been a need to have someone out in the marketplace
really from a group space standpoint, promoting the brand as a whole. We've got
a number of great hotels out there working hard to fill their space, and it
gets challenging. This role will be an opportunity to help them out in hunting
for business and providing them with lead generation and business generation.
We'll be able to serve clients and provide an easier way of doing business.
Time is precious, and you have a number of clients out there who don't
necessarily have the time to go property by property to make those
relationships. Now, in this role, I'll be able to do that and cover the
portfolio of hotels through one point of contact. Probably 60 percent of my
time will be focused on direct sales efforts. The other 40 percent will be
coordinating trade show efforts [and] market opportunities, getting the hotels
to work together and identify great opportunities in each feeder market to do a
client event or sales blitzes.
What sort of portfolio will you be selling?
We have 12 hotels currently, and there are a number of deals
we're working on to build that. [One that will open at the end of the year in
Panama City, Panama] is a large property—1,500 rooms, 40,000 square feet of
function space—so it'll be a great opportunity to send business their way. In
addition to lead generation, it's also looking for opportunities and synergies
within the portfolio of hotels, to find ways to work together. We want to make
clients brand-loyal instead of being property-loyal. We'll be working the trade
shows to get out there as a unified front and have all the hotels under one
umbrella versus historically working with CVBs or having the hotels out there
on their own.
How is group business faring?
Business is definitely picking up. However, lead times are
very short. Small meetings, you're talking in the month for the month, if not
two weeks out for meetings smaller than 50. Your 100-person meetings, you're
seeing within six months. The really larger programs that typically are greater
than two years out are within two years. People have the tendency to plan certain
events based on what's going on with the economy, so it's driving a lot of
short-term stuff.
Does Hard Rock see much corporate transient business?
There is in Chicago; Vegas as well. From there, it tapers
off. There is some corporate travel in San Diego in the Gaslamp area, but
that's primarily a group location and leisure transient. The corporate
transient world will evolve and grow as we add to our portfolio and add key
gateway markets. The primary focus will certainly be on the group side, but as we
add additional hotels, I would hope to focus more of my time in that area and
work with the hotels in the RFP process.
Do you project an increase in corporate transient RFPs this
year?
I would expect so. Certainly, speaking with our teams in San
Diego and Chicago, they've seen an uptick in RFPs year over year, and they have
strong expectations that will be strong again through this season as well.