Hershey Resort Sales and Marketing
Tapping Into Clients' Desires Means More Revenue

"We never stop looking for more ways to generate revenue from our guests." That's the philosophy of Nick Haitos, Director of Resort Sales and Marketing for Hershey Resorts.

The best way to do that, he says, is to constantly review what the properties offer, survey the guests to find out what they want, and improve and expand the facilities, amenities, and activities.

Haitos oversees the sales of the Hershey Lodge and Hershey Hotel. Between the two properties, he has a total of 900 rooms available. A recent expansion of the convention center gives him 100,000 square feet of meeting space.

The properties already enjoy heavy bookings because of their proximity to Harrisburg, the state capitol of Pennsylvania. "There are 152 associations based there, plus the government departments. We generate a tremendous amount of bookings from them. We are also close enough to New York, Washington, Maryland, and New Jersey to draw groups from those areas."

The expansion gives him opportunity to reach for even larger group bookings. "We can now develop the national association market. We need to attract mid-sized national associations and meetings in order to survive."

Haitos divides his 10-person sales staff in several ways to maximize its effectiveness. "We've tried it every way. Right now, I'm concentrating on market segments. One sales person is strictly assigned to the national associations market. Two work with the state associations." He further divides the staff geographically. "If I'm going after the pharmaceutical business, for example, I may have one salesperson covering the segment in New York and New Jersey, and another concentrating on Maryland and Washington."

Incentives for his staff are group based. "Individual incentives are not good for the revenue situation. Because we have such a high repeat factor, it's important to mix with the other personnel. We have to make booking decisions as a group for the good of the hotel, not for the individual. If we have two groups that want to book the same dates, I don't want the salesperson who doesn't get the dates to feel punished."

About one-half of his bookings are repeat, which pleases him He credits much of that to the longevity of his staff. The average time at Hershey for the staff is nearly 11 years, with two of them there over 20. "That means there is a long-standing, personal relationship between the salesperson and the client. There's a comfort level there that means the client knows his needs will be taken care of."

He wants to see the group booking percentage increase, however. "Transient booking are too unpredictable. If the economy goes soft, we lose the room nights. With a repeat group, it is an advance booking, and we know the business will be there." On average, about 70% of the lodge bookings are group. The hotel sees between 50%-60% group bookings.

The two properties attract quite different types of guests. "The hotel is a 5-Diamond property. It is very upscale and attracts a more corporate clientele."

Direct mail is one method of developing new prospects. "We'll concentrate on a market segment, and design a piece specifically for that segment. It's not done geographically, although we can focus on a segment within a specific area if there's a reason to do so." The direct mail campaigns see an average response of about 5%, higher than the accepted "successful" average of 1-2%.

One of Hershey's attractions is its unique nature. The town is a base for vacationers spending up to a week in the region. Hershey Park, one of the largest independently owned theme parks in the country, attracts large numbers of day-trippers as well as the longer-staying visitors. Hershey itself is the home of Hershey's Chocolate, making it a Mecca for chocolate lovers. Lancaster, the center for Amish culture in the US, is also nearby. Those attractions contribute to strong bookings by more casual, family parties during the summer months, which are soft times for meetings and convention business.

While expanding his client base is important, Haitos also looks for more ways to use existing guests and clients to generate more revenue. "We find that guests are becoming more sophisticated. They don't mind paying for something if the value is there. It's an ongoing dialogue about what we charge versus what we are providing. We want to make sure that there are key options and something for everyone."

To that end, the resort will open a 15,000-foot spa in 2000, and is exploring a number of golf-oriented packages. These will focus not only on the interest of existing guests, but for the large, so-far-untapped Canadian golf market. "We are also looking at ways to let guests know about things before they arrive, like mailings with schedules of events in our Sports and Entertainment Division. Information at check-in and in the rooms are also important."

While "I still like to drum up business," Haitos says over the last few years, he's begun to enjoy discussing what others in the industry are doing and how they are doing it. What he hears confirms what he's already doing.

"Properties and resorts always miss something when they focus on the bottom line to the exclusion of the personal."
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