SOP – Sales and Marketing – Hotel Sales Incentives Plan

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Standard Procedure for Hotel Sales Team Incentives Plan

The Sales and Marketing team plays a vital role in the success of any hotel. The team is responsible for increasing the hotel’s revenue by promoting and selling its services and amenities to potential guests. As a result, it’s essential to have an effective sales incentive plan to motivate and reward the sales team for their efforts.

A well-designed Sales Incentive Plan can help boost the morale of the sales team and encourage them to work harder to achieve their goals. The plan should be fair, easy to understand, and aligned with the hotel’s overall strategy. It should also be flexible enough to adapt to changing market conditions and guest preferences.

The Sales and Marketing team should regularly review the incentive plan’s performance and make adjustments as necessary. This ensures that the plan continues to motivate the team and contributes to the hotel’s overall success. Additionally, the plan should be communicated clearly to the sales team, and they should be trained on how to achieve the incentives.

In conclusion, an effective Sales Incentive Plan is critical to the success of any hotel’s sales and marketing strategy. It motivates the sales team, aligns with the hotel’s goals, and helps increase revenue. By implementing a well-designed plan, hotels can improve their sales performance and stay ahead of their competition.

Sales Team Incentives Plan Standard procedure:

  • The purpose of the Sales Incentive Plan is to reinforce the hotel’s financial objectives with a focus on reaching strategic and operational goals for the sales and marketing team.
  •  Sales incentive plans motivate to achieve expected levels of individual and team performance goals and thereby assist in the achievement of hotel financial objectives.
  •  A competitive level of compensation packages should be provided that will attract, retain, and motivate highly competent sales managers and other sales department personnel.
  •  Encourage and motivate teamwork as a means of achieving ongoing success on the incentive plan.
  •  The sales incentive plan should be reviewed and approved by the General Manager or the Director of the hotel.
  •  The hotel’s Sales Director or General Manager should be responsible for keeping a detailed record every month of the bonus earned by the sales teams.
  •  All confirmed sales managers or sales executives are eligible for the incentive or bonus plan. (As per the hotel policy)
  •  Normally sales associates on probationary period are not eligible to participate in such incentive or bonus plans. (As per the hotel policy)
  •  The General Manager or the Director of sales may withdraw a participant from incentive plans if required.
  •  The bonus amount is calculated every month (based on all room nights and revenue generated) and is subject to the approval of the hotel management team.
  •  All payouts to the sales team will be processed through monthly payroll.
  •  All incentive payout should be marked as “performance bonuses” on the Profit and Loss statement for the respective departments.
  •  For any bonus payout to occur, the sales team should achieve its monthly total revenue (rooms, banquet, conference) and room nights.
  •  Any sales executives whose employment is terminated for reasons of misconduct, failure to perform, or other performance-related reasons, shall not be considered for the bonus payment. (As per the hotel policy)
  •  Any sales executives who had resigned from the hotel to accept employment elsewhere will not receive any bonus not yet distributed. (As per the hotel policy)
  •  The sales incentive plan intends to fairly reward team and individual achievement.
  •  Any sales team or associate who manipulates or attempts to manipulate the sales data will be subject to appropriate disciplinary action, up to and including termination of employment. (As per the hotel policy)

Training Summary questions:

Q1. What is a Sales Incentive Plan?

Q2. What is the main purpose of such incentive or bonus plans?

Q3. Who is responsible for approving incentive plans?

Q4. Incentive payouts are marked as what on the Profit and Loss (P&L) account.

Q5. What are some policies of sales incentive plans?
SOP Number: Sales and Marketing SOP – 13
Department: Sales and Marketing – Sales
Date Issued: 16-Jul-2017
Time to Train: 30 Minutes
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