Standard Procedure for Hotel Sales Team Incentives Plan

SOP Number: S&M – 13

Department: Sales and Marketing – Sales

Date Issued: 16-Jul-2017

Time to Train: 30 Minutes

Sales Team Incentives Plan Standard procedure:

• The purpose of the Sales Incentive Plan is to reinforce hotels financial objectives with a focus on reaching strategic and operational goals for the sales and marketing team.

• Sales incentive plans provide motivation to achieve expected levels of individual and team performance goals and thereby assist in the achievement of hotels 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 hotels Sales Director or General Manager should be responsible for keeping a detailed record on a monthly basis 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 associate on probationary period is 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 on a monthly basis (based on all room nights and revenue generated) and is subject to the approval of the hotel management team.

• All pay outs to the sales team will be processed through monthly payroll.

• All incentive pay out should be marked as “performance bonus” on the Profit and Loss statement for the respective departments.

• In order for any bonus pay out to occur, the sales team should achieve its monthly total revenue (rooms, banquet, conference) and room nights.

• Any sales executives whose employment are 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 whose had resigned from the hotel to accept employment elsewhere will not receive any bonus not yet distributed. (As per the hotel policy)

• The intent of the sales incentive plan is 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 pay out are marked as what on Profit and Loss (P&L) account?

Q5. What are some policies of sales incentive plans?