RESEARCH: Are Restaurants and Hotels Ready for Holiday-Party Prime Time?

With the holiday season heating up and the economy cooling down, restaurants and hotels are battling over a dwindling market share of holiday parties.

-- Restaurants and Institutions, 12/3/2008 3:08:00 PM

(PRESS RELEASE) The economy is challenging, and everyone understands the importance of private parties to the bottom line. Even when the holidays have passed, private parties remain a vital contributor to profitability.

Coyle Hospitality Group—a market leader in providing mystery shopping and quality measurement to the hospitality industry—conducted 100 assessments of 50 restaurants and 50 hotels in five major markets: New York City, Los Angeles, San Francisco, Chicago, and Miami. When the mystery shoppers called, they inquired about hosting a holiday party for a small-to-mid-size group. Sales staff were then rated on such categories as:

•  Professionalism
•  Prospecting
•  Rapport building
•  Advancing the sale

The data told a compelling story. The average score for all 100 calls was 66%, and the breakdown by market and by category was interesting as well.

Not surprisingly, performance covered the gamut.  Some salespeople were adept at qualifying the lead, promoting their venue, and advancing the inquiry to a potential sale.  Others did not fare so well, with 36% not returning a phone call within 24 hours, a handful not bothering to return the call at all, and one location saying the sales contact does not take phone calls.

So what is the moral of this holiday tale? If someone calls your restaurant or hotel with the intention of planning a holiday party, and you do not secure the sale, one of your competitors will. This will be just as true in January as June as it is now in December.

Because private parties offer improved efficiencies and margins compared to traditional a la carte sales, the next five weeks will certainly provide significant opportunities for those that are prepared.