Answer the discussion question

Overcoming Rate Resistance -Among the Sales Staff Conversations stopped as Fran walked into the meeting room where the sales staff of the 263-room Park View Hotel had gathered. The director of sales surveyed the anxious faces that turned toward her as she approached. "Lighten up, folks," Fran said reassuringly. "This is a strategy session, not a wake. I know you're all aware I had a meeting with the general manager last week, and he'd like us to make a few changes to our marketing plan. I'd like us to sit down together and brainstorm ways to solve some problems we identified in our meeting. Fran passed around a handout as the salespeople took their seats. The objec- tions started as soon as they began reading the agenda. hard to get those accounts and I'm not dropping them now." strolling through the door right away." "Get rid of 5,000 room nights of our corporate contract business? That's crazy!" said Angela. "Most of my best accounts are corporate preferred. I worked Where are we going to find the customers to replace these 5,000 room nights?" Michael asked. "You can't just expect that kind of new business to come Murmurs of agreement filled the room. "And how am I supposed to break it to my accounts that they're not going to get their preferred rate anymore? asked Tanisha. "I wouldn't know what to say, and I don't think I could sound real convincing Fran raised her hands. "Let's take this one step at a time. Here's the situa tion. The hotel has too much contracted business at a low rate. Some of these accounts have had the same rate for the past two years. We need to replace about a third of this business-about 5,000 room nights-with higher-rated transient and group business. I'm not saying we're going to get rid of all our contract business. I just want to evaluate which accounts we should keep, which ones might accept