COVID-19 Q&A Session with Knowland 

1. 1. 1. How should we target accounts for prospecting and when it will be a good time to ask for future business with uncertain timeline?
         • Recovery will start locally. Now is the time to begin pulling together all the local companies near your hotel. Think in terms of concentric circles (1 mile, 2 miles, etc.). Those circles will vary by hotel dependent on the size and density of your market. Use tools like Knowland to understand what those companies have done in the past in your market (and possibly other markets). What types of hotels do they buy, what brands, where they like to stay (airport, city center, etc.). Now how do those match up against you. If they don’t match up at all, drop that company to the ground. When you launch your offensive, you want to fish where the fish are. Don’t waste sales cycles on companies that have either A) never had business or B) wouldn’t book your hotel. Another thing you might want to reference your CRM on is when is the last time you talked to that account. Hopefully, that answer doesn’t surprise you.
      2. What is the predicted industry/market segment to begin to recover first?
         • Government will step into the fray first because it will need to. Past that corporate will be on its heels because at some point we will have to get back to business. Catering and Meeting only will come in the next round. Be prepared in these categories to have the ability to webcast events. Finally, Association and SMERF will come last. Those are typically discretionary funds. Until companies start spending, associations won’t plan big events and until consumers feel comfortable spending money, SMERF won’t recover.
      3. Do you have any concerns that this time of virtual meetings will make companies feel like they don’t need off-site meetings as much anymore?
         • No, the simplest reason is that as efficient as we can be via electronic means, it’s only really efficient for shorter meetings. Think about meetings you’ve attended either historically or over the last few weeks of seclusion. Your attention starts to wane after about 45 minutes. Good presenters, in person, can gauge audience engagement and adjust accordingly, calling a break for example or saying something to get you reengaged. It’s harder to do that remotely. We learn in meetings; we form new ideas. At some point, we will get back to it. My favorite quote about this is “We are dumber and less cognitively nimble if we’re not around other people – and, now, other machines.” – Clive Thompson
      4. Do you feel the “follow the money” mentality works well since the government is infusing the nation will billions of dollars via various agencies and initiatives over the next several months?
         • To some extent, yes. But that will still likely be booked locally, we are already seeing it. The money is coming from the federal government but is being managed by local municipalities. So, it won’t be about where the money came from but where it’s being managed.
      5. What is your advice for hotels opening this year?
         • Godspeed would be my initial reaction. However, that’s probably not the answer you are looking for, so here is my real answer. The simplest answer is you can’t prospect right now. All you can do is develop the relationship. If your area is not under a shelter in place order, consider organizing community food drives and being a place where people can drop off donations. This is the time where you prove you are a committed member of the community.
      6. Any advice for convention centers?
         • Put together a plan with your hotels and any other constituents you have, to address what your city is doing to prepare for a return to normal. Your job is to assure them you are doing everything to protect their attendees going forward. Past that, maintain the relationship. Check on them, their well-being, how their organizations are doing, etc. Then follow their lead as to when rebooking is possible.
      7. How do hotels with limited or no sales support manage through the COVID-19 crisis?
         • The process should be much the same. I would spend ample time developing a list assuming you will be able to call back employees eventually. Then assign the accounts you feel have the most potential to yourself and work through what you can. If you have a sales-minded GM, enlist them.
      8. How do you suggest reaching out to new leads we may have uncovered during the COVID-19 quarantine? I’m having a hard time not coming off as insensitive…
         • This will depend, was this a lead where someone reached out to you with specific dates? Or an opportunity with potential that you uncovered? If it’s the former, respond the way you always would. If it’s the latter, don’t sell. Reach out and establish a relationship and let the contact guide the process.
      9. How do you feel about clients requesting “Coronavirus” discounts?
         • I think it is opportunistic. However, if you need the business, it might be necessary to keep the lights on. However, I caution that it needs to be fenced tightly and have an end date. They need to understand this is not a long-term scenario and that you reserve the right to reevaluate regularly.
      10. How do we use Knowland to find small groups?
          • Our amazing customer success team can happen with that. Reach out to them directly at clientcare@knowland.com.
      11. I am building my list of local accounts for a virtual blitz, when do you recommend I start sending emails/phone calls?
          • Once cancellations stabilize, launch your relationship offensive.
      12. Do you have statistics on how a pandemic affects convention centers versus hotels?
          • Unfortunately, I don’t. However, I imagine it’s similar to hotels and potentially more so because hotels can handle smaller events (in line with CDC regulations) affordably. I don’t believe convention centers can do that as easily.
      13. Is it too early to start reaching out and checking in with customers?
          • This would depend on the level of relationship you have with that customer. If it is a long-standing relationship and you keep the message around their well-being versus selling, you should be fine. However, if this is a newer relationship, I would wait a bit longer.
      14. Is it okay to continue to prospect for new accounts now for business after recovery?
          • My gut tells me no. There are a couple of reasons. While we hope this will be a sharp V recovery, we simply don’t know. Trying to sell now will make you look needlessly opportunistic. Stay in touch but maintain the relationship, don’t sell.
      15. If you are in a shelter in place destination how can we build relationships locally?
          • Remotely, chances are people have relocated to their homes and are forwarding calls and responding to emails. Non-essential businesses might close their physical office, it doesn’t mean their people aren’t still working.
      16. I work for an independent property with an ownership group that only owns our one property. How do we convince them that we aren’t going to get back to 2019 numbers the second the “shelter in’s” are over?
          • Realistically, it was highly unlikely you were going to hit 2019 numbers this year anyway. Prognosticators were already forecasting an occupancy decline for 2020. Assuming you are not a new hotel, look at your history in other economic downturns to understand how your hotel returned. Past that, rely on STR to help them understand. That information is easily available online via Hotel News Now.
      17. I received some feedback after going over a cancellation with a client that she was getting prospected like crazy this week and it was such a turn off for her. What are your thoughts on thoughtful prospecting during this time?
          • Simple answer, don’t do it. She wasn’t telling you that story as a good story, it was an example of what NOT to do. Develop a relationship, the selling will come when it’s time.
      18. What are your thoughts on eblasts during this time?
          • I would be cautious and selective. Develop a meaningful message and a thoughtful cadence (don’t spam them). The message should be around what you are doing to help in the community (where it is possible) and protect attendees when things return to normal. Where possible, I would have these come from people at the hotel versus a generic corporate address. This is about relationship building and these communications should come from someone they might know.
      19. We have clients for the fall asking for larger rooms due to the CDC guidance around social distancing (6 feet of distance), is it appropriate to charge for the larger space that far out?
          • At the moment, no. Chances are, you have the space to spare and it really doesn’t cost you that much more to set up a larger room than it does a smaller room. However, when things return to normal, I would gauge that by demand. If you have the space and it’s a particularly good customer, you might want to consider it at the last minute. But once we return to normal demand, I would strongly recommend charging the delta between the appropriate room and the room they requested.
      20. There has been a lot of talk of when the cancellations will level out. When can we expect to start seeing an increase in inquires and RFPs?
          • I think that will be at least 9 months. Typically, RFPs are for bigger events booked by meeting planners or at the corporate level. That’s not going to recover as quickly. Your focus should be on prospecting not RFPs.
      21. What companies are booking locally that pays federal per diem?
          • Local municipalities receiving federal disaster funds.
      22. When should you look at adjusting Q3 & Q4 rates to be more competitive (lower) than you had previously set?
          • Not anytime soon. Panic pricing now will just make it harder to recover. You recast your forecast and break it into buckets: the next 30 days, 90 days after that, 90 days after that, and 90 days after that. Where your rates were when things went south is where they should stay except for within the next 30 days. The future is a movable feast. Pricing 9 months from now with today’s panic in mind will hinder you. If customers attempt to take advantage of the crisis, then make offer to lock in their current meeting (assuming it’s something they are trying to cancel or rebook) or 5-10% off prevailing BAR rates for the dates in question at the time of rebook. This will allow you to maintain those rates farther.
      23. Where can we find more information or resources about psychographics of meetings/groups?
          • The Knowland Platform with SmartSearch provides that information scored against the attributes of your facility. This is one of those times where you will need an external tool.
      24. When you say local, do you also mean states within driving distance?
          • In this instance, I mean the offices located in your market. That is where the recovery will start. It will help you to understand what offices they might have within a drive area, but you will develop the relationship locally.
      25. What do you suggest that local CVB’s do now to help our hotel partners?
          • Put together a plan with your hotels and any other constituents you have, to address what your city is doing to prepare for a return to normal. Your job is to assure them you are doing everything to protect their attendees going forward. Past that, maintain the relationship. Check on them, their well-being, how their organizations are doing, etc. Then follow their lead as to when rebooking is possible.
      26. How do we adopt a local approach in markets where all non-essential businesses are closed?
          • The businesses might be closed but chances are they are still working, only remotely. Don’t assume because the physical office is closed, the people are closed.
      27. How can I get more training on navigating the Knowland platform?
          • Our amazing customer success team can make that happen. Reach out to them directly at clientcare@knowland.com.
      28. If offices are closed right now what is the best practice to reach out to those folks?
          • Phone and email should be used. Chances are, by now, everyone has forwarded phones and set up ways to communicate remotely. Use every means at your disposal to reach out. But be thoughtful in your approach. Remember this is about the relationship not the sell.
      29. I am a DMO, what suggestions do you have for us sales folks?
          • Put together a plan with your hotels and any other constituents you have, to address what your city is doing to prepare for a return to normal. Your job is to assure them you are doing everything to protect their attendees going forward. Past that, maintain the relationship. Check on them, their well-being, how their organizations are doing, etc. Then follow their lead as to when rebooking is possible.
      30. When will the COVID-19 crisis end?
          • If only I had that skill, alas, my letter from Hogwarts never came and my crystal ball is broken. But, in reality, it will come differently for different markets. You will need to monitor your market and your customers carefully.
      31. If we let doctors and nurses stay in our hotels, does that affect our brand for future sales?
          • Lean into it. If you have a clear plan for decontamination of the rooms, you should be able to alleviate all safety concerns. You are doing a service to your community. You put service before self, what could possibly be more noble than that?
      32. What signs would you look for to determine when the market is picking up?
          • Personally, I am monitoring weekly occupancy rates in the top 25 markets as well as occupancies for the US as a whole. The goal is to determine when we hit rock bottom. This is not a comparison to the prior year but to the prior week. Additionally, we are monitoring meeting activity to see when that picks up. At the hotel level, monitor the cancellations. As those taper off, you want to launch your relationship offensive. Your customers will give you the truest indicator of when things are turning around.
      33. There is a lot of information in the Knowland report, how can we best leverage Knowland to find the businesses/contacts that we should be obtaining?
          • During this time, you can use Knowland to understand what businesses have local offices and what the buying behavior of those companies are. The rich historical data can also help you understand those companies’ behaviors dating back to 2008/2009 during the last recession. This will help you better coordinate your target list. If you are an existing customer, reach out to our amazing customer success team to schedule a training (clientcare@knowland.com).
      34. What do you recommend for sales managers who are starting in new positions?
          • As far as reaching out and touching base is concerned, as well as an introduction. The game doesn’t change. Focus on local businesses and developing relationships. You might have a slight advantage because you are the new “guy” and will be able to use that to develop the relationship. You can use the introduction as the reason but make sure you are delivering information NOT selling.
      35. Can you address prospecting, when is it appropriate to start?
          • This is a scenario where you are going to have to let your customers lead. For now, you need to build relationships locally and let them guide when it’s time to sell. Your prospecting, for now, is all about prospecting. It’s not about selling.
      36. Should we acknowledge the Coronavirus crisis when reaching out to our clients?
          • Absolutely, if you don’t you will come off as tone deaf and will kill any chance of developing a relationship. These conversations should be about developing those relationships and how you can help them. Service before self.
      37. How do you handle approaching planners when they are busy working on events that have suffered through the virus?
          • Carefully, you are not approaching to sell. You are there to check on them and support them. Service before self should be your motto. Attempting to sell at this time will do more harm than good. Communicate what your hotel is doing to protect their attendees and check on them, nothing more.
      38. What guidelines for “Social distancing” should we be using when notifying groups of the hotels’ ability to host an event? Should we go by CDC or local guidelines?
          • Adhere to the CDC guidelines. Additionally, if you have those meetings with 10 or fewer, be sure to set the room to allow for a minimum of 6 feet of space between each person. I would even place signs in the rooms explaining the actions you took to the attendees. Keep in mind this will change the capacity of your rooms so you may need to move groups to larger rooms that you normally would to accommodate.
      39. Without knowing how long we will be in this COVID-19 crisis, how many times is it reasonable to reschedule/postpone an event?
          • How long is a ball of yarn? If the company is willing to keep rescheduling, let them. It shows they are committed to you as a vendor and committed to continuing to have meetings.
      40. After this virus crisis concludes, what is the benefit of meeting face-to-face instead of virtually – which has developed as our new norm?
          • The simplest reason is that as efficient as we can be via electronic means, it’s only really efficient for shorter meetings. Think about meetings you’ve attended either historically or over the last few weeks of seclusion. Your attention starts to wane after about 45 minutes. Good presenters, in person, can gauge that and either call for a break or say something to get you reengaged. It’s harder to do that remotely. We learn in meetings, we form new ideas, in short, they often make the world go round and round. At some point, we will get back to it. My favorite quote about this is “We are dumber and less cognitively nimble if we’re not around other people – and, now, other machines.” – Clive Thompson
      41. How do I address customers who are insisting on a refund, even though we’ve extended the valid period for their purchase?
          • Chances are you will eventually have to give refunds. However, the first option would be to guarantee the current rate for a future date (within reason). But dependent on the size of the organization, they simply might not be able to afford not to get the refund.
      42. My main concern is prospecting for a brand-new, under construction hotel (opening in less than a year). What is the best way to prospect accounts without knowing what they are currently going through? (Are they furloughed? Is someone in their family sick? etc.?)
          • The simplest answer is you can’t prospect right now. All you can do is develop the relationship. If your area is not under a shelter in place order, consider organizing community food drives and being a place where people can drop off donations. This is the time where you prove you are a committed member of the community.
      43. My CVB is funded only by a 2% Restaurant Tax. Our top restaurant owner told me today his business was down 80%. We had grown our association from $800,000 to 2 million annually. A year ago we had to use our reserves ($500,000) to survive for a year when our legislators could not agree on a renewal tax. How will we survive?
          • Assuming the restaurants are still offering take out, work with the local restaurants to be an advocate for the locals to still utilize the restaurants. Do what you can to promote take out as a viable alternative to eating out.
      44. I feel like it’s inappropriate/insensitive to be making prospecting calls/emails right now, but at some point, planners have to start working their future events… When will it be acceptable to start actively asking for business again?
          • Let your cancellation volumes be your guide. When they slow, start reaching out to planners again. But not with an eye toward selling, rather with an eye toward deepening the relationship. Inquire about how they are, how their business is, and how you can help them. Provide them, as applicable, with what your hotel has done to make it safer for their employees and groups. Through this process, they will let you know when they are ready to go.
      45. What should be the strategy for groups/MICE events and how to assure clients on future groups in such times of certainty?
          • Every meeting facility, hotel, convention center, et. al. should have a well-written, concise document on what they have done to protect returning customers. Communicate that to your customers, not as a means to solicit new business but as a means to keep them aware. This would include things like; sanitation stations outside of all meeting rooms, enhanced hygiene training for all employees, and enhanced internet services to facilitate video conferencing for remote attendees.
      46. Should hotels consider using a yielding approach upon recovery from Covid-19 since the market will be most likely be overwhelmed with demands?
          • Hotels will need to change the way they forecast and price during recovery. They should only be flexing transient pricing for the next 30 days. Past that rates should freeze where they were before everything went south. This will allow you to have some rate structure when demand returns. Forecasts should be done for the next 30 days, the 90 days after that, the 90 days after that, and the 90 days after that. Those should independent of one another, so they don’t contaminate each other.
      47. How do we handle this situation without business?
          • Chances are, there is nothing you can do. Demand will be almost non-existent. However, there will be some demand. As the government takes a more active approach in cities, there will be a need for some military rooms (if the National Guard is called up). If you are located near a hospital, there might be doctors and nurses who choose not to go home and put their families at risk. Some municipalities are using hotels to host quarantine patients. All of this is typically booked locally. If you don’t have those relationships, you won’t get that business.
      48. What are best practices for when to begin prospecting again (in regard to reaching out to clients)? What about follow-up for outstanding proposals?
          • The minute your cancellations begin to slow you need to launch your offensive. But, remember, this is not about selling; this is about developing a relationship. You are checking on them, their families, their cities, etc. Give them updates on your hotel, how you are handling the crisis, and what you are doing to prepare for recovery. This should start with social media campaigns, then email campaigns, and then finally phone calls.
      49. How can we find Government contacts who may be booking travel related to COVID-19 but not using meeting space? Since Knowland is about meeting space use are there resources within your database we could use to source contacts?
          • Currently, in most states that is being handled locally. We have talked to about 20 hotels in the past week who are booking overflow medical staff, quarantine rooms, and more and it’s all being booked through local municipalities. Now is the time to develop those local relationships. Additionally, you need to make sure your GSA listing is up to date. Add in all your hotel has done to accommodate C-19 (staff education, sanitation stations, etc.). If you have any local military basis (both active duty and reserve), try to reach out to them.
      50. How do we navigate prospecting during this very delicate time?
          • The simplest answer is you can’t prospect right now. All you can do is develop the relationship. The only thing you can effectively communicate is what you are doing to protect their employees when things return to normal. You will have to let your customers lead you in this process.
      51. Not to make light of this situation, but is it ok to use Coronavirus/COVID-19 as a marketing piece? (such as; “COVID-19, Don’t Let This Stop You From Visiting us!” or some creative slogan) Looking for unique marketing/soliciting advice.
          • I wouldn’t go so far to use it as a marketing piece but a creative piece about what you have done to prep your hotel, your staff, and your guests would not go amiss.
      52. When would you say a force majeure clause went into effect? Such a grey area…
          • As the laws around this vary from state to state, you are best to speak to your legal team to determine this.
      53. We currently have a 100% cancellation penalty post contract signing. With COVID-19 destruction, how do you see it affecting our cancellation clauses for future bookings?
          • First, hats off to you for booking anything with that stringent of a clause. I would suspect for the next few years you will find it harder to do that and will need to move to a more scaled cancellation policy related to size and time to arrival.