Hotel Sales Incentive Plan Design - Knowledge Center - HSMAI
Hospitality Sales and Marketing Association International
Hospitality Sales and Marketing Association International
 
Hospitality Sales and Marketing Association International
Hotel Sales Incentive Plan Design
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The HSMAI Foundation and ZS Associates have partnered to create the first data-validated compensation design survey for the hotel industry, focusing on sales. Several insights around plan structure, administration, and satisfaction have been uncovered along with the implications for improvement.

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Among the findings related to plan structure:

* Goal-based incentive plans dominate the hotel industry, and are typically determined by 3 or fewer metrics

* Revenue (either Rooms or Total Hotel Revenue) is the most common performance metric across all sales roles, although:

–        Sales leaders’ (DOSMs, DOSs) plans often contain a hotel profit component

–        Catering and Conference Services salespeople’s plans often contain F&B component

* Incentive plans almost always include minimum performance thresholds

* More than half of sales managers and team members report an absolute cap on their incentive payout

* Sales team high performers only earn ~1.5x higher incentive pay than average performers, whereas other industries typically pay a difference of 3x or more

 

The report is now available to all members. 


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