HSMAI SPECIAL REPORT

Hotel Management
Company
Sales Incentive Plans

Produced in partnership with

Table of Contents

02 Introduction

03 Why are incentives so important?

04 Framework for sales incentive plan design

05 Incentives overview
06 Sales compensation design
07 Metrics
08 Plan types
09 Payout curves
12 ZS POV

13 State of incentives in hotel management companies

14 Our participants
15 Hotel management company incentive plan summary

21 Appendix
22 Director of sales incentive plan summary
24 Sales manager incentive plan summary

HMC Sales Incentive Plans HSMAI SPECIAL REPORT

introduction

By Robert A. Gilbert, CHME, CHBA, President and CEO,

Hospitality Sales & Marketing Association International (HSMAI)

A
t a time when everything about hospitality sales is changing, the potential for
incentive plans to recognize and motivate sales professionals has never been more ABOUT HSMAI
Hospitality Sales & Marketing
important. But what makes for an effective, impactful incentive program?
Association International (HSMAI)
is the hospitality industry’s leading
HSMAI has partnered with ZS Associates on an original study that addresses this very
advocate for intelligent, sustainable hotel
question for hotel management companies (HMCs). This report — made possible with the revenue growth. HSMAI provides hotel
support of HSMAI Organizational Member companies — presents the results of our study. professionals and their partners with tools,
insights, and expertise to fuel sales, inspire
Drawing on data that ZS collected from 39 HMCs, the report begins with a general outline marketing, and optimize revenue through
of the five guiding principles and three defining traits of a good sales incentive plan as well programs such as HSMAI’s Revenue
Optimization Conference, Digital Marketing
as the advantages and disadvantages of different types of plans. Then we share key findings
Strategy Conference, Sales Leader
from the HMCs that ZS surveyed, including the predominant structure, performance Forum, and Adrian Awards. HSMAI offers
metrics, maximum payouts, and payout frequency of their incentive plans for both organizational and individual membership,
with more than 7,000 members in four
directors of sales and sales managers. global regions — the Americas, Asia Pacific,
Europe, and the Middle East. — hsmai.org
You’ll also find information about the HMCs that generously contributed data to this
study, which we hope is a valuable resource for your organization as you design an ABOUT ZS
incentive plan that empowers and elevates your sales professionals. ZS is a professional services firm that works
side by side with companies to help develop
and deliver products that drive customer
value and company results. — zs.com

HMC Sales Incentive Plans HSMAI SPECIAL REPORT 2

why are incentives so important?

Why are incentives Three entities are impacted by the incentive plan:
so important?

Sales force drives

the top-line

 Output is typically
measurable Company

 Lack of supervision

Need to
acknowledge success
Customer Sales Force

HMC Sales Incentive Plans HSMAI SPECIAL REPORT 3

 Framework for
sales incentive
plan design

HMC Sales Incentive Plans HSMAI SPECIAL REPORT 4

Incentives Overview

We need to look at the entire sales compensation spectrum

when thinking about a sales compensation program
Compensation Guiding Principles
Strategic | Motivational | Simple | Fair | Fiscally Responsible

Plan Design
Additional
Eligibility Pay Level & Mix Plan Period
Elements
Metrics Methods Mechanics

What are What level of What should be What plan type What will the How long is the ɠɠ SPIFs/
the criteria base and the measuring to choose from? payout curve plan period? contests
for a role to variable pay is metric for each ɠɠ Commission look like? What is the ɠɠ R ecognition
receive sales appropriate? of the identified ɠɠ Threshold payout program
ɠɠ Goal based
compensation? components? frequency? ɠɠ L  ong-term
100% ɠɠ F
 orced ɠɠ Slopes
ɠɠ Customer $200K salary ɠɠ $ sales ɠɠ Monthly incentives
ranking ɠɠ Accelerators
contact ɠɠ Unit sales
ɠɠ Matrix ɠɠ Kickers ɠɠ Quarterly
ɠɠ F inancial ɠɠ Orders
influence ɠɠ MBOs ɠɠ Caps ɠɠ S
 emi-
ɠɠ G
 ross annually
ɠɠ Combination
margin ɠɠ Annually

$50K 100%
incentive

HMC Sales Incentive Plans HSMAI SPECIAL REPORT 5

Sales Compensation Design

Guiding Principles: A good incentive plan Why do so many companies

is strategic, motivational, fair, simple, have difficulties designing
their IC plans?
and fiscally responsible
Answer: There are tensions
between the guiding principles.
ɠɠ Supports sales and marketing objectives
ɠɠ Focuses on the “right” activities and customers
Aligned with strategy ɠɠ Proper emphasis / focus on key products Simple Fair
ɠɠ Flexible to account for changes in environment
Financially
Motivational
ɠɠ Substantial effort leads to significant reward responsible
ɠɠ Keeps most people engaged
Motivational ɠɠ Focus on what matters to salespeople
Controllable Measurable

ɠɠ Sellers with different conditions have similar

earning potential
Fair ɠɠ Does not penalize sellers for forecasting uncertainties

ɠɠ Simple to understand and communicate to the sales force

ɠɠ Can be implemented given IC infrastructure/resources
Simple

ɠɠ Total payout is within acceptable range of budget

ɠɠ Total payout varies appropriately according
Fiscally responsible to company success

HMC Sales Incentive Plans HSMAI SPECIAL REPORT 6

Metrics

Ideally, sales incentive plan metrics should

be strategic, controllable, and measurable

Strategic Dimensions

3
KEY TAKEAWAY
Requiring a Decision
ɠɠ Supports key strategic goals
ɠɠ Critical to the business
There are many decisions that can
be made with regard to metrics,
and each has an impact on
representative behavior.
Controllable
Sales incentive plans should
be limited to 3 metrics, each Measurement
ɠɠ Mostly within the control of the salesperson weighted at least 20% ɠɠ Revenue
ɠɠ Visibility of the link between behavior ɠɠ RevPAR
and reward ɠɠ Room nights
ɠɠ Bookings

Measurable Level
ɠɠ Person/territory
ɠɠ Property
ɠɠ Metric can be measured at the appropriate ɠɠ Account (above property)
level ɠɠ Other team
ɠɠ Systems are able to track and report
on the metric
Point of Comparison
ɠɠ Relative to goal
ɠɠ Change over time (percent, value)

HMC Sales Incentive Plans HSMAI SPECIAL REPORT 7

 Each incentive plan type has relative advantages and disadvantages;
Each incentive plan type has relative advantages and disadvantages;
each is appropriate in certain circumstances
each
Planis appropriate in certain circumstances
Types

Each incentive plan type has relative advantages and disadvantages;

each is appropriate
Commission in certain circumstances
Relative
Relative
Matrix Goal Based MBO
Commission Matrix Goal Based MBO
Plan Plan Plan Plan Plan
Plan Plan Plan Plan Plan
Commission Plan Relative Plan Matrix Plan Goal Based Plan MBO Plan

Objective 1 25%
Objective
Objective 1 25%
1 25%
Objective 2 15%
Pay 5% Objective 2 15%
PayPAY
Objective 2 15%
5%OF
5% Objective 3 35%
of sales

Pay
Objective
Objective 3 35% 3 35%

Pay
of sales

Pay
SALES ObjectiveObjective
4 25% 4 25%
Objective 4 25%
------------------------
GoalGoal Attainment
Attainment ------------------------
Goal Attainment ------------------------
Total 100%
ɠɠ New products Total 100%
ɠɠ Hunters ɠɠ M
 inimizes Total 100%
ɠɠ T
 erritory potential forecasting issues ɠɠ Used to balance ɠɠ T
 erritory potential ɠɠ Can be subjective
must be balanced ɠɠ C an cause competing priorities considered ɠɠ L ittle pay
Newproducts
§§ New products § Minimizes
unhealthy
§ Minimizes ɠ ɠ § Used
Complex
§ Used to to balance
balance ɠɠ§R § Territory
 equires accurate
Territory § Can be be
differentiation
§ Can
forecasting
competition
forecasting competing
ɠɠ Uncommon
competing potential
national forecast
potential ɠɠ A subjective
 dministrative
subjective
Hunters
§§ Hunters ɠɠ Uncommon
issues priorities ɠɠ Prevalent for AMs
considered burden
issues priorities considered § Little
Territory
ɠɠ M§ayLittle
not paypay
require
§§ Territory Cancause
§ §Can cause Complex
§ §Complex § Requires
§ Requires differentiation
salesdifferentiation
data
potentialmust
potential must unhealthy accurate
bebalanced
balanced unhealthy Uncommon accurate § Administrative
be competition
competition § §Uncommon national
national § Administrative
forecast burden
burden
Uncommon forecast
§ §Uncommon § May
§ Prevalent
§ Prevalent for for § May not not require
require
AMs sales
sales datadata
AMs

©©2019
2019ZS
ZS | | CONFIDENTIAL
CONFIDENTIAL − 9−−9 − HS
HSMA

HMC Sales Incentive Plans HSMAI SPECIAL REPORT 8

 Payout Curves

What does the research say about payouts?

Research suggests
more frequent
performance period Research suggests
evaluation drives that overachievement
higher sales, commission rates are
particularly for low critical in driving top
performers performers

Laggards Core Performers Stars

Bottom 20% Middle 60% Top 20%

-2
-7
-4

-13

-17

Percent reduction in revenue seen, by segment, when no overachievement commission rates were present
Percent reduction in revenue seen, by segment, when no quarterly bonuses were present
-10 SOURCE: HARVARD BUSINESS REVIEW, JULY-AUGUST 2012

HMC Sales Incentive Plans HSMAI SPECIAL REPORT 9

Payout Curves

Caps reduce the motivation of your top performers

300%
RESEARCH SETTING
Uncapped Data were collated from the sales
250% Capped organization of a large U.S. contact
lens manufacturer
200%
% of Target Paid

9%
KEY TAKEAWAY
150%

100%

50%

Improvement in revenue
0% after caps were removed
0% 100% 200%
from the plan
% of Quota Attained

Payout curves can be designed such that the right amount of money is paid to the right population
MANAGER
GUIDING PRINCIPLE OBJECTIVE METRIC REP BENCHMARK
BENCHMARK
Engagement rate Percent receiving payout 90-100% 100%
Motivating
Meaningful engagement rate Percent paid at least 75% of target $ payout 60-80% 60-80%
Median % of target payout Percent of target payout received at the median 100% 100%
Pays for performance; Average % of target payout Percent of target payout received on average 100-110% 100-110%
Fiscally responsible Excellence to target ratio Top 10% $ payout vs. target 200-300% 150-200%
Bottom performer vs. target ratio Bottom 10% payout vs. target 10-30% 30-50%

HMC Sales Incentive Plans HSMAI SPECIAL REPORT 10

 Payout Curves

An optimal payout curve considers performance in four payout zones

Underperformers Good performers Overachiever Windfall possibility

Receive no payout Increased payout for Accelerated payout rate Payout may be due
increased sales for increased sales to windfall conditions rather
than performance

300%

250%
Attainment
Percent of Target Payout

Distribution
200%
Decelerator
Point
150%

100%
Payout
Threshold Target
50% Payout

0%
0% 25% 50% 75% 100% 125% 150% 175% 200%
Attainment

Too many salespeople below threshold can result in: Too many in the windfall zone can result in:
ɠɠ Loss of motivation / morale ɠɠ Overpayment
ɠɠ Account managers holding back sales until next pay period ɠɠ Culture of entitlement
ɠɠ Loss of confidence in sales management ɠɠ Low incentive to drive sales (reduced slope)
ɠɠ Note: A high threshold suggests very strong forecasting ability ɠɠ Account managers holding back sales until next pay period

HMC Sales Incentive Plans HSMAI SPECIAL REPORT 11

 § Territory
§ Territory potential
potential must must § Accuracy
§ Accuracy is tested
is tested using
using Local knowledge
§§ Local knowledge helpshelpsrefine
refine
§ Territory
be potential must
be incorporated
incorporated § Accuracy is tested
historical using
historical simulations to to §
simulations Local knowledge
quotas to helps refine
reflect on-the-
quotas to reflect on-the-
be incorporated historical
check simulations to
for correlations quotasground
to reflect on-the-
ZS POV
§ Can include multiple metrics check
check
for
for
correlations
correlations to
toto ground
groundbuy-in
reality
reality
reality of
and
and
andincreases
increases
increases
§ Can include actual sales results sales managers
§ Can includemultiple
related multiple
to
metrics
metrics
accounts or actual
actual sales
sales results
results buy-inbuy-in
of salesofmanagers
sales managers
related to to
accounts or
Based on our experience, effective quota-setting processes
related
geographic
accounts
geographic
geographicelements
elements
or
elements § Fairness is evaluated by
Fairness
§§Fairness is evaluated
is evaluated
grouping
by
by with
territories §
§ Reasonable limits on the
§ Reasonable
Reasonable
degree limits onlimits
of change
on thebe
the should
include a variety of common characteristics
§ Typical metrics include
§ Typical
§ Typical metrics
metrics include
include
grouping
grouping
similar
territories
territories
similar
characteristics
withwith and
characteristics
and and
degreedegree
imposed,
of change
imposed,
as
of as
well
change
should
as
well as
a
should
bea be
account characteristics and similar characteristics
observing any historical imposed, as well as a
rigorous process
account characteristics
accountpopulation
characteristics and
and observing anyany
historical rigorous process
demographics observing
biases historical rigorous process
population demographics
population demographics biases
Territory Opportunity Rigorous Methodology
biases Manager Refinement
160

% GOAL ATTAINMENT CURRENT YEAR

160

% GOAL ATTAINMENT CURRENT YEAR

140
140 160

% GOAL ATTAINMENT CURRENT YEAR

120
120 140
100
100 120
80
80
100
60
60
80
40
40
60 20
20
Low Medium High
40 Low Medium High
PREVIOUS-YEAR GROWTH
PREVIOUS-YEAR GROWTH
20
Low Medium High

ɠɠ Local knowledge helps refine

PREVIOUS-YEAR GROWTH
ɠɠ Territory potential must
be incorporated
© 2019 ZS | CONFIDENTIAL
© 2019 ZS | CONFIDENTIAL − 16 − − 16 − HSMAI HSMAI
quotas to reflect on-the-ground
ɠɠ Can include multiple metrics ɠɠ Accuracy is tested using reality and increases buy-in of
© 2019 ZS
related to accounts or geographic
| CONFIDENTIAL
historical simulations
− 16 −
to check for sales managers HSMAI
elements correlations to actual sales results ɠɠ Reasonable limits on the degree
ɠɠ Typical metrics include account ɠɠ Fairness is evaluated by of change should be imposed,
characteristics and population grouping territories with similar as well as a rigorous process
demographics characteristics and observing
any historical biases

HMC Sales Incentive Plans HSMAI SPECIAL REPORT 12

 State of incentives
in hotel management
companies

HMC Sales Incentive Plans HSMAI SPECIAL REPORT 13

our Participants

ɠɠ AMResorts ɠɠ M&R Hotel Management

ɠɠ Atlific Hotels ɠɠ Marcus Hotels & Resorts
We collected incentive
ɠɠ Atrium Hospitality ɠɠ NCG - North Central Group
ɠɠ Benchmark Global Hospitality ɠɠ Newport Hospitality Group plans from 39 hotel
ɠɠ Charlestowne Hotels ɠɠ OTO Development management companies
ɠɠ Commonwealth Hotels ɠɠ Outrigger Enterprises Group
ɠɠ Crescent Hotels and Resorts ɠɠ Pacifica Hotels
ɠɠ Donohoe Hospitality Services ɠɠ Prism Hotels
ɠɠ Dow Hotel Company ɠɠ Regency Hotel Management
ɠɠ Genuine Hospitality ɠɠ Remington Hotels
ɠɠ GF Management ɠɠ Sage Hotels
ɠɠ G
 rowth Properties ɠɠ Salamander Hotels
Hospitality Management ɠɠ Shaner Hotel Group
ɠɠ HHM Hospitality ɠɠ Sound Hospitality Management
ɠɠ HVMG - Hospitality Ventures ɠɠ StayPineapple
Management Group
ɠɠ Two Roads/CoralTree Hospitality
ɠɠ Hostmark
ɠɠ White Lodging
ɠɠ HVS Hotel Management
ɠɠ Widewaters Hotels
ɠɠ Interstate Hotels
ɠɠ Windsor Capital Group
ɠɠ Kessler Collection (WCG Hotels)
ɠɠ Lodging Hospitality Management ɠɠ Wright Investments

HMC Sales Incentive Plans HSMAI SPECIAL REPORT 14

 Hotel Management Company Incentive Plan Summary

Hotel management companies use goal-based plans as Hotel companies are simplifying
the dominant compensation structure their plans by carrying fewer metrics

Incentive Compensation Structure Number of Performance Metrics

Used in Compensation Plan
100% 97%
94% Previous Study Today’s Sample

Goal based 100% 4% 4%

6%
7%
Percentage of Respondents

18% 9%
MBO

to Evaluate Incentive Amount

Number of Metrics Used
Commission 29%
18% 40%
Other* 43%
12%

45%
35% 27%
37%

6% 18% 18% 23%

3% 3% 3% 3% 7%
0% 0%
Director of Sales Director Sales Director Sales
Sales Manager
HSMAI management of Sales Manager of Sales Manager
HSMAI management
company sample (n=17) (n=12) (n=35) (n=33)
company sample
(N=35) (N=33)
1 2 3 4 5+

As compared to our previous study, the majority of companies

build their incentive compensation plans using 3 or fewer metrics

Some “Other” responses include Market Share, House Profit, STR & Revenue Based, Overall Hotel Performance, GOP, Shop Evaluation, Customer Service Scores, and Communications.

HMC Sales Incentive Plans HSMAI SPECIAL REPORT 15

Hotel Management Company Incentive Plan Summary

Revenue is the primary metric for

both DOS and Sales Managers Management
companies are
Primary* Performance Metric Used to Determine Incentive Compensation mostly aligned with
Sample Sample metrics: hotel/team
Metrics Metrics
100%
RevPAR
ɠɠ RevPAR Index
revenue for DOS and
11%
ɠɠ RevPAR vs. Budget
ɠɠ RevPAR Index YOY 12% individual revenue
ɠɠ RevPAR Index vs.
Budget
Revenue: Individual
Contribution for managers, with
ɠɠ Budgeted RevPAR
Penetration
ɠɠ Individual Bookings
vs. Target differences tied to
Percentage of Respondents

23% ɠɠ RevPAR Rank ɠɠ Individual

Consumed budget, targets, and
81%
Revenue vs. Target
ɠɠ Individual consumption
Revenue: Total
Consumed Reve-
Hotel Contribution
nue vs. Budget
ɠɠ Total Hotel
ɠɠ Individual Revenue
Revenue vs. Budget
vs. Budget
ɠɠ Room Revenue vs.
ɠɠ Individual Revenue
Budget
Consumption vs.
66% ɠɠ Team Consumed
Budget
Revenue
ɠɠ Team Consumed
Rev. vs. Budget
Sales Managers have metrics
ɠɠ Team Bookings vs. 8%
Budget based on individual contributions
far more often than DOS.
0%
Director of Sales (N=35) Sales Manager (N=33)
Primary Metric Primary Metric

Revenue: Total Hotel Contribution Revenue: Individual Contribution RevPAR

* “Primary” metrics have the highest weight of all performance metrics that contribute to determining the total target incentive payout amount; sample metrics are listed in order of popularity.

HMC Sales Incentive Plans HSMAI SPECIAL REPORT 16

Hotel Management Company Incentive Plan Summary

Some plans also place a lower weight on Gross Overall Profit

and Guest Satisfaction metrics to determine incentive pay
All Performance Metrics Used to Determine Incentive Compensation

Sample Sample Usage of RevPAR

Metrics Metrics
100% 4% 3%
as performance
7% Gross Overall Profit
ɠɠ Gross Overall Profit
5%
3%
metric has remained
7% ɠɠ Gross Overall
Profit - Budget
Guest Satisfaction
ɠɠ Guest Satisfaction constant across
19% Score
the companies as
% Weight in the Sales Comp Plan

ɠɠ Guest & Associate

22% Satisfaction
ɠɠ Brand Guest compared to the
Service Score
previous study
18%
42%

42%

27%

0%
Director of Sales (n=35) Sales Manager (n=33)
All Metrics All Metrics

Revenue: Total Hotel Contribution Revenue: Individual Contribution RevPAR GOP Guest Satisfaction Other

Sample Metrics are listed in order of popularity.

HMC Sales Incentive Plans HSMAI SPECIAL REPORT 17

Hotel Management Company Incentive Plan Summary

The majority of plans we collected were capped, and the max payouts
for Sales Manager and DOS have converged at 30% of base
Maximum Incentive Payout (Percentage of Base Salary)

60% High performers

50% 50%
for Sales Managers
Maximum Payout (Percentage of Base Salary)

Maximum averaged 28% in

Average a previous study,
35% typical
Minimum
slightly lower than
max payout
from previous
today’s sample
study
28% typical
max payout from
30% 30% previous study

10% 10%
0%
Director of Sales Sales Manager
(n=25) (n=26)

% of Plans That
88% Have Pay Caps
84%

HMC Sales Incentive Plans HSMAI SPECIAL REPORT 18

 Hotel Management Company Incentive Plan Summary

Ranges for minimum and maximum goal attainment to determine incentive

pay vary by company; most sit between 95% and 125% attainment
Percent Goal Attainment Required for Minimum and Maximum Incentive Pay

Range 30% 20% 30% 10% 20% 5% 20% 45% 30% 35% 15% 105% 105% 23% 2% 8% 25% 21% 25% 10% 15% 15% 8%

220% Maximum Payout

200% 200% (Higher performance will
200% not increase pay)
Percent of Target Payout

180%
160% 22% currently have 35% currently have 100%
Minimum Payout
(Lower performance will
max payout of 100% 140% as minimum threshold result in no incentive pay)
140% 130%
125% 125% 125% 121%
120% 120%
120% 111%
115%
110%
115% 115%
110% 108% 108%
100% 100% 100% 100% 100%
100% 100% 100% 100% 100% 100% 100% 100% 100%
95% 95% 95% 95% 95% 95% 95% 95% 98% 98%
90% 90%
80% 80%
91%

70%
60%
A B C D E F G H I J K L M N O P Q R S T U V W

All Companies Using Thresholds and Caps (n=23)

Companies C – O award a fraction of their incentive Companies P – W award incentive pay

pay if they achieve close to 100% of their goal only if they achieve 100% of their goal

Minimum thresholds for DOS and Sales Managers averaged

98% in a previous study, similar to our current sample

HMC Sales Incentive Plans HSMAI SPECIAL REPORT 19

Hotel Management Company Incentive Plan Summary

Hotel management companies most commonly pay out

incentives quarterly to both DOS and Sales Managers
Frequency of Performance Period and Incentive Payout*

100% The distribution of

performance period and
payout frequency is roughly
the same as those reported
68% in a previous study
79%

9%

23%
21%

0%
Director of Sales Sales Manager
(N=31) (N=30)

Quarterly and Annually Annually Quarterly

For companies that pay quarterly and annually:

Quarterly payments tend to be based on revenue metrics such as RevPAR; annual payments tend to be based on GOP or guest satisfaction metrics.

*The Performance Period and Incentive Payout Frequency are the same for each company in our sample.

HMC Sales Incentive Plans HSMAI SPECIAL REPORT 20

 Appendix:
Plan component details

HMC Sales Incentive Plans HSMAI SPECIAL REPORT 21

Director of Sales Incentive Plan Summary (1/2)

Performance Metrics1
Max Payout
Sample Revenue Revenue Revenue to Payout Frequency
RevPAR GOP Other 2 (% of Base)
Team Indiv. Budget
A       X X 25%  Annual
B X   X    X 35% Annual & Quarterly
C X X      X   Uncapped  Quarterly
D X         Uncapped Annual & Quarterly
E X   X    X 40%  Quarterly
F X   X    X 25% Q & 15% A Annual & Quarterly
G  X          GK  GK Uncapped Annual & Quarterly
H  X         X X 12.5% Quarterly
I     X GK   X 30% Quarterly
J X   GK  X X Uncapped Quarterly
K        X Uncapped Quarterly
L X   X     X  X Uncapped  Annual & Quarterly
M X X X     37% Semi-Annual & Quarterly
N X     X  X X 30% Annual & Quarterly
O X   X GK  X  X 30% Annual & Quarterly
P   X       Uncapped  Quarterly
Q X X   X X 20% Annual
R X X X Uncapped  Quarterly
S X X   X X 57% Annual & Quarterly
T     X X X 15% Quarterly
U     X   X 35% Quarterly
V  X X   X X 20% Quarterly
W   X    X  X 25% Quarterly
X   X X  X  30% Annual & Quarterly
Y X   X   X $3,000 Quarterly
Z X X X   X 50% Quarterly

1) Performance metrics: “X” indicate category used in incentive plan and “GK” indicates gatekeeper required for incentives to be paid out.
2) “Other” metrics include: sales activities, catering/banquet revenues, employee satisfaction scores, guest scores, physical state of hotel, etc.

HMC Sales Incentive Plans HSMAI SPECIAL REPORT 22

Director of Sales Incentive Plan Summary (2/2)

Performance Metrics1
Max Payout
Sample Revenue Revenue Revenue to Payout Frequency
RevPAR GOP Other 2 (% of Base)
Team Indiv. Budget
AA X X X X X X 30% Annual
AB X X GK     $17,500 Quarterly
AC   X   X X 17.5% Annual & Quarterly
AD   X X   X 35% Annual
AE X       X 24% Annual
AF  X   X     X 35% Annual & Quarterly
AG   X      GK  Uncapped Annual & Quarterly
AH  GK    X   X 50% Quarterly
AI      X     X X 25% Annual & Quarterly

1) Performance metrics: “X” indicate category used in incentive plan and “GK” indicates gatekeeper required for incentives to be paid out.
2) “Other” metrics include: sales activities, catering/banquet revenues, employee satisfaction scores, guest scores, physical state of hotel, etc.

HMC Sales Incentive Plans HSMAI SPECIAL REPORT 23

Sales Manager Incentive Plan Summary (1/2)

Performance Metrics1
Max Payout
Sample Revenue Revenue Revenue to Payout Frequency
RevPAR GOP Other 2 (% of Base)
Team Indiv. Budget
A X X X   X X 32% Annual & Quarterly
B   X       X Uncapped  Quarterly
C   X       Uncapped  Annual & Quarterly
D   X      X   35% Quarterly
E X X X     X Uncapped  Quarterly
F X X     GK GK Uncapped  Quarterly
G X         X 25% Quarterly
H X X   GK   Uncapped Quarterly
X
I         Uncapped  Annual & Quarterly
GK
J X X     X Uncapped  Annual & Quarterly 
K  X  X  X      19% Semi-Annual & Quarterly
X
L   X 30% Quarterly
GK
 X 
M         Uncapped  Annual & Quarterly
GK
N    X        Uncapped  Quarterly
O X  X       X 20% Annual
P X  X X   X Uncapped  Quarterly
Q   X  X   31% Annual and Quarterly
R     X  X  X 15% Quarterly
S     X   X  7% Quarterly
T   X X X 20% Quarterly
U  X X    X  X 20% Quarterly
V   X    X  X 50% Annual & Quarterly
W   X   X X 25% Quarterly
X   X X   30% Annual & Quarterly
Y   X   X 25% Quarterly
Z X X GK   $17,500 Quarterly

1) Performance metrics: “X” indicate category used in incentive plan and “GK” indicates gatekeeper required for incentives to be paid out.
2) “Other” metrics include: sales activities, catering/banquet revenues, employee satisfaction scores, guest scores, physical state of hotel, etc.

HMC Sales Incentive Plans HSMAI SPECIAL REPORT 24

Sales Manager Incentive Plan Summary (2/2)

Performance Metrics1
Max Payout
Sample Revenue Revenue Revenue to Payout Frequency
RevPAR GOP Other 2 (% of Base)
Team Indiv. Budget
AA   X X X 17.5% Annual & Quarterly
AB X X X  GK  X 25% Annual & Quarterly
X
AC   X X X 30% Annual & Quarterly
GK
AD   X    $35,000 Annual & Quarterly
AE   X   GK  Uncapped Annual & Quarterly
AF   X X GK 40% Quarterly
AG     X  X 20% Annual & Quarterly

1) Performance metrics: “X” indicate category used in incentive plan and “GK” indicates gatekeeper required for incentives to be paid out.
2) “Other” metrics include: sales activities, catering/banquet revenues, employee satisfaction scores, guest scores, physical state of hotel, etc.

HMC Sales Incentive Plans HSMAI SPECIAL REPORT 25

This report is presented with the support of HSMAI’s Organizational Member companies:

Diamond Members

ACCOR
LOGO C=0 M=26 J=56 N=0

Emerald Members
Nº dossier : 18J3476
Date : 4/07/18 C=22 M=42 J=65 N=20
Validation DA/DC :
Validation Client :

http://www.seeklogo.net

Sapphire Members

Ruby Members Start-Up Members University Members

Avvio Hostmark OTA Insight Burgess Crest Cornell University
The Breakers IDeaS Revenue Solutions Outrigger Enterprises Group CoralTree Hospitality Group Johnson & Wales University
Cendyn JD Power Rainmaker Dragonfly Hospitality Michigan State University
Cvent Kessler Collection Regency Hotel Management Resources Penn State University
Diamond Resorts Marcus Hotels & Resorts SearchWide Hospitality Digital Marketing University of Nevada
Duetto Marketo, Spire Hospitality IVvy INC. Las Vegas
Explore St. Louis An Adobe Company STR Kate Burda & Company Virginia Tech
GitGo Milestone Venetian/Palazzo Navesink Advisory Group, LLC
Google MMGY Global Visit Dallas Tim Peter & Associates
Host Hotels Nor1 Visit Tampa Bay

HMC Sales Incentive Plans HSMAI SPECIAL REPORT 26

 hsmai.org

HMC Sales Incentive Plans HSMAI SPECIAL REPORT 27