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In This Section >> Freedom of Choice | What's the Big Idea? | Never Pay Commission! | A Tale of Two Hotels | Pop Quiz on Positioning | The Forgotten Customer |

A Tale of Two Hotels

 

INTEGRATED MARKETING:
A TALE OF TWO HOTELS

By Madigan Pratt

It was the best of times (for The Rafters), it was the worst of times (for The Cellar).

Occupancy levels for The Rafters were extremely high, and although there was a slight drop during the off-peak season, occupancies were consistently the highest in the area. Quite the opposite was true for The Cellar where levels were declining precipitously.

Although occupancies for the two properties were heading in opposite directions, the two hotels were otherwise remarkably similar. Both had excellent locations in the same general area, roughly the same number of rooms, provided superior service and accommodations and appealed to the same affluent traveler.

Another similarity was they both commissioned a comprehensive marketing communications audit - one in search of a turn around strategy and the other to find ways to stay ahead of competition.

The audit for The Cellar revealed a host of marketing problems. While the hotel succeeded in providing an excellent vacation experience, it was ignoring many basic marketing and communications imperatives.

The property didn't have a clear, benefit oriented marketing position. Its previous communications programs were characterized by inconsistent spending, message and target audience. There was no marketing oriented data base that could be used to build a relationship with past guests and encourage them to return. And, there was no research on what its customers or travel agents felt about the property.

The audit went beyond simply identifying The Cellar's problems. It provided recommendations and a plan for an Integrated Marketing Communications program which was implemented.

Research was gathered, the hotel was repositioned, consistent but narrowly targeted advertising was run and an extensive data base of customers, prospects and agents was developed. The data base became the hub of communications as relationship building programs were put in place.

Occupancy rates for The Cellar began responding almost immediately and within a year were among the highest in the region.

The Rafters was viewed by many in the region as the epitome in how to run a hotel. Despite this perception and The Rafters' overall success, their audit revealed a surprising number of marketing and communications weaknesses - beginning with the hotel's basic marketing position.

A new, more benefit oriented marketing position lead to modifications being made to the property and service. It also provided greater focus for all its communications programs.

Although The Rafters had an extensive data base, expanded information gathering allowed for more highly targeted and personalized communications and relationship building activities with past guests.

The Rafters' web site needed to be modified and integrated into the hotel's overall marketing communications program. A data base component was added to the site allowing more one-on-one communications with customers and prospects and efficient online marketing programs. Plans call for developing an online booking capability.

Although The Rafters was operating at what appeared to be peak performance, the marketing audit pointed out ways in which it could improve both its product and its communications. A philosophy of continuous improvement should help The Rafters maintain its competitive advantage in the marketplace for years to come.

The tale of these two hotels is not an atypical business occurrence. Based on our own practice and from discussions with colleagues, clients requesting marketing audits generally fall within two categories - those that are wildly successful and those at the opposite end of the spectrum.

Unfortunately, the majority fall within the latter category and audits are sought as almost a last ditch desperation move. The truly unfortunate part is that, had an audit been called earlier, the resources (manpower and funding) required to take corrective action would have been less and much easier to muster.

Which brings us to the moral of this tale of two hotels - it doesn't matter how well you're doing - a periodic marketing communications audit can provide valuable insights on how you can do better. And in today's increasingly competitive market, every opportunity to perform better needs to be exploited.

This is a story about how marketing audits helped two hotels. It could have just as easily been written about two cruise lines, airlines, destinations. oreven two cities. Examples abound within every segment of the travel category. Can you identify similar circumstances in your own segment? Do you see companies that need an audit? They're easy to spot, aren't they?

It was the age of wisdom, it was the age of foolishness.

 

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