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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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