Jul
22
The current enthusiasm for “flash” sales to sell hotel rooms raises one important question:
What on earth are the marketing departments doing??
Hotels relying on low price internet offers to sell rooms on a last minute basis tell us a lot about what they’re not doing as far as marketing is concerned.
What on earth are the marketing departments doing??
Hotels relying on low price internet offers to sell rooms on a last minute basis tell us a lot about what they’re not doing as far as marketing is concerned.
I’m using the month of November here because when I ran hotels, it was usually winter months that proved hard to fill. For you it might be a different month, but the principles remain the same.
Many hoteliers get to October 24th and suddenly realise that November is empty.
I have a question for those hoteliers.
Did November not happen to your hotel last year?
The problem is not that there are no business opportunities in November. The problem for you is how to manage your people and cash to improve things and take advantage of the opportunities you can find.
The answer does not lie in pressing the panic button and offering suicidal discounts on flash sales with a third party for last minute bookings.
The answer lies in you deciding to do something positive about it. And that starts with last November.
Research all the correspondence from last years bookings to understand what markets you already have.
- Who stayed with you?
- Why did they visit the area?
- Have they been contacted with an offer to repeat their visit?
- Get your keenly priced offers on the market EARLY (like the airlines do) and try to get some base occupancy into your business.
Research all the correspondence for November this year, as it comes in. This will help you to identify possible new markets.
Ask yourself:
- Why are they visiting?
- Who else might be visiting for the same reason?
- If the answer isn’t immediately obvious – ask THEM.
If you have a conference or banqueting operation, go through last years bookings and diaries to identify potential business for November.
Check local Tourist Boards, Conference Bureaus, Theatres and venues to find out what conferences or events are being held in November.
Create some special events of your own for November.
Look for markets where people are prepared to travel if the offer is right. You’re looking for parties here, not individuals. Retired people might be a useful market for you as they don’t need to wait for holidays to happen, their decision to travel is triggered by a good value offer and they like to organize things well in advance. Start with Pensioners clubs, Bowling clubs, etc. The internet is a marvellous research tool - use it to find some potential markets for you.
Identify all the functions and weddings being held in your town in November. At other hotels, venues, Council offices. Where will the people who are coming to these events stay? If you don’t make them an offer, it won’t be with you, will it?
Is there a college or University near you? When is their graduation ceremony? If it’s in November there will be families and friends coming to town.
There will be all sorts of minor events which can bring visitors who need to stay somewhere overnight. Training courses, shows, fairs, musical events, entertainment gigs. Track down the events, call the people involved and find out if there are any accommodation needs.
Stay On letters. Everyone who stays at your hotel gets one of these, it’s an invitation to stay on an extra night at a reduced rate because you’ve had a cancellation. Ten minutes effort in front of a computer might get you a couple of extra nights sold.
Create packages including show tickets or a local activity.
What’s going on in your town in November? Can you build a little package around it?
All this takes time and effort – and some cash.
What is your alternative? Realising a whole 25% of your normal selling price with a Groupon Getaway?
How much does that really cost you?
In my opinion websites like Groupon appeal to the desperate seeking the desperate.
If you are desperate to sell some rooms and look busy because you haven’t faced up to your marketing responsibilities for the past 12 months, Groupon will appeal to you. It will also allow you to sell to people who are desperate to save money. People who buy cut price offers generally do so because they are watching the pennies. They’re not likely to be your natural customers and they’ll only return if you offer them yet another kamikaze price.
If you want to improve your situation for the next low demand cycle in your hotel you need to make a decision. Are you going to decide to invest time and money to make more customers? Or are you going to abdicate the responsibility to parasitic websites?
For more on this subject, see the Marketing in the Highlands blog
Many hoteliers get to October 24th and suddenly realise that November is empty.
I have a question for those hoteliers.
Did November not happen to your hotel last year?
The problem is not that there are no business opportunities in November. The problem for you is how to manage your people and cash to improve things and take advantage of the opportunities you can find.
The answer does not lie in pressing the panic button and offering suicidal discounts on flash sales with a third party for last minute bookings.
The answer lies in you deciding to do something positive about it. And that starts with last November.
Research all the correspondence from last years bookings to understand what markets you already have.
- Who stayed with you?
- Why did they visit the area?
- Have they been contacted with an offer to repeat their visit?
- Get your keenly priced offers on the market EARLY (like the airlines do) and try to get some base occupancy into your business.
Research all the correspondence for November this year, as it comes in. This will help you to identify possible new markets.
Ask yourself:
- Why are they visiting?
- Who else might be visiting for the same reason?
- If the answer isn’t immediately obvious – ask THEM.
If you have a conference or banqueting operation, go through last years bookings and diaries to identify potential business for November.
Check local Tourist Boards, Conference Bureaus, Theatres and venues to find out what conferences or events are being held in November.
Create some special events of your own for November.
Look for markets where people are prepared to travel if the offer is right. You’re looking for parties here, not individuals. Retired people might be a useful market for you as they don’t need to wait for holidays to happen, their decision to travel is triggered by a good value offer and they like to organize things well in advance. Start with Pensioners clubs, Bowling clubs, etc. The internet is a marvellous research tool - use it to find some potential markets for you.
Identify all the functions and weddings being held in your town in November. At other hotels, venues, Council offices. Where will the people who are coming to these events stay? If you don’t make them an offer, it won’t be with you, will it?
Is there a college or University near you? When is their graduation ceremony? If it’s in November there will be families and friends coming to town.
There will be all sorts of minor events which can bring visitors who need to stay somewhere overnight. Training courses, shows, fairs, musical events, entertainment gigs. Track down the events, call the people involved and find out if there are any accommodation needs.
Stay On letters. Everyone who stays at your hotel gets one of these, it’s an invitation to stay on an extra night at a reduced rate because you’ve had a cancellation. Ten minutes effort in front of a computer might get you a couple of extra nights sold.
Create packages including show tickets or a local activity.
What’s going on in your town in November? Can you build a little package around it?
All this takes time and effort – and some cash.
What is your alternative? Realising a whole 25% of your normal selling price with a Groupon Getaway?
How much does that really cost you?
In my opinion websites like Groupon appeal to the desperate seeking the desperate.
If you are desperate to sell some rooms and look busy because you haven’t faced up to your marketing responsibilities for the past 12 months, Groupon will appeal to you. It will also allow you to sell to people who are desperate to save money. People who buy cut price offers generally do so because they are watching the pennies. They’re not likely to be your natural customers and they’ll only return if you offer them yet another kamikaze price.
If you want to improve your situation for the next low demand cycle in your hotel you need to make a decision. Are you going to decide to invest time and money to make more customers? Or are you going to abdicate the responsibility to parasitic websites?
For more on this subject, see the Marketing in the Highlands blog
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