Advice

Here’s how to create demand on off seasons for your hotel

Alex Sogno, the CEO of Global Asset Solutions, a provider of hotel asset management and hotel investment banking

Creating your own demand allows you to take back control of your business and limit your reliance on external factors, which can vary your rates and occupancy. 

By using a loyalty programme, building your social media presence, or creating direct marketing campaigns, it allows you to reach potential guests and incentivise them to book directly with the hotel. This not only reduces the commissions paid to online travel agencies, but also allows hoteliers to build a direct relationship with their guests, providing a personalised experience and fostering brand loyalty. 

Yet, marketing teams need to shift their mindset when it comes to the low season. They are not there just to capture existing demand, but to create the right mix between local partners to generate potential new demand. You shouldn’t rely on public agencies – instead look to take matters into your own hands.

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Destination marketing is a familiar concept to popular locations, which have become adept at selling themselves around the world. In the past few years, we have seen countries such as Portugal excel in attracting both visitors and investment by creating a plan which brings government and businesses together to combine the policies and infrastructure needed to thrive. 

Hotels need to adopt this mindset and think of themselves as destinations. Then they need to go one step further and become destinations. This is particularly relevant in seasonal destinations. Only by doing this, you can maintain a steady stream of guests at a premium rate, which maximises the hotel’s value.

It is easy to see how hoteliers have been tempted into what the uncharitable might call ‘laziness’; the advent of the OTAs turned on the taps to effort-free guests – at a cost. Other paid-for options include joining brands or marketing consortia, which come with additional benefits and additional costs. What many hotels have forgotten is how to look beyond terminals and into the world around them for opportunities, back the pre-OTA way. And yes, it wasn’t always the easiest, but if you put in the time, it delivers a RevPar edge above the average you are ticking along with.

But how can hotels become destinations and attract clients both in high and low seasons? You need to offer your clientele something special, something different, which will attract them to come and spend their money at the property. One of the ways to do so, and on which I will expand on, are special events. Meeting conferences and events are the main driving forces of destinations; they move many clients and we see that every day in our business. The marketing department is the cornerstone in this plan. Don’t wait around for local tourism agencies to create events – build one yourself. If you do it right, it will become an institution of its own. London Fashion Week is only one example, but also look at the Cannes Festival, or the Mobile World Congress in Barcelona. Such events will fill up your hotels during the low season, but hoteliers need to drive them.

Here are some steps you can take to create a successful event:

Identify the target audience 

Hotels should identify the audience for the event and tailor the event to their needs and preferences. For example, Cannes Festival is a good fit with the luxury hotels market.

Plan the event

Hotels, together with industry partners, should plan the first event in detail, including the date during the low season, location (on-site or off-site), and activities. They should also consider partnering with local businesses and organisations to enhance the event and attract more attendees. The idea here is to initiate the event but don’t necessarily own the event in the future.

Promote the event

Hotels can team up with event marketing agencies to support the event in its first years by promoting it through a variety of channels, including social media, email marketing, and advertising. They can also leverage their existing customer base by offering special promotions or discounts to guests who book a room during the event.

Provide accommodation

Hotels should ensure they have enough rooms available for the event and consider offering package deals that include accommodation and event tickets. Here again, it is important to select dates during the low season.

Potential events can include film or music festivals, art fairs, literary festivals, Christmas markets, stand-up comedy festivals, wedding expos, antique fairs, culinary tours, fashion weeks, sport events, health and fitness expos. We have seen successful examples of these in Hay, in the UK for a book festival, in Montréal with the ‘Just For Laughs’ comedy festival, and the Venice Biennale. 

We all know markets that are successful with these events. The first year may be challenging financially, but soon the event will stand on its own. Once you have created this event, you can tailor your marketing to the specific needs and preferences of the target audience and help build loyalty and repeat business. This will provide you with valuable data on your guests, including their booking habits, preferences, and behaviours. This data can be used for future marketing efforts and improve the overall guest experience, which can ultimately lead to higher occupancy rates, increased revenue, and greater profitability for the hotel.

Guests want an exceptional and memorable stay, while owners want exceptional rates and memorable value when it comes to an eventual sale. Perfecting that stay means working with your team to ensure that service is in place, but also adding the pull factors to attract that initial attention. Cookie-cutter hotels are over, so work out what makes your hotel a destination apart.

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