Hoteliers bank on smart marketing

Hotel & Motel Management, Feb 21, 2005 by Shannon McMullen-Coyne

NATIONAL REPORT--If done right, marketing can help boost a brand's market share by increasing brand equity, awareness and interest among developers.

As a result, hotel owners, operators and franchisors are upping their resources in this area, taking a long, hard look at where to place their marketing dollars, when and for how long.

According to research from The Hospitality Research Group of PKF Consulting, marketing expenditures have been steadily on the rise since 2001, through the industry recession, proving hoteliers view marketing expenses as an investment worth protecting. PKF data shows hotel marketing expenditures in dollars per available room for all hotels averaged an increase of 1.9 percent in 2003 to $1,987. This is up from the previous year's increase of 1.2 percent to $1,950, and is expected to rise again in 2004.

Besides deciding how much to spend, hoteliers must figure out where to be and when, since ultimately, smart marketing can get a brand into what experts call "consumer consideration," which is key to building business. Finding the proper marketing tactics to achieve that, however, can be a challenge.

For some brands, partnerships foster valuable consumer trial or enforce brand loyalty. For others, it's promotions with value-added incentives that drive awareness and build brand equity. And then there are frequent guest programs, which are being touted more and more by those who offer them to help attract and retain guests.

Many options

Nearly all lodging brands are adopting multidimensional marketing strategies that encompass varying degrees of mass media advertising, such as print, television and public relations, with tactical programs such as direct mail and Internet promotions via e-mail.

For Westin Hotels & Resorts, a mass advertising campaign is used to put the brand in consideration among consumers. The television and print ads are designed to generate awareness among consumers to drive trial, and over time, help build market share, according to Marc Schwartz, v.p. of marketing, Westin Hotels & Resorts.

"Mass advertising helps build your prospects, and you need new prospects out there to build market share," he said. "We spend about 50 percent of our budget on mass advertising and the remaining 50 percent on more tactical moves."

Meanwhile, Marriott International takes a more targeted approach to television and print advertising by tailoring messages to certain types of consumers, depending on where and when the TV or print ad is located. For example, it promotes its most popular business traveler brands on television during programs such as CNN.

"Marketing is about leveraging opportunities, knowing where your strengths are and using them to directly impact brand equity," said Rita Cuddihy, senior v.p., marketing, Marriott International.

Cuddihy said that Marriott began a new image campaign last year designed for television and print that emphasizes the company's relationships with its guests, which it hopes will strike an emotional chord with consumers who will decide to try building their own relationship with the brand.

"We are also spending a lot more time researching how to get a better return on the dollars we do spend via TV and print, etc.," Cuddihy said. "Everything is researched before we spend."

Wyndham International, on the other hand, uses a combination of mass media outlets to market stories about its brand to differentiate it from the competition, according to Craig Cunningham, senior v.p. of marketing, Wyndham International.

By pointing out its unique attributes, Wyndham executives hope to be more memorable, and therefore, more likely to be considered the next time a consumer has to make a lodging decision.

"Whether it's television or the Internet, we like to tell consumers what is different about us, which gets consumers to try us," Cunningham said. "Everything we do includes Wyndham By Request, which is one of our points of differentiation. In addition, mass advertising often gets us out in front of people in geographic markets where we don't already have a presence and generates demand there to help grow our share."

Marketing executives agreed that all spending via mass media outlets is carefully tracked to find out if the brand is getting the sought after returns. Promotions via mass media outlets are typically short-lived and turn over quickly, giving way to fresh ones to give the consumer a new reason to try a particular brand.

Partnering for success

Choice Hotels International has a history of using simple and straightforward messages that emphasize value to grow its piece of the pie. For example, it had quite a bit of success with its "Stay Twice, Earn a Free Night" promotion last spring, and brought it back in the fall, according to Wayne Wielgus, executive v.p. and chief marketing officer.

Some of its most popular and productive marketing tactics have involved partners for added value incentives. Last summer, Choice ran a "Gas, Food, Lodging" promotion that offered a coupon for a free McDonald's meal at participating locations and a chance to win a new Jeep Liberty, a year's supply of free fuel and other prizes. The promotion was one of Choice's most successful, according to Wielgus. He attributed this to its relatable and desirable brand partnerships.