Mr. Portugal

Sales & Marketing

Cross-Marketing Multiple Venues Within Your Hotel to Locals

By Marc Portugal, Director of Marketing, Bortz Group of Companies

I'm writing you at 5:00PM CST on Tuesday December 16, 2008 in Chicago on a very cold and very snowy day. By the time YOU read this, the economy will be even worse (as will the traffic for tonight's commute home...), business and leisure travel will be down even further, and more questions about the future of hotel branding, marketing and sales will need to be answered quickly. Some "Happy" New Year this is turning out to be.

How will you make your hotels money this year? What do you really have to offer locals?

My last contribution essentially suggested an experiential answer to these questions, and an approach and focus on local consumers as a new - or at least circumstantial - model and source for revenue management in the coming months and years. Creating HABITATS and extending LOCAL consumers social, lifestyle, and/or entertainment experiences they are already committing to elsewhere in town will make you money with some sort of increased, consistent, and reliable frequency.

Those questioning the viability of this assertion need only consider one telling example: Las Vegas Casinos. While most hotels don't offer gaming, (aside from the casual, late night poker game among friends - I won't tell...) the basic casino revenue philosophy still holds true for marketing to local guests. In case you've never been to Las Vegas or never gambled, it goes like this: The longer they stay, the more likely they'll lose.

How do you get people to "stay" in your hotel when people are traveling less, AND without slot machines, video poker, dice and a roulette wheel? It's quite literally very simple. Offer them the exact same experiences to partake in and enjoy as casinos do - great restaurants & nightlife, salons & spas, shopping, special events and promotions, fundraisers, product trials (via brand partnerships), and so forth. Offer them great venues.

• The longer they stay, the more likely they'll lose. Lose is such an ugly word. SPEND sounds better.

• The longer they stay, the more likely they'll spend. Better, but again "staying" is relative to local consumers.

• The more often they come, the more likely they'll spend. Now we're getting somewhere, but come for what?

The more often they come to ENJOY THEMSELVES (fill in "THEMSELVES" with a favorite pasta dish, cocktail, facial scrub, massage, DJ, boutique, or charity) the more likely they'll spend. Now that sounds good to me.

Here's the thing. On their own, these aforementioned venues - or perhaps MINI HABITATS - and their associated experiences and activities may not be a compelling draw to every viable local consumer profile merely as their own volition. Now what? "Combine" them, and cross-market them at every possible juncture.

What's the catch? There is none. Really. No joking around here. Start with developing attractive and aspirational venue brands. Once constructed and staffed appropriately, program relevant events, promotions, contests, exhibits, etc. that follow the Five Laws of Experiential Marketing. Before and after you launch your new local lifestyle "hubs", continually foster partnerships with correlative businesses, organizations, and social and cultural influencers. Deploy your programming and partnerships via modern and creative means (e-mail, mobile, Blue Tooth, FaceBook, etc.) COMMIT to experiential programming around every turn.

Sounds tasty (and I'm hungry.) So how about some sample "recipes"?

Example: Enjoy 20% off your food bill at our cool/fun Restaurant A with the purchase of any full price service in our cool/fun Salon B or tranquil/rejuvenating Spa C.

Example: Join us in our cool/fun Restaurant A for a wine/champagne/martini/bourbon tasting and enjoy a goodie bag with product samples and offers from our new community brand partners and/or 50% off your first manicure, pedicure, or facial in our cool/fun Salon B or tranquil/rejuvenating Spa C.

Example: You are personally invited to the trendy cocktail reception with special guest DJ 123 and the models from 456 Magazine in our stylish Lounge X - catered by Restaurant A, chair massages by tranquil/rejuvenating Spa C, and SPONSORED by brand/community partners D, E, F, and G.

Example: An evening of art and music: enjoy as Restaurant A and Lounge X are transformed into art galleries and sound studios featuring local artists, musicians, and other local cultural pioneers and leadership.

Example: Send out a monthly e-newsletter with activity listings and offers from ALL of your venues. Compliment the newsletter with in-house digital signage and wireless messaging in common areas.

Example: Partner with lifestyle organizations that can promote your various venues to/host their events for their respective constituents, members, customers, etc. Help others help you.

Example: Host monthly cause marketing events at your property and rotate them from venue to venue so various and viable consumer profiles see and/or experience revenue outlets they may not otherwise consider.

Example: Negotiate and program revenue-generating, cross-venue branded entertainment with local and/or national partners whose presence, offering(s), etc. enhance the draw and/or outcome of guest experiences.Example: Design, print and distribute a CRM/Local Guest Loyalty card with point systems good for redemption of prizes, discounts, etc. at your various venues.

Needless to say, the list goes on and on and on. Well...perhaps it's more aptly said that I can go on and on with ideas. Please know that many, many versions of these ideas will work at any hotel type, not just boutique and "luxury" properties in metropolitan settings. Here are more examples of events and venues:

• "Courtyard" Cookout - Marriott CourtyardBBQ's and festival-type event and entertainment content

• "Comfort" Zone - Comfort Suites/Choice HotelsIn-house "mini" salon/spa concept providing on-the-go, "refresher" spa services

• Nights "Inn" - Days INNScotch, whiskey, beer, wine tastings in the lobby or bar area

• PLAY @ "8" - Super 8Sports Bar concept, events, etc. for televised games/races/matches/tournaments

If and hopefully when the economy turns for the better (likely "when" but not for a while) you will come out from the evil recession as a brand newly ENERGIZED with excitement, diversity, activities, and opportunities! This "energizing" will create a viral marketing crescendo resulting in a new and improved reputation that spreads outside your local market. As travel starts to resume what we would all consider to be a normal schedule, everyone will want to stay at your hotel.

Meanwhile, you will be making money, forging new relationships, and discovering new ways to aggregate your various venues and brand offerings in your experiential marketing mix.

Lastly, for anyone who might be saying to themselves "well this sounds great but where in the world do we start?" in regards the development, build-outs, marketing, etc. of new, relevant, experiential venues - there are plenty of companies who do this for a living, and have quite a track record of success.

My personal recommendation (philosophically speaking) is to consider firms demonstrating an "optimal" mix of efficiency and creativity. In other words, don't work with the group with the "cheapest" approach, but don't work with firms whose brands and revenues depend on the most expensive or "coolest" approach, either. Please bear in mind you can build, market and operate venues YOURSELVES. That said, these firms bring marketing expertise, resources and relationships to the table that would take and cost you time to cultivate.

In summary:

• Re-develop and re-brand restaurant, bar, spa and salon venues with the right combination of style and value.

• Program and cross-market the venues with relevant experiences designed to keep local guests on property.

• Prepare in advance to reinvent d'ecor, accessories, promotions and programming to keep experiences fresh.

• Create social settings, events and service offerings that provide stimulation, escapism and diversion.

• Follow the experiential brick road. KNOW and CONNECT with local guests' emotions, habits and networks.

• After all, we are talking about the locals here. There's no place like home...to make money for your hotel.

Marc Portugal launches brands and associated programs – including events, sponsorships, partnerships, and more – with a focus on the mindspace, feelings and rituals of consumers. Marc’s most notable achievement is the brand launch of the Palms Casino Resort in Las Vegas. Marc founded ground-breaking marketing partnerships with Playboy, MTV, Red Bull, and other brands that elevated the Palms to a Boutique Casino Resort, and arguably reinvented standards for lifestyle branding and nightlife-driven entertainment nationwide. Mr. Portugal can be contacted at 312-850-8186 or marcportugal@yahoo.com Extended Bio...

HotelExecutive.com retains the copyright to the articles published in the Hotel Business Review. Articles cannot be republished without prior written consent by HotelExecutive.com.