HotelCo. Strategy Consultation

Kazim Ali | Anukriti Kurria |Evana Patel | Kishan Soni

Mayes College of Pharmaceutical and Healthcare Business, University of the Sciences

October 16, 2015

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Strategic Consultation Objectives

Understand the critical market

segments

Implement marketing

strategy to reach target segments

Increase online reservations

2 http://bedfordgroupconsulting.com/wp-content/uploads/strategic-marketing-consulting-banner.jpg

Agenda

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Segments

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•  Middle Tier •  Loyal Business Travelers

Loyal Road Warriors

•  Budget Motels •  Frequent Travelers

Spontaneous Weekend Explorers

Segment Analysis

¤  Loyal Road Warriors Ø  1 in 5 travel bookings are business

related

Ø  That accounts for over 450 million hotel stays per year

¤  Spontaneous Weekend Explorers Ø  78% of domestic travel is for leisure

Ø  Within this 78%, 491 million leisure travelers fall under the category of Spontaneous Weekend Explorers

5 https://think.storage.googleapis.com/docs/2014-travelers-road-to-decision_research_studies.pdf https://www.ustravel.org/sites/default/files/page/2013/08/US_Travel_AnswerSheet.pdf

Beliefs and Behaviors

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Target Current Belief Current Behavior

Desired Belief

Desired Behavior

Importance

Loyal Road Warriors

Ø  I do not like dealing with an outdated website

Ø  I want to be rewarded for my loyalty as a customer

Ø  Easily frustrated with a cumbersome website

Ø  Only considers robust loyalty programs

Ø  I saved so much time with the streamlined booking process

Ø  I appreciate feeling like a valued customer through the loyalty program

Ø  Finds the booking process to be efficient and helpful

Ø  Looks forward to redeeming the exciting rewards of the program

High

Spontaneous Weekend Explorers

Ø  I hate wasting time on my trip dealing with an inefficient website

Ø  The website doesn’t work across my devices and makes booking a pain

Ø  Abandons sites with inefficient booking processes

Ø  Put off by site not being accessible across their devices

Ø  Planning was an ease so I could focus on my travels

Ø  The check-in process was effortless as I was on the road for my getaway

Ø  Enjoys the simplicity of making a reservation

Ø  Site is optimized on their preferred platforms

Medium

Marketing Strategy

¤ Principal Goal: Redesign of HotelCo Website

¤ Marketing Plan Objective: To reconstruct the online presence to modernize the hotel reservation system

¤ Brand Positioning: Streamlined, efficient, and organized

¤ Critical Success Factors (CSF): Simple navigation, cross-platform integration, and aesthetically pleasing

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Project Timeline

8 http://www.etechdesignstudio.com/contact/faqs/130-how-long-does-it-take-to-create-a-website

BCG Insight

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Loyalty Program Implementation

Change the face of loyalty

Renew focus on target segments

Make rewards accessible

Personalize the VIP experience

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•  Loyal travelers account for 1 in 5 customers and make up half of the total sales

•  42% of business travelers stated that having a loyalty program was a key reason for booking

http://www2.deloitte.com/content/dam/Deloitte/global/Documents/Consumer-Business/dttl_cb_ConsumerLoyalty_THL_POV.pdf

Mind Mapping

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Current Mindset

Frustrated “This website makes

planning my travel a chore”

Issues •  Making a reservation is a difficult process

• The website is in need of major changes

Issues •  Customer drifts away from brand

loyalty

•  Online reservations are no longer a distinguishing factor for the chain

Mindset Interested

“Planning a trip could be easier than I

expected.”

Mindset

Empowered “I have the ability to

make planning my trip a breeze.”

Aspirational Mindset

Satisfied “This booking experience

has exceeded my expectations.”

Educate Convince Confirm

Key Driver •  Consumers rationalize that planning a trip is stressful

Key Driver •  Build up excitement regarding upcoming changes to the online booking experience

Key Driver • Customers exposed to the features of the revamped website

Key Driver •  Customers appreciate the efficiency of the upgraded booking process and are excited for future travels

Issues •  Chain not top of mind when customer begins travel planning

•  Brand loyalty not firmly established among customers

within the category

Issues •  Customer not fully engaged with the chain’s marketing efforts

•  No sustainable competitive advantage in growing reservations

Mindset Indifferent

“Planning a trip is stressful regardless of who you book

with.”

Question

Thank You! Any Questions?

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