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Hotel and Motel Marketing Plan The Drowzey Hotel This sample marketing plan can be edited directly in Marketing Plan Pro software. Marketing Vision The Drowzey Hotel is Somnigstad's premier luxury hotel and seeks nothing less than to transport visitors to a high- end cosmopolitan hotel setting, unlike anything that can be found in Somnigstad or elsewhere in the state. Luxury, aesthetics, and customer service (our customers are royalty here) are the hallmarks of the Drowzey Hotel. Goals Personal Goals (for CEO): Speak or take part in a panel at American Hotel and Lodging Association conference in 2012 Be asked to speak at more than 10 events in 2012 Business Goals: Total annual revenue to exceed $10 million in 2011 and $11.5 million in 2012 Average $ per customer transaction to exceed $1,800 in 2012 Exceed 20,000 leads in 2011 Strategic Goals: To obtain a 99% "highly satisfactory" or higher rating on customer surveys To achieve Forbes five-star rating by 2012 Tactical Goals: Hire new blog editor in 2010 Hire new PR agency in 2010

Hotel and Motel Marketing Plan

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Page 1: Hotel and Motel Marketing Plan

Hotel and Motel Marketing PlanThe Drowzey HotelThis sample marketing plan can be edited directly in Marketing Plan Pro software.

Marketing Vision

The Drowzey Hotel is Somnigstad's premier luxury hotel and seeks nothing less than to transport visitors to a high-end cosmopolitan hotel setting, unlike anything that can be found in Somnigstad or elsewhere in the state. Luxury, aesthetics, and customer service (our customers are royalty here) are the hallmarks of the Drowzey Hotel.

Goals

Personal Goals (for CEO):

Speak or take part in a panel at American Hotel and Lodging Association conference in 2012

Be asked to speak at more than 10 events in 2012

Business Goals:

Total annual revenue to exceed $10 million in 2011 and $11.5 million in 2012

Average $ per customer transaction to exceed $1,800 in 2012  Exceed 20,000 leads in 2011

Strategic Goals:

To obtain a 99% "highly satisfactory" or higher rating on customer surveys

To achieve Forbes five-star rating by 2012 

Tactical Goals:

Hire new blog editor in 2010 Hire new PR agency in 2010 Target 10,000 individuals per year with direct mail Hold 3 focus groups in 2010, 6 in 2011, 10 in 2012

Purpose

Page 2: Hotel and Motel Marketing Plan

This marketing plan will be the blueprint of Drowzey Hotel's establishment as a five-star hotel that goes beyond meeting customer expectations. Even with the highest customer service and amenities, Forbes will only grant a five-star rating after a number of years of consistent service. The Drowzey Hotel will devote itself to this consistency as well as finding new ways to surprise visitors with its hospitality in order to create experiences that are worth much more than its wealthy clientele pay for them. The Drowzey Hotel believes that luxury must be a bit pleasantly unpredictable to be truly rewarding.  

Picture

A visitor to the Drowzey Hotel expects a beautiful, high-end boutique hotel from the images they have seen online and what they have read about it. However, they are impressed from the beginning by the attentiveness of staff, including their almost constant question of "Is there anything else I can do to make your stay better?"

At first, the visitor has no answer to this question, but as he or she comes up with ideas they discover that the staff find a way to attend to them, even when they seem to be difficult tasks. Beyond this high level of customer service, the visitor finds a delightful gift in their room each evening of the stay. Finally, without even asking for it, the concierge offers to make reservations for the visitor and their colleagues at the restaurant he or she had previously found to be booked up. Guests leave the Drowzey Hotel with the notion that the staff and management wield some kind of magic.

Gap Dashboard

The Gap Dashboard reflects the company's goals and CEO's personal goals which can be measured quantitatively. Once a month, the Gap Dashboard will be updated and reviewed in a marketing meeting between the CEO and Marketing Manager, along with details on gaps between the numbers. The two will examine both shortfalls and successes beyond plans in order to look at whether goals should be escalated.

Gap Dashboard

Year 1 Year 2 Year 3

Personal

Speaking engagement requests 5 8 10

Other 0 0 0

Page 3: Hotel and Motel Marketing Plan

Business

Revenue $7,907,041 $10,175,183 $11,509,551

$ Per Customer Transaction $1,252 $1,693 $1,863

Leads 15,917 21,550 22,628

Tactical

Individuals targeted by direct mail 10,000 10,000 10,000

Focus Groups 3 6 10

Strategic

Customer satisfaction level at highly satisfactory

90% 96% 99%

Forbes Star Rating 4 4 5

Read more: http://www.mplans.com/hotel_and_motel_marketing_plan/marketing_vision_fc.php#ixzz0opJCimeVHotel and Motel Marketing PlanThe Drowzey HotelThis sample marketing plan can be edited directly in Marketing Plan Pro software.

Ideal Customer

Whether visiting Somnigstad for business or pleasure, some travelers are not satisfied with the predictability of chain hotels or the quaint charm (and unpredictability) of inns and bed and breakfasts. This ideal customer earns and has earned a great deal of money in his or her life and can afford the best any city has to offer. When traveling, this customer feels it is important to have new experiences which demonstrate the status he or she has achieved in life. Furthermore, if this customer misses such an experience he will judge that he has lost something, even if no one else knows.

Page 4: Hotel and Motel Marketing Plan

The type of lodging this customer desires is extremely comfortable, aesthetically beautiful, and features services which go above and beyond a four star hotel's offering. Room service, a full bathtub, fitness center, and Internet access are all prerequisites for this traveler. Their hotel of choice needs to offer a surprising level of luxury.

Market Description

The target market for the Drowzey Hotel share most of the following characteristics:

Ages 35 to 60 Visiting Somnigstad from a large American city or Europe  Professional career, income over $100,000 or net worth over $1 million Believe that experiences are as valuable as, if not more valuable than,

material things Feel entitled to luxurious experiences due to their success and hard

work Guard their free time jealously

Read more: http://www.mplans.com/hotel_and_motel_marketing_plan/ideal_customer_fc.php#ixzz0opJLdSXsHotel and Motel Marketing PlanThe Drowzey HotelThis sample marketing plan can be edited directly in Marketing Plan Pro software.

Remarkable Difference

The Drowzey Hotel demonstrates its difference by finding ways to surprise their visitors with the hotel's luxury. The hotel will go beyond the normal amenities common to a five-star hotel designation by indulging the whims of visitors through their concierge service and room service, and by anticipating the needs of visitors. The core message of the Drowzey Hotel is "Luxury that will surprise you." 

Differentiators

The Drowzey Hotel is differentiated from other high-end hotels of Somnigstad through its focus on luxury, rather than Southern charm. However, this differentiation can be imitated over time. To keep a

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competitive advantage, the Drowzey Hotel focuses on an ever-evolving suite of services. These include:

Room service which includes an extensive menu as well as products of all types that can be bought in Somnigstad or ordered

Concierge service which can offer exclusive experiences to visitors or indulge their whims on short notice

Surprise gifts each day of the stay tailored to an individual's interests, such as food items, candy, or books

Read more: http://www.mplans.com/hotel_and_motel_marketing_plan/remarkable_difference_fc.php#ixzz0opJVX5fzHotel and Motel Marketing PlanThe Drowzey HotelThis sample marketing plan can be edited directly in Marketing Plan Pro software.

Core Strategy

The core strategy of Drowzey Hotel's marketing is to project both its opulence and unwavering dedication to its mission or surprising visitors with its luxury. Internally, staff will be drilled with this mission so that they understand that excellent service is the highest art and not a lowly pursuit. Staff will be directed to seek out new ways to surprise and excite visitors. Staff training, covered within the marketing training section, will help staff understand this concept, although new hires will be chosen with an eye towards creativity as well as work ethic.

Measurable results that will show that the business is achieving its goal will include customer ratings and customer reviews, press and industry reviews of the hotel, and the hotel's ability to maintain its level of pricing even in difficult economic climates.

Core Branding Elements

Drowzey Hotel has cultivated and will continue to cultivate a brand image associated with dark, rich colors, punctuated by the dazzling brilliance of gold, lights, and mirrors. On its website and in marketing materials, these colors will be a rich purple and rich gold.

Page 6: Hotel and Motel Marketing Plan

The company has used and will continue to use a professional photographer to capture images of the hotel, its rooms and willing visitors (or actors) taking advantage of its services.

The core message of "luxury that will surprise you" also serves as the tagline on all marketing materials and printed materials. This tagline must be added to new business cards as they are printed.

Read more: http://www.mplans.com/hotel_and_motel_marketing_plan/core_strategy_fc.php#ixzz0opJdV8KkHotel and Motel Marketing PlanThe Drowzey HotelThis sample marketing plan can be edited directly in Marketing Plan Pro software.

Product/Service Innovation

The Drowzey Hotel seeks to convert individuals up the pyramid by offering them services along the way.

Suspects (those who the Drowzey Hotel targets as they fit the target market well) will be offered a guided virtual tour of the hotel by a live hotel employee.

Prospects (those who visit the Drowzey Hotel website or call or email to express interest) will, when appropriate, be offered smaller rooms at the lower end of the price spectrum so that they feel a lesser commitment when they come to stay.

Customers (those who have visited the hotel once) will be offered package deals for multiple night stays, such as one night free after a three night stay.

Premium customers (those who have stayed at the hotel more than once) will be offered access to the penthouse suite, an option that cannot be purchased by those who have only stayed at the hotel once.

Champions (those who have stayed at the hotel more than twice) will be invited for a free weekend if they take part in a focus group session to discuss the hotel.

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Beyond the room offerings, a wide range of additional services and amenities will be offered, some with extra charge and some free with room rental. These include:

In-room dining Concierge service Complimentary gourmet continental breakfast and coffee Fitness center Indoor lap pool Valet parking Bag service Business center (with reservation and additional fee) Wireless internet (free throughout the hotel) Restaurant and lounge Board and meeting rooms (with reservation and additional fee)

All of these services and amenities are available to all visitors at the Drowzey Hotel.

Price Rationale

The rooms offered include the following:

Queen ($200-$400/night) King ($250-$450) Deluxe King ($300-$500) Extra Deluxe King ($350-$550) Emperor ($400-$500) One Bedroom Suite ($500-$700) Presidential Suite ($600-$800) Hospitality Suite ($700-$900) Penthouse Suite ($900-$1100)

The price ranges reflect the difference between peak and off-peak times of the year and week. This pricing model is similar to most hotels. The pricing is at the top for lodging options in Somnigstad, but this is consistent with the fact that the Drowzey Hotel offers rooms to those who want something they cannot find anywhere else in Somnigstad.

Read more: http://www.mplans.com/hotel_and_motel_marketing_plan/product-service_innovation_fc.php#ixzz0opKQ1GFIHotel and Motel Marketing PlanThe Drowzey Hotel

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This sample marketing plan can be edited directly in Marketing Plan Pro software.

Marketing Materials

Drowzey Hotel uses a professional photographer and design firm to produce the following materials:

Website Email newsletters Direct mail - postcards and letters Newspaper and magazine ads Virtual tour presentation Marketing kit for corporate business development

The marketing kit will be customized towards pleasure travelers and business travelers by having separate sets of images, lists of services, case studies, and testimonials.

The virtual tour will also be customized towards pleasure or business travel based on the interest of the prospect. The virtual tour will be scripted, although it will include room for interaction between the prospect and the tour guide as well as time for questions to be answered.

Read more: http://www.mplans.com/hotel_and_motel_marketing_plan/marketing_materials_fc.php#ixzz0opLK6M9gHotel and Motel Marketing PlanThe Drowzey Hotel

Page 9: Hotel and Motel Marketing Plan

This sample marketing plan can be edited directly in Marketing Plan Pro software.

Web Plan

The Drowzey Hotel website is designed to offer an intimate look into the hotel and to guide visitors towards two potential next steps:

To set an appointment for a virtual tour (for corporate or private prospects)

To reserve rooms at the hotel (for private prospects)

To these ends, the website is designed to answer all of the key questions which visitors would have about the rates, services, location, etc. of the hotel so that they are comfortable (and enticed) to visit.

The website reservation system is designed to make reservations a simple and quick process. A confirmation email and personalized thank you note will be sent to everyone who makes an online reservation, along with an offer to speak directly to a customer service rep at the Drowzey Hotel should they have any questions or specific requests for their stay. The goal of this procedure is to show the prospect the individualized care taken by the Drowzey Hotel with every customer. Furthermore, it is an attempt to cut down on the number of customers who cancel their reservation before visiting the hotel.

Social Media Plan

A company blog (called "Surprising Luxury") will include the content from the periodic email newsletter about the meaning of luxury and hospitality, going beyond specific stories about the Drowzey Hotel to include ideas from all over the world and history. The editor responsible for this blog will seek out other content providers online which cover luxury services and luxury hotels. These sites will be asked to either syndicate the Drowzey Hotel blog or link to it in order to advertise its presence on the Web. The goal of the company blog will be to establish a reputation for the hotel's management as experts on luxury service. In addition to the posts which are sent out in the email newsletter, the blog will be updated every other day with some information relevant to the topic.

Read more:

Page 10: Hotel and Motel Marketing Plan

http://www.mplans.com/hotel_and_motel_marketing_plan/web_plan_fc.php#ixzz0opLVfjW7Hotel and Motel Marketing PlanThe Drowzey HotelThis sample marketing plan can be edited directly in Marketing Plan Pro software.

Lead Generation Plan

Lead generation will be through a number of means including:

National magazine and newspaper advertising Online pay-per-click advertising around "hotel Somnigstad" and related

keywords Customer referral program Professional referral discount offers Direct mail campaign to target market of high net-worth individuals in

U.S. cities (5,000 individuals will be targeted with mailings, varying between postcards and letters, once a month for 6 months before switching to a new set of 5,000 names) 

The leads generated will be tracked in a professional hotel Customer Relationship Management program which can export information for mail merge purposes and import information from Internet entries. The program will track basic contact information, the source of the lead, the date of the lead, and any information from the online inquiry form, if used. The CRM system will also have fields for customer service including notes about additional services requested and provided, likes and dislikes of the customer, other personal information gleaned from conversation or observation.

Advertising

Media Tracking Kits Requested

Advertising Medium

Contact Name

Contact #Distributio

nCost/Ad

Total CPM

Luxury Travel magazine

O. Dyssius333-444-

5555TBA TBA TBA

Travel and Leisure magazine

L. Gulliver541-541-

5411TBA TBA TBA

Page 11: Hotel and Motel Marketing Plan

NY Times Travel section

M. Polo666-666-

6667TBA TBA TBA

Online pay-per-click U. Herz123-456-

7890TBA TBA TBA

  Referrals

Drowzey Hotel strategy will lend itself well to referral marketing. To specifically request referrals from customers, the Drowzey Hotel will offer to send visitors introductory discount offers by email or postal mail to any number of contacts provided by the visitor. This offer will be sent by email to past customers two days after their visit. By entering a list of email addresses or by providing mailing addresses, the hotel staff will send on these discounts noting who they are coming from. This will be a way for customers to advertise the fact that they have used the hotel and to share it with business and personal contacts, hopefully building those relationships in the process.

Professional referrals will be sought from Fortune 500 businesses with offices in Somnigstad, the Somnigstad and state tourism boards, convention centers and meeting halls. These referrals will be sought through personal contact with these businesses by Drowzey Hotel business development staff and through mailing of the marketing kit and referral offer. Repeated touches with the specific contacts at these businesses will be continued through postcard and letter mailings, each making specific reference to the referral discount offer and the additional value which Drowzey Hotel can offer their clientele, visitors and employees.

Read more: http://www.mplans.com/hotel_and_motel_marketing_plan/lead_generation_plan_fc.php#ixzz0opLiJZ3hHotel and Motel Marketing PlanThe Drowzey HotelThis sample marketing plan can be edited directly in Marketing Plan Pro software.

Service Experience

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Customer loyalty is won systematically at the Drowzey Hotel by careful attention to assuring the quality of all services and to going beyond those basics to offer a customized surprise for each customer. Loyal customers will be treated to free stays when they attend a focus group for the purpose of learning more about them, leveraging their excitement to further excite newer customers, and to develop ideas to improve the hotel and its services.

Loyalty Product/Service Offerings

Loyal clients (called "champions") will be offered a free two-night stay from time to time if the individual agrees to take part in a three-hour focus group along with two to three first-time customers. This focus group will feature a gourmet lunch and will include a moderated discussion of questions about what the hotel is doing right, what customers like about the hotel, and where it can improve. The point of these focus groups are to engage champions, who can be expected to have highly favorable opinions of the Drowzey Hotel, to share their excitement with first-timers who have the potential to become champions themselves.

These focus groups will be held three times in the next year, six times in the second year and ten times in the third year. First-time customers who take part (75% of the group) will be offered the free lunch and another complimentary service (such as limousine service, tickets to a show, etc.) for taking part. These focus groups will occur during dates which are already booked by the champion, who will be given a refund for two nights of the stay if they take part. First-time customers who are at the hotel at that time will be enlisted to take part.

WOW Process

Quality assurance is paramount to the success of the Drowzey Hotel. The following processes and practices are part of the quality assurance system:

Customers are to be asked if anything can make their stay better every time they speak with a staff member. Signs at reception declare that if an employee fails to ask the customer this question and to take steps to help them that they should call manager for help and a complimentary service.

Employees who are reported by customers to have failed to provide some needed help more than once will be put on probation and given a one month period to rectify the problem. It is not expected that this will happen and if it does, it is expected that the employee will be fired or quit on their own in most cases. Employees that are favorably mentioned specifically in customer reviews more than three times in a quarter will be rewarded with an additional quarterly bonus equal to 10% of their salary for that period. 

Page 13: Hotel and Motel Marketing Plan

The customer will be requested to fill out a customer feedback survey upon check-out. The form is a short, five question survey which the customer can complete while waiting at check-out. There will be a follow-up 2 days after check-out to discuss any issues or to receive clarification on answers, if needed.

All staff members will be provided with written guidelines pertaining to the cleanliness and preparation of all rooms and spaces, all interactions with customers, and all services provided. These guidelines will be revisited regularly and updates to the guide produced when necessary.

Going beyond quality assurance to offer a true WOW to customers requires encouraging all staff to think beyond the written guidelines and to seek to understand the needs of customers more deeply. The hotel's concierges will be directed to find a specific way to surprise each client during their visit. The concierge staff will ask key questions about each customer's interests during the initial check-in process and using past information collected in the CRM database. The most creative and best reviewed surprises will lead to additional bonuses for concierge staff, based on the discretion of the customer service manager. An example would be to set up a horseback riding lesson for the daughter of a customer after overhearing her interest in going on a horse-drawn carriage ride.

Read more: http://www.mplans.com/hotel_and_motel_marketing_plan/service_experience_fc.php#ixzz0opM6q1B4Hotel and Motel Marketing PlanThe Drowzey HotelThis sample marketing plan can be edited directly in Marketing Plan Pro software.

Marketing Calendar

The marketing calendar includes both ongoing marketing activities which will become a routine (represented by the "marketing themes" of each month shown on the monthly schedule) and one-time development activities over the next year shown on the Milestones table.

The marketing manager works with an outside advertising firm, PPC firm, PR agency, blog editor, and other service providers as needed to implement all marketing activities. The marketing manager will spend at least one hour a

Page 14: Hotel and Motel Marketing Plan

day on the marketing "theme" of the month to ensure that these major systems are reviewed every year.

The marketing manager will also track marketing results on a weekly basis to judge key metrics against actual outcomes. Gaps will be shown in an Excel spreadsheet which pulls the actual results from the database.

Monthly

Months Marketing Theme

1 Customer referral program

2 Focus group program

3 Blog and email newsletters

4 Surprise ideas and system

5 Marketing kit

6 Website

7 Business development and referrals

8 Customer feedback and ratings

9 Marketing training

10 Surprise ideas and system

11 Virtual tour

12 Annual review and goal setting

Milestones

Advertising Start Date End Date Budget Manager Implemented by

New print ad design 2/1/2010 2/28/2010 $2,000 Marketing Mgr Ad firm

Start running new print ads 3/15/2010 4/15/2010 $0 Marketing Mgr Ad firm

Pay-per-click campaign revision 1/15/2010 1/31/2010 $1,000 Marketing Mgr PPC company

Total Advertising Budget $3,000

PR Start Date End Date Budget Manager Implemented by

Hire new PR agency 2/1/2010 3/31/2010 $0 Marketing Marketing Mgr

Page 15: Hotel and Motel Marketing Plan

Mgr

Renew press contact list 4/15/2010 4/30/2010 $2,000 Marketing Mgr PR agency

Total PR Budget $2,000

Direct Marketing Start Date End Date Budget Manager Implemented by

Design postcard mailing template 3/15/2010 3/31/2010 $2,000 Marketing Mgr Ad firm

Design letter mailing template 4/15/2010 4/30/2010 $2,000 Marketing Mgr Ad firm

Total Direct Marketing Budget $4,000

Web Development Start Date End Date Budget Manager Implemented by

Hire blog editor 5/1/2010 5/31/2010 $1,000 Marketing Mgr Marketing Mgr

Begin regular blog posts 6/15/2010 6/15/2010 $0 Marketing Mgr Blog Editor

Virtual tour update and redesign 2/1/2010 2/28/2010 $5,000 Marketing Mgr Ad firm

Total Web Development Budget $6,000

Other Start Date End Date Budget Manager Implemented by

Plan first focus group 4/1/2010 5/31/2010 $1,000 Marketing Mgr Marketing Mgr

Hold first focus group 6/15/2010 6/15/2010 $10,000 Marketing Mgr Marketing Mgr

Total Other Budget $11,000

Totals $26,000

Read more: http://www.mplans.com/hotel_and_motel_marketing_plan/marketing_calendar_fc.php#ixzz0opMFzJ00Hotel and Motel Marketing PlanThe Drowzey HotelThis sample marketing plan can be edited directly in Marketing Plan Pro software.

Critical Numbers

The critical numbers of the business will be tracked through the following means:

Leads, testimonials, and referrals will be tracked through the CRM system. These will be entered automatically as the leads come over

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the Web and by hand by the customer service or sales person dealing with them otherwise.

Leads converted (through room reservations) are logged automatically in the CRM system, which doubles as an accounting software suite.

Marketing expenses are entered, as they are incurred, into the system by the accounting department.

All departments are required to make all entries within 24 hours of when they are incurred to keep the system up to date at all times.

Sales Forecast

Sales are currently higher in the category of introductory level rooms. As marketing efforts pay off over the next two years, unit sales for mid-level and premium level rooms are expected to increase relative to introductory level rooms. Room service sales are driven by room nights sold. Generally, every night of a premium room rental corresponds to a room service purchase, 75% of mid-level room rentals and 50% of introductory-level room rentals.

Prices are expected to rise on average over the next three years as the business can command higher prices from customers.

Sales are projected to rise towards full capacity (50 rooms x 365 nights per year = 18,250 room nights) but not reach more than 80% of this number. This is due to the fact that it is in the best interest of the hotel to not discount rooms so highly that they are all used at all times. Off-peak times will be slower, but the hotel will maintain its premium-level pricing for the most part through this method.

Page 17: Hotel and Motel Marketing Plan

Sales Forecast

Year 1 Year 2 Year 3

Unit Sales

Premium level room nights 3,183 4,187 4,564

Mid-level room nights 3,756 4,665 5,084

Introductory level room nights 4,024 4,521 4,928

Room service meals 8,013 9,946 10,841

Total Unit Sales 18,976 23,318 25,417

Unit Prices Year 1 Year 2 Year 3

Premium level room nights $900.00 $925.00 $950.00

Mid-level room nights $700.00 $725.00 $750.00

Introductory level room nights $500.00 $525.00 $550.00

Room service meals $50.00 $55.00 $60.00

Sales

Premium level room nights $2,865,083 $3,872,892 $4,335,546

Mid-level room nights $2,629,516 $3,381,796 $3,813,266

Introductory level room nights $2,011,813 $2,373,477 $2,710,285

Page 18: Hotel and Motel Marketing Plan

Room service meals $400,629 $547,018 $650,454

Total Sales $7,907,041 $10,175,18

3 $11,509,551

Direct Unit Costs Year 1 Year 2 Year 3

Premium level room nights $162.00 $166.50 $171.00

Mid-level room nights $140.00 $145.00 $150.00

Introductory level room nights $125.00 $131.25 $137.50

Room service meals $20.00 $22.00 $24.00

Direct Cost of Sales

Premium level room nights $515,715 $697,121 $780,398

Mid-level room nights $525,903 $676,359 $762,653

Introductory level room nights $502,953 $593,369 $677,571

Room service meals $160,252 $218,807 $260,181

Subtotal Direct Cost of Sales $1,704,823 $2,185,656 $2,480,804

Marketing Expense Budget

The marketing expense budget divides expenses into their major categories:

Advertising represents print and online external ads. Direct mail represents the postcard and letter mailing campaign to

high net worth individuals. The mailings will vary between the two formats each month and the expense will fluctuate a bit as the letter mailings are more expensive.

Focus groups are costly as the discounts and free services offered to customers are logged as an expense on the books, as is the direct cost of the lunch provided.

Web development includes website maintenance and hosting, virtual tour development, email newsletters, and the company blog.

Marketing training reflects the cost in time and materials of orientation and ongoing training and exams for staff.

Quality assurance reflects the cost in time and materials to review customer issues and ratings, as well as the bonuses from the quality assurance program.

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Total expenses will increase as some activities, like the focus groups, are ramped up, and as the cost of doing business increases with inflation. In general terms, advertising and direct mail represent the expense of lead generation, focus groups and Web development represent the expense of lead conversion, and marketing training and quality assurance represent the expense of the service experience.

Marketing Expense Budget

Year 1 Year 2 Year 3

Advertising $60,000 $63,000 $66,150

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Direct Mail $75,000 $78,750 $82,688

Focus Groups $30,000 $60,000 $80,000

Web Development $60,000 $63,000 $66,150

Marketing Training $12,000 $12,600 $13,230

Quality Assurance $24,000 $25,200 $26,460

------------ ------------ ------------

Total Sales and Marketing Expenses

$261,000 $302,550 $334,678

Percent of Sales 3.30% 2.97% 2.91%

Key Marketing Metrics

The key marketing metrics will be reported each month. The marketing manager will create this report out of the CRM system and share the results with the CEO in the monthly review meeting.

Leads (including all referrals, website queries, and attendees of the virtual tour) are expected to grow at a steady rate. Lead conversion is expected to increase as the hotel establishes its name and preeminence in the Somnigstad area.

The average dollars spent per customer transaction is between one and two nights and will grow as more customers stay two nights or longer and move to higher priced rooms in the coming two years. The ability of the company to charge higher average prices for its rooms as capacity is better utilized will also drive this number up. It is estimated that 20% of leads will be from referrals which will be generated from customers and corporate relationships.

PR mentions will be tracked by the PR agency and they will provide a report on this data to Drowzey Hotel once a month along with all clippings or copies of mentions.

Testimonials will be derived from the best 10% of customer comments. These customers will be asked to expand their comments into a testimonial after their visits in a follow-up email. These customers will be offered a gift of Drowzey Hotel chocolates or other sweets as an incentive for expanding their comment into a testimonial.

Key Marketing Metrics

Page 21: Hotel and Motel Marketing Plan

Year 1 Year 2 Year 3

Revenue $7,907,041 $10,175,18

3 $11,509,551

Leads 15,917 21,550 22,628

Leads Converted 16.75% 20.00% 21.00%

Avg. Transactions/Customer 1.00 1 1

Avg. $/Customer $1,252 $1,693 $1,863

Referrals 3,183 4,310 4,526

PR Mentions 191 300 315

Testimonials 270 345 380

Focus Groups 3 6 10

Read more: http://www.mplans.com/hotel_and_motel_marketing_plan/critical_numbers_fc.php#ixzz0opMfMYACHotel and Motel Marketing PlanThe Drowzey HotelThis sample marketing plan can be edited directly in Marketing Plan Pro software.

Marketing Training Game

All staff interact with customers in one way or another. Even kitchen staff, who may never see the guests they serve, will prepare food according to the Drowzey Hotel's ideal.

All staff members will receive specific technical training, observation, and testing over the course of two weeks. During this time they will also be led in ten one-hour marketing sessions covering the following material:

Core message and what it means to their job Case studies of how the hotel has fulfilled its mission in the past The ideal target client description, characteristics, and behaviors The current marketing materials and campaign The virtual tour

Page 22: Hotel and Motel Marketing Plan

Even staff who will not be directly involved in using the marketing materials and virtual tour need to understand how the hotel is represented in these external messages. These sessions will be led by the marketing director and will be held with multiple new staff members when possible.

Routine education will include quarterly testing on the company's marketing, core message, and how it plays out in real-life situations. To prepare for these quarterly tests, marketing meetings will be held with all staff twice a month to keep a direct connection between the marketing manager and staff. The tests will be administered in a thirty-minute session to multiple staff members at one time to insure their continued understanding of the hotel's marketing vision and tactics.