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 Special Features                      May 2007 | Issue 17
 
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There's No Such Thing as a Free Lunch:
Taking a new look at optimising your destination's marketing dollars

John R Hendrie, CEO, Hospitality Performance Inc.There's no such thing, concludes hospitality specialist, and regular Destination World contributor, John R Hendrie, as he takes a look at some of the best ways to differentiate your destination in a crowded marketplace and get the most out of your marketing budget.

An advertising executive with a significant destination area newspaper declared recently: 'Business is soft, and I do not think our advertisers would be interested in any new products to enhance their business.'

Well, this is of course bunk, because this is exactly when you need to differentiate any business and apply marketing clout. She forgot that business is all about competition and the means to share with the visitor our distinction, and attract their business to our destinations. You need to be innovative. Tight times, flush times - it does not matter. We need to get the message out to our potential guests and visitors and get them here and in our constituent's doors.

It's the incentive that counts. Photo © 2007 Jupiterimages Corporation.Some smart saloon keeper figured this out years ago. 'Come on in and have some bread, sausage, and pickled eggs on the house. Want a beer (or two) with that, pal?' That has translated into the 'happy hour' and marginal hors d'oeuvres. Gaming emporiums love to pour drinks, gratis, for now you are relaxed, tend to lose track of time, and everyone is festive. Lodgings started with 'enjoy our pool', moved to cable TV, 'kids free', complimentary breakfast, water beds and blue movies. Other retail operations jumped on the bandwagon, from the barker promoting the Bearded Lady, to the sleaze, trumpeting Naked Co-eds, to the billboard announcing the Sale of the Day. Take a peek, take a swim, take a chance, but by all means visit our destination and partake of our bounty! It still works, but we can do better! It is the 'come on' that counts, the message you frame.

The essential expectations from the visitor's perspective are straight forward. They want to know that the destination's products are good, that the service is reasonable and that they will be safe in a clean environment, where what they spend represents value. Our hospitality business operators want to engage that visitor, respond positively to their expectations, gain their loyalty and market that success, thereby increasing traffic, and, of course, revenue. The DMO (Destination Marketing / Management Organisation) wants to promote an image to entice the illusive and wary traveller. Those are the weighty roles.

The above formula is just like a game of 'pong'. (For our younger readers, pong was the first video game). Hospitality businesses aim for that equilibrium, but frequently the balance is askew, based either upon poor delivery or expectations not met. The variables affecting delivery are numerous: condition of guest rooms, food quality and presentation, standards of service, ambiance - the realities of operating those businesses run to head and heart ache. Let's not even discuss the weather - the great equaliser. Every day has an imperfection, regarding product, service or facility. Our visitors understand this; there is no perfection in any industry. But, it is the experience we wish to tell people about, the distinction we usually represent, and specifically the performance expectation they should anticipate. The consumer, our visitor, is eager to know.

There is a variety means to successfully project this message to our visitor - the distinction of our destination and businesses - understanding that they are bombarded by data, pummelled by sensory images, and numbed by incessant messages. How do we break through with our message?

Truism: It is easier to retain existing visitors rather than recruit new ones. It is astounding the budgeted dollars we allocate to recruit new visitors, rather than recognise those who already love our destination. They are our splendid ambassadors. Why not give them the recognition they so richly deserve? Those loyal 'fans' should be courted, made to feel special, and recognised for their 'good taste' and support all the time - they are our 'bread and butter', the very foundation for any success we enjoy.

It is important to recognise those who already love our destination. Photo © 2007 Jupiterimages Corporation.Case in point - the State of Maine. Facing quite a trend in reduced visitors, they keep on pouring millions at attracting new visitors, whereas the stream of people who visit every year, consistently, they do not recognise with, perhaps, some special programme, like the State of Kentucky has, called 'The Kentucky Colonel'. Maine has the cachet. Give the fans an ambassadorial sash. Yet, our destinations must grow! What other avenues do we have to promote what our current 'fans' already know?

Your constituency, hospitality businesses, are, how can this be said delicately, penurious. Even with such a sensory product and environment they represent, they will settle for the quickest most inexpensive marketing turn. The psychology of their attention span is wrapped around the idea of 'build and they will come', not even at the level of that aforementioned saloon keeper. But, although your advertising budget may be meagre, there are a number of ways to create the 'buzz', broadcast your distinction, and deliver the experience. These same concepts can be pushed down to the individual enterprises, as well. You are all building that pyramid of distinction and synergy.

Testimonials are a prime means to 'pass the word' and gain prominence. This works by 'word of mouth', referrals, and, more and more, through the internet. The power of a statement by a satisfied customer is extraordinary, but even these reviews can be uneven, slanted, sometimes even 'stacked'. For the potential visitor, though, they do provide a means to gather information and appreciate the 'flavour' of a destination, through the senses and descriptive words of someone who has 'lived' the visitor experience there. Visitors new to the area rely upon these sources, whether portals such as Expedia, Hotel.com, We8There, guidebooks like Zagat, or unofficial bulletin boards on the internet. Otherwise, they may depend upon hotel concierges, business associates, or friends. Hmm, I like what they say!

Use your local newspapers in your marketing campaign. Photo © 2007 Jupiterimages Corporation.Your local newspaper is an extraordinary resource. They are all moving towards electronic rendering of the news, products and services, and in many markets their website gets huge traffic, more hits than any localised hospitality site, such as your CVB or even chamber. They actively pursue unique programs and events through special inserts and promotions and weekend guides in print, in addition to having vast potential with hospitality portals on their websites, potentially driving business to your constituent's door. But, you still need to be distinct to gain my business. I want pizza; there are forty pizza parlours; why should I choose one in particular?

There are other means, as well, such as a 'phantom gourmet' local programme, write-ups / local reviews in the newspaper and underground news, regional and city lodging and restaurant associations and service guides, and area attraction magazines. In many cases you pay for that coverage on behalf of your constituency - advertising dollars perhaps spent well. Your visitor may review these sources, but they are hardly definitive. But, my interest has been piqued.

Then, there are rating / assessment companies, serving as consumer advocates and setting the 'taste and style' landscape, such as Michelin or sometimes Mobil. Others, similar to AAA, may review constituent establishments, but they are more interested in signing one up for their many services and programmes. There are other private companies you can retain as part of your destination development strategy for a hospitality assessment; they benchmark performance as to hospitality standards and provide recommendations for continuous improvement, along with intensive training and branding. You may wish to consider HVS International, LRA Worldwide or the Freeman Group. All of these can be invaluable.

From a destination point of view, wouldn't you think you would want to know where you really stand, before you venture forward on an expensive marketing campaign, which perhaps your community cannot support? Gosh, wouldn't it be something to have as a requirement that all businesses represent a reasonable level of standards and performance. We can dream! But, the consumer does pay attention to ratings and seals of approval. I am feeling more secure, though.

Your own marketing efforts, in print and on-line, also can be effective. You can present your destination's story, describe the uniqueness of your city or region and passionately relate to the potential visitor why they should visit, stay, dine, recreate and enjoy the experience. This is the opportunity to market directly your distinction! The site must relate to all the senses, where the 'flavours' and experience mosaic speak through the eyes. Wow, fish jumping at dusk, a signature chef, WiFi in the bathroom, a chicken in every pot, happiness for all!

You establish some bona fides, but typically, only informational: a brief description of the business, type, amenities, menu, price and the like. Sadly, you promote the cream as well as the curd. The perennial 'rock and hard spot faces you, for you are usually required to promote equally.

There's no such thing as a free lunch, according to John R Hendrie. Photo © 2007 Jupiterimages Corporation.You need a mix. The ideal means for successful promotion of a destination should embrace four facets: testimonials from satisfied visitors; the collaborative advantages of a media company, which provides vast exposure for your constituency; an operations review by a professional, objective third party, certifying a certain level of performance; and a spectacular website presence. You can influence the outcomes with your management and a team, who believe in their product and the highest level of service. Harnessing the promotional power of customer reviews, and quality assurance certification and proper media usage provides confidence and reliability for your visitor, which makes that booking decision easy. You establish distinction, traffic increases, and revenues flow!

John R Hendrie is the CEO of Hospitality Performance, Inc. and can be contacted via jhendrie@hospitalityperformance.com. The author believes that remarkable hospitality is the portal for the memorable experience.