Proposal for Exec Hotels for Business Improvement - Essay Example

BUSINESS REPORT: Proposal for Exec Hotels for Business Improvement BY YOU YOUR SCHOOL INFO HERE HERE TABLE OF CONTENTS Executive summary………………………………………………………………. 3 2. The business case………………………………………………………………… 3 3. The methodology for revenue improvements……………………………………. 3 4. Why expansion is not possible…………………………………………………… 5 References BUSINESS REPORT 1.

Executive summary Exec Hotels is currently looking to expand the business to include cities other than London in order to improve revenue performance. During the week, occupancy levels are at capacity and there is currently a very low occupancy on weekends. However, the costs associated with a new focus on tourism business are currently beyond the company’s capabilities. It has been determined that renewed local marketing is the best methodology to ensure revenue growth outside of the London centre of operations. 2. The business case Occupancy rates at hotels in Europe have seen stability in the last few years, with an average rate of 63 percent in London (Carlson Wagonlit, 2011).

However, many European capitals are being hit hard currently with the economic global downturn, therefore the business should focus on its local business and presence (brand reputation) in the United Kingdom rather than expanding abroad. The company staff and executive leadership team are currently well-versed in local UK cultures, values and systems and by remaining in the UK for expansion, it will avoid the high costs of training and human resources restructuring for other European countries.

The goal is to improve occupancy rates during the weekend where business is the most incapacitated, however the challenge to Exec Hotels is ensuring a method to fill weekend rooms without focusing on the new tourism market. This can be accomplished by staying true to the current values and operational know-how that currently exists in the UK marketplace. 3. The methodology for revenue improvements Competitive advantage for medium-sized hotels lays specifically in market innovation practices (Lin & Wu, 2008).

Research uncovers that in the UK, over 25 percent of surveyed companies expect to be spending more on corporate travel in 2011 (PriceWaterhouseCoopers, 2010). This is an excellent opportunity to further gain corporate traveller loyalty and extend the stay duration for existing and new corporate travellers hailing from domestic UK cities. Rather than expanding the business, thus absorbing higher operational and real estate costs, the company should focus on its core operations and devote higher capital resources to local and corporate marketing.

Large cities such as London in the UK have diverse offerings to consumers from fine dining, shopping and nightlife that appeal to multiple demographics. Under the assumption that the high weekly capacity rates are due to corporate travellers, the goal is to entice corporate travellers to remain at Exec Hotels to sample the diverse activities provided by UK urban centres. “In order to work effectively with local people, we need to examine their norms, beliefs, work habits and practices, and many other cultural characteristics” (Shakerin, 2006, p.1). In marketing, this is referred to as psychographic segmentation, a principle that groups individuals based on their priorities, preferences, lifestyle interests, and hobbies.

It is a practice that assists in determining an individual’s personality and lifestyle (Rodoplu, 2008). An individual that has been travelling for corporate purposes endures the stresses of corporate function and require a social and recreational outlet during these periods of travel. It is proposed that Exec Hotels develop a new localized marketing campaign, using low-cost guerrilla marketing techniques and in-room marketing pamphlets and brochures to make extending the corporate stay more inviting to travellers.

Exec Hotels should hire low-cost street marketing, promotional teams equipped with low-cost promotional materials such as keychains, t-shirts, and a variety of other Exec Hotels® branded merchandise that will serve as direct salespersons to sell the Exec Hotels name and reputation as a quality leader for business travellers. These representatives will target UK corporate offices and other businesses in cities in London and outside of the region so as to illustrate why weekend stays at Exec Hotels can be a significant distraction from corporate responsibilities and also related to lifestyle and recreation.

Each guerrilla team will also be equipped with pamphlets and brochures about culture and recreation in major UK cities, with a 25% off one weekend day stay that can be detached as a coupon to act as an incentive to extend the corporate stay and make it a personal one. Since the corporate traveller is already familiar and cosy in their Exec Hotels room, this incentive will serve as a motivator to remain. By partnering with local restaurants, pubs and theatres, many coupons will be included with the pamphlet for use in a variety of UK recreation-minded businesses to add further incentive.

The in-room literature should consist of marketing messages that reinforce that Exec Hotels understands the many burdens and frustrations of corporate travel, thus acting as a mentor or knowledge centre to inspire travellers to remain during hot periods on the weekend to release their frustrations. The branded slogan, Find Time for You after Business Hours, will be the focus of this integrated marketing campaign, illustrating a variety of corporate actors enjoying recreation, thus creating the aforementioned connection between business and lifestyle through psychographic marketing principles.

The existing customer service staff at the registration desks will inquire to each traveller as to why they are staying with Exec Hotels. When it has been identified that the individual is a corporate traveller, they will be provided with all of the incentive marketing materials and a list/map of all of the recreational hotspots provided by the city in which Exec Hotels currently operates. It will be necessary for Exec Hotels leadership to remain knowledgeable about key events occurring locally, from art fairs to theatre, thus updating this information as necessary as part of the consumer traveller marketing package. 4. Why expansion is not possible There are far too many costs associated with expanding the business during a difficult economic climate, especially into the hardest–hit European cities.

By taking Exec Hotels brand into many different business environments, it can assist the human resources or executive management directors responsible for coordinating business travel to choose Exec Hotels over competition before the bookings are even made. If small discounts are also provided as part of the promotional package materials, it acts as an incentive internally at the corporate level for weekend occupancy improvements. References Carlson Wagonlit. (2011). [internet] High hotel occupancy rates: good news for hoteliers poses changes for buyers.

[accessed October 3, 2011 at http://www.cwtvision.com/en/global/tmi/cwt_vision/issue10/insights/insight1.html] Lin, C. & Wu, C. (2008). Selecting a marketing strategy for private hotels in Taiwan using the analytic hierarchy process, The Service Industries Journal, 28(8), p.1. Rodoplu, K. (2008). [internet] Psychographic segmentation, Bilkent University School of Applied Technology and Management. [accessed October 3, 2011 at http://www.tourism.bilkent.edu.tr/~benice/restonews/page52.doc] PriceWaterhouseCoopers. (2010). UK hotels forecast 2010 and 2011: on the comeback trail, Issue 21.

Shakerin, M.S. (2006). [internet] Integration of local culture and perception in promotion and marketing of solar cookers, San Joaquin Delta College. [accessed October 3, 2011 at http://images3.wikia.nocookie.net/solarcooking/images/b/b6/granada06_mahnaz_saremi.pdf]