DEMAND CREATION VS. GENERATION
In 2019 and before, demand generation has always been a corner stone of any marketing strategy regardless of the hotel size, location and price bracket. In simple words, demand generation is your message to the public identifying a problem and showing how your product offers a solution to that problem.
It wasn’t hard nor complicated because there was little to no barriers between your solution and those in need of that solution.
Your hotel’s segmentation would have been broken down into multiple groups of customers (i.e. Leisure, corporate travel, groups and events, medical tourism…etc.) and to every group of customers, you would have had a different message showcasing the solution you offer to their problem.
If they’re satisfied with your solution, they’d come to you.
But now, everything has changed!
Even if they’re satisfied with your solution, they might not be able to come to your property…not because they don’t want to, but because they can’t. Whether it is because of international travel restrictions, health and safety concerns, corporate travel cost cutting or travel policy changes…etc.
SO HOW WOULD YOU CREATE DEMAND?
The first step is to throw all of your old “demand generation campaigns” out of the window, and start from scratch…do something you haven’t done before.
Starting from scratch means, re-defining your niche and re-working your segmentation all together.
Your city center hotel’s niche is no longer corporate travel, and your secluded island resort’s niche is no longer honeymooners.
They Key is to adapt, realize and accept the new reality and to start re-imagining your business model and the way your offer solutions.
If domestic travel is all or most of what you can get now, then find a way to alter your solutions which were mainly targeting international travelers?
Desert Safari is not too interesting for those who have access to the desert 24/7, and so is skiing, diving, shopping…etc. So, one of the key destination’s selling points has to go away because now you’re addressing locals who are not interested in your ad showing what they can do in the city while staying at your hotel. You should rather show what they can do at your hotel (or through your hotels) which they can’t do at home that is located a few kilometres away.
Promotions and discounts are not going to create new demand, but a new idea will.
If your highest selling product was your rooms, there’s other ways to create demand and generate revenue when occupancy is too low, or worse, when your hotel is forced to close.
Think about a chef’s table that you can arrange at the comfort of your guest’s home.
Or delivering food from your signature restaurant.
A home cooking class by your master chef.
Your personal trainers and spa therapists delivering their services at home.
Rent your GYM equipment to your members who can’t visit your hotel for a weekly fee.
Or perhaps set up a few hotel rooms as a private movie theatre and sell it multiple times a day with a pre or post private dinner.
Sell your laundry and housekeeping services to the community around you.
Those are just a few of hundreds of ideas that you can work around to create new demand that will certainly bring in more revenue to your hotel while we all wait for the long anticipated travel recovery.
If you, as an individual, working from home, been locked down in your city or country for a couple of months now…what do you really miss about hotels? What would make you go to the hotel next door or use their services?
That’s where hotels should start from, and not by sending out another stay promotion or discount.
Contact us today to find out more on how we can help your hotel thrive through the pandemic.
LUXNATION Hospitality Consulting GmbH i.Gr.
Seefeld in Tirol, 6100, Austria
+43 676 4022 455