Zagreb, May 2006
„Gastronomy and Tourism Fair“ – Zagreb, May 2006 "Like to go on vacation to Italy but Croatia is also close!" „How to increase hotel sales on weekends – Austrian experience“ In a typical urban property, the mid-week peaks are dominated by business travelers whose rate sensitivity is less as they, individually, are not paying the bill. The hotel sales- and revenue department has to locate and manage business to fill in the blank weekends, often from market segments such as tour operators/travel agents that press for lower rates. The challenge given to the hotel is to measure the impact of potential bookings and rates upon the hotel's revenue management strategy.
„Gastronomy and Tourism Fair“ – Zagreb, May 2006 Strategies to generate and increase business over weekends • Evaluate potential partners and feeder markets Start with a market research on potential partners, markets segments and feeder markets that can bring business to your property over any need periods, such as weekends. • Set up a weekend arrangement/package for individual travellers Use all selling tools and promotion-channels to distribute your offer, such as hotel website, GDS, catalogues of your partners, mailings to travel agent partners on a regular basis, marketing entries in magazines/newspapers on the local market as well as on your key feeder markets • Line out the USPs of your property for leisure stays over the weekend Such as wellness- and recreational facilities, events and sights in your area, lowered room rates compared to midweek etc. • Sell added values to your weekend guests Lowering room rates might be a way to generate business on need demand days, but another opportunity is to offer special added values to your customers and guests, when booking/staying with you over the weekend. Samples: upgrade to higher room category, welcome drink, welcome present, free or discounted usage of hotel facilities, such as spa area, free apero during the dinner etc.
„Gastronomy and Tourism Fair“ – Zagreb, May 2006 Strategies to generate and increase business over weekends • Attract selected high potential travel agents for booking their weekend business (FIT & groups) with you Eg. by offering an overriding commission • Positioning on Electronic Distribution Channels. Due to the short lead times, the positioning needs to be checked and evaluated with more frequency. This is the only way to maximize the seasonal opportunity. Rate and inventory allocation need to be adjusted on a daily basis if necessary. This includes all channels from the GDS systems, e-commerce channels and the hotel‘s web site. • Meeting- and incentive business over weekends It is not only the leisure guest that stays with you over the weekends. Some companies are holding their trainings and seminars or incentives preferrable on weekends, so their business during the week is not effected. You can offer special weekend meeting-packages to those customers, tailor-made incentive programmes (including your property’s USPs and any offers such as outdoor activities in your area), upgrades, added values etc.
„Gastronomy and Tourism Fair“ – Zagreb, May 2006 Tourist Boards in Austria Most of the Austrian hotels have a close cooperation with the Austrian Tourist Board and local boards, such as the Vienna Tourist Board or the Tourism Department of the city of Baden. Local and international travel agents, meeting planners, guests and local hotels can benefit from a wide range of services: • Market research on feeder markets • Joint actions on specific markets in all market segments • Presentation on workshops and fairs, followed by lead referrals • Research and development of new markets • Multichannel marketing • Worldwide network • Strong business & convention network • Establishment of new brands, such as customer loyality programs (Austria & More), booking tools (www. bedandbreakfastaustria. at) • Event Marketing – special events for target groups of clients on feeder markets, such as sport activities, cultural events etc. • Business cooperations with strong national and international brands, to develop new markets
„Gastronomy and Tourism Fair“ – Zagreb, May 2006 The 10 Top-Performer: • Wien • Europasportregion Zell am See/Kaprun • Serfaus-Fiss-Ladis • Achensee • Stadt Salzburg und Umgebung • Gasteinertal • Olympiaregion Seefeld • Saalfelden/Leogang • Tannheimertal • Region Graz (gewichtet nach Nächtigungen, Auslastung und Zimmerpreisen)
„Gastronomy and Tourism Fair“ – Zagreb, May 2006 Key to success Away from small structures The Austrian ÖHV-study took the Status Quo of the top-destinations assessed after the criteria room-night developments, occupancy and profit under a close observation. And found out the following factors in charge for the success: • The part of corporate enterprises as a part of organisation is predominant, the part of civil law (Gmb. H) is quite strong with 24%, 5% took the risk of forming joint stock companies (AG) • As parameter of success organisation structures prove with clear task distribution. However there are still many "One woman/One man" Shows in our country. • Compared with destinations with lower and weak performances the top-perfomer use business instruments such as human-resource planning and management, Bench-Marking, Marketing-Research, Billing and Controlling clearly most frequent. • Small management boards secure a fast reaction as well as short and efficient decision-making process • At the leading, controlling and consulting boardsonly few community and other political representives are involved. • In 95% of all successfull destinations there is a managing director in charge, this factor signalises the differences between the top performer and the low performer. • In 71% of the successfull organisations the managing director is over five years in this position. (Continuity is important) • Longtherm strategy-planning and orientation (Positioning, Independentcy and Individuality; Corporate Identity) are also signals of successfull tourism-organisations at top-destinations • Destinations, which are in an upward trend have average 20 full-time employees and 5 part-time employees. • Top tourism organisations also have a strong influence towards realisation of projects respectivly on investments on their own region. • Successfull associations also show strong commitment towards cooperation with other regions, operations and organisations.
„Gastronomy and Tourism Fair“ – Zagreb, May 2006 Tips of the best • Install a network offering-structure • Use of operational instruments (Controlling, Benchmark, Market research) • Install organisation-structure with clear responsibility-assignment • Creating small management-boards • Minor political allotment at the boards • Initiate regular managing director • Continuity of Leadership • Count on strategic-effective planning • Engage and commit highly-qualified employees • Review marketing and offering strategies yearly • Take influence on local and regional decisions • Make alliances
„Gastronomy and Tourism Fair“ – Zagreb, May 2006 Utilisation Winner Achieve the highest room-rate Kleinwalsertal Wien Arlberg Tiroler Oberland Kaunertal Olympiaregiom Seefeld Großarltal Wörthersee Stubaital Europasportregion Zell am See/Kaprun Pitztal Region Graz Europasportregion Zell am See/Kaprun Kitzbühel und Umgebung Serfaus-Fiss-Ladis Bodensee Zillertal Innsbruck und seine Feriendörfer (One- to Five Star Companies) Saalfelden/Leogang (4 -Star Hotels, rates between € 113 to 143)
„Gastronomy and Tourism Fair“ – Zagreb, May 2006 Best overnight growth Imst-Gurgltal 6, 8% Silberregion Karwendel 5, 4% Wienerwald 4, 7% Naturarena Kärnten 4, 4% Weinviertel 3, 7% Tiroler Oberland und Kaunertal 3, 7% Obertauern/Untertauern 3, 6% Region Hall 3, 3% Großarltal 3, 3% Paznaun 3, 2% (1 - to 5 -star Hotels/Increase from 2001 to 2004)
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