Do Hotels Need to Move Mountains for Festival Promotions?

How many of you have seen these sorts of hotel ads?

“This Valentine’s Day, spend 2D 1N at a hilltop. Use ‘code’ to get a 30% off”

“A romantic valentine dinner under the stars”

“Dinner & stay. Valentine’s day at a concept restaurant in Wood Hotels”

Well, it’s that time of the year again! And more of these ads are on the way.

Personally, I am not a fan of such advertisements. However, this doesn’t mean that these sort of promotions are a ‘No! No!’.  

Many hotels spend a significant amount of money on such observances and they do reap the benefits of it.

BUT…there’s always a ‘but’.

“Can every hotel grab such opportunities?” Or, let me put it this way, “SHOULD every hotel grab such opportunities?”

In this blog, we are going to unveil just that. We are going to try to understand whether betting on observances of every kind is important. And if you should do it.

Valentine’s Day is Here!! What’s in it for Hotels?

Before I jump right into the topic and talk about my take, let’s look at Valentine’s day scenario and understand what it presents to the hoteliers.

The year 2020 was terrible, people were locked inside their houses and were frustrated. This year, as the COVID-19 vaccine is out, people want to travel and spend some quality time with their loved ones.

And valentine’s day, an occasion of love, passion, and togetherness, is a great opportunity for people to globe-trot. Over and above, it is falling on a Sunday this year and I am sure, people want to ditch the traditional roses, chocolates, and the hustle of finding a spot for personal space.

Rather, they would want to step out, visit places, and explore.

Meaning, hotels that are more inclined toward offering intriguing experiences to couples are more likely to hit the jackpot.  

Therefore, this is an opportunity for hotels to land some extra cash into their business. They can not only sell rooms but also customized packages (which are priced according to the occasion) to improve their bottom line.

Should Hotels Move Heaven and Earth for Such Occasions?

Occasions like Valentine’s day do present hotels with opportunities but is it necessary for hotels to invest extensive time, resources and efforts on these?

I don’t think I have a solid answer to this question. And even if I give one, it might not be accurate as it varies from hotel to hotel.

So, rather than me saying what is wrong and what is right, let us see what are the benefits and detriments of investing in festivals/occasions/events.

Benefits

People are always excited and have certain desires for festivals. And hotels have an uncanny ability to identify those desire. So, they become innovative in their offerings and make the most out of it.

Here are some of the benefits for hotels:

• People look for themed properties to celebrate certain festivals and occasions. And if your hotel is one of them then it is going to drive more bookings.
• Many come to hotels for activities and dine-in on these occasions. So, it is not just the rooms that are getting sold, but your in-house restaurant and other point-of-sale outlets also benefit from it.
• When guests are there at your property to celebrate certain occasions, they seek maximum value. And this is a great opportunity for hotels to upsell and cross-sell. You can sell offerings that complement their purchases.
• Millennials and Gen Zs are one of the most active ones to step out of their homes during festivities. And when hotels offer customized experiences to them, their brand voice aligns accordingly to the current generation.
• Investing in festival promotion help your hotel build strong relationships with communities. They feel the hotel understands their emotions towards such occasions. And it ultimately helps in guest retention.

Risks

While the benefits are alluring, there are also risks involved.

Imagine, how many festivals and special occasions are there in one year.

Do you really want to work on each one of them? Don’t you think, this might brush aside many opportunities that your hotel’s core business presents?

To help you understand better, here are some of the risks:

• A hotel is anyway a “much to be done” business and with additional activities, you may end up overwhelming yourself.
• There are always significant investments involved when hosting events and tweaking a restaurant’s concept. However, there’s no certainty that the hotel would make enough money. So, there’s always a high risk of loss.
• There are times when hotels overdo things with observance days which ultimately takes a toll on their normal room sales. And I am sure, this is not a good practice.
• Managing manpower for events is another hurdle for hotels. Onboarding more staff requires more investment — not just in terms of wages but also in terms of time as they need training.
• Branding is a very sensitive aspect. One wrong move and things may go haywire. On the brighter side, you may connect well with the current generation. But on the contrary, there are chances of losing your former guests. So, this is a great risk when indulging in a lot of events. 
• While focusing on festival promotion, many hotels forget that their core principles aren’t aligned with their new business model. And in turn, has a severe impact on hotels’ bottom line.

You should get a clear idea about the entire scenario by comparing the benefits and the risk. 

So now, it’s your job to decide whether you would want to invest your time and resources in hosting and celebrating every occasion. Or do you want to take a strategic approach (read the next point)?

Then What Should You Do?

If you ask my opinion, then I would say that it’s not important to follow the bandwagon of celebrating every festivity and offering deals.

Even though there are a lot of benefits, one cannot overlook the detriments of festival promotion. A chunk of hotels around the world are making profits by merely following the traditional hospitality principles.

Again, I am not criticizing any hotel here. Even I belong to the millennial group and I understand how important it is for hotels to stay abreast with the current needs and wants of people. 

So, without being biased, I want to help hotels in making the best decision. And if you chose a strategic approach (in the previous point), here’s what you can do:

• List out all the festivities and events
• Filter all the festivities you think that are significant
• Perform market analysis to see what are the events people are inclined towards
• Do not consider your entire property to host observances and events
• Keep rooms for your regular sales too
• Divide your staff for better management
• Invest in a system that can help you manage both of your strategies without any discrepancy

Simply put, the idea here is to invest only on certain occasions and make sure it goes hand in hand with your core hoteliering.

The better you manage your hotel, the more chances you have of improving your bottom line as well as brand image.

Are These Observance Marketing Activities Feasible for Every Hotel?

Now that you have an understanding of these promotions, I would like to address this burning question as well.

Every hotel has its own concept that aligns with their core demographic. But when they are tweaked to deliver different experiences for festivals and events, things might take a different turn.

For example: A business hotel offering packages for Valentine’s day doesn’t sound right. This affects their branding and eventually takes a toll on their business of serving corporates or executives. On the other hand, a boutique hotel can always create deals and packages for such occasions and make the most out of it.

The bottom line here is that every hotel must know its core guest types and operate accordingly. Tapping into different demographics may lead to adverse implications.