The Problem

Lack of Customers

A 45 room hotel by the beach in Goa

A 3 star hotel situated right at the beach in Goa was facing a drop in customer traffic and the average stay per customers had dropped to 2 nights as compared to 4-5 nights in the past. Their review ratings were also dropping quickly reflecting the customer’s dissatisfaction with the establishment. They went from a 4.4 to 3.6 within 2 months & this was negatively affecting future bookings. With costs higher than incomes, their operations quality was also negatively impacted. They were having major issues with their OTA contracts and this prevented other OTA’s from sending traffic to the establishment.

The Assessment

  • We conducted an assessment of customer segmentation & value proposition by the hotel
  • In-depth analysis of hotel operations
  • Market Analysis with external contributing factors for tier one cities in India
  • Identifying channels other than OTA’s for traffic
  • Identifying issues brought up in customer reviews
  • A thorough peer-competitor review of successful establishments in the area.
  • Analysis of the current marketing efforts & why they were failing
  • Analysis of additional value add’s that could contribute to the overall revenue of the hotel

The Solution

We understood that Covid, Market Uncertainties, a lack of competent on-site leadership & stiff competition especially from a price perspective compared to hotels which were in the higher star categories and numerous governmental advisories were contributing towards the lower number of customers reaching the hotel.

  • We came up with specific packages targeting customers in different segments
  • The budget packages were reworked in order to ensure the lowest operating costs
  • We provided basic re-training to the inhouse teams apprising them of the new strategy for 2021
  • We modified the marketing efforts to ensure that only specific channels & customers were targeted in a very focused manner
  • We worked on eliminating the issues that were presented to us in past customer reviews and sought out fresh reviews from satisfied guests to improve our review rankings
  • We conducted new photoshoots and generated content which was more appealing to audiences
  • We managed costs better to ensure that all components which did not contribute to the revenue collection were removed and we only focused on what would add value to a guests stay in the hotel
  • We allowed various brands to organize events in order to co-promote the hotel & brand
  • We reached out to various travel agents from tier 1 & 2 cities offering them lucrative deals on sending guest traffic to the establishment
  • We upgraded their website and the new offerings on them. We worked on their SEO & organic search results
  • We reduced the amount of stocks purchased and stored and maintained very lean levels of purchase inventory

The Result

  • The hotel saw an increase of guests from tier 2 cities most of whom were visiting goa for the first time
  • The quality  of reviews improved due to us setting & meeting customer expectations
  • We customised services for each customer segment which we identified and provided only that which was expected of us to based on the rates which we were charging. This helped the hotel get 18% more customers and this number would grow till a certain point.
  • With more brands conducting events at the establishment, we saw an increase in guest stay’s from 2 days to 3.2 days on an average
  • Customers would get their queries & concerns answered and redressed more quickly with the onsite decision making permissions we had allowed the team to take.
  • The traffic from online sources other than OTA’s saw an increase of about 28% as compared to the previous assessment cycle
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