Marketing Review - Spring 2008 - (Page 38)

be lost from booking too many lower rate groups, and not having inventory to satisfy higher rate transient demand generated by those spending rebate checks. 3. Focus on travel packages for families. als will seek these travel deals, and many will choose to stay close to home in local hotels and resorts for the weekend. 5. Expand market distribution channels. Since the largest amount of cash rebates will be received by families (for example a family of four receives $1,800) sales and marketing campaigns may want to focus on travel packages attractive to families. These family travel packages bundled with ancillary services offer the opportunity to increase sales and revenues. 4. Focus on weekend getaway packages for couples and individuals. Consider expanding your travel products aimed at families, couples and indivisuals to as many online market distribution channels as possible. The tax rebates could generate new first-time travelers to your area, in addition to former travelers returning to search for travel products. Using a wide variety of online distributors and having your travel product on as many “shelves” as possible will capture this travel demand generated by tax rebate spenders. 6. Know the major “demand drivers” for categories of potential travel consumers receiving rebate checks. areas to enhance sales and revenues, their price sensitivity for 2008 travel (price elasticity of demand), and suggested sales and revenue management strategies for enhancing revenue from up-selling additional room nights and offering ancillary serves. These groups include: 1) the “Going Anyway” group, 2) the “On the Bubble” group, 3) the “Would if I Could” group, and 4) the “Staying at Home” group. Strategies for each group are identified, with focus on targeted market areas for revenue enhancement. Surveys indicate some people plan to use their tax rebates in all categories: spend some, save/invest some, and pay down debt. For these consumers choosing to spend less on travel, opportunities for enhancing sales and revenues still exist with shorter weekend getaway packages will be popular for those choosing to spend some, but not all, of the rebate checks on travel. Couples and individu- Table 4 identifies four groups of consumers representing travel consumers receiving tax rebate checks. For each group, we identify “demand drivers” such as factors affecting their propensity to travel, how they will spend their tax rebates, target areas and opportunity CONCLUSION The 2008 Economic Stimulus Act, designed to boost spending in a slow economy will inject billion of dollars in the hands of potential travel consumers. In general, this injection of money has the potential to boost 2008 hospitality and travel demand; and in particular, this special tax rebate plan offers the opportunity to develop sales, marketing, and revenue management strategies to enhance sales and revenues. I 38 HSMAI MARKETING REVIEW • SPRING 2008 http://www.theartdepartment.us http://www.theartdepartment.us

Table of Contents Feed for the Digital Edition of Marketing Review - Spring 2008

HSMAI Marketing Review - Spring 2008 Contents COLUMN: The Online Marketer COLUMN: Success Stories COLUMN: Guest Column Ten Trends Now Shaping the Future of Hospitality Turning the 2008 Consumer Tax Rebates into Hospitality and Travel Sales 25 Extraordinary Minds in Hospitality and Travel Sales and Marketing The Lure of Lore: Connecting with Customers Through a Unique Brand Story A Careful Balancing Act A Meaningful Relationship: How Technology Affects the Connection Between Hospitality Marketers and Meeting Planners SPECIAL SECTION: The 2007 HSMAI Adrian Awards Building Five Star Imagery

Marketing Review - Spring 2008

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