Marketing Review — Fall 2008 - (Page 31)

use their own broadband cards”). EstisGreen agrees that wireless Internet is one source of ancillary income that has fallen by the wayside—or that needs to go. “People become annoyed if they’re asked to pay for it. Free wifi is a standard that’s expected.” Other things that irk guests, continues Estis-Green, include putting out bottled water and not letting people know that they’ll be charged for it. Acres of Opportunity Jack Schmidt, vice president regional director of sales and marketing with Destination Hotels and Resorts, is currently overseeing the new Suncadia Resort, a billion-dollar, allseasons resort in the foothills of the Cascade Mountains in Cle Elum, Washington. The 18-room inn, a 20,000-square-foot swim and fitness center, golf course, spa, and a 254 room lodge just opened for business this past April. Eventually, luxury vacation rentals at private homes on the property also will be available. “There are many ancillary opportunities for us, particularly from a resort perspective,” Schmidt declares. The 6,400-acre resort has more than 50 miles of bike trails and plenty of recreational opportunities that generate income. At Suncadia and at the other resorts DH&R manages, such as Wild Dunes in South Carolina, observes Schmidt, “we make a lot of money on bike rentals.” Suncadia owns and maintains its own bikes “and enjoys a100 percent of that ancillary revenue.” Suncadia also plans on taking advantage of its acreage by hosting themed outdoor parties for groups. “It’s just another way to pick up that ancillary revenue,” says Schmidt. An ice-skating rink and groomed crosscountry trails will yield a tidy business in ski, snow shoe, skate, and other equipment rental during the winter, explains Schmidt. However, the main profit center by far, anticipates Schmidt, will be the bike rentals. “When you have 50 miles of hiking and biking trails and you’re in a part of the country that is as pristine as the Cascade Mountains, it’s no surprise that that will be one of your primary ancillary income sources.” Schmidt says it’s important to DH&R to 31 ing their peak season, Estis-Green observes, not only to capture revenue but to avoid disappointing guests who were unable to book time in a spa or restaurant. Once guests are on property, continues Streeter, “you have to tell them about everything. You have to advertise your services and your amenities, and tell them what they can take advantage of while their on property.” That means properly training front desk staff and having the right marketing collateral including an activities calendar and in-room informaFALL 2008 • HSMAI MARKETING REVIEW tion on the in-house TV channel. Hershey reaches out to guests when they’re on-site through electronic reader boards that can be programmed to promote events and attractions, and via tabletops and tent cards in the restaurant. As avenues open for new sources of ancillary revenue, Streeter points out revenue that hotels have lost over the past few years: in-room phones. big buffet breakfasts (“You have more people who grab a cup of coffee and a muffin on the go”). and high-speed Internet (“A lot of people 82831798/andErsEn ross/gEtty imagEs

Table of Contents Feed for the Digital Edition of Marketing Review — Fall 2008

Marketing Review – Fall 2008 Contents The Online Marketer Success Stories Forecasting Trends Ian Schrager: The Revolutionary Man Leaving No Stone Unturned: The Quest for Ancillary Revenue Gaga Gadgets for Execs on the Go: Functional New Portable Technology to Make Life and Work on the Road More Hospitable Effectively Weathering the Ups and Downs of the Economic Cycle Experiments in Podcasting Higher Transportation Costs and a Slowing Economy Shift Hotel Room Demand

Marketing Review — Fall 2008

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