What a Difference a Letter Can Make
It is fascinating how changing just a single letter in a word can make a big difference in what that word means. Change Book to Cook and you go from a collection of written pages to someone who prepares food.
Change Sand to Hand and you are no longer talking about tiny grains of sand found on beaches but the part of a body at the end of an arm. And if you change the “d” in Word to a “m,” you end up with Worm, a small, elongated, soft-bodied invertebrate, which, while it may be slimy and wiggly to hold, it can be great for bait.
It is the same with the acronym NIMBY, which, as I wrote in an earlier article, describes a situation where people oppose certain developments or projects in their local area, even though they might support the project if it were to be located elsewhere. And if you are or ever have been in the lodging sector - hotels, Airbnbs, inns, resorts, hostels, cabins, cottages, guest houses, motels, cruise ships, camping, glamping and even treehouse or igloo rentals, you haves run up against NIMBY – Not In My Back Yard - at one time or another.
But what if you change the “N” to a “Y?” You will then have a new acronym with a new meaning. NIMBY will become YIMBY, which can stand for – Yes In My Back Yard. And what if YIMBY defines the opportunity to find fresh out-of-the box occasions to attract local markets to your property? In other words, looking to your local community – i.e., your neighbors – for newfound opportunities to grow bookings and, in turn, revenues.
Of course, it is inherent that hotels will always focus on the traveler, the tourist, the visitor. They will always be the bread and butter of REVPAR. But if September 11th, the COVID-19 Pandemic, the growing impact of Climate Change, and even NIMBY have taught us anything, it has taught us that hotels cannot always count on the out-of-town guests to make their occupancy and revenue goals.
Targeting local markets can be highly beneficial for your hotel. By attracting local markets, you can fill rooms during off-peak days, weeks, months, or seasons when out-of-town traffic is lower. This, of course, helps maintain a steady flow of revenue and staffing. Local markets can also provide additional revenue through adding unique (operative word is unique) local events, community gatherings, and imaginative marketing to boost income.
Engaging with the local community can build strong relationships and brand loyalty too. Like all guests, locals who have great experiences can become your strongest advocates when their out-of-town friends, family, and business associates come to visit. And, of course, a local marketing campaign can be more cost-effective than targeting those that "Come From Away.”[i]
To get your imaginative juices moving, here are Five-Fab ideas that you might emulate in your hotel.
1. Carrying Welcomed Coffee
The manager of a large urban hotel noticed that for eight crisp, cool Saturday mornings in the fall, soccer games were played in the field next to the hotel. Naturally, the sidelines were filled with parents sitting on blankets, folding chairs, or cold, hard metal bleachers. Seeing an opportunity, each week she would have her kitchen brew two large urns of coffee, complete with the requisite paper cups (with the hotels logo, of course), napkins, cream and sugar packets. She and some of her staff would then take the coffee, along with an assortment of the hotel’s muffins, over to the grateful parents. Where do you think the parents booked rooms when their families visited, or business associates came to town? Where do you think they made a reservation for Mother’s Day Brunch or a birthday dinner?
2. Dropping Golf Balls
The owner of a new sports bar that was attached to a mid-priced hotel near the entrance of the local golf course, partnered with the course manager to promote the bar to the players. Being a player himself, he knew two things about golfers. First, they all like to grab a drink after their round to talk about the putt that should have gone in the hole, the ball that landed in the sand trap, or the wind that pushed the drive into the rough. He also knew that no golfer could pass up a “stray” or “lost” golf ball found in the rough along the fairway. So he bought a cadre of balls and had printed an introductory offer on the ball reading: Stop in to [name of the bar] for a drink on us.
Needless to say, the sports bar became the “go-to” after a round. Again, where do you think these golfers booked rooms for their buddies when they came in for a weekend of play, or held their corporate golf outings, or booked their league’s award banquet?
3. Silver Dollars Work Too
A new independent boutique hotel was opening in the city center’s business district. The young sales director ordered $500 worth of silver dollars. On one side, she taped a round piece of paper with a message to redeem the dollar at the hotel’s bar for a “Happy to be your Neighbor” drink during the week. For four weeks, she would take 125 of these dollars and randomly drop them on the sidewalk (taped side down) and in the parking ramps surrounding the hotel. This innovative and cost-effective campaign resulted in more than an 80 percent redemption rate. Not a bad marketing ROI, especially considering that many went on to become regulars and advocates for the hotel, sharing their experiences on social media.
4. Be a Sorrow Solution
The manager of a limited-service hotel was searching for some fresh ideas to build occupancy during off-peak days. He found it when an employee needed a block of rooms for relatives coming into town for a family funeral. The hotel’s complimentary breakfasts and afternoon receptions along with its many private gathering spaces were just what the family wanted. From this experience, the manager collaborated with area churches, synagogues, mosques, and funeral directors to develop profitable Celebration of Life packages, leading to an increase in overall occupancy and revenues.
5. Capitalize on Local Talents to Boost Your Hotels “Good Neighbor” Image
Every town seems to have an artist league or center. Every town also seems to have a cadre of local non-profit organizations that are always in need of financial support. So transform your hotel into a community hub by hosting a creative event or workshop that can benefit both. For instance, you can host a modification of the very popular TV show, Halloween Wars, in which local artistic bakers decorate and/or carve pumpkins for Halloween. These creations can then be sold or auctioned with proceeds supporting local art organizations. The same concept can be applied to other popular holidays. And, of course, local media will often cover such events as human-interest stories, yielding valuable publicity for your hotel.
The key to YIMBY, then, is to offer unique experience that locals cannot find anywhere else. This can be anything from rooftop yoga classes to themed dinners. It can be exclusive programs giving access to hotel amenities like a private pool, gym, or spa. It can be inviting local artisans to set up pop-up shops throughout your hotel. Similar to the Halloween example, these not only support local entrepreneurs, but they also attract their customer base to your hotel. It can also integrate the local culture and heritage into your hotel’s promotions and guest experience.
Your hotel can participate in community service projects and introduce a staff volunteer program. This not only builds good will but also raises your hotel’s profile within the community. And, of course, you can develop a loyalty program designed specifically for residents. These all encourage repeat business and build a loyal guest base within your community.
Picture these: a local couple celebrating their anniversary with a romantic getaway just a few miles from home, complete with room service and a spa day. Or a group of friends booking a suite for a movie marathon night, where the only thing they must worry about is running out of popcorn. And let us not forget the parents who could use a break from their kids’ endless energy, why not let the hotel pool handle that for an afternoon?
While hotels have long rolled out the red carpet for travelers from far and wide, it is high time they also extend a warm welcome mat to their next-door neighbors. After all, why should tourists have all the fun? Imagine the possibilities: locals enjoying a staycation without the hassle of airport security or hosting a family reunion where no one must clean up afterward. Plus, who better to appreciate the hotel’s breakfast buffet than someone who knows the ritual of making their own coffee every morning? Now is the perfect time for hotels to realize that, sometimes, the best guests are the ones who do not need a map to find the lobby.
By tapping into the local market, hotels can transform themselves into the ultimate playground for their community. Whether it is a mid-week escape from the daily grind or a spontaneous celebration, locals will find countless reasons to check in and chill out. So, the bottom-line is this: the time is right to embrace your inner host and start wooing the exciting markets right in your backyard. There are five key advantages for targeting local markets:
- Increased Occupancy: By attracting local guests, you can fill rooms during off-peak seasons or weekdays when tourist traffic is lower. This helps maintain a steady flow of revenue throughout the year.
- Diversified Revenue Streams: The more varied and original your hotel’s offerings, the more diverse are your markets and revenue streams. Adding local markets to your hotel’s set of choices can significantly boost income.
- Enhanced Brand Loyalty: Engaging with the local community can build strong relationships and brand loyalty. Locals who have positive experiences are more likely to recommend the hotel to visiting friends and family.
- Cost-Effective Marketing: Marketing to local customers can be more cost-effective than targeting distant travelers. And, local advertising channels, social media, and partnerships with local businesses can be utilized efficiently.
- Sustainability: Focusing on local markets can also align with sustainability goals by reducing the carbon footprint associated with long-distance travel. This can attract eco-conscious guests and enhance your hotel’s reputation.
By leveraging these strategies, your hotel can create a more resilient and diversified business model. As Mr. Roger’s always sang: It’s a beautiful day in the neighborhood.
Your REVPAR will thank you.
[i] Come From Away is the title of a musical that tells the remarkable true story of the small town of Gander, Newfoundland, during the aftermath of the September 11, 2001 attacks. When 38 planes were forced to land unexpectedly at Gander International Airport due to the closure of U.S. airspace, the town’s residents welcomed nearly 7,000 stranded passengers with open arms.
Reprinted from the Hotel Business Review with permission from http://www.hotelexecutive.com/.
