The Challenge
A well-known US luxury hotel realized that its current offerings had become ineffective in attracting its target demographic, business travelers, resulting in lower overall market share and profitability relative to its competition.
Management needed to get a better
understanding of:
How do interests and needs of luxury hotel consumers changed over time?
How well do the hotel’s current offerings matched their target market’s needs, and where have they missed the mark?
How the hotel compared to its closest competitors on the amenities its customers prefer the most?
What key elements of a superior customer experience were missing from its current offerings?
How much business travelers were willing to pay for a revitalized hotel experience?
What strategies would best support the hotel’s efforts to increase its market share among its target demographics?
The Findings
Awareness is high, with 77% of respondents having heard of the hotel and 25% of those have visited the property.
After reviewing the hotel property’s offerings, over two-thirds (68%) are interested in this hotel and they are willing to pay a much higher room rate than what is currently listed.
Messages promoting the luxury hotel should give strong emphasis to it being newly renovated, feature the property’s location, and geared towards affluent adults.
The Solution
The Olinger Group employed its customized brand experience approach to identify the expectations of today’s luxury hotel consumers, developing an appealing positioning, messaging, and pricing strategy to attract more business travelers and maximize overall market potential.
The Outcome
Research revealed their current advertising featuring families was keeping adult and business travelers away. The hotel concluded that focusing on messaging that is more adult-oriented and business oriented would allow them to raise their average daily rate.
A comprehensive analysis of consumer needs revealed several potential strategies to help the hotel develop new amenities and position the overall offering to capture an increased share of visits among the hotel’s most prized customers.
Today, the hotel has seen revitalized financial performance, capturing significant increases in visits and a higher average spend per night relative to its top competitors.
All Our Case Studies
Diabetes Support Program
Can patients recognize the warning signs of diabetes? Are they aware of the treatment options? Are they interested in coaching? Find out why our client thinks we’re number 1 when it comes to type 2 diabetes market research.
Health and Wellness Rewards Program
Are healthcare consumers interested in rewards programs? If so, what kind of features are they looking for and what would make them loyal to one brand? TOG got to the pain points on point programs.
Luxury Shopping Center
What did a luxury shopping center have to do to attract locals as well as tourists? With a variety of research mythologies including word association, The Olinger Group gave a well-known brand what it needed to revitalize its image.
Porcelanosa Annual Sale
Every year, Porcelanosa had a popular annual 40% off sale but was it working? Was it true that customers were actually waiting to make their purchases until the sale date? Was this hurting the bottom line? TOG bagged the answers.
Luxury Hotel
Can advertising to families actually keep adult and businesses travelers away? Could tweaking the message make guests more willing to pay a higher room rate? The answers were illuminating.
Hotel del Coronado
Can market research actually help a resort sell out its inventory before construction is even completed? What kind of advertising would resonate with buyers? TOG took the guessing out of the equation.
