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.

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The Olinger Group

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