Case Study Conventions and Events Essay

The Christopher Hotel is a business and economy style hotel which should have a large focus on traveling groups, budget travelers, and business travelers - Case Study Conventions and Events Essay introduction. The hotel seems to be under-performing when compared to area competitors, based on its original targets however it seemed to be doing well. Comparable hotels seem to be selling more rooms while selling them at a higher rate. The Christopher’s market penetration is only at 84% of its fair share of the market based on their amount of rooms. The penetration is calculated by dividing the hotel’s actual market share by its fair share (its proportion to rooms available in the local market).

The new general manager of the Christopher Hotel will need to consider many points when planning a strategy to increase the hotel’s market penetration rate. One of these points is the performance and marketing strategies of local competitors, if the competitors are out-performing with higher rates then they are utilizing a niche in the market which is something the Christopher should consider. Networking with local businesses will also be crucial. Corporate rate agreements can drive business even with discounted prices they add great revenues to a hotel through food and beverage as well as convention space. Another focus should be the sales staff of the hotel. As a sales associate you must be able to contribute greatly to a hotel and accommodate guests better than all others since you are the one selling a property, often site-unseen.

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As mentioned above, forming corporate rate agreements can really drive group business and add more revenues to a hotel. Another way of gaining more group sales is to offer group rates, discounting rooms for convention guests, and adding points systems specifically for travelling groups that have to book multiple rooms each stay. Offering special military, AARP, airline, frequent stay rates and other unique rates are also ways to increase group stays. I think that by adding some of these rates and forming corporate rate agreements the Christopher Hotel could see a great increase in group bookings, and should be the first step in the new general manager’s plan as it is the quickest and cheapest way to initiate better penetration in the market.

Finding out how a competitor is doing business can sometimes be difficult but in the industry of hospitality a lot of local businesses have mutual contacts or contacts within each property. It can be beneficial to reach out to these contacts even if they won’t tell you the whole story they may drop some information. Also try to go to the source of their revenue – their guests. Poll guests that stay in the area to see where they are staying and why, to motivate consumers to do this offer vouchers on travel sites or your local business bureau if they take the survey. There is also always the option to secret shop, which is a great method, although it can sometimes be pricey. The Christopher’s new general manager should see great strides in group bookings by implementing some of these practices.

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