Maximizing Ancillary Revenue in a Resort

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Maximizing Ancillary Revenue in a Resort

• How to Find Your Hidden Sources

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Panelists

• Terri A. Haack, Vice President and Managing
  Director, Wild Dunes Resort
• Pam Streeter, Vice President of Electronic
  Distribution, Interstate Hotels and Resorts
• Stephen H. Baldwin, President of Stephen H.
  Baldwin Retail Development
• Jaime A. Huffman, Executive Spa Director, The
  Grove Park Inn Resort Spa
• Tjibbe Lambers, Marketing and Promotions Manager,
  Hershey Resorts

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• Pam Streeter
• Vice President, Distribution/Marketing
• Interstate Hotels and Resorts
• pam.streeter_at_ihrco.com

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Sell Non-Room Revenue _at_ Booking Time

• Highlight the Obvious Sources in Multiple Places
  in Research Process.
• People are typically choosing to stay at your
  resort because you have these main attractions
• Spa
• Golf
• Tennis

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Spa/Golf/Tennis
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Sell Non-Room Revenue _at_ Booking Time

• Encourage Early Reservations for Activities
  Typically Decided Upon During Stay
• Dining Reservations
• Water Activities
• Sporting Good Rentals
• Land-based Activities
• Childrens Programs
• If cannot provide web-based booking engine,
  create simple form to allow for allocation based
  reservations

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Other Activities
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Sell Non-Room Revenue

• Remind guests about options during booking
  process
• Remind your guests about activities as part of
  confirmation pre-stay messages
• Remind guests of options at check-in.

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Additional Ideas

• Bundled TeleCom Charges
• HSIA Local Calls
• Pet Care Services
• MP3 Rentals/Music Downloads
• In-Room Gaming/Movie Beyond Integrated TV
• Upgraded Honor Bar Amenities

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• Stephen H. Baldwin
• President
• Stephen H. Baldwin Retail Development Company,
  LLC
• Stephen_baldwin_at_greenbrier.com

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The Details of Retailing

• Shopping is the 1 leisure activity in the U.S.
• Why do people shop?
• -Anyone can participate
• -Vacation/travel
• -Recreational activity
• -A feeling of power
• Service to the customer is the priority
• The shopping experience needs to be pleasurable.

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Creating The Perfect Shopping Environment

• It all starts with the concept
• Develop concepts that are in keeping with your
  property and clientele
• Listen to your guests
• Be willing to change

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To Own or Lease Shops

• Thoughts to consider
• Your guests do not know the difference between
  company owned and leased spaces

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Leased Spaces

• Plan on 15 18 of gross sales
• Square footage lease
• One year terms recommended
• Responsibilities concessionaire vs. owner
• Concessionaire must comply and be consistent with
  hotels standards
• -Return policies must be consistent throughout
  shops

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Store Design

• Create spaces that are custom in look and feel
• Keep spaces small and flexible
• The look should blend art and science
• Storefronts should be unique and interesting
• Make stores comfortable to work in
• Use design specialists

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Packaging

• All packaging should be consistent and in keeping
  with property
• Overdo your packaging
• Always be able to gift-wrap

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The Buying Game

• Why a game?
• Buying is not rocket science
• You either have the talent for buying or you
  dont
• Most people take buying too seriously
• Open-to-buy planning
• Treating sales representatives with respect

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Inventories

• Inventory turns should average 2.2 to 2.8 turns
  per year at retail
• Everything calculated at retail as well as cost
• 1 reason retail operators fail
• Growing or out of control inventories
• Stock must be on floor, not in stockroom or
  warehouse

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Summary

• Plan the right concepts
• Buy the right product
• Sell appropriately
• Manage inventories
• Go to the bank

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Jaime A. Huffman,MPH Executive Spa
Director The Grove Park Inn Resort
Spa jhuffman_at_groveparkinn.com
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The Added Value of A Spa

• Does your spa produce 36 profit?
• The industry average is 8
• jhuffman_at_groveparkinn.com

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Guest Expectations

• Full sensory experience engage the body, mind
  and the spirit
• Relaxation
• No hassle
• Pampering
• jhuffman_at_groveparkinn.com

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Guest Expectations

• The average spa-goer . . .
• Is well-read
• Has high expectations
• Pays attention to the details
• Expects extraordinary personal service
• jhuffman_at_groveparkinn.com

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Running a Spa is a Business

• If you can measure it, you can manage it!
• jhuffman_at_groveparkinn.com

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Ways to Maximize Profitability

• Choose the right treatment mix
• Types of treatments
• Treatment duration
• Know your cost of treatment
• Use suggestive selling

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Ways to Maximize Profitability

• Limit inventory on hand
• Weigh contract vs. employee
• Select spa design carefully
• jhuffman_at_groveparkinn.com

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Software Configuration
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Analyzing Profitability
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• Tjibbe Lambers
• Marketing and Promotions Manager
• Hershey Resorts
• tlambers_at_hersheyPA.com

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Hershey Entertainment Resorts

• Background
• Hershey Resorts as part of Hershey Destination
• Objective
• Maximize revenue per available guest
• Challenges
• Peak season room rate during summer

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Ancillary Revenue Opportunities

• On Property
• Destination
• Locally

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On Property

• Cocoa Kids Club
• May through August
• ½ day and full day rates
• Growing each year, over 300 guests in 2005

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On Property

• Smores Bonfire
• Introduced in late Summer 2005
• Family and single kits available
• Over 2,500 kits sold during first year

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On Property

• Looking ahead VIP program
• Chauffeured transportation to HERSHEYPARK
• First in line for select rides
• Priority seating at restaurants

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Destination

• Theme Dining
• Breakfast At The Park
• End June Mid August
• Over 3,900 RN
• 7.6 of total guests
• Picnic In The Park
• End June Mid August

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Destination

• Sweet Savings Program
• May and June
• 25 coupons per book

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DestinationSweet Savings Program
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DestinationSweet Savings Program
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Locally

• Local Hotels Program
• Over 18 hotels in the local area
• Over 8,500 room nights sold in 2005
• 10 commission 3 processing fee p/ room

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In Closing

• Think creatively
• Focus on the experience
• Make sure it fits your branding
• Partner with local vendors
• Look for sponsorship opportunities
• Test it Track it

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Thank you to our Sponsors