1. Problem statement
Paradores de Turismo is a publicly funded limited company in Spain positioned as a hotel chain in leisure segment with 86 hotels (each with average 62 rooms) across Spain, that showcase buildings located in nature reserves and in historic places, such as castles, palaces, convents and monasteries away from urban centers and promotes local businesses, food, décor, culture etc. By the end of 2002, Parador was planning to expand by 12% capacity and need a new marketing strategy for 2003 to re-launch and increase market share.
2. Situation analysis
In order to complete the situation analysis, we took a detailed look at the 4 C’s (See Appendix 2-1) and summarized ...view middle of the document...
Company analysis, competitors & and customers fit key points:
• Watch the video A Taste of Paradores to get an idea of the product they sell.
• See Appendix 2-2 for key points
• We analyzed 3 key metrics that determine the profitability of Paradores and allow us to compare with competitors. See Appendix 2.3 for details.
o Occupancy Rate (OR) measures firm's ability to saturate its fixed capacity, managing seasonality
o Average Room Rate (ARR) is a synthetic measure of the average revenue per room
o Revenue per Available Room (RevPAR) a most important synthetic indicator that combines Room Rates and Occupancy
• We compared the 7% increase in RevPAR of Paradores over 2001 with the competitors published figures and found that Paradores have done really well despite the setback in tourism industry in 2002.
• The analysis uncovered the need for an integrated distribution channel that can work seamlessly with traditional channels and country’s major tour operators such as Iberojet, TravelPlan or El Corte Inglés-Tourmundial, and international operators like Carlson Wagonlit and American Express, amongst others, while also opening up new direct sales channels online.
3. Marketing objectives for Paradores
Our marketing strategy's objective is to communicate the unique set of services that we offer to our hotel guests. Our marketing strategy will allow us to communicate our brand values, develop close working relationships with our customers and distribution channels and to identify the needs of our guests in an effective manner. Continued differentiation and growth are two goals we have set for ourselves. Growth will take place by targeting new areas of business within both local and national communities.
Strategic (mid & long term): This can be summarized under 3 broad categories - “Inside”, “Sell-Side” & “Buy-Side”
• Exemplary service & personalization
• Differentiated from competition
• quality with the overall brand strategy
• Develop brand standardization and consistency by promoting those attributes most appreciated by guests and their implementation in all locations.
• Consistent with the differentiation objective, to provide added value for a reasonable rate as opposed to discounting and devaluing our products and services.
Focused heavily on sales and distribution efforts to build and promote integrated and diversified distribution channels reinforcing the International Sales in feeder market while continuing to do personal selling in local markets and strengthened cooperation with both tour operators and travel agencies. Ad campaigns should reinforce differentiation and brand image and promoting the exquisite and service of low RevPAR hotels to bring them out
Place (“Inside”): We are already working on expanding accommodation by 12% as a first step followed by modernization with emphasis on aspects related to...