Case Study | Hospitality Business with Almost Zero Occupancy | Indonesia
We were asked to help a villa resort on Bali’s West Coast which had been suffering with almost zero percent occupancy for more than 12 months. The owner was understandably concerned.
We began the project, as usual, with a thorough investigation, assessing the main variables of performance using the Motivo Matrix. The matrix takes a detailed look at the 16 variables of performance and utilizes management consulting tools such as SWOT and the marketing matrix. The matrix also helped us to look into current market conditions and assisted in identifying potential markets for the property.
Our investigation identified 2 specific areas for concern. Firstly a lack of investment over a long period of time in the facilities at the property had contributed to a product that had come to offer little guest satisfaction. Secondly the brand image of the property was poor and not sufficient to connect positively with the target market and this had pervaded all marketing channels.
As usual for a Motivo intervention, we sought only solutions which would offer an immediate impact to the sustainable profitability of the business and, as usual, we sought low cost solutions. We effectively restored the property to its former glory adding some much needed modern service touches at low cost. Extensive staff training in new SOPs was key to improving service to the required level.
Marketing channels were optimized and a new band image, complete with new logo, website and photography were introduced. We thought in sales terms and acted on the feedback from our market research on the property and introduced promotion which we knew would connect with our target market.
A final launch activated the brand and the business enjoyed healthy new bookings within only 1 month. Now, at the time of writing, the resort enjoys an average occupancy of over 70% whilst average room rates have increased.