How Much Do Other Lodges & Resorts Spend on Advertising & Promotion?
Henry Ford once said, “A man who stops advertising to save money is like a man who stops a clock to save time.”
Advertising is an integral part of a successful business. It is not enough to have a solid operation. If you look at successful lodges and resorts, their external advertising messages match the quality of their internal business.
This is How Much Lodges & Resorts are Spending on Advertising & Promotion
The above data has been analyzed utilizing a “box and whisker graph”. In a box and whisker graph:
- the ends of the blue box are the upper and lower quartiles, so the blue box spans the data points that make up the middle 50% of the data set.
- the median is marked by a vertical line inside the blue box
- the mean is marked by an x inside the blue box
- the whiskers are the two lines outside the box that extend to the highest and lowest data points.
As a Percentage of Revenue
Explanation:
- The median amount spent on advertising & promotion by the lodges and resorts is 2.00% of overall revenue. The “median” is the “middle” value in the list of numbers. The median divides the data set into a bottom half and a top half.
- The mean amount spent on advertising & promotion by the lodges and resorts is 2.40% of overall revenue. The “mean” is the average of the numbers.
- The whiskers (vertical lines) extend from the ends of the box to the minimum value (0.15%) and maximum value (6.85%).
- The middle 50% of the businesses spend between 0.97% to 3.94% of revenue annually on advertising & promotion. It is most likely that your direct competitors fall within this range.
As a Dollar Amount
Explanation:
- The median amount spent on advertising & promotion by the lodges and resorts is $7,726. The “median” is the “middle” value in the list of numbers. The median divides the data set into a bottom half and a top half.
- The mean amount spent on advertising & promotion by the lodges and resorts is $12,213. The “mean” is the average of the numbers.
- The whiskers (vertical lines) extend from the ends of the box to the minimum value ($1,891) and maximum value ($38,447).
- The middle 50% of the businesses spend between $2,553 to $18,366 annually on advertising & promotion. It is most likely that your direct competitors fall within this range.
Where to Spend Your Advertising & Promotion Budget
Consider how you plan your advertising & promotion for the year. Do you just show up at a few trade shows and expect to influence purchasing decisions?
This is a real hit or miss approach of only a few contacts with potential guests a year. The most successful lodges and resorts I’ve visited go through the sales process every day (creating awareness, followed by interest, desire and purchase).
You cannot skip the first three steps and expect to be successful. But many try. Most fail because they did not take the journey with the guest and then complain that trade shows are no longer effective.
The most successful lodges and resorts are engaged in building their guest list every day through online methods and then utilize trade shows to meet in person. That is what builds lasting impressions or guest loyalty.
If you are a hit or miss trade show only advertiser, consider changing your approach and thinking to a more long-term approach. Here is a marketing strategy that you may want to consider implementing.
Instead of cutting back to save money, believe in the long-term investment of advertising & promotion to never take a day off from communicating with potential guests.
This article has been prepared by Frontier Hospitality Advisor for general information only. Frontier Hospitality Advisor makes no guarantees, representations or warranties of any kind, expressed or implied, regarding the information including, but not limited to, warranties of content, accuracy and reliability. Any interested party should undertake their own inquiries as to the accuracy of the information. Frontier Hospitality Advisor excludes unequivocally all inferred or implied terms, conditions and warranties arising out of this article and excludes all liability for loss and damages arising there from.
