Case Study of the Week: Encouraging Guests to Return and Spend More Money

Apr 3, 2023

Hotel and Lodging

You are to assume the role of a sales manager at Covington Hotel – Blossom City, a full-service hotel located in a city of 100,000 people. The general manager of the property wants you to create a targeted email promotion that will attract past profitable customers. 

The Covington Hotel brand is known as a mid-priced full-service hotel chain. All Covington Hotels offer full-service restaurants, lounges, coffee shops, and spa services. The Covington Hotel – Blossom City offers all services, and in addition, a fine dining restaurant open during dinner hours. 

Covington Hotel offers many pricing promotions to its guests. The low guest room rates have been successful in increasing occupancy at all of its properties. Unfortunately, the majority of guests that take advantage of the many pricing promotions offered by COVINGTON HOTEL do not spend money on food, beverages, or spa services. 

The most profitable customers at Covington Hotel – Blossom City are those that spend money at the restaurants, lounges, and the spa. While the promotional low room rates do help to fill occupancy, those guests that do not spend money on additional hotel services are not considered profitable customers. 

The general manager has gathered the email addresses of the most profitable guests in the last two years. The profitable guests have purchased more than a sleeping room; they have spent money in the restaurants, lounge, and the spa. 

The general manager has asked you to create a promotional email to send to past guests that are more willing to spend money on food, drinks, and services that will entice them to return to Covington Hotel – Blossom City. The general manager wants you to determine a specific promotion, create an email subject line, and the email headline. 

Questions?

Randi Bibiano
Competitive Events Specialist
randi@deca.org

Randi Bibiano is DECA's competitive events specialist. In this role, she conceptualizes and authors role-play scenarios for the collegiate and high school division’s competitive events programs. She also manages DECA's online competitive events and serves as a liaison to volunteer efforts at DECA's educational conferences.

Discussion Questions

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Classroom Connection

Career CLuster:

Hospitality and Tourism

Instructional Area(s):

Promotion

Performance Indicators:

Explain the types of promotion (i.e., institutional, product)
Explain the relationship between promotion and brand
Describe property features that influence customer appeal
Explain the use of marketing strategies in hospitality and tourism