When a group of health-conscious corporate clients staying at The Bedford Village Inn early this summer asked about a gym, it was one of the few amenities it didn't provide. We have the restaurants, multiple private meeting spaces, we have other amenities, but not a gym for corporate clients, says Melissa Quinn, corporate sales manager at the Bedford Village Inn in Bedford.
Not wanting to disappoint them, the Inn started making calls to local gyms and worked out a deal with the Executive Health and Sports Center in Manchester to allow the group to use temporary passes to work out. It worked so well, the two businesses formed a strategic partnership to benefit both. It's expanding what we have to offer to our overnight clients, giving people more of an incentive to stay here, Quinn says. For the club, it means bringing in new clientele, a fuller gym and positive word of mouth. The inn covers the cost of the passes for their guests and provides transportation to the gym. The club partners with other area hotels in a similar way.
In just about two months, Quinn says she's already had 20 to 30 people take advantage of the package. And she expects a huge uptick in guests using the program in the fall and winter, which is the time the Inn gets the most corporate clients. While strategic partnerships are hardly new, they have become more critical during a challenging economy. As consumers' disposable income has become a little tighter, everyone is kind of trying to find ways to have value-added programs and services, says Mike Somers, president and CEO of the NH Lodging and Restaurant Association.
Tourism Spending Increasing
New Hampshire's hospitality sector saw modest improvement between 2010 and 2011, so restaurants and hotels have had to be strategic in their offerings to attract their share of that business. Between 2010 and 2011, lodging receipts increased by 9.5 percent and restaurant sales to both tourists and non-tourists increased by 2.8 percent, according to the 2011 travel barometer prepared for the NH Division of Travel and Tourism Development by the Institute for NH Studies at Plymouth State University. Further, that study shows hotel occupancy rate was up by 4.8 percent during that same time, as well as an increase in the number of overnight trips. Total retail sales during that period are estimated to have increased by 6 percent.
While the travel and retail dollars are out there to be spent, consumers are more value-conscious in the wake of the Great Recession. At a time when value counts, incentive packages offered by hotels, attractions, retailers and restaurants can make a difference as to where people choose to stay, Somers says. So I think that they will, rather than just book their favorite place, look at three other places in the local area to see how they stack up against each other, he says. What I think most people are looking at now iswhat are the extras that come with it? Does it come with extra access to this, tickets to that, what exactly is rolled into that price?
Luring New Business
Among those that have recently struck a value-added partnership is the Crowne Plaza Hotel in Nashua, which offers a stay-and-play package with the newly opened Merrimack Premium Outlets. The package includes late check out, breakfast for two or brunch, a $25 gift card to the outlets, transportation and a VIP Coupon Book with additional store discounts.
It's a smart move for the hotel as the outlets are attracting throngs of shoppers from throughout the region, including neighboring Massachusetts. The Outlets also have their management stay at the hotel and has held trainings and job fairs there.
If you group advertising dollars together, they go a lot further, says Nancy C. Kyle, president and CEO of the Retail Merchants Association of NH. [When] you see retailers that enter into these partnerships, it makes them a shopping destination. It's good for the business and it's good for the customer. People may not necessarily know what else is in the area, so group promotions make sense.
Liquid Planet, a water park in Candia, has only been using strategic partnerships for six months, but the results are impressive: Attendance is up 60 percent from past years, according to Brent Beckett, an independent brand consultant. He has been reaching out to other businesses to set up co-branding opportunities. Opening day at the park this past summer season included a skateboard show from Rye Skate Park, an ice cream festival with Shaker Pond Ice Cream and Sky Dive New England parachuting into the park. The businesses each promoted the opening through social media.
Liquid Planet also struck a deal with The Pines Seafood House, also in Candia. Customers who spend $40 on food at the restaurant receive a free pass to Liquid Planet. People don't go to water parks by themselves, so nothing is lost. Hopefully what is gained is new customers, Beckett says. Park attendees who visit the restaurant with their park admission bracelet receive 10 percent off their order-a deal Liquid Planet advertises on a sign at its exit. It's been an incredible success, Beckett says. In previous years they spent $200,000 on marketing. This year, they spent less than $5,000.
Partner with Care
Partnering has many benefits, but like any relationship, it also has pitfalls. Kyle advises that a partnership works best with an established business with a good reputation. For example, Quinn researched other gyms in the area before choosing Executive because it had the most amenities, a good reputation and was a strong match for the Bedford Village Inn's upscale clientele.
Kyle says it's important to figure out how you are going to market the partnership-through social media, traditional advertising or in house promotions. Whatever a business owner chooses, Kyle cautions, The biggest thing is to market it constantly. You can't just market it once.
Somers adds that the most important question to ask before entering a partnership is; If I pursue this partnership, how does that add to my value proposition to my customers? Does it help me attract new customers or add benefit to my existing customers? Because let's face it, Somers says. We're in the customer service industry. So really, you answer that question and the other things will start to fall in line.
Current Issue - April 2024