marketing strategy - Greek Hospitality Awards

2016
MARKETING STRATEGY
CACTUS ROYAL SPA & RESORT
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THEOFILOS HALKIADAKIS SA
CONTENTS
About Us
3
Board of Directors
5
Competition
6
Market Needs
7
Macro environment
7
Mission
8
SWOT Analysis
9
Historical Results – Sustainability Report
10
Marketing Strategy
13
Marketing Objectives
14
Value Proposition
17
Critical Issues
18
Financial Objectives
18
Marketing Mix
19
Place
19
Product Marketing
19
Pricing
19
Promotion
19
Sales Forecast
20
Expense Forecast
22
Controls
24
Marketing Organization
24
Awards
25
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ABOUT US
Cactus Royal Spa & Resort belongs to the family of Cactus Hotels
operated by Mr. Nicos Halkiadakis. Established in 2010 in an area of
natural beauty on the sea – side road of Stalis next to the most celebrated
sandy beach of the area, the five – star holiday resort of Cactus Royal
arises majestically with a wealth of services and experienced staff Cactus
Royal guarantee customer satisfaction and value for money.
The number of staff employed is about 100 people and the biggest
percentage of our guests is German. The other percent of our guests
comes from Russia, Holland, Austria, France and Belgium. The offer
facilities are three separate pool areas (two outdoor and one indoor),
dining facilities, elegant bars and cafes, spa and a fine friendly
atmosphere are at guests disposal and are spoiled by accommodation
choices.
Synonymous with the hotel are the high level of personal service guests
receive, and the extensive range of comprehensive business
facilities available in luxurious settings.
The bulk of the revenue comes from leading customers - Tour Operators
mainly active in the European tourism market. The number of customers Tour Operators with lower turnovers is limited.
The majority of sales made by seven agencies (TUI DEUTSCHLAND,
TUI NEDERLAND / HOLLAND, ALPI TOUR, JET AIR, KUONI,
TEZ TOUR, L TOUR (TUI HELLAS), HOTELBEDS, SELECT
HOLIDAYS.
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CITIES WITH
DIRECT FLIGHTS
Airline Companies
Aegean Airlines, Aeroflot,
Air Berlin, NIKI, TUIfly,
Olympic Air, SmartWings,
CSA, Cyprus Airways,
Germanwings, Condor,
Jetairfly, Rossiya Airlines,
Easyjet, Thomas Cook
Airlines, SAS, Air Canada, Sky
Express, Minoan Air,
Lufthansa, Minoan
AirTranssero Airlines
LOCATION
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BOARD OF DIRECTORS
THEOFILOS HALKIADAKIS SA
Board of directors
Theofilos
Halkiadakis SA
Chairman - Managing Director
Nikolaos Halkiadakis
Vice Chairman
Emmanuel Halkiadakis
Member
Theofilos - Frank
Halkiadakis
The Board of Directors was constituted on the basis of practical Board of
01/07/2015 and the term of office expires on 06.30.2018.
The company is legally represented by the Board President and CEO, Mr.
Halkiadakis Nikolaos.
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Competition
 Selected hotels in the area of Hersonissos and Stalis.
 Selected hotels in the same category (4 & 5 Star) and provide a similar level
and range of services and the same level luxury facilities.
 As seen in the region operates a fairly substantial size of hotels offering
similar services. Some of these belong to a large domestic hotel chain thus
exploiting significant economies of scale, making it possible to offer high
quality services at competitive prices.
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Market Needs
The Cactus Royal Spa & Resort offers value and benefits to our clients,
over and above the standard of our facilities and affordable rates. We
provide our guest with a luxurious, relaxed environment within which to
conduct their business.
Our guests need to know that they can develop a relationship with the
hotel that will ensure efficiency, value for their money and reliability in
supplying them with the support they need, when they need it.
Macro environment
The external issues that affect the Cactus Royal Spa & Resort are:
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Political: a non - stable environment which affects all the businesses.
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Economic: As with most industries, the hospitality and tourism sector is
experiencing numerous challenges as a result of the global economic
crisis. The industry is feeling the impact of a shrinking capital market and
decreased spending by both corporate and individual consumers. In
addition, tourism can be the driving force behind Greece’s economic
recovery. However, for its achievement the country’s policy makers
should take several measures towards restructuring and improving the
sector. These measures include: enhancement of alternative forms of
tourism,
environmental protection,
creation of quality infrastructure
and boost of competitiveness through a tourism product that offers value
for money.
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
Social: the trend towards cost effective travel leads hotel guests to seek
more value for money, which is where our added value differentiation
strategy comes into play.
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Technological: Technology plays an important role in the hospitality and
tourism industry. Both customers and businesses can benefit from
advances in communication, reservations and guest services systems.
Technology allows continuous communication and streamlines the guest
experience, from reservation to check out.
Mission
The Cactus Royal Spa & Resort is dedicated to providing its guests with
the highest quality of service and standards. To positively engage with all
our partners, to understand their sustainability targets and to align our
priorities (customers, suppliers, local community). As a response we aim
to minimize environment impacts, optimize business processes and
maximize safety, quality and performance.
Due to the challenging economic, social and environmental periods our
main goal is to balance well the needs of these three main challenges yet
achieve highest customer satisfaction with minimum environmental and
social impact. We value our place in the community and will work to
develop those relationships and to respect and protect our environment.
Our focus is on offering our guests added value and differentiating
ourselves in our levels of personal service. We provide a quality hotel
experience where guests are valued and respected.
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SWOT Analysis
The following analysis highlights the internal strengths and weaknesses
of our organization and the opportunities and threats facing the company
in our external environment. We must work to improve our areas of
weakness.
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Strengths
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Weaknesses
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Opportunities
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Threats
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A strong reputation within the local market.
Effective environmental management system.
Technical innovations to improve customer
experiences.
Awarded by a series of certifications.
Specialized and experienced staff that is motivated
and highly skilled. A well trained team who are
proud of their hotel and respect and promote the
values.
Co operation with local suppliers.
Differentiation strategy needs to be more clearly
communicated externally, within local and national
markets.
Operations are affected globally due to different
Government policies and parameters.
Seasonal turnover requires ongoing training and
orientation of new staff.
Strong, long-term relationships established with
suppliers.
Innovation in customer services.
Positive signs of the touristic market.
Economic and political turbulence in most
countries.
Competition on price point.
Fear of terrorist attacks in Greece which will affect
the tourism negatively.
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Historical Results – Sustainability report
Throughout the years Cactus Royal Spa & Resort has achieved many
goals. In the table below we give examples of critical targets and how we
are contributing to the achievements of those targets:
REDUCTION OF ELECTRICITY – WASTE – WATER
CONSUMPTION
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We research and consider low energy alternatives
Use of low energy technology for lighting (LED light bulbs, motion sensor
lighting, key card system, etc)
Replacement plan for old equipment
Educate our employees on correct electricity use
Proper maintenance of the equipment
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Reduce packaging waste by purchasing in bulk
Waste management (paper, glass, plastic, burnt oil etc)
Proper management of the right amount of food served to guest
We use electronic systems for business purposes rather than paper
Train staff on recyclable waste
We make sure food is used before it is out of date
Purchase of recycling bins in hotel public areas
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Install flow control devices for sustainable water flow
Employees education on correct water use
We encourage our guests to support our towel and bed linen reuse programme
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PROPER MANAGEMENT OF HAZARDOUS WASTE
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We keep records to show how much hazardous waste we have collected
Safety storage of them in line with national and international standards
Employees training on the correct chemical use
Control of the minimum effect on the environment and on health
Proper equipment – protective clothing for the users
Existence of an “ incident record”
Existence of emergency instructions
ENVIRONMENTAL MANAGEMENT
SYSTEM
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Implement effective environmental management system which lead to the ISO
140001:2004
Water quality control
Employees training on correct environmental management system use
We encourage guests to participate
Certification of “GREEN KEY”
“TUI ENVIRONMENTAL CHAMPION” AWARD
INTERNATIONAL LABOUR AND HUMAN
RIGHTS STANDARDS
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Written terms and conditions of employment
Non existence of discrimination in any way
Equal pay for equal value work
Good working conditions
Written policy about children’ s rights
Protection of children from all forms of exploitation
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LOCAL COMMUNITY
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Promotion of local products through a variety of events:
 Cretan breakfast
 Cretan product evening
 Cooking lessons and cocktail creation
 Night with traditional Greek dances
 Greek breakfast certification
Donations among various local animal welfare groups
We give information about the local area, services available, activities, etc
Certification of “ WE DO LOCAL”
Co-operation with local suppliers
Social
Economic
Environmental
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Marketing Strategy
Our marketing strategy's objective is to communicate the unique set of
services that we offer to our hotel guests. We attempt to direct the focus
of our guests to the issues of quality and value for the money as opposed
to simply the bottom line costs associated with their stay.
Our marketing strategy will allow us to communicate our brand values,
develop close working relationships with our customers and suppliers 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.
One of the most unstoppable demands that is becoming increasingly
complex is the digital marketing strategy. Hotel managers need not
only to service guests, manage rooms, availabilities and pricing, but now
are also expected to compete for guests in new channels and digital
communities that emerge every day. The breakthrough solution for this
complex problem is a digital marketing architecture and tools that provide
a consistent multi-channel experience to hotel guests and prepare hotels
for future digital marketing demands.
STRATEGY
“is a fancy word for coming up
with a long term plan and
putting it into action”
ELLIE PIDOT
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Marketing Objectives
We have already put into practice the management of the online identity,
presentation, promotion and sale of our hotel services and our main target
is to reinforce them through our marketing strategy.
 Changes to the website: On average, guests spend 6 minutes on
hotel websites. 6 minutes is ample opportunity to engage your
future guests with bold pictures, easy-to-read room descriptions
and attractive offers that make the decision to book simple and
predictable. One additional important item is to show what guests
will experience when they come to your destination: ensure video
is part of your web strategy and you will mesmerize your guests.
 Social Media Marketing for the group:
 Creation of Social Media Pages on Facebook, Google Plus,
YouTube, Pinterest, Instagram
 Set promotional axes
 New actions
 Channel Management (at least 2-3 posts per week) on
facebook
 Contest - facebook (1 per year)
 On the other channels we will reproduce in the right way the
Facebook strategy
 Email marketing for the group: We send offers with
personalized email to existing hotel guests. (The offers that will be
sent are different and selected based on the analysis that we would
already have done - classification criteria and evaluation of the
customers – per customer categories, sales channels, markets
etc.)Email Campaigns Travel Agencies. Also we send personalized
festive eCards on occasions like Christmas etc.
 Google Adwords - Pay Per Click (PPC):
 Determination - total budget allocation (per period, company
(Google, yandex, facebook) ect.)
 Especially for GOOGLE:
o Creation of Google / Adwords account
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o Determination of the campaign number (per purchase,
link, etc).
o Budget Allocation in campaigns
o Keywords choice
o Creation of messages & banners (+ translations)
 Campaign operation rules strategy (ex. remarketing list)
 Performance evaluation and redesign of ads based on technical
analysis
 Competition:
 Definition of the competition and systematic monitoring
 Classification of the rooms, for the best selling opportunities at
the right customer, for the right price
 Finding competitive prices (at least 1 time every 3 months, key
source: booking.com)
 Sales Strategy:
 New contract with OTA’s in collaboration with the sales
department of the hotel
 Upload - Update information in OTAs (texts, photographs etc.)
 Room type choice per channel of sales
 Define Rates (price comparison, discount percentage per price
list, booking code, secret deals, etc.)
 Define policies (Payment & Cancellation policies)
 Distribution – Channel Management (included)
 Revenue Management:
 Sales allocation scenarios (what prices and what
availabilities the hotel offers per online tour operator, so the
profit maximizes)
 Choice of extra amenities and services in specific price lists
 Price choice in comparison with the number of night stays
and number of guests
 Determination of specific rates with specific passwords (ex.
repeated)
 Flash Deals (booking.com, Expedia etc.) for special offers.
 Create Offers
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 Technical Analysis:
 Sales
o Analysis per Date
o Analysis per Booking window
o Analysis per Channel
o Analysis per Country
o Analysis per Room Type
 Demand
o Site
 Conversions
 Reports:
 eSales report every 2 months
 Demand report every 2 months
 Reputation report every 2 months
 SEO report every 2 months
 PPC report every 2 months
 Social Media Report
 email marketing report
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Value Proposition
The Resort & Spa is comprised of 177 contemporary and unsurpassed
rooms of which 16 are suites, fully equipped promised to offer sunken
living and a restful stay. Each one possesses its own distinctive
atmosphere and is designed with their unique furniture and allure to
deliver to its guests a premium balance between relaxation and comfort.
Senses are taking off when our guests indulge themselves into a unique
experience while dining in our 2 exquisite restaurants “Philoxenia” &
“Elia”. Flirt with taste while our culinary assemble the finest in food to
ensure a delightful gastronomic journey that is restrained and tasteful and
it reflects the vibrancy of the Hotel’s elegance. Offering a wide range of
delectable assortments, a phenomenal presentation of regional (traditional
– local) and international flavored dishes, our culinary will make your
dining options abundance, peppered with a great selection of winery.
Main Bar “Notos”, Pool Bar “Eros” and Kafeneio “Petrino” offering an
affluent variety of drinks and cocktails partake to foster a sense of
extraordinary presence of the hotel that every connoisseur would envy.
The apotheosis to satisfy your desire for relaxation and serenity climax in
our modern, luxurious, full service Spa Center where you can spoil
yourselves in the splendor and tranquility. You can choose any of our
facial and body treatments in our aesthetic center”Aphrodite” or any
beauty services in our hair salon “Chloe”.
Our care is extended in our completely equipped gym “Atlas”, where our
guests benefit reinforcement and well-being.
Spa Center is one of the most prominent Spas in Crete to spend your time
relaxing in an elegant ambience and stands successfully compatible to the
most demanding Spas of the world.
The all stone-build of the hotel, perfectly imbued with refining,
hospitable, attentive services along with a striking, dreaming
surroundings establishes Cactus Royal Spa & Resort as the most
significant destination in Crete.
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Critical Issues
Critical issues for Cactus Royal Spa & Resort include:
 Regular training and education for staff in aspects of environmental
management and sustainability.
 Continuing to differentiate from our competition and offering
added value to our guests.
 Raising the awareness of the local community in environmental
management and sustainability.
 Maintenance of the results of laboratory analysis in accordance
with quality standards and specifications.
 Maintenance of the offered services and products, continuous
monitoring of the questionnaires and corrections where deemed
necessary for the maintenance of good results in the questionnaires.
 Retaining our current levels of repeat business and developing
further customer loyalty in a competitive market.
 Keep payroll expenses down.
 Accomplish growth within the given budget and time.
 Expand our markets and identify new markets for our product and
services.
 To provide a positive hotel experience to all our guests.
Financial Objectives
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Increase overall room revenue
Accomplish growth within the given budget.
Keep payroll expenses down.
An increase in days of hotel operation. This increase compared to
previous years is reasonable according to the industry average and
favorable conditions created to extend the tourist season.
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Marketing Mix
Place
Service information is sold to the guests via Tour Operators, personal
selling, direct marketing, advertising and Internet. Delivery channels
include travel agents and international reservation systems.
Product Marketing
High reputable hospitality name, up standard service, refined & timeless
elegance and a warmly relaxed stay that is unique, Cactus Royal Spa &
Resort invites you and offers you the most ideal & impeccable
environment for your holiday to become a memorable and dreamy
experience.
Pricing
Pricing strategy has been consistent with the differentiation objective, to
provide added value for a reasonable rate as opposed to discounting and
de valuing our products and services.
Promotion
Primary focus will remain our cooperation with Tour Operators and then
we support the mass communication via Internet, Web site, OTAs
(Online Travel Agents). Direct mail campaigns to existing and
prospective clients will increase as a cost effective means of targeted
campaigning. Public relations activities will continue to play an important
role in the marketing mix, presenting the hotel as a supportive member of
the community and participating in significant local events.
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Sales Forecast
INCREASE / DECREASE
Rooms
0%
Operation days
0%
Given Rooms
0%
Average price per stay /room (ADR exc VAT)
Room Occupancy
Income of Spa / Gym
+2%
0%
+1%
Grants
0%
Rent income
0%
Other revenues
1%
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 The completeness of the hotel on the basis of assumptions expected
to stabilize in subsequent years to 2015 rates based estimated data
nights.
 The Thalassotherapy / fitness revenues and other income is
expected to grow 1% per year.
 The grants will be maintained at 2014 levels and they include only
fixed grants with respect OAED programs.
 For the years 2016-2024 the average nightly rate is expected to
increase by 2% per year, which will lead to 2024 average price at
EUR 137. This assumption of data market conditions, endogenous
factors such as services offered and the markets on which active
and historical data is considered to be founded.
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Expense Forecast
EXPENSES
INCREASE / DECREASE
Stock Cost
17% of sales
Payroll Cost
+2%
Compensation and third party fees
+1,3%
Electricity, Water, Telecommunication
+2%
Repair and Maintenance
+2%
Rental homes, lands, Stalis Star
0%
Leasing Rentals
Based on payment program
Other Rentals
+1.3%
Clothing washing
+1.3%
Other operating costs
+1.3%
Taxes - Fees
+1.3%
Promotional – Advertising Costs, Animateur
Costs
Impulse materials
Based on sales growth
Other various costs
+1.3%
+2%
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The estimated costs concern the whole business (CACTUS ROYAL
SPA& RESORT and CACTUS BEACH).
 The cost of inventories based on the Business Plan remains fixed as
a percentage of turnover to 17%. Stabilization. This is consistent
with data from previous years and anticipated revenue by 2024.
 Payroll costs as shown in the diagram previous page is the most
important cost. This basis assumptions increased 2% every year
being a time of about 28% of turnover.
 The electricity costs, water and telephone connections increased by
2% per year.
 Repairs and maintenance are expected to rise by 2% each year.
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 Rents for staff residential accommodation and land rents expected
to show no change as values are fixed. For property rentals leasing,
these follow the payment schedule with 71% of the annual cost be
recognized as expenses, while the remaining 29% to fixed.
 The costs relating to the clothing washing following the increase
1.3% / year on the basis of Average the CPI for 2014 and the
percentage increase of sold rooms.
 The late taxes are expected to show an annual increase of 1.3%
under the average of the CPI for 2014, but showing the rest of 2015
decreased by € 60 thousand compared to 2014 as this amount
regards stamp duty on loan agreements between shareholders and
the company.
 The promotion and advertising costs and expenses animateur. They
grow under sales growth.
 The other costs as shown in the adjacent table appear to follow an
increase of 1.3% / year on the basis of Average the CPI 2014.
Controls
Our marketing plan is structured to enable us to achieve the strategic
goals we have set for ourselves, in terms of increasing overall revenue as
a result of differentiating our products and services from the competition.
Our marketing team will ensure that the plan is implemented to the best
of their ability and with the highest levels of efficiency and accuracy.
Marketing Organization
Our marketing director leads our PR and marketing team in all
advertising, promotional and public relations related activities,
monitoring the effectiveness of the marketing plan and evaluate results.
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Awards
With countless guests repeatedly choosing Cactus Royal to spend their
holidays, the reputation of the hotel has spread to all four corners of the
world. Our marketing strategy, also, leads our hotel to gain every year
more and more awards.
As our main effort and goal is to offer the best possible holiday solutions
to all our guests. As a result, Cactus Royal has been selected among
thousands of hotels and has won several annual awards from different
tour operators and tourism competitions. Below you may find a sample of
them:
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The hotel was checked and completed the criteria needed for all the types
of the certifications mentioned, showing very high commitment to
sustainability and social responsibility. With all these awards and
certifications Cactus Royal Spa & Resort creates opportunities for
improvement, communicates its actions and encourages others to act in
the same way.
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CACTUS ROYAL Spa & Resort, Ag. Ioannis str., 70007, Stalis, Crete, Greece.
Tel. +30 28970 35001• Fax. +30 28970 35080
www.cactushotels.gr• [email protected]
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