For a picture of how a niche market series and our inn consulting services benefited an actual lodging facility, please review the following. It could be you!
Keep in mind that, while this facility may have naturally received some traditional, transient business over the course of their slow season, this is, for the most part, an entirely new revenue stream that they did not have access to prior to developing a niche market.
The additional revenue derived from hosting these niche events dramatically enhanced their financial picture, and appreciably moderated the revenue peaks and valleys endemic to their otherwise seasonally affected lodging property.
Inn locale and description:
- General Locale: New England Ski Resort
- Facility style: Ski Lodge
- Busy Season: Christmas to end of March
- Slow Season: April to Christmas
- Price level: Economy
- Rooms: 25
- Restaurant: Guests only – seating for 50+
- Public areas: Two living rooms, game room, BYOB pub
Niche Market Events (12 total weekends):
- April – 2 weekends
- May – 3 weekends
- June – 1 weekend
- August – 1 weekend
- September – 2 weekends
- November – 2 weekends
- December – 1 weekend
Average number of participants per event: 31 (range of 18 to 34 guests)
Cost per attendee paid to the niche facilitator by hosting facility: $30.00
Average package price: $300 dbl occ (plus Tax & Service)
Average weekend revenue (not including T&S): $4650.00
Gross Revenue (not including T&S): $55,800.00
Net Revenue before standard expenses: $55,800 – $11,160 (total facilitator fee) = $44,640
One note is that there was even more room for growth because during April they only offered two weekends, and October, after the Fall Foliage season was over, wasn’t utilized either. These additional four weekends could have added another $14,880 to the Net Revenue. (Those weekends over the course of the Summer that weren’t booked for this particular niche market were being marketed for other niche markets which had previously been developed).
When the innkeepers were questioned about the reason behind not “niching” those April and October weekends, they mumbled something about “needing a vacation” or something silly like that. Can you imagine that? An innkeeper taking a vacation?! Well, we suppose that, after adding $45k to their revenue stream, they deserved a break, and, with that additional revenue, they could certainly afford one!
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If your facility is faced with the slow season blues, we invite you to consider developing a relationship with our Inn Consulting team, so that we can move forward in producing a successful and profitable series of niches for your hospitality facility.