Drawing up a Plan
There are three basic questions that need to be answered:
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Who is my customer?
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What sort of product should I offer them?
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How do I tell them about it?
It is not enough to decide that every holidaymaker is your target customer. No matter what your product, small or large hotel, activity centre, farmhouse or restaurant, there is a specific market for you.
Examples:
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If you have a hotel with golfing or fishing nearby, you will sell to golfers and anglers
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If you have a large function room perhaps you will go after weddings and charity functions
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You might decide to develop learning holidays, painting, etc.
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Your restaurant might be more suited to Continentals rather than Americans or vice versa
You may have several types of target customers. You will need to be aware that some interests will clash. A busy disco with a young noisy crowd will not suit a French senior citizen group. Casual anglers may not mix with a more formal clientele. You need to be sensitive to the needs of your target customers and ensure they are compatible.
It is most important to look at your operation objectively. Recognise and, if possible, correct your weaknesses, acknowledge and exploit your strengths. Look at your product through the eyes of the potential customer, if it fits in with their needs and expectations you have identified your market.
Having decided what type of people would be most interested in your product, get to know all about them. Build up a profile of them, where they live, what income levels, family ties, where they travel to each year, how they organise their holidays, direct or through a club or travel agency. Prioritise your customers in terms of yield and cost of communicating with them.
Every client has basic expectations of the product he buys. It is the little extras that make him buy again. So ensure that your product not only offers the basics but goes further to satisfy the client.
Facilities
Facilities for anglers - do you have a rod room, drying facilities for wet clothes, somewhere for bait, reliable ghillies and boats?
For Continentals - do you have staff who speak Continental languages, do you have basic hotel information and menus translated?
For families - do you have baby-sitting, play rooms, specialised staff to entertain children?
Do you have leisure facilities for all types of customers or just some?
Service
Will your target customers need special services, early or late breakfasts, packed lunches, special food or drink? Will your staff know of their needs and be informed and ready to help?
Comfort
Will your target customers expect extra comforts and facilities?
Atmosphere
Will they want peace and quiet or lively late nights, serenity or adventure?
Location
Do you have leaflets on tours or walks in your area, information on nearby places of interest?
Pricing
The old way of determining prices was to add up costs plus a margin of profit. Now it is more important to give value for money as perceived by the client. You must decide what your market will bear including your profit margin. Your prices must be competitive and yet cover your overheads. Large-scale cut prices are not generally a good idea. Special offers should only be introduced to:
Develop new markets or business
Fill empty spells. The business still needs to be profitable. You should recognise that marketing your product will cost you money. A rough guide is 3% of turnover. This is a cost factor when working out your pricing. Remember, you will have to operate a pricing structure in terms of group and individual bookings, trade and consumer bookings. We will offer some suggested levels later in this guide.
The holidaymaker will either buy direct or use a middleman (travel agent, tour operator, association or club etc.). In some markets such as Britain and France our visitors tend to make their own holiday arrangements, only using travel agents for tickets. Others, such as the US market, buy packaged holidays, that is buying at least two elements of their holiday in advance, usually tickets plus accommodation. Fáilte Ireland encourages visitors to buy package holidays. Programmes are in operation to train travel agents to sell not only access but other elements of the holiday.
Next: Selling to the holiday market
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