GLOBAL UPDATE : SALES
Marketing OUT
OF THE recessıon
An emphasis on value , video and multiple channels is succeeding for Terranea Resort .
By Nathan Greenhalgh , associate editor
Aerial view of Terranea Resort
The primary market for the 582- room Terranea Resort , Rancho Palos Verdes , California , is Southern California , one of the U . S . regions hit hardest by the economic downturn with real estate turmoil and high unemployment .
However , since opening in 2009 the 102-acre ( 41-hectare ) oceanfront luxury resort — owned by Lowe Enterprises , Los Angeles , and managed by Lowe subsidiary Destination Hotels & Resorts , Englewood , Colorado — has seen steady revenue growth , with a 20 % year-on-year increase projected for this year .
This is partly thanks to a successful marketing campaign by Agnelo Fernandes , the resort ’ s vice president of marketing and sales and the 2012 HSMAI Resort Marketer of the Year . HOTELS spoke with Fernandes to find out more about his initiatives at Terranea .
HOTELS : You previously worked for Sonesta , Jade Resorts and Canyon Ranch .
How did your past experience shape your marketing strategy at Terranea ?
Agnelo Fernandes : One thing I ’ ve learned is there are no shortcuts to creating a brand with key differentiating points , as well as one that engages with clients .
It ’ s very important to find out who our customers are and find out what is relevant for them . To accomplish this , we did stakeholder interviews — from the ownership level to the on-site leadership — to discover the essence of Terranea . We also conducted focus group and online reputation studies and analyzed guest comments . The customer base for Terranea is roughly 35 to 60 years old , a mix of young and more mature families , typically with household income at US $ 125,000 and above . The customer that we ’ re looking for is more adventure-minded and wants new experiences in culinary and spa .
H : Did you work with any outside marketing agencies ?
AF : Our strategic marketing partner is MMGY Global . They helped us with research and the branding process . Most of the resorts in our competitive set emphasize their oceanfront location . While we are on the ocean , we wanted to be unique . The strategy was to introduce the concept called “ the land of Terranea .” The campaign is tagged “ discover a land not far away .”
H : How did the economic downturn affect your marketing campaign ?
AF : We were aggressive and bold , and once we launched our brand advertising we transitioned into a campaign that talked more about value . The customer is still interested in seeing value in marketing . If you do an image that speaks to just a beautiful resort in SoCal but doesn ’ t say what is in it for them monetarily , they shy away from it . Emotionally connective and transactional go hand-in-hand , so we have offered a US $ 200 resort credit deal that is featured in our advertising as a call to action .
14 HOTELS October 2012 www . hotelsmag . com