Art Series Hotels: OVERSTAY CHECKOUT [video]

Credits & Description:

Type of entry: Product & Service
Category: Entertainment & Leisure
Advertiser: ART SERIES HOTELS
Product/Service: HOTEL ACCOMMODATION
Agency: NAKED COMMUNICATIONS Cremorne, AUSTRALIA
Designer: Yann Micuta (Naked Communications)
Communications Strategist: Lach Hall (Naked Communications)
Expressions Director: Anna Reynolds (Naked Communications)
Creative: Tristan Graham (Naked Communications)
Creative: Sesh Moodley (Naked Communications)
Creative: Kat Mercer (Naked Communications)
Head Of Ideas: Simon Veksner (Naked Communications)
Planning: Adam Ferrier (Naked Communications)
Managing Director: Matt Houltham (Naked Communications)
Describe the brief from the client
Art Series Hotels are a boutique luxury hotel chain. Each summer they experience a downturn in sales due to their normal clientele, business travellers, not travelling. They needed a way to increase bookings during this month and similar periods of low occupancy by attracting more leisure travellers. They needed an idea that:
1. Sold an additional 1,000 beds above expected occupancy between Dec 16th and Jan 13th
2. Could be turned on and off to stimulate demand for the hotel as required
3. Would generate PR and reinforce Art Series Hotels' positioning as an innovator
Promotion Development
The solution was the Overstay Checkout. An idea that did away with the 11:00am checkout rule and allowed guests to stay on free until their room was needed for the next guest. Crucially, this meant that if no one was booked in for the next night, guests could stay another night free. And if no one was booked in for the night after that, they could stay again and again and theoretically never leave. The campaign was expected to exceed room night targets and create mass PR due to its innovative nature and stories of guests staying endlessly for free.
Results
The promotion was a tremendous success, beating sales targets by 55%, generating $1.5m in PR and being heralded by PSFK, Fast Company and other influential titles as a genuine innovation in the hotel industry for solving the age-old issue of how to deal with unsold rooms. In particular, the response from guests ecstatic from staying two, three, or more extra free nights was the best the hotel had ever experienced recording an increase in positive online reviews on Facebook and travel sites of 400%.
Above all, our small $80,000 marketing budget created the impressive ROI of 359%.
Relevancy to Product/Service
Research with leisure travellers revealed they were more flexible with travel plans than business travellers and that amongst their top pain points was the 11:00 checkout. Research with the hotel uncovered that during low occupancy there were no major financial/logistical reasons why they needed to enforce the 11:00 checkout rule. In fact, having guests stay longer meant they’d spend more on room service and other hotel facilities.
The Overstay Checkout delivered immense value to the guest (free hours/nights) and immense value to the hotel as it monetised unsold inventory.