Paper buoy

01 January 2000
Paper buoy

Proprietors of the Beechwood Hotel Don Birch and Lindsay Spalding went back to school last month at the Matthew Algie Coffee Speciality School in London.

The Beechwood Hotel's accommodation chart is full of blocks marked in green pen, signifying the impact that the short-break guide published by The Times newspaper and Johansens has had on the hotel.

Since publication of the guide on 17 September, the initials TT have been emblazoning the chart. "We had 10-15 brochure enquiries every day in the first week of The Times, with two firm bookings for four-night stays," says proprietor Don Birch.

The Daily Telegraph also published a short-break guide, but bookings from this have not been as successful. For every 10 bookings from The Times guide, there has been just one from the Telegraph.

The Times guide invited readers to collect four of the tokens that were published in the newspaper over 10 days. Readers were then entitled to one-third off the price of accommodation at any hotel included in the guide.

The overwhelming response to this promotion may be due to the special feature highlighting the Beechwood in the guide: the hotel was one of six featured in more depth. The partners feel that the hotel's role as a Caterer Adopted Business was partly responsible for this extra coverage.

"The feature has significantly helped. The Times would have resulted in good business in the spring, but the feature meant it had an immediate impact," Birch says.

The hotel participated in the same two promotions last year, when the Telegraph scheme proved more rewarding than has been the case this time round. Birch and Spalding say this is because last year the Beechwood was the only hotel in the area listed in the Telegraph guide, whereas this year there are about five. This fact clearly dilutes the impact of the hotel, says Birch.

For October/November this year compared with the same period last year, Telegraph bookings are down two-thirds, but The Times bookings are up from two to 30. Most of these are for three- and four-night stays.

Overall, total bookings for the two months are the same as those for last year, but Spalding says the hotel has had to turn away other business because of The Times customers.

So, despite their enthusiasm for the guide, the partners are aware that they have turned away rack-rate paying customers to accommodate the short-break visitors.

Birch and Spalding were initially worried about the type of customers the guides would attract. But early concerns that the short-break market would not sit comfortably with current guests were unfounded.

"On the phone, The Times readers asked very searching questions such as which was our best room. We haven't come into contact with such a demanding clientele before," says Birch.

"They have been the top end of our market, with lots of young people, and I think they'll come back," he adds.

To encourage return visits, the partners have told each guest about the room refurbishment they are undertaking in January. They hope that the customers will return to have a look.

Both Birch and Spalding believe that joining marketing group Johansens - joint producer of the guide with The Times - three years ago is the best move they ever made. Membership costs £1,000 annually, with involvement in extra promotions a further £100.

"It takes three years for it to start working: you have to give it time," explains Spalding.

Call to dinner

The one-third discount off the price of accommodation at the Beechwood means the double-room rate is reduced from £50 to £33, so the partners have been working hard to get people to have dinner in the restaurant.

"We sent out menu samples with every enquiry, to put it in their minds that the hotel has a nice restaurant. Because it's winter, it is more of an inducement to eat in the restaurant if you don't know the area," says Birch.

This hard work has paid off, with 90% of the short-break guests eating in the restaurant every night.

Occupancy looks strong for November as well, with a full house for every weekend. "It will be interesting to see what happens in December, January and February - these are the crucial months," says Spalding.

The extra revenue generated by the promotions has allowed a decision to put other events on hold. The two-for-the-price-of-one hot buffet lunches and themed evenings originally planned for early next year will be postponed until a less busy time.

"Themed nights only work well if the hotel is empty. Everybody has to be involved in this kind of evening. It's too much to do these and The Times," says Spalding.

Sunday charity nights, such as those held for the NSPCC, the animal shelter and the local church, probably will not be repeated this year. The extra local business the hotel is attracting has prompted this decision not to boost revenue through charity functions.

The Morgan Owners' Club (a vintage car enthusiasts' group), which stayed at the hotel at the beginning of October, took all nine rooms at full rack rate for Friday, Saturday and Sunday evenings. The group told the pair it had value for money, so will return, says Birch.

The Norfolk Small Business Initiative has booked a six-week series of two-day meetings including lunch and dinner, and the Norwich Museum took nine rooms for two nights at the end of October.

Other local bookings will roll the hotel into December, when Christmas functions will begin.

Christmas lunches - priced at £8 per person for a three-course turkey dinner with a choice of starter and £10 per person for a more extensive menu - will boost December's restaurant turnover.

To date, the hotel has 14 bookings for office parties and functions.

Once the Christmas season has finished, Birch and Spalding will be able to concentrate on some room refurbishment and vital purchases.

The success of the guide promotions and the Beechwood's deposit of £10 per person per night have boosted revenue, which will fund the planned work.

Two rooms will be redone, a new boiler bought and the curtains in the sitting-room replaced. The cash flow, plus the hotel's £50,000 overdraft, should be enough to cover the financing.

Quotes for the work have not been as shocking as Birch and Spalding expected. The new boiler should cost about £6,500 - an improvement on the estimated £10,000. A bedroom refurbishment has cost the hotel up to £6,000 in the past, including £2,500 going to an interior designer. This time around, quotes have been slightly more.

Next visit to Beechwood Hotel: 5 December, with a look at relief management

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