Engaging the Small Medium Enterprise (SME) market for business travel using the B2B approach.
“MODIV played a crucial role in transforming the company's approach to the SME market. With strategic development and implementation of the new program, MODIV delivered beyond a mere program, providing Sonesta us with a new direction yielding promising results.”
- 01 APPROACH
- 02 MAKING MOVES
- 03 DELIVERING VALUE
The project began with establishing a governance structure, identifying, and engaging key stakeholders, and setting up communication and management plans. Next, we our team conducted in-depth market research to understand the SME landscape, gaining critical insights to guide our strategy.
In the next phase, we developed the SME program's framework, focusing on rate structures, value propositions, and program components. Design efforts also included strategic planning for digital marketing, loyalty incentives, and key performance indicators, ensuring a cohesive and attractive offering for SMEs.
With the design in place, we moved to actualize the program components, finalizing value propositions, and developing marketing materials and sales training resources. This phase was pivotal in translating our strategic vision into tangible offerings and tools for both client and its SME customers.
The culmination of our efforts was the rollout of the new B2B program, marked by comprehensive training sessions, the implementation of necessary technology changes, and the activation of program benefits across all properties.
The B2B initiative significantly offset the revenue falloff from Courtyard and IHG hotel conversions, reinforcing our Client’s value proposition to current and prospective owners. It addressed a substantial revenue opportunity, estimated at $162M across all brands, by distinguishing itself from competitors with a unique offer that includes groups and meetings. The program's structure, aiming for more profitable engagements than those sourced from alternate channels like OTAs, also phased out most property-negotiated accounts, streamlining the business engagement process.
The B2B program not only successfully recovered lost revenue streams but also established the brand as a forward-thinking leader in the mid-market business travel sector. This strategic maneuver not only attracted a new customer base but also fostered loyalty among existing clients, laying a solid groundwork for continued growth and market share expansion.