Our Work | MODIV

OPPORTUNITY

The client was experiencing a significant reduction in business following the transition from being flagged as a competitive brand/properties. This transition necessitated the replacement of approximately 46% of loyalty/system-specific transient business, a reclaim of about 23% in Special Corporate business via National/Global Sales, and a focus on the SMERF (Social, Military, Educational, Religious, and Fraternal groups) segment, which comprised roughly 33% of the group segmentation for one brand’s properties.

MODIV noted that since 61% of locations are suburban or office park-based, there was a substantial opportunity to expand within the SMERF market which has an estimated $100 billion annual economic impact on the hospitality industry in the United States. Despite its size, this market is often overlooked by competitors, providing a unique niche for our client to target.

MODIV developed and implemented B2B programming for SMERF customers to help sustain bookings, focusing on events that occur during weekends, shoulder seasons, and low seasons, which are critical times when properties typically experience lower occupancy rates. Hotel programming for SMERF includes landing pages on brand websites (based on segment), book direct portals, packages, breakfast offerings, A/V needs, group travel planning support and more.

The implementation of the SMERF strategy marked a significant milestone for the client and its owners, delivering tangible value across various dimensions. The strategy directly contributed to offsetting revenue falloff from the transition, leveraging the consistent and resilient nature of SMERF bookings to maintain occupancy rates. The establishment of a specific brand that truly "gets" SMERF business enhanced its reputation, setting it apart as a preferred partner for SMERF events.

The Minimum Viable Product (MVP) for launch comprised several key components aimed at enhancing the SMERF customer experience and streamlining operational efficiency.

Client Offerings: Reduced administrative burdens and expedite the booking process for SMERF groups.
Food & Beverage: The introduction of a sports grab-and-go breakfast option included in the room rate addressed the specific needs of athletic groups, providing them with convenience and value.
Internal Processes: The strategy streamlined internal processes that allowed for better tracking of SMERF business and more efficient management of group rates and bookings.
Training and Communication: Comprehensive training for each SMERF sub-segment/persona ensured that hotel staff were well-versed in the specific needs and preferences of each group type.

Targeting SMERF as a unique niche for hotels/brands.

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