The LeapFrog Group is a Sydney based travel company, specialising in providing travel packages to the Travel Agency Industry. The company has a number of divisions, one of which is Hotel Cheque Pty. Ltd., which specialises in offering heavily discounted hotel accommodation to consumers.
John was invited to be involved with the company – with his brief being to popularise the hotel accommodation discount offer. Hotel Cheque’s business model was very simple. The company negotiated extraordinary accommodation discounts from hundreds of hotels around Australia, on the basis that guests enjoyed breakfast and dinner at the premises. With accommodation averaging around 65% occupancy at most hotels and resorts, the hotels were happy to provide such extraordinary discounts in order to fill rooms and therefore benefit from Food and Beverage expenditure. (Breakfast and dinner).
However, until John’s arrival, Hotel Cheque’s accommodation packages were predominantly used by the company as “promotional incentives” for various retailers and service providers. For example, the likes of Harvey Norman would promote “Get 2 free nights accommodation and any of 100 hotels, absolutely free when you buy a plasma TV”. John’s role was to consider “retail options” for the hotel offer.
John immediately saw this product as being absolutely ideal for “Television Infomercial Marketing”. He therefore produced 3 minute, 2 minute and 1 minute versions of a Television Infomercial, using the “wow factor” offer of “10 nights twin-share hotel accommodation for just $99!”
This was an extraordinary travel/holiday offer, with over 200 hotels around Australia to choose from, each of them costing less than $10 per night for twin-share accommodation! That’s less than $5 per person per night!
After he produced the television commercials, John negotiated excellent daytime rates with Capital City and Regional Networks, and then engaged the services of a Call Centre that had handled response from such marketing previously.
John also negotiated with Radio Stations, newspapers and magazines, where the media shared revenue with Hotel Cheque, in return for providing advertising space. In all instances, the offer of 10 nights twin-share accommodation for just $99 obviously had a powerful and magnetic appeal to the general public, with the meal condition of course, always being appropriately featured.
John always marketed the meal condition as something that was understandable, given the huge value of the accommodation offer. In all advertisements, he quoted “you need to eat breakfast and dinner at the hotel or resort, but you have to eat somewhere – so why not in the comfort of your own hotel.”
The vast majority of consumers who were attracted to this offer, completely understood the meal condition as being more than fair.
The result of this unique customer acquisition concept took many by surprise. The Building Society’s Home Loans quickly doubled and as a result, the Home Loan/Free Holiday offer became an ongoing product category. Within 2 years, the Society’s loans had tripled!
Aside from new homeowners, the offer was so appealing that re-financing became a large component of the Society’s overall loans. After all, why stay with a Bank that charges high fees and gives you nothing, when you could swap your home loan to the Greater Building Society and get an absolutely free holiday?
The concept was launched via heavy television advertising and when the offer reached its 6-month mark, “Customer Testimonials” became an integral part of the communications tactics.
After all, there is nothing stronger than a satisfied customer saying “we swapped our home loan from the bank to The Greater, where we enjoyed paying no fees and we got a free holiday!”
“The figures speak for themselves.Before we became part of John’s “wow environment”, our annual profit was about $120,000 a year.
Within 18 months of being involved with John’s coaching ideas, our profit within 18 months, grew to an annual rate of $440,000 a year!
That increased the value of our business fourfold – an outstanding result!
His system is applicable to any business-type.”
– Lisa TaylorNewcastle Knights Rugby League Club. NSW. Australia
– Natalie Kernke
Vibrosaun Sauna Massage. Qld. Australia