RUES Hotel Management & Consulting

Part II. A different Marketing Approach

Unusual Circumstances, Unusual Solutions

War economy  (economia de guerra) was the best definition for the economic crisis in El Salvador, affecting all businesses for over five years. Production and exports hardly reached 30 percent of their potential and the new government enforced a general austerity plan after the 1984 election. The former Sheraton had very little business when I arrived. Since the property was not generating revenue, we had no capital resources to implement a marketing program to lure new business or to upgrade the hotel’s programs and offerings to attract local patrons. In this area too I was presented with the challenge of achieving much with little.

The old-fashioned barter system

The Sheraton was not the only operation faced with cash flow problem when I became general manager. The global economic recession at that time had a marked effect on many businesses in El Salvador. This circumstance suggested an unusual but very effective solution to the hotel’s marketing problems based on “the old-fashioned barter system.” I set up an exchange-trade program for whatever service the hotel could provide to companies and firms that could provide publicity in exchange. The program was very beneficial both to the hotel and to the firms I contacted, since we all faced cash-flow difficulties.

The publicity exchange

The hotel received publicity through the former Sheraton monthly magazine, the News Gazette (a weekly Salvadorean newspaper printed in English), coverage on two local TV stations and three local radio stations, publicity columns in local, regional and international newspaper and magazines and advertising spots in telephone and trade directories.

In turn the hotels furnished lodgings, restaurant and bar service, banquet facilities, and office space to the firms who provided this publicity. Most of our marketing plan was executed through these arrangements at considerable savings, since the hotel could provide a few rooms or meals at very little cost.

Expanding the barter system

The barter system was applied whenever possible, sometimes in a most nontraditional fashion. For instance, for over four months a European performer entertained our patrons at our Rendez Vous supper club several nights a week in exchange for room and board. His performances contributed greatly to the rebirth of the supper club.

An American teacher spent six months at the Sheraton teaching English to our employees in exchange for a room and breakfast. Well-conceived barter arrangements offer each party in financial trouble the opportunity to continue and even expand without an investment. It is my conviction that mutually beneficial arrangements of this sort are very appropriate in the hospitality industry.