Cannes Lions

HOTELS AND RESORTS

OGILVY & MATHER, Hong Kong / SHANGRI-LA HOTELS / 2012

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Shangri-La, like other luxury hotels, suffered in the 2008 - 2009 recession. Sales and profit fell. But rather than cutting prices, it used creativity to restore growth.There are two buttons to push for revenue growth in an hotel: guest count and spend. Returning to 2008 sales levels would require 10 extra stays per night per hotel, with no price discounting.The campaign delivered by creating a positive upward spiral of higher service expectations and delivery:Staff1. Staff were enthused by the campaign2. Guests rated staff more highly3. Guests had better staysGuests4. The campaign was noticed and enjoyed5. People chose to watch and share it6. The right impression was created7. Positive feelings led to greater interest8. More guests stayedShangri-La went against the category trend of rational claims. A deeply emotive campaign increased sales above target and faster than competitors`.

Campaign spend of $8m was probably responsible for around US$113m incremental revenue. The sales ROI is estimated at around 14:1, the profit ROI at around 6:1, and the shareholder value ROI at around 35:1.This case shows how creativity inspired both the internal and the external audiences.

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