The Main Marketing Activities of the Hotel “Titanic”

Social networks (creation of web-pages on Facebook, Instagram, Twitter)	0
Place the information about hotel in Booking.com and Tripadvisor	50
Professional editions (Boat International USA, Sail Magazine, Sailing World)	420
Advertising in the planes of AirBaltic	550
Printed materials at Information Tourists Centers in Riga	200
Official web-site, which have an opportunity for on-line booking	59,16
Signboard	137
Calendar-visit card	35
Total costs	1451,16

The Hotel will provide some special offers:

1. Happy Birthday package – 10 EUR for each person. If the customer books the banquet for more than 10 people he will be offered free birthday cake and 10% discount for the room.

2. Wedding package – 800 EUR for 15-45 people; include decorations, banquet, photo session, honey-room and 5% discount for accommodation of wedding guests.

3. When customer books the room for 3 or more nights he gets free breakfast for the whole period of staying.

4. Fish restaurant is open for public during the high season.

Price policy:

• Standard single – 50 EUR

• Standard double/twin – 55 EUR

• Junior suit – 60 EUR

• Suit deluxe – 70 EUR.

• The average bill in fish restaurant for visitors – 25 EUR

• Average expenses for food and beverage for guests of hotel (1 day) – 31 EUR.

After sales activities:

•  questionnaire before leaving the hotel about service quality;

• sending greeting cards for some holidays and birthdays by e-mail;

• questionnaire after 1 week;

• sending new propositions of the hotel by mail.

Financial Plan

To open a new hotel a large amount of funds is required. The most real way to find money is a long-term bank loan. The Latvian ABLV Bank will give the 150000 EUR loan for 8 years with 2,3% of the credit line amount. Credit line – 8 payments for 18750 EUR. First payment will constitute 500 EUR.

To register the hotel as Limited Liability Company it must have equity capital – 3800 EUR. The ship with remodeled into hotel rooms cabins will be chartered for 3 years with a possibility to buy it after. To save money for buying room and restaurant equipment it was made a decision to rent it for 1 year and to prolong the agreement. Before starting work it is necessary to sign an agreements with security and laundry companies and make a purchasing of cleaning tools, cosmetics for the first 6 month of work, and purchase bed linen and towels for the first operational year. Total expenses constitute 124061.20 EUR. Other expenses to open hotel are described in table 3.

Table 3

The Expenses to Start a Business

1.	Charter of a ship (advance payment for 1 year)	39000,00
2.	Rent of room equipment (payment for 1 year)	7800,00
3.	Rent of restaurant and bar equipment (for 1 year)	11400,00
4.	Purchasing of bed linen and towels	20382,56
5.	Purchasing of cosmetics (shampoos, balms, soups)	30394,65
6.	Purchasing of cleaning tools (trays, vacuum cleaner and so on)	4900,00
7.	Business machines (printer, computer)	3600,00
8.	Booking computer system (iMagic Hotel Reservation)	249,00
9.	Connection to Internet network	35,00
10.	First payment for bank loan	500,00
11.	Equity capital	3800,00
12.	Creation of web-site	2000,00
	Total expenses	124061,20

The amount of guests was calculated based on the assumption that every hundredth visitor of Riga will stay at the hotel. Approximate occupancy rate in the hotel in 1^st year will be 39% with the 2% increasing every year (at least first 4-5 years). The significant part of operational expenses has the salary of personnel. The first operational year expenses are shown in table 4.

Table 4