We all know the internet allows anything to be advertised and found at the click of a button. It makes life so much easier than trying to find things ‘the old fashion way’. However, when it comes to advertising, one of the best mediums for any business positioned on a main road, or anywhere there is a large amount of passing traffic is the exterior presentation and property signage. Motels are generally located where there are large amounts of passing traffic every day, for example a main road, highway, CBD, and so on. The impact to the potential customer/guest and value of this advertising medium can be easily underestimated. It raises the question, why is one of a motel’s biggest assets and advertising opportunities so often neglected? Motel exteriors/frontages and property signage are often tired, faded, obsolete or even falling down, and in many cases do not make a motel property look appealing from the street. Items such as discoloured painted walls, faded signage, damaged driveways, and lawns that need manicuring.
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MOTEL MARKET
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the year? How many vehicles, therefore potential guests and referrers would see it, and either be impressed or unimpressed by the signage? How many direct room sales, indirect room sales and value towards market awareness would be achieved?
Andrew Morgan, Queensland Tourism and Hospitality Brokers
The ‘off the street’ accommodation market is basing their split-second decision to stop the car at a particular motel largely based on this presentation and signage (as part of the entire exterior appeal). This market is there for the taking, the demand is there, the supply is there, it comes down to who appeals the most. Regarding signage, it would have to be one of the most costeffective advertising mediums available. This means taking into account the volume of travellers and commuters that see it every day, the capital cost, market positioning and differentiation and enhanced presentation. Cost vs benefit against other advertising mediums over the effective life of the signage would make it look inexpensive. For example, a $30,000 property sign with an effective life of say 10 years equates to $3,000 per annum. How many potential guests would see this over
The signage inserts would have exceeded their useful life before this time due to fading or the information becoming obsolete. The cost of replacing only the sign inserts on a more regular basis is very cost effective for the benefit gained. A motel’s exterior look and signage is largely what its perception in the market is based on. Those driving past that have never been inside the units, can only make an assessment on what they see for a brief moment. The first impression of good, bad or indifferent is made and that’s what they will run with. In that person’s mind, this is what they can expect to find inside the property. They may be the best rooms in town but unless potential guests or the general public are attracted from the outside, who would know. Studies show that customers are more likely to purchase from, and recommend, businesses with which they are familiar. If a person is travelling the same route, past the same properties regularly and even if they are not actually aware of it, the vision, signage and prompts they see along the way are making an impression. They
MANAGEMENT
are therefore more likely to comment on those properties they are familiar with and those with exterior appeal that has left them with a good impression of what lies within, when making recommendations or comments. The large capital cost is often the biggest issue for renewing property signage. In the case of leases, the Lessee would like to do a brand-new sign to improve the image of the motel. They want to improve the street appeal of the business and hopefully capture more ‘passer-by’ trade thereby increasing the occupancy and income of the business. This also strengthens the Lessor’s investment by having a stronger tenancy arrangement in place. Often the signage is a large structure that belongs to the Lessor as part of the building and the Lessee maintains it. The Lessor’s responsibility is then replacement. The inserts however (if easily replaced) would be more likely the Lessee’s responsibility. A well-presented and attractive frontage with prominent, eye-catching signage provides continual exposure to thousands of potential guests, building brand awareness and guiding traveller’s decisions on where to stay. I know it’s an old cliché but street appeal and property signage really is the silent salesperson, working hard to promote a business all day, every day. ResortNews | May 2022