Sydney Lodges
After growing up in hotels around Australia, it was only natural that Dion Carnell would pursue a career in the accommodation industry. After completing his marketing degree at the University of Technology, Sydney, Dion joined a group of small boutique lodges as their marketing manager to put theory into practice, just as the travel industry was beginning to show the most dramatic decline in demand experienced in decades.
The Sydney Lodges group owns and operates nine boutique lodges in total, five in the Randwick/Coogee area of Sydney, three in the Potts Point/Kings Cross district of the city, and one holiday lodge on Great Keppel Island off the coast of Rockhampton in Queensland.
While being spread throughout diverse operating environments, the lodges are very similar with regards to product and operations, offering comfortable and stylish accommodation to suit most travel budgets.
Using strategies to achieve specific objectives, both property specific and across the group as a whole, is what Dion finds both challenging and rewarding. Dion says “the main mission of the Sydney Lodges group is to make comfortable, stylish and convenient accommodation in Sydney available to everyone, not just those with company credit cards and exuberant expense accounts. Dion argues that travellers on a budget are not a niche in these economic times but rather a large group of travel consumers always on the prowl for excellent value, not just a low price.
The Sydney Lodges product is predominantly budget accommodation but don’t be fooled by the term budget, with some of their properties offering many of the luxuries you would expect in larger, not to mention more expensive, five-star properties. Some of these facilities extend as far as climate control air-conditioning, Foxtel digital channels, flat LCD screen televisions and high speed wireless Internet access.
Dion mentions that being budget doesn’t mean being budget in all areas. He emphasises that customer value still must come from somewhere; $99 is still a lot of money for anyone, if you get no value for that price. That is why Sydney Lodges use quality in room products, whitegoods and linen from Expresso Services known for their highly efficient service and superior products. Another area Sydney Lodges refuse to compromise quality is in bedding, by using Sealy mattress guest comfort is assured. By using trusted suppliers such as Expresso Services and Sealy value is added for the guest increasing the likelihood of their return.
Dion has also shed some light on marketing distribution, he says that, “You can have the best/cheapest/most amazing product on the market but if nobody knows you are there, failure is almost guaranteed”.
Sydney Lodges, under Dion’s marketing regime, has extensively invested in many traditional media but also in many new and innovative channels in order to have the best chance at acquiring visitors to Sydney who are not only after a low rate but high value accommodation for that low rate, that Dion says is most of the travel market these days.
With overflowing media attention on the victims of the 2009 recession, it is both refreshing and reassuring to see a company such as Sydney Lodges that has ‘upped the ante’ and achieved outstanding growth in occupancy and revenue, without sacrificing average room rates. Dion won’t give away too much as to how Sydney Lodges achieved targets well beyond their 2009 plans but he says it would be mostly irrelevant to other hotels in his market, as Dion says, “There is no one rule, each situation is different, it is about being agile and being able to adapt to current environments without sacrificing profitability or growth.
How this is done will be different for everybody; it’s about knowing what you’re good at as a company, and avoiding areas where you are vulnerable.”
Dion also attributes the recent success of the Sydney Lodges to marketing actions that are specific to the nature of the accommodation industry, such as marketing the lodges as a service that, he says, is very different to marketing a tangible more homogenous product.
One of Dion’s key areas of focus is the intangibility of accommodation services and hence the need for positive visual cues to lower consumer-perceived risk when guests are booking a room and to re-ensure their purchase decision when they arrive for check-in at the hotel.
Dion is confident that guests of any of the Sydney Lodges feel comfortable when booking a room and on arrival due to a lengthy, but rewarding, project of lowering customer nervousness when booking budget accommodation in Sydney.
Sydney Lodges offers a range of budget accommodation throughout its diverse portfolio of properties, another strength that Dion says helps the group achieve results in multiple markets.
Perouse Lodge is located in Randwick, just minutes from an area known as ‘The Spot’ that is brimming with cafés and award winning restaurants. Like all five of the Randwick-based properties, Perouse Lodge is just seven minutes’ walk from Coogee Beach and even less from the University of New South Wales and the Prince of Wales Hospital.
Perouse Lodge is said to have the most features in the rooms out of all of the lodges, offering air-conditioning, cable channels, wireless Internet access, stunning en suites and beautifully designed rooms. Perouse Lodge appears to be a favourite among business travellers and visitors to UNSW.
High Cross Park Lodge offers a more homely style of accommodation with all the features of Perouse Lodge as well as kitchenettes in every room adding to the convenience of this heritage style property.
Just around the corner from High Cross Park Lodge is Avoca Lodge, the more budget property of the area. Avoca Lodge offers just the basics needed for a comfortable stay close to the hospital. Avoca Lodge has been known to offer unbeatable rates in the area from time-to-time, which is why this lodge has a strong a loyal group of returning guests.
St Marks Lodge is located at the northern end of Randwick, providing budget accommodation close to other attractions in Randwick such as the Royal Randwick Racecourse and the Royal Randwick Shopping Centre. Dion says St Marks Lodge tends to be popular between those wanting to stay in Sydney but who still enjoy the quietness of the suburban back streets, especially if they have travelled from more quiet, regional areas of NSW.
Close by is Alison Lodge. This is known in the area for offering fabulous weekly rates that can really save visitors some serious cash while staying in Sydney for longer than seven nights. With a bus stop right out the front, Alison Lodge is the perfect accommodation solution for those longer stays.
Over in Potts Point, Springfield Lodge competes with the big boys of accommodation, according to Dion. Springfield Lodge seems to give the more expensive hotels in the Kings Cross district a real run for their money, offering very similar accommodation in terms of features and comfort but for a fraction of the price. Springfield Lodge is known among travellers for its lower than low middle of the week rates that offer superior value for breathtaking rates. Springfield Lodge continues to stand strong on its perch on Springfield Ave as a visualisation of everything Sydney Lodges stands for.
Challis Lodge is just around the corner from Springfield Lodge, offering a quieter version of the Springfield Lodge accommodation. Challis Lodge is unique however as it offers two distinct styles of accommodation through en suite and shared facility rooms. Dion says that the key driver for Challis Lodge is that it offers far more flexibility in price and product than other hotels in the district.
Macleay Lodge sits tucked away on Macleay St very close to Challis Lodge. However, don’t be deceived by the small appearance of this little lodge. It is a very popular lodge due to its location and low rates – the lowest in the Sydney Lodges group. For those on a tight budget, Macleay Lodge is the oasis in a desert of tired and not so comfortable backpackers. While the rooms at Macleay Lodge do share bathroom facilities with other rooms, the style and cleanliness of this property makes it something never before seen in the lower end of the budget accommodation market.
Dion tells us that Macleay Lodge’s only down point is that due to its popularity, many miss out on the opportunity to stay in this gorgeous lodge and save some real money for more important things while visiting Sydney.
It is only expected that such a diverse range of properties could prove to be an operational nightmare. However, Dion tells of how in order to minimise operational difficulties, certain functions are centralised in the organisation while others are not. He says, “It’s not only about putting your best foot forward, it’s about being aware of external market conditions and being aware of internal competencies; this is how to know which is your best foot and, importantly, how to put it forward in the most beneficial way”.
Combining centralisation in some areas with decentralisation in others is how Sydney Lodges seems to be both in control but adaptable to changing market variables.
Customer service is another area that appears to hold a great degree of focus in the Sydney Lodges group. Management in the organisation mention that, “Most of the answers, with regards to product and customer satisfaction, are being given to you by the guests themselves; it’s just about how this information is used to create more value for future guests”.
Dion encourages listening to customer complaints, made both in person and through the ever growing popularity of online reviews, he also emphasises how each complaint is viewed as an opportunity to better the Sydney Lodges, rather than an attack on the group. At the same time, as Dion bluntly puts it, “You can’t be everything to everyone and in accommodation not every guest is going to be delighted with your product. That’s just the way it goes in services”.
It is, however, refreshing to see a group of accommodation providers going further than the traditional comment card when it comes to providing outstanding service.
Looking to the future, Sydney Lodges shows no signs of slowing down in occupancy and overall growth. This is, in a large part, due to their unique product, their ability to adjust to changing market environments and their ever continuing efforts to provide comfortable, stylish and convenient accommodation for all travellers.
Website: www.sydneylodges.com
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