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Automatic checkout machines
5
100
Electronic key system
11
100
Direct dialling from rooms
84
100
Point of sales terminals
69
100
Fire detectors
89
100
Office services available
49
100
Fax service available
95
100
Promotion
The promotional expenditure of Freemantle had always been considerably higher than the
competition, though the mix of expenditure had been very different. Table 12G compares
the world market pattern with the average for the Pacific.
Table 12G. Marketing costs for the Freemantle group per room compared against world,
and Pacific Rim averages in $.
World
Pacific
Freemantle
Pay-roll
385
345
320
Sales expenses
225
230
220
Advertising:
Print
175
253
300
Radio& TV
30
12
75
Outdoor
50
15
-
Other
250
220
110
Merchandising
100
101
85
Public relations
75
43
-
The company had emphasised the use of print media, with detailed descriptions of the
benefits of the hotel in the business media. They considered that radio and TV were
inappropriate for the Australian market and the position that the company now occupied.
The company also spent money on brochure material which was distributed through the
retail trade and encouraging travel outlets to promote the group. It had not used public
relations over the last few years.
Organisation
Freemantle maintained a simple and thin organisational structure. Each hotel had a
general manager, responsible for all budgetary expenditure. The head office, with a staff of
10, controlled hotel co-ordination and negotiation with businesses and travel agents for
common rates across the hotel chain. The headquarters also had responsibilities to control
the cash within the group and acted to provide financial planning services.
The Pacific Rim
Each of the Pacific Rim markets had differed as to how their individual markets were set to
develop. The following discussion outlines in broad terms the trends in each of the main
markets.
Australia. By the end of the 1990s, the number of visitors to Australia had exceeded 2.5
million and tourism had overtaken wool as the main source of foreign exchange. As the
Australian economy weakened the Australian dollar declined and the country became a
low cost area for tourist visits. Over $15 billion was being invested in new tourist facilities,
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