COLORADO SPRINGS — The Broadmoor hotel is trying a new tactic to combat the sinking economy and lure gun-shy event planners: It lives up to its five-star reputation or your money back.
Money-back guarantees are commonplace in many businesses but unheard of when it comes to high-priced resorts.
“This is a very simple proposition: We perform or you don’t pay,” said Broadmoor marketing vice president John Washko. “What we’re doing is we’re making a bold statement in an effort to help our customers to move forward with a level of confidence that The Broadmoor is a responsible investment.”
It’s similar to Hyundai’s successful promotion in which buyers can return their new car with no penalty if they lose their job. It’s all about instilling confidence in the buyer, he said.
Bookings for the luxury resort are down 20 percent this year, Washko said, and it’s not just the lousy economy. Meeting planners have been stung by the negative publicity around corporate retreats to Las Vegas and other trendy locales. They’re avoiding resorts and trying to keep their meetings out of the spotlight and away from Congressional criticism.
“We have taken significant cancellations in 2009 like we’ve never seen before,” Washko said. “The hotel industry has become a target, and it’s almost a witch hunt from our legislature. They’re setting an environment where holding a meeting is a questionable activity, where we see it as a necessary activity.”
There are a couple caveats for the guarantee: It’s based on evaluations by participants – you can’t just say you didn’t like the drapes and ask for a refund. And it’s only for large meetings, involving 50 or more rooms for at least two nights.
Chelsy Offutt, public relations manager for Experience Pikes Peak at Colorado Springs, the local convention and visitors bureau, said The Broadmoor’s reputation allows it to put its service on the line like this.
“A five-star hotel guaranteeing their service — they’re obviously very confident in their product,” Offutt said.
