Serial 4: Tjibbe Lambers, Director of Resorts Marketing, Hershey Entertainment & Resorts, USA

Tjibbe lambers

DIRECTOR of resorts marketing, Hershey entertainment and resorts, Hershey, pennsylvania, usa


Interviewed by lily lin

INTRODUCTION

Tjibbe Lambers is a graduate of Hotelschool The Hague.  In fact, not only he was one of my marketing students, for 2 years until graduation, he was also my student assistant.  He did his management internship with Hershey Entertainment and Resorts.  After graduation, he stayed with the Company, working in the marketing department at one of the hotels.  In time he was promoted into the headquarters.  He is now the Director of Resorts Marketing, overseeing marketing strategies on two hotels, 14 restaurants, four golf courses and a chocolate spa.  He reports to the VP of Marketing.

Hershey Entertainment & Resorts is a privately held company founded in 1927 when Milton S. Hershey separated his chocolate manufacturing operations from his other businesses.  The Hotel Hershey is one of America's landmark hotels, offering 276 guest rooms and 23,500 square feet of meeting and function space.  Situated high atop the town of Hershey, Pennsylvania, the 1930's hotel is a recipient of both the Forbes Four-Star Award and the AAA Four-Diamond Award. The Hotel Hershey is also a member of Historic Hotels of America.  The Hotel Hershey is one in a collection of Hershey Resorts, the official resorts of Hersheypark. The other two include Hershey Lodge and the Hershey Highmeadow Campground.

INTERVIEW

When you were a student at the Hotelschool, you did a research.  It was about the extent of marketing applications in the hotel industry.  I remember you and your teammate gave a presentation about your research findings in front of many people from the travel industry.  To make it a long story short, at the time, you were not at all impressed by the industry’s marketing knowledge and practice.  Now that you are on the other side of the fence, do you still feel the same way?

I think there has been a revolution.  Marketing has become a more and more integrated process.  We are focused on much more selling the experience instead of just selling hotel rooms.  Of course, it depends on the company, whether you are more financially driven or more marketing-driven.  The company’s orientation helps to determine where and how marketing plays its role.  My current view about marketing is mostly based on my experience in the US.

When you were a student, which subjects that interested you the most and why?

It was definitely marketing!  Many people misunderstand and believe that marketing is all about creativity and fun.  Actually, marketing is much more complicated than that.  Marketing, by nature, is an integrated subject.  Studying marketing courses at the Hotelschool the Hague taught me theoretically how marketing strategy is developed, such as using the information from marketing research to design your promotional strategy.  Since I started working in the marketing field, I’ve learned how you blend different aspects of marketing together, so that analytically you have an in-depth understanding of what marketing is.

  

Can you tell us something about Hershey?

Hershey is a town built on chocolate.  In the early 1900s, Milton Hershey built a chocolate factory.  He envisioned a community around his factory with schools and even a park for his employees to relax and enjoy themselves, which later became known as Hersheypark.  In the late 1920, he separated his chocolate factory and the entertainment part of his business.  Today we have two resorts, The Hotel Hershey and Hershey Lodge, which is also a convention center.  In addition to various rides in our amusement park, we also put on concerts and shows in the Park.  Famous bands such as U2 and the Rolling Stone have played at our stadium.  Besides, we have four golf courses and a well-known Chocolate spa.

Hershey is not your average hotel company.  I have a feeling that Hershey’s business model is somewhat like Disneyland but with a twist.  Do you agree?

Yes.  We share certain similarities in our product offerings and the markets we target.  Like Disney, we focus on families during the summer time.  But during the shoulder seasons, our resorts business, which accounts for 60 percent of our overall business, focuses on group and business segments.  On the other hand, we are somewhat different from that of Disneyland.  Disney is a profit organization.  To fulfill Milton Hershey’s dream, Hershey donates certain amount of its profit to the Milton Hershey School, the largest home and school in the world for children in need.

Can you explain your responsibilities and the reporting structure at Hershey?

I am the Director of Resorts Marketing.  The resorts include the two hotels, which we promote regionally, fourteen restaurants, which we promote locally, the chocolate spa, and four golf courses with a total of 63 holes.  I am responsible for promoting our resorts and driving their revenue.  Our department has about 35 marketing employees, each specializes in a given function; for example, we have an Interactive marketing expert, who is responsible for online marketing. 

What is the relationship between your position and the position of Revenue Director?

We work closely with the Revenue Director to create new business opportunities to generate revenue.  We go over business intelligence reports and use forecasting tools to review business levels.  We discuss pricing strategies and combine our views with customer’s feedback – what Reservations is hearing from callers - we then formulate the marketing mix.

Who does the Revenue Director report to?

It’s kind of unique in our company.  The Revenue Director reports to the Director of Sales, and the Director of Sales, in turn, reports to the VP of Operations Management, who in turn, reports to the COO .  On the other hand, I report to the VP of Marketing, who reports to the CMO .

Do you think that this organization set up is a bit cumbersome?  I mean the command chain for the Revenue Director is separated from that of your command chain, which means when making important management decisions, he has to first report to the Director of Sales, who reports to the VP of Operations Management, who then contacts your boss, the VP of Marketing.

Yes, it’s very different, but the VPs work very closely together and so do the DOS and DOM .  In the past, the Revenue Director reported to the GM, but the current set up works well for us.

The development of revenue management in the hotel industry in recent years has affected and even changed many hotels’ organization structure.  This, among other things, has impacted Sales and Marketing in various ways.  As the Director of Resorts Marketing, what is your view on this development?  Should Marketing and Revenue Management integrate?

It’s an interesting concept!  Marketing is a part of the force that drives revenue.  Decisions would be easier if marketing and revenue management were integrated.  When you look at the development of social media, to me, it is an opportunity to work together.

Do you mean that social media is not only a source for promotion but also a source to capture sales, such as making room reservation?

Exactly!  It’s going to be the future.  In the future, there will be so much integration between communicating with your guests and being able to provide transaction at the same time.

In your opinion, how will changes in marketing functions affect your work? 

I think the changes will provide opportunities for us.  When I read the marketing spreadsheets and forecast reports, I question, where are the opportunities?  Which price is the best for this market?  The future changes in marketing is all about understanding numbers; i.e., be able to analyze numbers and interpret what the numbers are saying.  Are the offers we make fit within a price range?  I also see some struggles, such as decision on which distribution channel to promote.

Are you involved in product development and improvement? 

In the US, product and branding play such a big role!  Marketing is the key in the development of product and branding.  It all starts with marketing, from market research and understanding what the consumer wants, to the development of the product and the delivery of the message; marketing plays a key role in the success of an organization.

You have been with Hershey for a long time.  You must like your job very much.  Which aspect of this job attracts you the most and why?

Hershey is an amazing brand!  People can relate to our products.  The brand attributes of Hershey are genuine, delightful, and unique, which is highly relatable with consumers.  Being able to promote Hershey makes me feel that I contribute to and add value to the brand.  In addition, Hershey is close to major markets, including New York City, Philadelphia, Baltimore, and Washington, DC.  There are 60 million people who live within a 4-hour driving distance from Hershey.  It is a great market to tap into but it is also one of the most expensive markets in media buy; this presents a real challenge.  It’s exciting to work for Hershey because not a day is the same.  In addition, the management is so inclusive and supportive; it really is a great company to work for. 

You started working at The Hotel Hershey as a student trainee.  You are now working at the headquarters as one of the senior management.  Why do you think the company had chosen you for your current position?

It was due to a combination of few things.  I did a research report about the applications of marketing in the hotel industry in my senior year at the Hotelschool The Hague.  The GM at the time, who is Dutch and a graduate of the Hotelschool The Hague, noticed my interest and my desire to be more involved in the marketing field.  He gave me an opportunity to do my management internship in marketing at Hershey.  Also, being flexible, open to new ideas and willing to try new things gave me the opportunity to focus on areas where I could grow.  After I graduated from the Hotelschool the Hague, the Marketing Manager at the time took a maternity leave.  You might say that I was at the right place and at the right time …..

What are the most important lessons you have learned from your current job?

You should always focus on what you are good at --- knowing your skills (your strengths) and apply them effectively is very important.  For example, having an affinity for numbers and an analytical mind allow me to routinely analyze marketing reports and promotional campaign results.  In this day and age, it is absolutely necessary to have a good analytical skill for marketing managers.  Also, the ability in building relationships and networking is important.  Being involved with HSMAI gives me the opportunity to be well connected with members in the industry so that I can bring external knowledge back into the organization, adding value to my position.   

Originally, you came from Brazil.  However, while studying at the Hotelschool the Hague in the Netherlands, most of your friends were Scandinavians.  In fact, many, including me, thought that you were from Scandinavia because of your appearance and mannerism.  When you moved to the US and started working for Hershey in Pennsylvania, did you find it difficult to make cultural adjustment?  After all, Pennsylvania, comparing to the West Coast, is a rather conservative state.  It resembles neither Brazilian culture nor shares a lot of commonality with Scandinavian culture.

Yes.  It took a while for me to adapt, from Brazil to Holland and from Holland to the US.  Because Hershey is a small and close-knitted community, initially, it was very difficult for me to adjust.

What is the difference between the European hotel market and American hotel market?

I have not had much experience with the European hotel market.  But I do see that in Europe there is some influence from the US hotel industry.

The theoretical segmentation model is quite different from that of the segmentation concept used by the hotel industry.  Segmentation is about dividing the “market” into mutually exclusive groups with similar demands, in order to determine which segment(s) to target.  Many hotels, on the other hand, simply divide their hotel guests into group, transient and contract segments.   What is your opinion on this approach?

We spend a lot of time on segmentation.  It’s interesting that you bring it up.  Many hotels focus on group, transient and contract segments.  What we have done is divide the leisure guests into, for example, family vacationers, golf players, spa guests, etc.  We then segment them further into platinum, gold and silver guests based on value, loyalty and seasonality of their visit.  We use an integrated marketing approach to target these segments on a more personal level with message that speaks to them.

But business intelligence reports, such as STR segmentation reports, or TravelClick’s Hotelligence reports, do not use the segments you just mentioned to make their market intelligence reports for their hotel clients.  Instead, the most frequently used are group, transient and contract segments.  So, while a hotel may talk about aiming at, for example, life style segment at the marketplace, its internal reports compare the performance of group, transient and contract segments.  In essence, there is very little concrete data supporting the life style segment because most of the market intelligence reports use a different set of criteria for performance comparisons.

That’s correct.  In my opinion, the industry is still in the infancy stage of producing market intelligence reports that reflect the market conditions accurately and is consistent with the company’s marketing aims.

As you know, the younger generation sees that the virtual world as an “alternative world”.  Some of the things would not be possible in the physical world but it is a way of life in the virtual world.  For example, the number of “virtual friends” one is able to accumulate in a short period of time is staggering and is nearly impossible to achieve it if this were to be accomplished in the physical world.  Also, the extent and the speed of information sharing in the virtual world are unprecedented.  In light of these life-changing developments, do you pursue an online marketing strategy and an offline marketing strategy?

Even though we have different strategies online and offline, it complements the overall goals of the marketing plan --- it’s about building an integrated marketing strategy, where each channel supports the overall goal of the campaign.  However, sometimes, the online strategy we use, you won’t see it offline.

In this day and age, nothing will stay constant for long.  In your opinion, what comes after social media?

I wish I had a crystal ball!  We are still in the early stage of social media.  Technology, personalization and the use of different distribution channels will be the important issues for a number of years to come.  The future is about how we can successfully manage these issues.  Right now, we’re trying to establish a relationship with the consumers.  In the future, we will have to focus on managing the existing relationship.  As for our approach, it will be defined by the direction of  technological development.  Nevertheless, simplicity will be the key for us.  For instance, simplicity of the messages and the technology used are the key issues for the baby-boomers market, which is a huge market and will become even more prevalent in the future.

Do you think mobile devices will replace desktop or laptop computers in the travel industry?

Mobile is just another means for people to get engaged.  Mobile devices will be main stream as far as travelers educating themselves about the offers and their availability in the marketplace, as well as the ability to make reservation on the go.

What advice would you give to our students who are interested in pursuing a career path in marketing management?

·        Understand what marketing is all about, both in theory and in applications.

·        Gain some experience in operations management.  I did Operations Management in Hershey.  It helped me to gain a better perspective that marketing needs the support of Operations Management to make marketing ideas a reality.

·        Having knowledge of revenue management would help also.

Do you think Operations Management should understand Marketing?

Absolutely!  Marketing contributes to adding value to the company’s offer via its promotion and branding.

What is the single most standout moment that you are most proud of?

In 2010 I was presented with the Top 25 Most Extraordinary Minds in Hospitality Sales & Marketing Award by HSMAI.  It was one of my proudest moments!  Another thing I’m proud of is seeing the team’s effort, from strategy to execution, reach the marketplace.

Finally, in term of your career, what’s next? 

I’ve never forgotten something you told me when I was your student.  You said that I would make a good teacher.  I’ve been playing with the idea.  Perhaps, someday I will become a teacher --- or even a professor!