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New Zealand Lodge Case Analysis

Essay by   •  December 5, 2018  •  Case Study  •  821 Words (4 Pages)  •  464 Views

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Case Summary:

The Waimate Springs Lodge is located in the highland of New Zealand's South Island. The lodge is owned and conceptualized by Peter Slater, a New Zealand conservationist and his Indonesian partner, son of the former prime minister. The whole concept of the Lodge is to create top of the line accommodations for elite international guests. The property would allow for elites to get rid of their bodyguards, by providing a peaceful and secluded environment. To protect guest anonymity and privacy there are only 10 full time staff members and two seasonal guides.

The Lodge provides sleeping units bigger than the traditional hotel rooms with breathtaking views, a hunting range sporting, elk, deer, chamois, and wapiti animals. They also provide other activities for guests who do not wish to hunt such as: scenic safaris, golfing, horse trekking, helicopter rides to Lake Tekapo, and nature walks. The Lodge relies heavily on positive word of mouth, publicity and public relations advertising to attract new customers. The company has seen some backlash from local lobbyist groups stating that local New Zealanders were not allowed to be guest on the premisses, the were also not happy that the property was ran by foreigners, and that they did not receive any financial returns from any revenues earned on the grounds of the Lodge.

Case Study Questions:

The characteristics of the market segment that the Lodge is attracting is individuals or groups who seek a destination that provides private and secluded accommodations. This clientele would need to be apart of the upper class with disposable incomes to afford the lodges NZ$700, a night stay. Currently the exchange rate is 1 NZ dollar to .67 US dollars. Which makes it approximately US$466 dollars per night. On average a person spending a 7 day week, would have to be willing and capable of spending US$3,262 and that does not included incidentals. Comfortably an individual would need a budget of US$10,000 to enjoy the full amenities offered.

The target customers are foreigners and not New Zealanders because the 28000 hectares landscape and views is an oddity to foreigners. Most individuals with disposable incomes will travel from overseas for the exposure and privacy provided by the lodge. According to Leitch (2017), only New Zealand elected government representatives and judges make enough money to afford this type of disposable income. With that kind of income it is not feasible to vacation in one's own backyard.

In regards to reliability, quality and range of services customers will be met with high levels of satisfaction. Receiving elite customer service from a full time staff trained to accommodate each customers unique demands. They will be surrounded by great scenery, have peaceful and private accomodations. Each rooms arrangements will have double the size of a typical lodge room. Each customer will have the ability to participate in a variety of superior resort activities.

The lodge has certain implications in its current state. The lodge provides great seclusion and privacy in comparison to other lodges in like locations. They appeal to customers because not many lodges cater to the elite in this



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