1. Problem statement
Spanish tourism sector is on a downward trend due to the financial crisis. This is reflected in shorter stays (2.6% drop), and fewer foreign visitors (1.2% drop). However, there is growth in nights spent amongst Spanish tourists (1.5% growth), and the number of British, French and Italian tourists (2% growth). At the same time, Paradores has a 12% increase in capacity from recent investments. The challenge for Paradores is how to design and implement a marketing plan in order to adapt to the changing environment and achieve the high occupancy rate (particularly during weekdays) that senior management demands.

2. 5C analysis
See Appendix I for more details – Marketing audit, which contains 5C analysis.

3. Alternative evaluation

Alternative areas to target Pros Cons Conclusion
Young market ( specifically the younger market in Spain) Broader customers portfolio; public characteristics fits with part of Paradores´ value proposition Reduced purchase power trigger price reduction; normally they prefer staying in hostels Target younger segment by providing trendier decor in the non-historical buildings. Offer special promotions and activities
Active tourism New trend in travelling philosophy and demand, which is line with Paradores´ main competitive advantages Not too common yet and need a special attention and specific means of communication Promote active tourism by promoting and sponsoring cultural activities as well as adventures and ecotourism-related programs
Business segment Normally more money to spend, cult and informed people who could enjoy a different kind of stay Architectural restrictions to many sites and a very exigent public Improve business facilities where possible, e.g. specific sites as corporate retreats / Corporate partnerships to offer national discounts/promotions
International markets Use of the existing