© 2007 CORNELL UNIVERSITY
DOI: 10.1177/0010880407302966
Volume 48, Issue 3 323-341
Driving Demand for
the Quarterdeck
A Case Study
by ROBERT J. KWORTNIK JR. and JAMES VOSBURGH
The Quarterdeck Beachside Villas and Grill is a small Doug Fowler, managing partner of the Quarterdeck
property that faces an all too common set of chal- Beachside Villas and Grill of Summerville Beach,
lenges, most of them stemming from steep sea- sipped coffee in the nearly empty restaurant overlooking
sonality. Located on Nova Scotia’s south shore, the the Atlantic Ocean and considered the past summer.
Quarterdeck sells out during the summer months but Doug bought the Quarterdeck in 1990 with two partners,
is nearly empty during the winter. This case study upgraded the property, and ran the resort. The past 
examines the Quarterdeck’s marketing approach and
outlines strategies for driving off-season demand by summer had been a success: strong occupancy meant 
focusing specifically on identifying guests’ needs and lodging-revenue projections of $500,000 for the year,
desires to develop new product bundles and market- and the restaurant had increased sales for the fifth
ing communications. Although these ideas emerge straight season. Yet the off-season was fast approaching,
from the Quarterdeck’s particular circumstances, the which meant the restaurant would close, room rates
strategies are applicable to many small hospitality would be reduced, and occupancy would diminish. Doug
companies that face seasonal demand. considered it a shame that the business died in autumn
and winter, and he wondered whether something could
Keywords: Nova Scotia; tourism demand generators; be done to boost nonpeak yields. He knew he was fortu-
seasonal resorts nate to be able to keep the Quarterdeck open at all since
most independent resorts in Nova Scotia shut down after
Thanksgiving. However, Doug vowed to investigate
It was a sunny October day following Canada’s ways to increase revenue during the off-season.Thanksgiving, with temperatures along the Nova This case study examines a problem common Scotia coast reaching 16° Celsius (60° Fahrenheit). to many hospitality companies that are located in
AUGUST 2007 Cornell Hotel and Restaurant Administration Quarterly 323
CQ CASES DRIVING DEMAND FOR THE QUARTERDECK: A CASE STUDY
geographic regions characterized by steep tubs, televisions with DVD players, and
seasonality: how to develop market demand high-speed wireless internet access—a luxu-
in shoulder and low-season periods. Diffi- rious amenity set relative to other resorts in
culties associated with identifying target the area. There is also an on-premises restau-
customers—both current and potential— rant specializing in seafood that has been
and forecasting demand are endemic to voted by guests as the number-one restaurant 
small, independent operations that lack the in Nova Scotia in the Taste of Nova Scotia
resources, personnel, or training to conduct poll. The villas were awarded four stars 
detailed market analysis. However, this from Canada Select, an industry-led rating
research is critical for a business’s long-term program intended to provide consistency 
viability, especially if growth plans depend of quality standards within categories of
on uncertain sources of revenue. Moreover, accommodation.2
the internet has provided research power Doug believed that the Quarterdeck’s
that was once available only to larger firms major selling feature is its beachfront loca-
with dedicated market-research depart- tion. Many of the activities offered rely on
ments. In the case that follows, we profile the ocean, such as kayaks, body boards, and
the Quarterdeck and highlight the marketing surfboards available for rent. Because of 
challenges this property faces. We next the Quarterdeck’s remote coastal location,
offer an analysis of the Quarterdeck’s market guests come for a retreat from the hustle and
situation and present a set of recommenda- bustle of their daily lives. A typical day at
tions for enhancing demand in light of the Quarterdeck starts with a walk along the
existing geographic, economic, and other beach in the cool morning air, followed by
constraints. We close by underscoring what time relaxing in the sun or a day trip by car
hospitality managers can learn—and apply to one of many picturesque towns that dot
to their operations—from the case of the the scenic Lighthouse Route for shopping
Quarterdeck.1 and sightseeing (see the map in Exhibit 2).
Families with young children enjoy trolling
The Quarterdeck Experience the beach for sand dollars and searching tide
Guests staying at the Quarterdeck Beach- pools for starfish. Parents love that they can
side Villas and Grill can fall asleep to the let their children play on the beach, while
sounds of the ocean. The Quarterdeck is sit- they can sit on their decks and relax with
uated on a mile-long, white-sand beach, two their children well within view. In the
hours southwest of Halifax, the capital of evening, guests can enjoy the specialty of
Nova Scotia. The property offers 16 upscale the Grill, planked salmon.
units, including 2 one-bedroom, single-story Business for towns along the south 
units; 13 two-bedroom, multilevel units with shore of Nova Scotia, from Halifax to
two full baths; and 1 three-bedroom cot- Yarmouth, is strong during the summer. The
tage right on the sand (see Exhibit 1). All Quarterdeck’s occupancy for high season
units face the ocean and have fireplaces, averages 90 percent (see Exhibit 3). Indeed,
full kitchens, bathrooms with Jacuzzi the property often turns away would-be
1. This case and analysis are based on the second author’s experiences as a guest and employee at the
Quarterdeck, as well as interviews with past guests, employees, and marketing professionals from the
Canadian lodging and tourism sectors. The Quarterdeck also provided access to guest records and perti-
nent financial information.
2. Canada Select, “What Is Canada Select?” www.canadaselect.com/CanadaSelectInformation/WhatIsCanadaSelect/
WhatIsCanadaSelect.cfm (accessed August 25, 2006).
324 Cornell Hotel and Restaurant Administration Quarterly AUGUST 2007
DRIVING DEMAND FOR THE QUARTERDECK: A CASE STUDY CQ CASES 
Exhibit 1:
The Quarterdeck Beachside Villas and Grill
guests during summer because the villas are winter. The Quarterdeck did make some
full. In contrast, during the late fall, winter, money in the off-season, even though Doug
and early spring, occupancy is low. Nearly decided to close the three-bedroom cottage
all of the tourist-based businesses in the and the two one-bedroom units after Thanks-
vicinity shut down due to minimal demand, giving. The Grill had to close because the
including almost a dozen small lodging facility is not winterized, and making it 
operations which close in mid-October, winter-worthy would cost more than $20,000.
after Thanksgiving weekend. Keeping the villas open without the restau-
The biggest hotel in the area, with 159 rant is possible because they have kitchen
rooms, White Point Beach Resort, does stay facilities, and Liverpool’s grocery stores are
open in winter. White Point offers some less than ten minutes away.
amenities, such as tennis courts and a swim- The main problems faced by the Quar-
ming pool, that the Quarterdeck does not terdeck and many other seasonal resorts in the
provide. Doug explained that he originally area are twofold: first, how to estimate poten-
kept the Quarterdeck open to heat the villas tial demand, and second, how to generate off-
in the winter so that the pipes would not peak demand. Compounding this problem for
freeze, although this offered the additional Doug is an investment decision: located across
benefits of discouraging guests from trying the street from the Quarterdeck is a parcel that
White Point in the off-season and also main- he is considering for development—perhaps
tained staff loyalty when many lodging oper- as an RV park or as luxury villas similar to
ations in the area simply lay off staff in the those on the beach—but only if the demand is
AUGUST 2007 Cornell Hotel and Restaurant Administration Quarterly 325
CQ CASES DRIVING DEMAND FOR THE QUARTERDECK: A CASE STUDY
Exhibit 2:
Map of the Quarterdeck Location
strong enough to fill whatever would be built Scotia is considered a “have-not province,”
there. which means it receives federal government
Complicating Doug’s decision is public payments to ensure provision of services 
perception. Nova Scotia evokes an image of to residents.3) The south shore area of the
sun and sand only in summer (and maybe province accounts for one-tenth of the
not even then). In summer, it is, as the province’s tourism revenue, at just over 
license plates say, “Canada’s Ocean Play- $100 million.4 Queen’s County, home to the
ground.” Typical temperatures range from an Quarterdeck, relies heavily on tourism, espe-
average of 70°F during the summer to 16°F cially during the summer. In 2002 tourism
during the winter. Tourism accounts for rev- generated almost $21 million and employed
enues of over C$1 billion—a sizable sum for nearly six hundred workers, all of this for a
an economically depressed province. (Nova county that had only 11,723 residents.5
3. CBC News, “Equalization Payments,” May 2, 2005, www.cbc.ca/news/background/cdngovernment/equalization
.html (accessed April 30, 2006).
4. Nova Scotia Department of Tourism, “Tourism Insights,” December 2005, www.gov.ns.ca/dtc/pubs/
insights/AbsPage.aspx?ID=1261&siteid=1&lang=1 (accessed April 30, 2006).
5. Region of Queens Municipality, “Region Statistics,” http://www.regionofqueens.com/index.asp?id=82
(accessed April 30, 2006).
326 Cornell Hotel and Restaurant Administration Quarterly AUGUST 2007
DRIVING DEMAND FOR THE QUARTERDECK: A CASE STUDY CQ CASES 
Exhibit 3:
Room Nights Sold and Occupancy Rates
2004 2005
Number of Average Number of Average
Room Occupancy Daily Rate Room Occupancy Daily Rate
Month Nights Sold Rate (%) (C$) Nights Sold Rate (%) (C$)
January 43 11.6 135 47 12.6 135
February 33 9.8 130 45 13.4 140
March 61 16.4 140 78 21.0 150
April 114 31.7 140 74 20.5 150
May 164 35.7 160 142 31.6 165
June 307 68.2 160 287 63.8 170
July 424 85.5 250 427 86.1 260
August 480 96.8 260 453 91.3 270
September 449 93.5 170 412 86.9 180
October 247 60.5 160 215 50.8 160
November 38 10.6 150 81 22.5 155
December 53 14.3 140 47 12.4 145
More than half of visitors to Nova smaller, high-speed catamaran, cutting the
Scotia come from other Maritime provinces, travel time to 5.5 hours, as compared with an
namely, Prince Edward Island, New overnight crossing on the old Scotia Prince.)
Brunswick, and Newfoundland and Lab- Moreover, catamaran service continued run-
rador.6 Visitation in the century’s first decade ning from Bar Harbor, Maine, to Yarmouth,
continues to increase from within Canada, which helped lessen the impact of losing the
while travel from the United States has yet to Scotia Prince. Guests still need to drive to the
return to pre-9/11 levels. Doug and the hotel hotel once they arrive on the ferry. If they
operators he knew said they were not seeing reached Yarmouth or Halifax without a car, a
U.S. tourists for a variety of reasons, includ- staff member could pick them up at a cost.
ing the rising value of the Canadian dollar Once they reached the hotel they were essen-
and the fact that the Scotia Prince ferry from tially stranded, however, and so few guests
Portland, Maine, to Yarmouth, Nova Scotia, took this approach.
was no longer running. That ferry annually Nova Scotia has considerable allure for
brought more than 220,000 passengers travelers who enjoyed outdoor activities—
and 38,000 vehicles to Nova Scotia until hiking, nature observation, beachcombing—
it ceased operation in 2004. In a typical year, but its culture and history also invited guests
one-third of all Americans visiting Nova to visit craft shops and museums.8 Not 
Scotia had come on this ferry.7 (The ferry ser- surprisingly, Nova Scotia’s provincial
vice from Portland resumed in 2006 with a marketing campaign for tourism omitted
6. “2004 Visitation to Nova Scotia,” www/gov.ns.ca/dtc/pubs/insights/AbsPage.aspx?ID=1249&siteid=
1&lang=1 (accessed April 30, 2006).
7. “Friends of Scotia Prince,” www.friendsofscotiaprince.com/ (accessed April 30, 2006).
8. “2004 South Shore Visitor Exit Survey,” www/gov.ns.ca/dtc/pubs/insights/AbsPage.aspx?lang=1&siteid=
1&id=1291 (accessed April 4, 2006).
AUGUST 2007 Cornell Hotel and Restaurant Administration Quarterly 327
CQ CASES DRIVING DEMAND FOR THE QUARTERDECK: A CASE STUDY
Exhibit 4:
Guest Source Markets in Canada (in percentages)
Source Market (Location) 2002 2003 2004 2005
Nova Scotia 46.6 56.8 55.9 56.4
Newfoundland and Labrador 0.5 0.2 0.0 0.1
Prince Edward Island 0.1 0.1 0.2 0.1
New Brunswick 4.1 4.3 6.3 7.0
Total Atlantic provinces 51.3 61.4 62.4 63.6
Quebec 6.8 2.7 1.4 2.7
Ontario 17.3 17.5 15.6 15.3
Manitoba 0.1 0.3 0.0 0.4
Saskatchewan 0.2 0.2 0.1 0.0
Alberta 1.1 1.6 2.6 3.0
British Columbia 0.9 1.0 0.4 1.2
Yukon 0.0 0.0 0.1 0.0
North West Territories 0.0 0.0 0.0 0.0
Total other provinces 26.4 23.3 20.2 22.6
Total Canadian guests 77.7 84.7 82.6 86.2
mention of the winter months.9 The province but major changes did not occur until
of Newfoundland and Labrador, on the other Doug became involved. He explained that
hand, spent more than C$5 million in the during fall 1994, the province of Nova Scotia
late 1990s to become the Maritimes’ winter was reeling from negative guest satisfaction
destination.10 While Nova Scotia enjoys when it came to accommodations. To com-
many demand drivers during the summer bat this, the province offered money to hotels
months, the absence of demand drivers in that would build two-bedroom housekeeping
winter make it hard to market the province as units. The Quarterdeck took advantage of
a winter destination. There are, for instance, this offer and received a grant of $350,000.
no provincial events or other attractions In 1995, Doug demolished the original cot-
along the lines of Quebec City’s successful tages to put up the current two-story units.
winter carnival.11 In short, hotels and restau- The Quarterdeck has a computerized
rants in Nova Scotia that want to increase database with thirty-four hundred guest
winter occupancy cannot rely on provincial records. The records include where the
help to make their operations year round. guests are from, how they heard about the
Quarterdeck, how many times they had
Marketing the Quarterdeck stayed at the hotel, how much they had
The Quarterdeck was founded in the spent on each visit, the types of gifts they
1930s as a roadside beachfront motel. have received from the hotel, and select per-
Typical of the day, the original cottages sonal data such as birthday or anniversary. A
were simple one-bedroom units. The Grill majority of guests come from within Nova
was built later as a roadside diner. Over the Scotia, mostly from Halifax (see Exhibit 4).
years, upgrades were made to the cabins, Doug considers his guests the elite of Nova
9. Tourism Insights, “Nova Scotia Tourism, Cultural & Heritage, 2004 Advertising Evaluation Study,” October
2005, www.gov.ns.ca/dtc/pubs/insights/AbsPage.aspx?siteid=1&lang=1&id=6 (accessed May 27, 2006).
10. Atlantic Canada Opportunities Agency, “Major Boost for Winter Tourism,” August 1, 1998, www.acoa.ca/
e/media/press/press.shtml?932 (accessed April 30, 2006).
11. Quebec Winter Carnival, “About Carnival,” April 2006, www.carnaval.qc.ca/en/histoire.stats.asp (accessed
May 27, 2006).
 328 Cornell Hotel and Restaurant Administration Quarterly AUGUST 2007
DRIVING DEMAND FOR THE QUARTERDECK: A CASE STUDY CQ CASES 
Scotia: government officials, business own- Quarterdeck—$35,000 per year. The Quarter-
ers, and wealthy retirees who can afford to deck advertised in the Halifax Chronicle
visit several times a year. These summer Herald newspaper, took part in television
guests occasionally return when the high co-op commercials with the province, and
season is over and the area is less busy. partnered in radio promotions with SUN FM
Doug believes that his guests are willing to (CKUL, now known as Kool FM) in
pay the Quarterdeck’s relatively high rates Halifax. The Quarterdeck also bought air-
because they perceive the value of this time closer to home on nearby radio and
upscale resort hotel as compared to one of cable TV stations. To measure the success
the plainer motels nearby. These guests typ- of these promotional efforts, Doug trained
ically come for multiple nights, dine at the the staff to ask guests how they heard about the
restaurant at least once, and are considered hotel—a practice still in use (see Exhibit 5).
the best customers since they are relatively Currently, the Quarterdeck has a smaller
price insensitive. annual marketing communications budget of
More than half of the guests who visit the around $25,000—roughly half of which is
Quarterdeck each year are repeat visitors. spent on guest-retention programs. Advertis-
This allows for personal relationships to ing in magazines and newspapers consumes
grow between staff and guests, as well as around 15 percent of this budget (see Exhibit
among guests. The front-office staff has been 6 for a sample advertisement), with most pro-
relatively stable over the years, enabling desk motion efforts focused on three other areas:
agents to recognize guests who have stayed internet, roadside, and specialty print (travel
before. Some staff kept up correspondence guides and brochures).
after guests returned home. Such recogni- The Quarterdeck’s major internet pres-
tion has been effective in getting guests to ence is its web site, which recently was
return year after year and reinforced the updated to have a more professional appear-
Quarterdeck’s strategy of personalized mail- ance. The web site outlines what there is to
ings. (For many years, the Quarterdeck has do in the area, shows what is offered at the
sent guests personal Christmas cards that Quarterdeck, and gives information about
feature a photograph of an employee dressed the restaurant. As there is no booking engine
as Santa Claus and holding a surfboard—or on the web site, the site’s purpose is to pro-
a beer—on the beach.) The database of infor- mote the hotel and encourage interested
mation that the Quarterdeck has developed travelers to call the hotel directly. In the
and the personal relationships that have been past, the Quarterdeck paid to have banner
created among Doug, his staff, and the guests ads on a Nova Scotia visitor web site. No
also allowed the hotel to target specific click-through tallies were kept to assess the
guests with new marketing efforts. For success of those banner ads, so Doug aban-
example, the Quarterdeck has sent mailings doned this effort.12
to past guests to inform them about off- Almost 14 percent of guests said they
season sales promotions. chose the Quarterdeck after driving by the
When Doug first became involved in the hotel or seeing roadside signs for it. Doug
Quarterdeck, he focused on creating aware- believes that during the off-season most
ness for the renovated property, mainly by guests do not make reservations to stay at
advertising in the Halifax market. This was the hotel, but instead simply stop by when
done at a substantial relative cost for the they are touring the coast.
12. The click-through rate is the average number of visitors out of one hundred who visit a web site and click
through a banner ad to reach the ad sponsor’s page (CTR = # clicks/# ad impressions).
AUGUST 2007 Cornell Hotel and Restaurant Administration Quarterly 329
CQ CASES DRIVING DEMAND FOR THE QUARTERDECK: A CASE STUDY
Exhibit 5:
How Guests Heard about the Quarterdeck (in percentages)
2003 2004 2005
Referral
Previous guest 42.5 43.1 45.9
Friend/relative/coworker 18.8 14.3 18.9
Travel agent 0.4 1.0 0.4
Check-in 0.1 0.6 1.0
Queens municipality 0.0 0.0 0.2
Familiarization tour 0.7 0.0 0.0
Advertisements
Doers and Dreamers 8.9 9.5 4.7
“Taste of Nova Scotia” 0.8 0.0 0.0
Chronicle Herald 0.0 0.0 0.4
Other 0.6 0.6 0.0
Tourist bureaus
Liverpool 0.2 0.1 0.0
Other 0.1 0.0 0.0
Cross-promotions
White Point Beach Lodge 1.2 1.4 1.0
Lanes Privateer Inn 0.1 0.0 0.0
Lord Nelson 0.3 0.0 0.0
Haddon Hall 0.0 0.2 0.0
Other 0.4 0.5 0.8
Trade show
Free Wheeling 0.0 0.1 0.4
Other 0.0 0.1 0.0
Other
Drove by 13.5 16.3 13.2
Road sign 0.1 0.1 0.4
Live or lived in area 2.1 3.2 2.3
Ate in restaurant 2.3 3.0 2.5
Seen brochure 0.3 0.2 0.6
Received gift certificate 1.9 1.7 1.6
Here on conference 1.2 1.0 1.2
Web site 0.3 0.5 0.3
Internet 3.2 2.5 4.4
This meant that the four roadside signs Scotia is controlled access). Doug reasons
for the Quarterdeck are important, especially that the new Quarterdeck signs were distinct
during the off-season. These signs cost $100 and stood out to the driver due to the signa-
each per year. Originally, the signs were ture colored deck chairs that adorn all
loaded with information, but Doug changed Quarterdeck merchandise and handouts.
them to mention only oceanside dining and These signs are changed seasonally to men-
accommodations, the driving time to the tion any special promotions.
property (in minutes), and the road exit to get Doug believes that the most important pro-
there (the main highway in southern Nova motion for the Quarterdeck is advertising in
 330 Cornell Hotel and Restaurant Administration Quarterly AUGUST 2007
DRIVING DEMAND FOR THE QUARTERDECK: A CASE STUDY CQ CASES 
Exhibit 6:
Newspaper Advertisement for the Quarterdeck
AUGUST 2007 Cornell Hotel and Restaurant Administration Quarterly 331
CQ CASES DRIVING DEMAND FOR THE QUARTERDECK: A CASE STUDY
the Doers and Dreamers travel guide pub- pass by and pay attention to the signs—
lished by Destination Nova Scotia. People something that was less apt to happen in
wanting to visit the province can register winter, given the low traffic along the south
online to receive the free guide or can get one shore. Doug also encouraged staff members
from a travel agent. The guide has general to mention the promotion to anyone who
information about the province, as well called to inquire about staying during the
as specific information about each resort off-season. His staff created a small mailer to
that advertises in it. Doers and Dreamers inform past guests of the promotion, and this
produced more inquiries about room was included with a personal note from a
availability—and more bookings—than staff member that also mentioned some of
any other form of paid marketing commu- the winter activities available around the
nications. Other than Doers and Dreamers, Quarterdeck.
the only significant print communication Even as he assembled this promotion,
for the Quarterdeck is a new brochure with Doug was concerned that summer guests
the title “Spoil Yourself” that features pho- would see deals offered during the winter
tographs of the villas and the ocean. These and then question the value of the full price
brochures were available across the province they pay for summer stays. During high 
in tourist bureaus and in other hotels with season, the resort gives free nights only to
which Doug had fostered a relationship. Doug people who are loyal guests who have come
had taken on a role in “Taste of Nova Scotia,” to the Quarterdeck for years and stayed for
a provincewide marketing program designed multiple weeks. These preferred customers
to highlight culinary experiences offered have come to expect a few free nights for
within the province.13 Through this organi- their loyalty. Beyond that, Doug did not
zation he had met resort owners across the want to spend money promoting this deal to
province, and they formed an informal mar- guests who would not travel far enough to
keting alliance, ensuring that they would take advantage of it. During the summer, the
recommend each other’s hotels. hotel was a destination for travelers from
During the 2005 off-season, Doug tried a out of province because Nova Scotia had
new promotion designed to increase room- few accidental tourists. People had to plan
nights: buy two nights and get the third night to travel there.
free. Doug reasoned that the third night
would cost the Quarterdeck little money, and Looking Ahead
getting people to spend more time at the Doug was confident that adequate
property during the winter would increase demand existed for the Quarterdeck to
positive word of mouth back in Halifax— increase revenues and even to support 
though he did not keep track of the booking or a property expansion. He was less sure,
word-of-mouth benefits of this promotion. though, about how to reach potential guests
Communicating the deal to target customers with a message about the Quarterdeck’s
was a challenge, however. The Quarterdeck value proposition—and what exactly was
advertised the promotion only on the road- that value proposition during the off-season.
side signs that were located close to the Indeed, driving off-season demand would be
property, but this required potential guests to important for funding the property’s future
13. The Doers and Dreamers guide is created by the Nova Scotia Department of Tourism, Culture &
Heritage (Halifax, Nova Scotia, Canada). Also, Taste of Nova Scotia, “Who We Are,” January 2006,
www.tasteofnovascotia.ns.ca/who_we_are/ (accessed April 28, 2006).
 332 Cornell Hotel and Restaurant Administration Quarterly AUGUST 2007
DRIVING DEMAND FOR THE QUARTERDECK: A CASE STUDY CQ CASES 
growth. Doug wanted to find a way to take start market analysis for the Quarterdeck.
advantage of the large number of repeat From this foundation, Doug can estimate
guests who were loyal to the Quarterdeck. market demand using secondary data,
Repeat guests and referrals accounted for as well as create a more detailed profile 
more than 65 percent of the guests each year. of the Quarterdeck’s market using pri-
Such loyalty led him to believe that many of mary research. Key, though, is that the 
these guests would be more than willing to Quarterdeck’s management must move
help the Quarterdeck become busier in the off- beyond its experience and consider more
season by recommending it to their friends. In systematic methods for better identifying
summer 2006, Doug began recording guests’ and understanding customers.
e-mail addresses to allow for less expensive Identifying target customers. Small hotels
and more effective direct contact with people like the Quarterdeck have the opportunity 
who know the property. Ultimately, though, to get to know guests through normal,
Doug is aware of the difficulties the daily interaction. That process, however,
Quarterdeck faces due to seasonality and the can be hit and miss. While the staff knows
perception that the south shore of Nova Scotia a great deal about certain guests, the
is far from a vacation retreat during the Quarterdeck has had no formal effort to
Canadian winter. create customer profiles beyond the fact that
they are all relatively affluent, let alone to
Authors’ Analysis capture information about guests for more
The Quarterdeck faces challenges that are systematic analysis. Doug feels that demo-
common to independent hotels in steeply graphic segmentation is less relevant for 
seasonal vacation destinations. Reaching his guests due to the wide variation in the
prospective guests and identifying target demographic segments that the Quarterdeck
markets are difficult—as is turning a seasonal attracts. Young families often share the resort
resort into a year-round destination. Doug with wealthy retirees, and couples on roman-
has a good understanding of his current cus- tic retreats may follow multigenerational
tomers, though his experience may also be family reunions. One apparent commonality
limiting his view of the potential market and to Quarterdeck guests is the desire to escape
how best to drive demand throughout the hectic lives and relax with no distractions but
year. Given the Quarterdeck’s success during the marvelous Atlantic Ocean. This means
the summer, it is reasonable to assume that that Doug could segment his customers
there is not a major problem with the product based on psychographics (lifestyle) or behav-
or the way it is priced during peak season. ioral factors.
Doug needs to focus his efforts in four main To investigate why guests select the
areas: (1) clarifying target market segments Quarterdeck, Doug should remind his staff
for the Quarterdeck, (2) determining demand to ask them (a question that is rarely posed).
for the resort throughout the year, (3) creating Even so, such a straightforward approach
product and price bundles to attract off- may not encourage guests to reveal what
season travelers, and (4) selecting the most prompted their visit. Doug must train staff
efficient and effective promotion tools for members to recognize unstated needs and
communicating with past and prospective tap into the underlying factors that shape
guests. guests’ preferences, especially by noting
motivations that may be expressed in infor-
Market Analysis mal conversation or behavior (Kwortnik
Doug’s (and his staff’s) knowledge of 2003). For example, a guest who says she is
his customers provides a solid place to coming for a peaceful break may be basing
AUGUST 2007 Cornell Hotel and Restaurant Administration Quarterly 333
CQ CASES DRIVING DEMAND FOR THE QUARTERDECK: A CASE STUDY
her attachment to the Quarterdeck on nostal- market that fits the Quarterdeck customer’s
gia. By recognizing and recording this type geographic and socioeconomic profile. The
of information in the guest database, the census shows that the province of Nova
Quarterdeck can form an experiential guest Scotia is home to 17,110 people who report
profile. This profile can be enhanced with incomes greater than $75,000 (the top
information about guests’ lifestyle and bracket in the census income category), and
behavioral characteristics (e.g., whether they the majority of these people reside in the
participate in water sports, enjoy fishing and Halifax area.15 Not everyone in this market
cooking their catch, or visit for an annual would be a potential guest, of course, but
family gathering). With richer information given the small size of the Quarterdeck
about customers, Doug will gain a more clear (thirteen rooms and 1,963 total available
understanding of the desired “Quarterdeck room-nights from November to March; six-
experience” beyond the arbitrarily chosen teen rooms and 3,424 available room-nights
“spoil yourself” theme. from April to October), we believe that ade-
quate demand exists.
Market Demand Internal data sources. Census and other
Secondary data sources. Doug needs to secondary data reveal a market with suffi-
estimate demand for the Quarterdeck, so cient size, though this information tells us
that he can decide how to operate in the off- little about the extent of guests’ interest in
season and determine whether to expand the staying at a Quarterdeck facility that is
property. Secondary research using existing located across the highway rather than on
data sources often can provide some insight. the beach, or their interest in cold-weather
A number of web sites give demand infor- visits. Doug does have several internal data
mation for the south shore, and the govern- sources that provide some insight for these
ment of Nova Scotia provides hoteliers in questions. For example, the source-market
the province with the Tourism Insights data (Exhibit 4) show that a majority of
report, which contains statistics on occu- guests drive fewer than four hours to get to
pancy rates and room-nights sold for the the property. That said, 15 percent of guests
region.14 However, the demand question come all the way from Ontario—a mini-
flows directly from the need for a clarified mum twenty-hour drive. Examining these
picture of who the target customer is or data by month reveals that off-season guests
should be. We know that the Quarterdeck are mostly from nearby. Analysis of occu-
attracts people of different ages and from pancy data and year-to-year changes are
different geographic regions. Most guests also potentially revealing. For example, off-
are Canadian, two out of three come from peak occupancy increased 30 percent from
the Maritime Provinces, and more than half 2004 to 2005 (Exhibit 3). In the future, the
are from Nova Scotia (see Exhibit 4). Most Quarterdeck should track turnaways (people
high-season guests are relatively affluent who arrive without reservations and cannot
and are able to afford the Quarterdeck’s be accommodated) and unfulfilled inquiries
prices. Based on just this information, we (reservation requests by phone or e-mail that
can use the Canadian census to explore the are declined), as well as general inquiries
14. Government of Nova Scotia, “Tourism Insights,” January 1, 2006, www.gov.ns.ca/dtc/pubs/insights/AbsPage
.aspx?siteid=1&lang=1&id=1 (accessed July 26, 2006).
15. Statistics Canada, “Earnings of Canadians,” August 13, 2004, www12.statcan.ca/english/census01/products/
highlight/Earnings/Page.cfm?Lang=E&Geo=CMA&Code=0& View=1b&Table=4a&StartRec=1&Sort=2&B1=
Both&B2=Total (accessed May 28, 2006).
334 Cornell Hotel and Restaurant Administration Quarterly AUGUST 2007
DRIVING DEMAND FOR THE QUARTERDECK: A CASE STUDY CQ CASES 
(people who are interested enough to request of information. Although past guests receive
information). Each of these factors indicates chocolates, a bottle of wine, and a personal
potential demand for the Quarterdeck. note welcoming them back (which most
Primary data collection. While secondary guests appreciate), the Quarterdeck could
and internal data sources can indicate instead tailor these gifts to align with guest
market demand, primary research is often preferences. The more immediate benefit of
needed to answer specific questions. turning the database into a tool for CRM
Because the Quarterdeck has a current, would come from tracking guests’ activities
accurate database, Doug can query past and interests to help with the design of 
guests through a survey, as well as poll preference-based vacation packages.
current guests during their stay. Initially,
the Quarterdeck will have to conduct the Product and Price Bundles
survey by regular mail, as the database Stimulating demand during the off-
does not contain e-mail addresses for season requires an understanding of what
guests who stayed at the hotel before 2006. motivates guests to visit the Quarterdeck
For the future, we recommend using e-mail in the off-season. Doug and his staff must
to invite guests to fill out web-based sur- also be creative in developing demand
veys, which are less costly and more effi- generators without government or tourist
cient than mail surveys. While we believe bureau assistance. Other seasonal resorts
that guests would willingly participate in in the Maritimes might provide inspira-
research and share personal information tion. For example, Fairmont’s Algonquin
and opinions due to ties to the staff and Hotel in St. Andrews by the Sea, New
hotel, we strongly suggest that Doug con- Brunswick, proposes the following attrac-
duct permission-based market research tions for winter guests:
by asking guests for their permission to
contact them in the future. Snowshoe romps, cozy fireplace chats, in-
By surveying past guests and inquiring room movies for the occasional blustery
about their willingness to visit during the winter night. We have everything you need
off-season or to stay at a prospective new for a winter retreat. Local nature trails are
Quarterdeck facility (and at what price cleared for walking, snowshoeing, or skiing,
points), Doug can obtain a more precise and local dining and shopping is available.16
demand estimate. He could also ask about
guests’ interests in special activities, in part The Quarterdeck’s winter guests could
to establish a customer-relationship manage- enjoy similar activities, but not all such
ment (CRM) system to support existing activities have been developed or commu-
relationships the staff have with guests. nicated to guests. At the moment, the
Presently, the Quarterdeck collects some data Quarterdeck offers a romantic getaway
about guests (e.g., anniversary or birth dates, and a kayaking adventure. Both packages
referral information, and general contact include two nights’ accommodations in a
information), although specific preferences villa, a meal in the restaurant, and a lunch.
(e.g., activity, dining, or desired room ameni- (The kayaking package also includes a
ties) are not systematically captured for guide.) The Quarterdeck might promote fall
relationship marketing efforts. The guest foliage on the south shore’s Lighthouse
database could be adapted to manage this type Route, just as the Cabot Trail, at the other
16. The Fairmont Algonquin, April 30, 2006; www.fairmont.com/algonquin/.
AUGUST 2007 Cornell Hotel and Restaurant Administration Quarterly 335
CQ CASES DRIVING DEMAND FOR THE QUARTERDECK: A CASE STUDY
end of Nova Scotia, is promoted. Doug finished in the villas’ kitchens. Another idea
could design a driving tour for guests that that emerged from guest interviews and
includes a personalized itinerary, en- feedback is to have a Quarterdeck chef cook
route dining reservations, and lodging as meals for guests in their villa. Because
part of a special fall-foliage package. occupancies are typically low, especially in
Similarly, the Quarterdeck is close to for- the winter, it would be possible to offer “pri-
mer rail lines that have been turned into vate chef” packages for guests who want a
nature trails, which can be used for cross- getaway experience (including a getaway
country skiing and snowshoeing. Doug from cooking).
could create a winter sports package that The development of integrated product
includes use of winter sports gear, and he bundles offers several benefits in addition to
could promote the Quarterdeck’s presence the potential to improve off-season demand.
next to the trails for those who seek such Integrated-product bundles coordinate prod-
trails. ucts or services that enhance the customer’s
Doug might create a family retreat pack- experience (Carroll, Kwortnik, and Rose
age that focuses on spending “quality time” 2006; Stremersch and Tellis 2002). These
away from computers, phones, and sched- packages represent value-added bundles that
ules. Other packages might revolve around should obviate price discounting.
hobbies (e.g., antiquing, winter fishing, pho- Currently, the Quarterdeck only offers
tography). In particular, Doug is friendly concessionary price packages during the
with a famous watercolor artist who lives off-season (those being a reduced-rate pack-
nearby, as well as a local landscape gardener age and the “stay two nights, get the third
who offers clay-statue classes during the night free” promotion). While these pack-
winter. Doug could enlist these artists to ages protect price integrity better than do
offer classes that he could include in pack- steep price discounts, they nevertheless
ages for guests. Finally, Doug might create focus attention on prices, instead of the
a package based on nothing at all, such as a lodging experience itself. Ultimately, inter-
“winter solace package” that highlights the est in the vacation packages—as well as
serenity and beauty of the ocean—perhaps ideas for new package concepts—should be
bundled with spa-like elements (such as based on guests’ desires and tested through
massage treatments, aromatherapy candles, research. This might be done simply with
and soothing music). surveys that describe package concepts and
Closing the restaurant constrains Doug’s inquire about the level of guests’ interest, or
ability to develop off-season vacation pack- with more sophisticated methods, such as
ages. Although guests can drive to a nearby discrete-choice analysis, which can reveal
town to purchase groceries, asking them to desired features and feature combinations in
cook in their villas is inconsistent with the product bundles (for an excellent discussion
Quarterdeck’s image as a luxury experience. of discrete-choice analysis and customer-
We believe that this weakness can be turned choice modeling, see Verma and Plaschka
into an opportunity. Doug could hire out-of- 2003; Verma, Plaschka, and Louviere
work restaurant staff members to facilitate 2002).
an alternative food-and-beverage experi-
ence. For example, guests could provide a Marketing Communications for
shopping list and food-service workers the Quarterdeck
could stock the guests’ villa for them before Print media. In the 1990s, Doug spent
they arrive. A variation on this idea would $35,000 on newspaper and magazine adver-
be to create a menu of dishes (e.g., ready-to- tising as the main vehicle to generate aware-
eat meals) that could be delivered hot or ness for the Quarterdeck, an expenditure he
336 Cornell Hotel and Restaurant Administration Quarterly AUGUST 2007
DRIVING DEMAND FOR THE QUARTERDECK: A CASE STUDY CQ CASES 
believes was worthwhile. Currently, he interest stories about the history of the
spends less than $4,000 on such advertis- Quarterdeck. To be successful, public rela-
ing, and a number of these ads are specif- tions requires a concerted and consistent
ically for the restaurant (one is placed in a effort to cultivate media contacts and to
motorcycle magazine to attract bikers dur- generate stories that are truly newsworthy (at
ing the summer). Perhaps it is not a sur- least in the news editors’ view). Though 
prise that the Quarterdeck’s data indicate public relations can be low-cost because it
that this print advertising effort brings few does not involve buying air time or print-
people to the hotel. Less than 1 percent of all media space, it still involves time and effort.
guests cite these advertisements as the way The process includes crafting timely, interest-
in which they heard about the Quarterdeck. ing press releases, following up with media
We could not determine whether this tiny contacts to fan their curiosity, and enabling
response is due to ineffectiveness of print these contacts to experience the Quarterdeck
advertising for this purpose, inadequate firsthand.
investment in print media, or unpersuasive Direct marketing. Another approach to
advertising messages. While small display promoting the Quarterdeck involves direct
advertisements can be effective, the current marketing. This would be most effective
budget allows for few advertisements. after primary research was complete and
Advertising in the Halifax Chronicle Herald, Doug had a more precise profile of target
the largest daily newspaper serving the customers and their characteristics. Based
Quarterdeck’s primary market area,17 for on target profiles, the Quarterdeck could
instance, costs $250 for a 3 1/3 by 4 1/4 inch contract with a direct-marketing firm to 
advertisement (roughly 1/16 of a page). At purchase or rent lists and create the mailer.
current budget levels, the Quarterdeck However, given that 14 to 19 percent of
would only be able to run sixteen small the Quarterdeck’s recent customers were
advertisements in this newspaper—a level of referred by friends or relatives, a more
repetition that is unlikely to draw aware- effective and efficient approach to direct-
ness among target customers (Tellis 2004). mail prospecting would involve past guests
We expect that the Quarterdeck would need as marketers for the hotel. This is especially
to increase spending on print advertising to true since commercial lists, though they are
support the launch of off-season vacation well constructed, usually yield tiny response
packages, though any such effort should levels. Instead, the Quarterdeck could build
be tracked to determine incremental sales its own mail list of likely prospects by ask-
benefits. ing guests for referral names and contact
Public relations. Article and feature information. To reciprocate, Doug should
placements facilitated by public relations offer something of value for the referral,
offer the Quarterdeck an opportunity for low- such as a gift memento or bottle of wine. In
cost media exposure. Stories about how addition, if the referred guest eventually vis-
a small-town resort is trying to become a ited the Quarterdeck, Doug might offer
winter destination through novel vacation something of even greater value to the guest
packages could be well received by the who made the referral, such as a com-
media. Doug might also develop general plementary dinner or priority high-season
17. Daily circulation of around 114,000, with circulation of the Sunday Herald of around 68,000; www
.thechronicleherald.ca/services/aboutus.html.
AUGUST 2007 Cornell Hotel and Restaurant Administration Quarterly 337
CQ CASES DRIVING DEMAND FOR THE QUARTERDECK: A CASE STUDY
booking when the guest returns. Key to “The site fails to convey the kind of experi-
this approach, though, is that any mail solici- ences guests of the Quarterdeck can expect
tation would reflect the Quarterdeck’s there.” There are few images of guests
intended image. That is, the communication to engaged in the many delightful activities
the prospect should mirror the Quarterdeck’s available at the Quarterdeck—bodyboarding
personalized service style and charm. The and kayaking in the surf, strolling along the
piece might, for instance, include a handwrit- beach at sunset, winter cross-country skiing,
ten invitation from Doug. This would main- enjoying a romantic dinner in the Grill, cele-
tain the personal touch the Quarterdeck brating a family gathering with a beach pic-
values and the level of customization nic, or sipping hot chocolate by a warm fire
Quarterdeck guests expect. in the villa. Self-relevant imagery is critical
Internet marketing. Based on our analysis, for triggering emotions and helping people to
we believe the internet offers considerable vicariously experience (or reexperience) their
opportunities for the Quarterdeck to expand vacation. That said, however, any images
its promotional reach and enhance its brand should be aligned with guests’ needs and
message. In 2005, less than 5 percent of wants for the Quarterdeck experience.
guests said the internet was how they heard Without research-based insights into what
about the Quarterdeck—and less than 1 per- motivates guests to come to the hotel—year
cent identified the Quarterdeck’s web site after year—Doug is left guessing about
as a main source for information. Our appropriate imagery to feature on the web
research revealed several problems with site. For example, if his research were to
the Quarterdeck’s web strategy. First, web reveal that guests viewed the Quarterdeck as
searches using keywords such as “Nova their own private beach retreat for family
Scotia beach resorts” or similar terms fail to vacations (a theme evident in our exploratory
turn up the Quarterdeck’s web site on the first research), the web site’s images should high-
three pages of search results. That is true even light family activities and togetherness.
though its nearby competitor, the White Point A related idea is to promote the emotional
Lodge, consistently appears on the first attachment that repeat guests report feeling
page—and as the first listing on some for the Quarterdeck and its staff by creating
searches. On the other hand, a search using a “Quarterdeck Family” section on the web
the keywords “Nova Scotia beachside villas” site where guests can post their vacation
does return the Quarterdeck as the top photographs and stories. The web has made
search result. This finding indicates that possible virtual tourism communities, in
the Quarterdeck web site is not optimized which active and armchair tourists exchange
for search engines. At a minimum, the site information and travel tips, find like-minded
should be redesigned to contain more of the travelers, and engage in vicarious vacation-
keywords that web searchers are most likely ing by reading travel narratives (Wang,
to use, such as “resort,” rather than “villas.” Yu, and Fesenmaier 2002). Indeed, a few
Doug might consider bidding on keywords to Quarterdeck guests have posted their opin-
better ensure that the Quarterdeck shows up ions about their experience on the travel 
on searches—and higher in the search results. web site TripAdvisor.com. For example, one
Before he spends money on keywords, guest wrote,
however, Doug needs to address his web site. This location is perfect for a romantic get-
Once web users do find the Quarterdeck’s away. It’s perfect for someone who wants 
site, its “virtual experience” needs work (see to get away from it all. You can walk on 
Exhibit 7). Noted one advertising executive the beach . . . watch a sunrise or a spec-
who reviewed the site as part of this analysis, tacular sunset or explore some of the coastal
338 Cornell Hotel and Restaurant Administration Quarterly AUGUST 2007
DRIVING DEMAND FOR THE QUARTERDECK: A CASE STUDY CQ CASES 
Exhibit 7:
Quarterdeck Web Site Home Page (www.quarterdeck.ns.ca)
villages for unique vistas, friendly people, trails, and you can even watch the seals
and shopping for local crafts. It’s a nature basking on the rocks . . . not far away. You
lover’s paradise. A hikers’ and kayakers’ can surf at White Point Beach or you can just
mecca, with Kejimkujik National Park and chill on your deck with a good book and a
the Seaside Adjunct Park just a short drive lime daiquiri . . . listening to the waves rolling
away. There you can kayak, walk the shore in. . . . As you can see I love this place.18
18. TripAdvisor.com, “Quarterdeck Beachside Villas and Grill”; Tripadvisor.com, Nova Scotia: “Quarterdeck
Beachside Villas & Grill, A Wonderful Place to Stay,” June 14, 2005; A TripAdvisor Member, Riverview, N.B.;
www.tripadvisor.com/ShowUserReviews-g154967-d569290-r3554656-Quarterdeck_Beachside_Villas_
and_Grill-Nova_Scotia.html (accessed September 22, 2006).
AUGUST 2007 Cornell Hotel and Restaurant Administration Quarterly 339
CQ CASES DRIVING DEMAND FOR THE QUARTERDECK: A CASE STUDY
Enabling guests to become part of a more often—and encourage potential guests
Quarterdeck virtual community should to do the same.
enhance loyalty because guests will feel that The Quarterdeck’s marketing-information
they are part of a “family” or “club” (Oliver system is unusual for a small company.
1999). Beyond that, pictures and vacation Particularly notable is its guest database,
diaries can serve as memory cues that may which Doug has enriched over time with
encourage guests to return, or influence new increasingly detailed customer data (notably,
guests to try the resort. Narratives based on e-mail addresses, guests’ home locations,
guests’ actual experience can echo and sup- and how guests heard about the hotel). Using
port the Quarterdeck’s marketing communi- just this information, Doug can derive
cation. Finally, this imagery may influence insights about the Quarterdeck’s target mar-
prospective guests who look to the first- ket and the effectiveness of his marketing
hand experiences of others as a source of communications strategies. In turn, these
information to inform their own preferences. insights provide direction for future market-
Ultimately, a guest-driven section of the ing efforts. For example, we conclude that
Quarterdeck web site can make the site the the Quarterdeck should focus marketing
guests’ own—reflecting the way that they resources on strategies that encourage guests
feel about the Quarterdeck itself. to become word-of-mouth marketers for the
hotel. Rewards for referrals are one tactic in
Implications for Hospitality support of this strategy, but so is an enhanced
Management web site that integrates guests’ vacation
The challenges and opportunities revealed images and stories, as well as efforts to
in the case of the Quarterdeck are no doubt develop off-season vacation packages and
familiar to managers of seasonal hospitality include personal touches based on their
operations. The marketing strategies identi- vacation preferences.
fied in the case and our analysis should Adding value for guests by delivering a
be applicable to small resort hotels in many more personalized experience can reduce 
locations. Doug and his Quarterdeck staff the need to offer deals to drive demand.
have done many things well through the However, this strategy requires a systematic
years, not the least of which is to deliver a approach for identifying guests’ needs,
highly rated resort experience that engenders wants, and desires. The Quarterdeck is in a
devotion and loyalty from repeat guests. One position to create considerable value for its
important lesson from this case certainly guests. Its database can serve as a repository
should be that the foundation of most any for information about guests, and constancy
successful hospitality enterprise is highly of staff and guests means that knowledge
satisfied customers who become committed already exists about why guests come to the
to the organization and its people (Mattila Quarterdeck and what they value most about
2001; Price and Arnould 1999). Still, hospi- the experience. Yet the challenge for the
tality firms cannot rely on the loyalty and Quarterdeck, as with all hospitality compa-
benevolence of guests, especially when mar- nies, is how to turn this tacit knowledge into
keting objectives involve growing traffic and information that can be captured, codified,
revenues both in the off-season and year- and analyzed for input to marketing deci-
round. The Quarterdeck must build on its sions and operating policies. This requires
existing customer relationships to encour- not only a system for observing and analyz-
age loyal customers to patronize the resort ing guests’ behavior to better understand
 340 Cornell Hotel and Restaurant Administration Quarterly AUGUST 2007
DRIVING DEMAND FOR THE QUARTERDECK: A CASE STUDY CQ CASES 
their preferences and the meanings they qualitative analysis. Cornell Hotel and Restaurant
attach to their hospitality experiences, but Administration Quarterly 44 (2): 117-29.Mattila, Anna S. 2001. Emotional bonding and restaurant 
also active primary research to enrich this loyalty. Cornell Hotel and Restaurant Administration
understanding—for example, to find out Quarterly 42 (6): 73-79.
Oliver, Richard L. 1999. Whence customer loyalty.
what elements of a family retreat or roman- Journal of Marketing 63:33-44.
tic getaway at the Quarterdeck make the Price, Linda L., and Eric J. Arnould. 1999. Commercial
experience special. We believe that hospi- friendships: Service provider-client relationships in
context. Journal of Marketing 64 (4): 38-56.
tality managers who can tap into guests’ Stremersch, Stefan, and Gerard J. Tellis. 2002. Strategic
desires at that level are positioned to create bundling of products and prices: A new synthesis for
experiential-product bundles—as well as marketing. Journal of Marketing 66:55-72.Tellis, Gerard J. 2004. Effective advertising: Understanding
marketing messages—that can mitigate the when, how, and why advertising works. Thousand Oaks,
typical effects of seasonality on demand and CA: Sage.
Verma, Rohit, and Gerhard Plaschka. 2003. The art and
instead drive demand and enhance guest sat- science of customer-choice modeling: Reflections,
isfaction year-round. advances, and managerial implications. Cornell Hotel
and Restaurant Administration Quarterly 44 (5):
156-65.
References Verma, Rohit, Gerhard Plaschka, and Jordan J. Louviere.
2002. Understanding customer choices: A key to suc-
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Carroll, Bill, Robert J. Kwortnik, and Norm Rose. 2006. Hotel and Restaurant Administration Quarterly 43 (6):
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and practical implications. Working Paper, Cornell Wang, Youcheng, Quaehee Yu, and Daniel R. Fesenmaier.
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Robert J. Kwortnik Jr., Ph.D., is an assistant professor of marketing at the Cornell University School of
Hotel Administration (rjk34@cornell.edu). James Vosburgh is a graduate of that institution. 
AUGUST 2007 Cornell Hotel and Restaurant Administration Quarterly 341