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4 Tips To Running A Successful Hotel

StrategyDriven Tactical Execution Article |Running a Hotel|4 Tips To Running A Successful HotelA hotel can offer a lucrative and rewarding business venture, but it is crucial that you take the right steps to ensure that your business grows and becomes a success. With this in mind, here are four tips to running a successful hotel.

1. Choose the right location

The location of your hotel will have a significant impact on its success. Typically, hotels in busy city centers or near major transport hubs tend to get the most business. However, you should keep in mind that competition in these areas will be higher than more remote locations. You should also consider the fact that hotels located in major cities can typically charge much higher rates. For instance, according to kayak.co.uk, London hotels charge an average of £144 per night on weekdays and £161 on weekends. London is, therefore, a highly sought-after location for all businesses, including hotels. You can check out London property news to help you stay up to date on the current property market and trends in the capital.

2. Offer perceived value

The hotel industry is highly competitive, so value and perceived value is crucial. It doesn’t mean that you have to undercut your competition or offer ridiculously low rates; there are plenty of ways to give your guests the perception of better value without lowering your revenue. Value-added extras can be a fantastic way to entice guests. For instance, providing food packages like free breakfast will make your guests feel like they’re getting more for their money. You can also bring value through outstanding customer service, vouchers to nearby attractions, free parking, and so on.

3. Focus on customer service

Keep in mind that customer reviews can make or break a hotel. Most people now consider customer feedback a significant deciding factor when choosing a hotel, and this information is readily available on all major booking sites like booking.com and Agoda. For that reason, it is vital that you focus on customer service and provide every guest with the best experience possible. Remember that issues and complaints will occur in every business from time to time; the important thing is that these are dealt with swiftly and effectively to ensure the best outcome possible. Personal touches and outstanding service will help encourage guests to leave positive reviews. There are many tips you can use to improve customer services in your hotel, such as creating an incredible experience before your guests even arrive.

4. Know your target audience

In the hotel industry, it is important to know your target audience and have a clear idea about the type of service you will be offering guests. Do you want to provide luxury accommodation for high-end customers, budget accommodation for travelers, or do you want to focus on providing family-friendly accommodation? Make sure that you understand your target audience so you can design effective marketing strategies and cater your service to your likely customers. For instance, if you are running a mid-price hotel near a busy transport hub and the majority of your guests are business professionals, then you should consider offering things like fast Wi-Fi and desks in all rooms, as well as a work area in the lobby.

Starting a Hotel Business: A Guide

StrategyDriven Starting Your Business Article |Hotel Business|Starting a Hotel Business: A GuideStarting and managing a hotel is a complex task which is not suited to every entrepreneur, but for some, it can be a lucrative and rewarding project with the opportunity for creativity alongside hospitality. A hotel business can be a stand-alone luxury villa, cottage or house, a large building with multiple rooms up to something more like a skyscraper with hundreds if not thousands of rooms. Regardless of the size of the venture, a hotel needs to be able to satisfy a variety of needs from catering to leisure as well as offering something unique so it can stand apart from its competitors.

Is the hotel business right for you?

On a day-to-day basis a hotel owner will be faced with a number of responsibilities ranging from hiring and managing staff, scheduling shifts, setting prices for rooms (including different rates for different days or seasons), paperwork, administration, financial management and continuing to research new ways to innovate and improve the hotel’s service. The hotel will also need to work with external service providers depending on the amenities on offer. For example, if the hotel has a pool, the owner may need to contract experienced water treatment specialists, or the hotel may need the services of a commercial laundry service for bedding and towels.

Many owners choose to hire a hotel manager to take on the everyday management of staff and looking after the guests.

The majority of people who start their own hotel business have some experience in the hospitality sector and are familiar with the potential problems they may run into. It’s also possible to study an MBA in hospitality management which equips people with essential business skills such as financial management and marketing.
Who is the target customer?

Broadly a hotel could target any traveler who needs a place to stay, but the most successful will target their offering to a specific demographic. This may be influenced by the location of the hotel. For example, if the hotel is in a rural setting, it could seek to attract couples or families looking for a relaxing and homely retreat. If the hotel is in the middle of a busy city center, it may be better suited to business professionals or groups. It could even offer conferencing facilities, which could be an additional revenue stream.

How much does it cost to start a hotel business?

Whether you are opening a large hotel with many hundreds of rooms or a smaller hotel with just a few rooms, you need to have a substantial amount of capital behind you to get things off the ground. The cost of the land and buildings will be substantial as will the furniture and equipment needed, but these will vary widely depending on the size of the venture, so it is almost impossible to estimate.

Is a hotel business a good investment for the future?

With newer platforms like Airbnb hitting the market, there is a concern that traditional hotels will drop in popularity. While there is an appeal for some travelers looking for a more ‘authentic’ or intimate travel experience, hotels still hold a lot of appeal for people who prefer don’t want to stay in the homes of strangers or with hosts which aren’t regulated by corporate structure.