October 5, 2022

Why Do Two Hotels in the Same Category and Location Have Different Bottom Lines?

Just recently, I was on a work trip to Bangalore. And luckily or regrettably, I missed my return flight. However, rather of going back to the hotel, I booked a hotel near the airport itself.In the night, while walking down the street, I saw something that just hospitality lovers would do. Compared to the hotel I was remaining at, the other hotels were a little crowded and it seemed that they were making an excellent profit.Thats when my curious blogging soul asked me to cancel my flight and check out another hotel after this stay. Why would I do that?Because I AM RICH!! Just joking. Though I hope I was.I desired to see whats the distinction between them. I did precisely that. And trust me on this, the differences are significant. Even the tiniest hotel management technique was generating an excellent amount of guests and revenue.In this blog site, I am penning down all the important things I witnessed in both the hotels and also, what other factors are included. Hoteliers like you can take a cue from this and improve your business.Understanding the Landscape of Same Category Hotels in Same LocationThere are different types of hotels and it is pretty typical in the industry that hotels of a certain category are frequently developed in the same vicinity.But why is it so? Why would somebody attempt to enter an arena where theres currently so much competition?The reason is, specific locations bring in a certain type of tourists and to please their requirements, hotels opt for a concept.Let me explain.Kaziranga in Assam, India is not just popular for the world-renowned greater one-horned rhinos, but it likewise brings in individuals to experience nature. If we discuss the trends, hotels and resorts in Kaziranga use a bundle of activities– jeep safari, elephant safari, camping, trekking, riverside activities and so on I am from Assam, and I have seen the hotel landscape in this national park region in advance. Take it from me, despite the increasing competitors, numerous brand-new hospitality services are opening up with the exact same offerings. Because why not? The variety of individuals travelling to Kaziranga is likewise increasing.Why Some Hotels Fail While Some Make Hit Good ProfitLets address the elephant in the room. Here in this section, I will try to put down all the aspects affecting a hotels bottom line and what makes a hotel get a competitive edge over its competitor in the same category and area. The marketing gameWhen youre running a hotel, marketing must be among your foremost and very first strategies. Hands down!During my remain at both the hotels, I did my part of the research study. Be it their Facebook page, Instagram page, handouts, billboards and everything in between, I checked out all of it; just to get a peek of how their marketing game is.From that, what I comprehended was having a huge fan base does not suggest youre a popular brand name. And thats precisely what the second hotel was into.They had a great number of fans on all their social channels however had significant flaws.They didnt specify a target market for their hotel. Significance, their followers were just engaging with their posts/content but not buying any stay.The material wasnt in line with the hotels end objective. It was good enough to make people hit that like and follow button; but once again, it wasnt offering anything.They were not wagering big on conventional marketing strategies either. (I actually dont understand why people underestimate standard marketing nowadays.)Now, discussing the first hotel I stayed at, their marketing game was on point. And the reason I booked that hotel explains it.The hotel was mostly targeting people who would choose to hug the airport. So, when I missed my flight and was confused about my next relocation, I saw these handouts of the hotel at a cafe. Thats when I booked.Not to mention, on my way to the hotel, I could likewise see a billboard of the hotel.Do you see the difference? Its everything about the ideal hotel management strategy if you wish to compete with hotels in the exact same area and other competitors.Revenue management and pricingAnother substantial distinction that made one hotel count great bucks and other wish for it was their prices and profits management strategy.This I am saying since I did have a conversation with the supervisors of both the hotels.Before taking a look at from the very first hotel, I spoke to the manager and asked him specific features of their prices technique. He stated that their prices element is being handled by an income management services company. They utilize intelligent prices strategies after an excellent amount of analysis.When asked whether hes experienced any modification, he said and I estimate:”To be truthful, I never ever believed that such a good increase in revenue was possible. Without an inch of doubt, the changes are excellent. I do accept that initially, it took a little time to remove. However once we struck our revenue goal, theres been no looking back.”Now, its not that the other hotel wasnt using earnings management, however there was still wrong. The profits supervisor was doing an excellent task, but then there were limitations. Possibly he had restricted information to run analysis on or was running brief on manpower.(Also, I am assuming, the final call concerning pricing was constantly from the hotel supervisor. I could notice it. Generally, the in-house profits expert wasnt getting the right environment to work on.)Bottom line? Outsourced revenue management was working better than the in-house one.Hotel management techniques and technologyTo run an effective hotel service, you need to have top class hotel management abilities. I am not discussing the ones you find out from conventional hospitality courses. Rather, the ones you learn from experience and from out-of-the-box thinking.Now, management methods arent limited to handling hotel front desk operations. It must rather focus on each and every aspect of a hotel.While both the homes were amazing in handling their hotel operations, the very first one had an upper hand.I will inform you why.Both the homes had remarkable supervisors and a fantastic hotel management system. The first property had contactless hospitality. And I kid you not, regardless of little to no human interaction, I had a fantastic experience remaining there.I had the ability to pick my space, check out it, order food, get other services, and have a look at without having to visit the frontdesk. Nearly whatever was touchless.The hotel might accomplish this level of seamlessness because of the best technology. Likewise, the manager told me they made sure from the starting that incorporated solutions for hotels like a touchless system is going to be a game-changer.”We understand our target audience or the guest who would stay with us. They are mainly corporates, similar to you and always choose safety over anything else; meaning, a top-class contactless hotel experience. And this is exactly what we provide at our residential or commercial property.”– said the manager of the very first hotel.Moreover, the 2nd hotel was also revealing interest in incorporated options like contactless technology. I am sure, they are soon going to have it on board in their property.Amenities and facilitiesBoth the hotels where I stayed had all the needed facilities and features. Why am I putting this here? So that I could help you all comprehend its importance.You can take my example again. The manager of the very first hotel near the airport stated that their target market is primarily corporates. Meaning, the facilities they need to have should be in line with the guests preferences.So, what do corporate visitors choose? Great internet connection, a comfy space, POS services like spa, conference hall, work area etc.. If your hotel has all of it and more, then youre definitely ready to host guests from the corporate world.Further, you need to run some sort of compset analysis where you could identify what all amenities and centers your competitor has got. It is supremely important to know this since this will assist you improve the visitor experience at your property.CredibilityBuilding trustworthiness is among the leading methods to enhance a hotels bottom line.However, reliability is not a service to buy or something that you can achieve in a day. If you desire to be trusted, your hotel requires to speak for itself. And how can you make that take place? By providing an excellent experience to each and every single guest and making them drop some good reviews.Now, when I state experience, I imply personalised experience. Since personalisation is something that links your hotel with the guests.And real personalisation lies in comprehending the journey of your consumers. As soon as you know their needs you can offer the best services at the ideal time.Furthermore, there are a couple of more things to remember when you wish to be trustworthy– your hotel site, social networks pages, OTA presence, booking procedure, so and so forth. OutlookWhen I was writing this blog, I was thrilled. Not just since its an interesting subject because I have witnessed such cases very first hand.The competition in the hospitality industry is real, especially in situations where the exact same category of hotels lie in the exact same vicinity. Hotels struggle, they even suffer, and sometimes their functional and marketing strategies are only to be blamed.I hope this blog site assists hoteliers who have or are been going through some difficult times lately. The points I have stated in this blog are legitimate and I make certain they are going to benefit you.Have anything else in mind? Let me know in the comments.Why Two Hotels in the Same Category and Location Have Different Bottom Lines?

Compared to the hotel I was remaining at, the other hotels were a little crowded and it appeared that they were making an excellent profit.Thats when my curious blogging soul asked me to cancel my flight and check into another hotel after this stay. Even the tiniest hotel management technique was bringing in an excellent amount of guests and revenue.In this blog, I am penning down all the things I saw in both the hotels and likewise, what other factors are included. Hoteliers like you can take a cue from this and improve your business.Understanding the Landscape of Same Category Hotels in Same LocationThere are numerous types of hotels and it is pretty common in the industry that hotels of a specific classification are often developed in the exact same vicinity.But why is it so? Its all about the ideal hotel management technique if you want to contend with hotels in the very same location and other competitors.Revenue management and pricingAnother considerable difference that made one hotel count great dollars and other hope for it was their pricing and profits management strategy.This I am stating because I did have a discussion with the managers of both the hotels.Before checking out from the very first hotel, I talked to the supervisor and asked him specific things about their rates technique. Outsourced profits management was working much better than the in-house one.Hotel management strategies and technologyTo run a successful hotel company, you require to have leading class hotel management skills.

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