If you own a hotel, you know that fluctuating guest preferences, price dumping, steadily falling room prices, and dwindling profits can be frustrating. And why do some hotel owners seem to magically pull in more customers, maintain high occupancy and ADRs, and operate exceptionally well overall while others struggle?
In order to distinguish themselves in the marketplace, successful hotels have a distinct concept. Hotels that are prepared to stand out from the crowd by catering to a certain clientele will find it easier to fill their rooms with customers who have realistic expectations and are willing to pay a fair rate for their stay.
A hotel that advertises itself as offering “premium and luxury hospitality” should charge “premium and luxury hospitality” charges. In contrast, a resort that caters to families should provide high-quality services and amenities for children and families at reasonable rates. To top it all off, a hotel catering to the modern lifestyle must provide guests with cutting-edge amenities during their stay, such as high-tech rooms and dining. Cyclists, business travellers, divers, women, school groups, visitors with disabilities – each of these target groups has its own specific requirements and needs for their hotel stay, which means they are seeking for a hotel that gives the added value they desire.
“When looking for a vacation spot, modern travellers have a plethora of options and access to a wealth of information. They have access to a plethora of possibilities thanks to online resources like Booking.com, Google, TripAdvisor, and Trivago. Price is sometimes the sole thing that separates similar hotel products in today’s market.”
Successful hoteliers know that the emotional stories their properties portray are what draw in the majority of their guests. Hotels with a strong brand identity provide individualised amenities, services, and packages, which they promote through engaging narratives.
Modern hotel markets require strategic positioning to avoid becoming price-based commodities. Organizational, management, employee, and ownership all benefit from having a clear sense of where the company is going thanks to positioning. It helps clients get to know you as a service provider and enables you to articulate how you approach your work.
Successful positioning has a few pillars:
Involvement
Owners, senior management, department leaders, line personnel, and employees must define your positioning. For ownership, involve everyone. When asked, frontline workers are surprisingly insightful. Publishing your primary points of differentiation requires consensus and support.
Candor
Be honest about your product and service’s pros and cons. Without an honest assessment, your standing is weak. For years, a destination resort off the beach in the entertainment sector marketed itself as a beach resort. We convinced them that their proximity to shops, restaurants, and nightlife was a competitive advantage. After accepting this and positioning themselves as a “city resort,” clients gave them huge gains in satisfaction and RevPAR.
Communication
Positioning must be communicated throughout the organisation. Explain the positioning, its use, and its benefits to the individual and organisation. Use your positioning stakeholders to spread the word and gain support. Communication must be ongoing and frequent.
Commitment
Everything you say and do—service standards, upgrades, resource allocation, capital decisions, sales and marketing approach, human resource policy, and budgeting—should represent your posture. Never ignore the backyard. Management communications, employee communications, and employee collaboration to meet customer expectations should match your positioning.