The ugly truth is that a mediocre guest experience is silently eroding your revenue.
NB: This is an article from Demand Calendar
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Whether running a budget-friendly property or a high-end hotel, settling for a one-size-fits-all approach is a surefire way to lose loyal customers and miss out on valuable upsell opportunities.
If you’re content with mediocrity, you’re not just compromising service quality but actively sacrificing your hotel’s profitability. It’s time to confront these challenges head-on and transform every aspect of your guest experience into a revenue-generating powerhouse.
Demand Generation versus Demand Capture: A Closer Look
It is critical to understand that demand fluctuates with the day of the week, seasonal trends, and local activities. Hotels must realize they can only capture the travelers who come to the destination, not create additional demand. This misconception often leads to the erroneous focus on so-called “need periods,” times when hotels believe they require more business. In truth, the traveler volume is determined by external factors, and hotels must concentrate on capturing the existing market.
Focus on the Right Guest Profile
- Define Your Ideal Guest
The first strategic action a hotel should take is clearly defining which type of guest best fits its brand and operational strengths. This means identifying the segment that aligns with the hotel’s offerings and complements the local demand characteristics. For instance, a hotel in a cultural hotspot might focus on leisure travelers interested in art and history, while a business district property might concentrate on corporate clients.
- Tailor the Offerings
Once the ideal guest profile is determined, the hotel must articulate its unique value proposition to this segment. This involves a detailed assessment of guest expectations, from service quality and amenities to location advantages and the overall guest experience. The key is maintaining consistency in messaging and offerings, ensuring that all marketing and operational efforts reinforce the hotel’s core value proposition.
Leveraging the 4Ps to Capture Demand
Hotels often overemphasize price strategies, yet a comprehensive approach involving all of the 4Ps – Product, Price, Place, and Promotion – is essential:
- Product: Develop and refine the hotel’s core services and amenities to align with the expectations of the target guest profile. This could mean offering unique dining experiences, specialized recreational facilities, or bespoke concierge services that resonate with the intended audience.
- Price: While competitive pricing remains essential, it should be strategically set within the context of the overall value proposition. Price should reflect the quality and uniqueness of the experience offered rather than simply competing on cost with neighboring hotels.
- Place: Optimize your distribution channels to ensure your hotel rooms are visible where your ideal guests are searching. This means leveraging a mix of online travel agencies, direct booking platforms, and niche distribution networks that resonate with your target audience. By strategically placing your property in the proper channels, you ensure that travelers discover your hotel and see it as the best choice for their needs.
- Promotion: Use targeted marketing campaigns to highlight the hotel’s strengths and the unique benefits it offers to the defined guest segment. Promotions should be consistent across channels and timed to coincide with local events and seasonal peaks, ensuring that the messaging reaches potential guests when they are most receptive.
