What are the important keys to start a new hotel?
If you’re thinking about to start a hotel business, then it is one of the best ideas to do business in Canada. As we know that Canada is the best tourist destination in the world so the hotel business always is a profitable business. There are a number of hotel industry fundamentals that you should know like how revenues and profits are generated, what the key segments and how big the market is. Below are the important keys to start a new hotel before you enter into hotel industry:
1. Location: Location traditionally is the most important and critical success factor. In the perfect location, where the competitors are not fulfilling the customer needs, that hotel may be a thrive. Therefore, to compete with the existing hotels in your neighborhood you have to work very hard and need to give some unique and amazing offers too.
2. Plan for The Capital: Whether you purchase an existing hotel, you need to build it from the scratch, or you renovate a building into a hotel/motel, you need to invest millions of dollars. Suppose, you don’t have this huge amount, in that case, you need to seek for angel investment in your hotel or for a bank loan.
3. Business Plan: A persuasive, clear and simple hotel business plan is required if you want to run your hotel successfully, this not only to think that how you take this opportunity but for you too to convince any lender or investor that you have an ability to do so. No investor will be attracted by a lack of a good planning. You should be aware that how start a hotel buisness.
4. Exceptional Service: Hotels achieve success with the help of a very critical and important factor i.e the staff should be capable of resolving any conflicts which arise, courteous and knowledgeable. Offering quality services too entails remembering the preferences and names of repeat visitors and giving them advice about surroundings and attractions.
5. E-commerce strategy: An e-commerce strategy increases the economic value of your website, that relies on the below three key factors:
– Visibility of your website
– Sales Focus on your website
– Bookable offers that you promote on your website
6. Smart pricing strategy: A smart pricing strategy helps in maximizing hotel occupancy. The room rates based on the market research and cost. Below are the pricing factors:
– Competitor pricing
– Maintenance costs
– Time and length of stay
– Room category
– Staffing costs
7. Flexibility: Customers expectations vary from hotel to hotel, so your team should have given the authority to make their decisions to give best accommodate services when required. A manager with the authority to make decisions can turn up a situation and earn a good reputation for its quality customer service.
8. Differentiate: There are two ways to differentiate and gain a strong and competitive edge: like, be better and be different:
– Be better at something that everyone gives by doing underlying activities differently.
– Creating a meaningful product that the competitor not offering.
9. Quality management: Quality management includes employee involvement and satisfaction.
– By concentrating on customer service as well as employee satisfaction, a hotel may increase the likelihood that employees are happy and satisfied, in turn, they give you excellent customer service.
10. Marketing plan: The goal of a marketing plan of a hotel is to ensure a long-term success. An integrated strategy helps you to reach your market segment targets. Utilize sales efforts, advertising, public relations, and marketing, to gain a brand recognition.