How to turn a small hotel business into a big success?
Want to get your hands on the profitability and success of a small hospitality business?
Being a service provider in the hospitality industry is undoubtedly rewarding, but not without its many challenges. On the one hand, running a small hotel business, let alone making it successful and profitable, is a constant effort.
The key to success in the hospitality industry is to constantly seek innovative strategies to exceed your customers’ expectations and organize memorable events for them.
Along with this, your hotel should provide many of the services and amenities with a personalized experience that guests can find in other elite areas of the city.
Let’s go a little deeper and understand what factors make a successful hotel business.
What makes a hotel successful?
Unlike restaurants and stores, running a successful small hospitality business requires a distinct mix of business and leadership qualities.
It’s one thing to have a great location, great amenities, and a successful marketing plan. But how you manage your workforce and deliver exceptional customer experiences is another matter altogether.
With over millions of hotel providers worldwide, ensuring your hotel succeeds and competes in the industry is essential.
To be successful in their small hotel business, hoteliers need a business plan with specific goals, which can be defined by being specific about:
- The targets of your hotel business
- The specific measures to adopt for each target to achieve your business objectives
- The time needed to achieve your goals
- The workforce you’ll need to help you achieve your goals
You have a structured way to analyze and measure the success of your small hotel management if you have a strategy in order and clearly defined objectives.
Business analytics is another crucial element that needs to be taken into account to successfully run a hospitality business.
Some of the most useful include:
- Total revenue
- Monthly profit or loss
- Net Promoter Score (NPS)
- Website traffic or the number of people visiting your website
- Conversion rate
Tracking guest satisfaction and expectations, contributing to staff retention, and implementing new competitive technology solutions are just a few important aspects for a hotelier to focus on for the success of a small hospitality business.
How to manage a hotel successfully?
If you want to know how to run a successful hospitality business, there are several things to keep in mind:
Consider technology solutions that can help you and your staff automate hotel operations
The importance of technology in the expansion and success of a hotel is crucial. that you owned whether a large boutique hotel chain or a small hotel, technology solutions can help you excel in hotel management.
There was a time when hoteliers used Excel sheets to manage and track their front office tasks. However, as technology has advanced, strategies have also evolved, allowing hoteliers to effectively manage hotel operations. Some of them include:
- Room reservations
- Arrivals and departures
- Assign rooms
- Establishment of room rates
- Payment processing
The wave of hospitality industry technologies has yet to slow down. There are countless integrations today that can not only automate processes, but also help hotels increase revenue.
There is now a technology solution for every hotel business operation, whether it is a channel manager, property management system, revenue management system, booking engine,… a housekeeping module or anything else you can think of.
So, for your small hotel business, go with all the different hotel technology solutions and see what works for you. If you find tools that meet your expectations and requirements, go for it right away.
Create your online footprint and make yourself visible to potential customers around the world
Gone are the days when hoteliers depended entirely on telephone reservations. It’s the age of the internet, and if you’re not visible in this space, you’re terribly lagging behind.
It is essential to have a website for your hotel. It not only gives you a platform to promote your hotel in the best light, but it also generates direct bookings.
You want to give your audience something that would appeal to them.
Now more than ever, customers are looking for the best small hotels that offer superior experiences at affordable rates. And that opportunity starts with your web page.
However, if you provide excellent service to your customers, with the help of positive ratings and reviews, you won’t even have to worry about lowering the price of your room.
After your website, the next best thing is social media. This is where you will find your target audience, your potential customers, and to bring them to your hotel, you need to be active there and regularly offer engaging content.
Another platform you should register your hotel on if you want to maximize your digital presence is Google My Business. It not only allows you to list your business address in local search results and on Google Maps, but also allows you to showcase important information about your hotel.
Finally, don’t forget the OTA (online travel agency) channels. They are especially important for smaller hotels as they generate many bookings and also boost your online presence.
Target visitors in your area
In terms of success and profitability, a small hotel can reap many benefits by targeting local customers.
Many hoteliers believe that only global travelers can provide more value, and they should prepare to accommodate them as best they can. However, this is absolutely not the case and it is a mistaken notion.
This has certainly been proven by the current culture of staycation, workcation, etc. A popular trend these days is that people are actively looking for an escape or a getaway from their monotonous lives and stay in hotels for some time to rejuvenate themselves with supreme services.
If you want to make the most of these trends, be sure to target visitors in your area. Whether through dedicated marketing campaigns, specific promotional activities, or even changing your pricing structure, simply go the extra mile to entice your locals to book a stay at your hotel.
Ratings and reviews matter a lot
Guest feedback can definitely help you improve your hotel standards. However, we are not talking about payment feedback forms at this time.
To tell their experiences (good or bad), guests take to social media platforms and review sites.
As we mentioned earlier, to create your online presence, it is essential to set foot on social networks. However, it works both ways. It is not enough to publish information about your quality services.
Guest reviews and ratings in one place are also of the utmost importance in attracting more new guests to your hotel. Therefore, ensure that guests get the best services and experiences at your hotel.
Also, keep an eye on your competitors’ ratings and reviews. It’s a great marketing strategy. Analyze their opinions to identify their strengths and weaknesses. Then make sure you take the necessary steps to thrive in the areas where they are performing poorly.
A skilled workforce is essential to providing exceptional customer service
Your hotel is not just about architecture, aesthetics, food and ambiance. The type of services you offer your guests is also crucial in the hospitality industry. You need a skilled workforce that can meet the wants, demands, habits, likes and dislikes of your customers.
You need to spend time, effort, and invest money in training your workforce in all aspects of the hospitality industry. In addition, a small hotel will have fewer staff than a large hotel; thus, their training will not be a long and tedious task.
By following these top five tips for small hospitality business success, you can definitely give your hospitality business a huge boost.
What is the next step ?
At AxisRooms, we have all the necessary technology solutions you need to succeed for a small hospitality business.
Do you find it difficult to update your inventory and prices across multiple channels?
Do not worry! Our robust channel manager is here to streamline these tasks for all of you in one place at the same time.
Do you want to convert a potential guest into a confirmed guest?
You can do this with our booking engine software. From our user-friendly interface, you can easily modify, update and manually create reservations.
Partner with AxisRooms and take advantage of our feature-rich tool to run your hospitality business successfully.
AxisRooms Editorial Office
AxisRooms, a provider of software suites for the hospitality industry, is committed to helping your business grow, not only with our cutting-edge products and services, but also with the latest travel industry updates and of the hotel industry. Do you have something to say ? Write to us at: [email protected]