If I had an extra few million dollars lying around, I would invest in brick
and mortar all day....and build hotels! This is a fabulous time for the
folks in that industry.
Hotels are running at peak capacity day in and day out. When they aren't sold out, they actually don't really mind because it’s a break from the daily grind of being everything to everyone. They are turning away business during the week and on the weekends, enjoying the robust growth in leisure travel. They are selling rooms at prices they never dreamed of and selling out, day after day.
It's a great time for the hotel industry and while they are flexing their muscle here a little, I would remind hotel owners of a few things:
1 - Enjoy your profits but invest in your product! These hotel rooms that are being used, day in and day out, need to be kept up. Your lobbies need to be places that are safe, clean and welcoming.
2 - Reliability is key! People come to expect service when they are, I don't know, PAYING for it. Make sure everything from your staff to your Wi-Fi provider is reliable. When room rates increase, so do expectations. Make sure you are ready to meet them.
3 - Know your competition and their product! The person down the street is looking to fill their hotel just like you, what are they doing to bring people in the door? What are they providing that you aren't?
4 - Don't lose for the sake of winning! Don't ignore that long time corporate partner because you can sell your rooms at a better price on the street. The tables will turn and when they do, being on the outside looking in is not a great place to be.
Lastly!
5 - Consider your distribution model. I challenge corporate hotels to sell corporate rooms on the GDS and internal sites only. Those other rooms, put them out on the .com sites, OTA's and brokers.
These are high times for the hotels and I am glad to see them being profitable. I know that many corporate buyers are trying to find ways to deal with massive rate increases in some markets. To those buyer I say, keep going, you got this!
Hotels are running at peak capacity day in and day out. When they aren't sold out, they actually don't really mind because it’s a break from the daily grind of being everything to everyone. They are turning away business during the week and on the weekends, enjoying the robust growth in leisure travel. They are selling rooms at prices they never dreamed of and selling out, day after day.
It's a great time for the hotel industry and while they are flexing their muscle here a little, I would remind hotel owners of a few things:
1 - Enjoy your profits but invest in your product! These hotel rooms that are being used, day in and day out, need to be kept up. Your lobbies need to be places that are safe, clean and welcoming.
2 - Reliability is key! People come to expect service when they are, I don't know, PAYING for it. Make sure everything from your staff to your Wi-Fi provider is reliable. When room rates increase, so do expectations. Make sure you are ready to meet them.
3 - Know your competition and their product! The person down the street is looking to fill their hotel just like you, what are they doing to bring people in the door? What are they providing that you aren't?
4 - Don't lose for the sake of winning! Don't ignore that long time corporate partner because you can sell your rooms at a better price on the street. The tables will turn and when they do, being on the outside looking in is not a great place to be.
Lastly!
5 - Consider your distribution model. I challenge corporate hotels to sell corporate rooms on the GDS and internal sites only. Those other rooms, put them out on the .com sites, OTA's and brokers.
These are high times for the hotels and I am glad to see them being profitable. I know that many corporate buyers are trying to find ways to deal with massive rate increases in some markets. To those buyer I say, keep going, you got this!
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