Like other renowned businesses under the sun, running a hotel can be an extremely lucrative business. With the rapid increase in the tourism industry each year, the rise of nomads, the millennial generation’s insatiable wishes, the increasing love for outdoor events, and the memorable experience of vacation, you might be coining money within a short period.
However, it is essential to know that the hotel business is highly competitive, and breaking even might not be a piece of cake as you expected. The knowledge of what makes a successful hotel, how to start a hotel on either a large or small budget, as well as how to start a hotel will help you hit a home run in the hotel world. Even coming up with a name for your hotel is extremely important as this is part of your branding. It is important to come up with good hotel name ideas. In this post, we will review the essential tips you need to know to start a hotel business
4 Tips to Start a Hotel Business
- Site your Hotel Business Proximity
If you would take your time checking the autobiography or reading some books from successful individuals around the world, you will discover how location is essential to the growth of any business. Avoid locating your hotel business close to your competitors.
As a new firm, it would be challenging getting customers for your business. Rather than staying close to existing hotel brands, locate your company where customers can easily find and patronize you. For instance, if you intend to set up a hotel business in cities like New York, try to locate it close to the top attraction places in the city such as Statue of Liberty, Central Park, and lots more.
If you wish to start a hotel business anytime from now, you should be ready to invest a lot of money. Unlike other firms across the globe, running a hotel requires quite a lot of capital. You need to budget expenses that include high-speed internet, utilities, office supplies, replacing beds and furniture, insurance, advertising, employee wages/salaries, and facility upkeep. On replacing room mattresses and accessories, you should plan to spend at least a couple of hundred dollars every month.
Facility upkeep will also cost you at least a couple hundred dollars per month. Prepare to spend some thousand dollars per month on wages/salaries.
- Target Market
Your target market includes millennial generations who seek an opportunity to leave their parent’s jurisdictions, nomads who wish to see the whole world, and tourists who are hoping to add more knowledge and ideas to their way of life. Without first knowing what this set of people want, you might find running a hotel unprofitable and challenging.
With sufficient knowledge of what your audience wants, you can easily go into creating a great guest experience.
- Create your Unique Value Proposition
Your Unique Value Proposition is determined by your target market. Unique Value Proposition enables the guest to pick your hotel over other hotels by understanding what your hotel offers in 20 seconds of reading it. Avoid using overused phrases and words such as “your satisfaction guaranteed,” we are available 24/7, and lots more.
Make sure the benefits of picking your hotel over others is stated in your hotel’s UVP. Create your Unique Value Proposition so that your guest doesn’t have to read it twice before they book into your hotel.
Here are the basic tips on how to start a hotel business. All the tips in the post are chosen based on how they have been effective to many world-class hotel businesses around the globe.