Just like any other business, hotel owners and operators want to know how to maximize profits on their investments. It can take several years to realize the business is making a profit or a loss. There are some things all hotel operators must know in succeeding their million dollar investment. To start off, ask yourself these questions:
1. What is your location?
2. Who are your customers?
3. Are your Room rates reasonable to the amenities your guest receive?
4. Are you offering what your guests are expecting from your hotel at the price they are paying?
5. What are your competitors offering for the same price?
6. How is your marketing strategy working for you?
7. Do you have competent staff in place?
8. What is your customer policy?
9. Will your customers return again?
10. Do you have a system to track all of the above and act on it?
Hotel business can be tricky, just like any other business. There are some hoteliers who are making a lot of money right now where there are some who are finding it hard to pay their mortgage, especially the tough economic situation right now. If you are one of those hotel owners / operators who are trying to be successful in the hospitality industry, then keep reading as I will show you that if you try to implement some of my tips in your daily operations, you will be successful in making money in hotel industry too.
Any business is laid out on some common principles of operation that are specific to every industry. Hotel business is no exception to that. Like every other business, this business also needs some investment of money, time, and efforts. If these raw materials are utilized in the right combination, the product will turn out how you want it to be.
Here is the basic mantra of making money in hotels:
"Your Hotel property Must offer value to the price paid by Your Guests"
In hotel industry, a customer is called as a Guest out of respect and courtesy. You might think, what is so special about this so called mantra of making money in hotels. I know that everyone kind of understands it easily but it is exactly the opposite when it comes to monetizing from it. When I say value, find out what type of customers are visiting your area and why should they come to your door and not go to your competitor. Find out what others are offering in the same price range around 30 miles of radius and match your amenities against them.It is also important to properly evaluate the value you are offering against the value your Guests are receiving. Ex. for $ 49.99 / night rate, a free breakfast may be offered to almost all hotels but the quality of breakfast items can be judged by the guest and their friends and relatives over the years. You are right, word of mouth goes a long way in hospitality industry.