Hotel Brand?? hmmm

If Hermes opened a hotel, I think we would be able to guess accurately what it would be like. If Marriott, Hilton, Hyatt, or Intercontinental Hotel Group came out with a bag we’d have no clue because they simply don’t have a brand, they are simply a good piece of real estate with a logo. If I swapped the signage on a hotel at that price point you couldn’t tell if you were in a Marriott, if you were in a Hilton, or Hyatt, the lobby, the hallway, the room, I don’t know where I am. No brand.

What it means to have a brand is you’ve made a promise to people. They have expectations. If that is distinct you’ve earned something. If it’s not distinct, let’s admit, you make a commodity and you’re trying to charge just a little bit extra for peace of mind. The problem that these hotels have is sort by price. If I go online now to find a hotel it’s simple, sort by price. Why would I pay $200 extra to go a block or two away? I don’t.

The value of a brand is how much extra am I paying above the substitute. If I’m not paying extra, you don’t have a brand. When we think about what brands ought to do to move forward, the most important thing is to not worry about your slogan or your logo., it’s to worry about the substance, product and service that matters for people who care. Find the people who care, the smallest viable group you can live with, and figure out how to give them a product and service that matters.

My boutique hotel might charge double what other hotels might charge, for less. But it’s only less by their measure. It’s way more by the measure of someone who cares about the product, service, and value and how hip it feels to walk into our bar. They’re not investing in a room with like three power outlets or an unhealthy breakfast, they’re investing in throwing a party in a place where you also can sleep while you’re on the road, a place to be seen at, a place that employ people that will make you feel special.

My hotels and others few like it have a brand and this is the reason some people pay extra for.

Investing in the Hotel Industry

Investing in the hotel industry can be a lucrative venture for those who are willing to put in the time and effort to research and understand the market. With the right approach, investors can capitalize on the ever-growing demand for travel and hospitality services, and benefit from the stable returns that the industry can offer.

The hotel industry has been growing steadily over the past few decades, with tourism and travel becoming more accessible and affordable for people from all walks of life. This has led to an increase in demand for hotel rooms, especially in popular destinations such as major cities, tourist hotspots, and business hubs.

One of the main advantages of investing in the hotel industry is the potential for steady and predictable returns. Unlike other industries that may be more prone to economic cycles and market fluctuations, the hotel industry has a relatively stable demand for its services. People will always need a place to stay when traveling, and hotels can offer a convenient and reliable option for both leisure and business travelers.

In addition to stable returns, investing in the hotel industry can also provide opportunities for capital appreciation. This can occur as a result of a number of factors, including improvements in the quality and reputation of the hotel, strategic marketing and branding efforts, and the expansion of the hotel's services and facilities.

There are a number of different approaches to investing in the hotel industry. One option is to invest directly in a hotel property, either as an individual investor or as part of a group or syndicate. This can involve purchasing a hotel outright, or investing in a partial ownership stake through a real estate investment trust (REIT) or other similar structure.

Another approach is to invest in the shares of a publicly traded hotel company. This can provide exposure to a diversified portfolio of hotel properties, and may offer more liquidity and flexibility than direct property ownership. However, it is important to carefully research and evaluate the financial health and performance of the company, as well as its management team and competitive position in the market.

Regardless of the approach taken, it is essential to conduct thorough due diligence and analysis before making any investment decisions in the hotel industry. This can include researching the local market conditions and demand drivers, evaluating the quality and reputation of the hotel property or company, and analyzing the financial performance and projections of the investment.

Another important consideration when investing in the hotel industry is the potential risks and challenges that may arise. These can include changing market conditions, shifts in consumer preferences and behavior, regulatory and legal issues, and unexpected events such as natural disasters or pandemics. It is important to have a comprehensive risk management strategy in place to mitigate these risks and protect your investment.

In conclusion, investing in the hotel industry can offer a range of benefits for savvy investors who are willing to do their homework and carefully evaluate their options. With the right approach and a thorough understanding of the market, investors can benefit from stable returns, potential capital appreciation, and exposure to the growing demand for travel and hospitality services. However, it is important to approach any investment in the hotel industry with caution, and to carefully evaluate the risks and potential challenges that may arise.

Hotel Revenue Management: How can you increase the revenue of a Hotel?

Hotel revenue management is an important part of this business industry, as adjusting the prices according to the guest pattern is the core part of this business because optimal price rates mean more customers which will cause a raging increase in the business profits.  

But the thing that makes revenue plan more successful is to have full information, good planning tips but more importantly, the revenue strategies play the main part because it makes you more clear-minded and concentrated. Following are the best and profitable hotel revenue management strategies that can make your hotel business shine. Following are some of the best and profitable hotel revenue management strategies that you can adopt for effective outcomes for the hotel.

What is exactly is Hotel Revenue Management? 

Revenue management is a very important subject in hotel management as it acts as a profitable strategy for the economic status of the hotel. The whole revenue management discussion can be shortly summarized by this famous quote that is “All a revenue manager needs to accomplish is to sell the right room to the right person at the right time and price through the most suitable platform”. 

In even simpler words, revenue management is a procedure through which you introduce the best and preferable price rates according to the requirements of the customers so that they can make the most sales and profits. The best way to put together your revenue strategy is by going through the data analytics, customer performance, older price distribution so that the hotel management team can come with better prices and ideas which will help you maximize the revenue and hotel business.  

Also, the revenue strategy does not depend upon one kind of customer, you have to plan it by keeping that a larger community with different values will approach your hotel and you have to make them convince of the revenue strategy.  

Hotel Revenue Management Strategies

Here are the best hotel revenue management strategies that can benefit you for the best and optimal results and statistics: 

·      Proper communication means: 

Communication is essential when you are in a business where the core part is people reviews and demands so, having a messaging box is very necessary that should be open all the time so that people can engage with you without any kind of distribution or interruption. This revenue strategy helps the customer to get every kind of detail on the new and updated strategy so that they can experience it.  

·      Targeting strategy: 

Targeting the audience is a very well-known revenue strategy as it helps you to get to know what type of guests you are going to have and to deal with so that you can develop the revenue management plan according to guest requirements so that you can have a better result in sells and profits of the hotel business. 

·      Do direct bookings

The direct booking strategy is one of the successful ones as it assists you to deal with the customer's hand to hand rather than a third party like an OTG platform because they keep a commission and also it not let you stand alone as you always have to be dependent. So, when the customer does direct bookings via your hotel website, it helps you with better profits and response.  

·      Programs to increase repeat guest arrivals: 

Loyalty programs are a thing that hotel owners take very lightly, but it can be a very good reason for a successful revenue management plan as it enables you to make gestures for the guests like customizing gifts, sales, discounts, special entrance drinks, etc. it makes the guest happy and satisfied with your hotel services.  

This strategy makes the old guest and also the new ones come again and again after seeing such good and sentimental loyalty programs.  

·      Active hotel websites: 

Nowadays, people are more active on their smartphones rather than checking paper or even tv so, it is best for the hotel to have an online website where they can showcase their hotel, the revenue plan, and the services they provide so that people can interact with them. This hotel management strategic plan helps you to engage with the customers globally and locally which will increase the hotel revenue even more and the customers also have every information about your hotel which enables them to trust you and choose your hotel.  

·      Develop an online reputation: 

Having an online reputation is very significant nowadays, as we all know how today’s world work today, we do everything online, likewise, most people now do the online booking as it is convenient and they can get all the information regarding the hotel services and offers through reviews and websites. 

So, having a good online reputation is very important, make your old customers give reviews and ratings about their experience, etc. so that the new customer can make their decision easily which will affect the success of the hotel revenue management plan as well.   

·      Work in cooperation with other departments: 

It is important to involve other departments such as sales and marketing, art team, etc. so that everyone can corporate in developing the hotel revenue so that it can be suitable to all and the whole hotel staff teams can be agreed on the revenue. This strategy helps you to gather more ideas from the hotel staff through various perspectives which can be helpful throughout the revenue procedure. 

·      Do a calendar checkout: 

Do a calendar checkout means to know about all the events and festivals that are coming, also that events related to other areas and countries so that you can develop the revenue strategy revolving around those specific dates so that you can able to attract more travelers and visitors that time around.  

·      Pay attention to reviews: 

Reviews are very important for a good hotel image and the customer usually lookout for the reviews before doing bookings as they want to know what other people have to say about your hotel management services so it is important to get reviews from your previous customers and also pay more attention towards them which can result in more hotel room sells and optimized revenue.  

·      Include local business partnerships: 

This is also a very unnoticeable strategic plan but it is very effective in having a more enhanced revenue management plan as to when you include or do partnerships with local businesses like tour guides or amusement park owners, you can offer discounts on the tickets which can get the attention from the customers which will directly have a positive impact on the revenue plan.  

·      Do SEO optimization: 

Search engine optimization plays an important role in almost everything nowadays, because people are more aware of what is happening online rather than physical and SEO is a technique that is making the work easy for brands and businesses to stand out so that people can approach them and use their services. 

So, your online hotel website must be fully SEO optimized which will result in more traffic and customers to reach your revenue strategy and help you to increase the hotel earnings.  

·      Competitor Analysis:

It is very important to do a competitor rate analysis as it helps you to check what other hotel owners are offering so that you can develop such rates that are attracting the right customers and succeed in earning the best revenue. You can update the rates chart by what the competitors are offering which will create a clear image of what to add and what to avoid in your hotel revenue management plan.  

·      Understand the value market: 

The most important thing about revenue management strategy is the price value because it is all the matters. After all, the customer is only going to judge your whole hotel service depending upon the price you offer. So, be good with knowing the value market and also to develop in regards of that so that you can offer the best of the best to your customers. 

Why Revenue Management is Significant in the Hotel Industry? 

Revenue management sets the core for profitable business plan for the hotel which means it is very important for the hospitality industry to have and to acquire as; 

·      Through revenue management, you can manage the selling costs as in, you can calculate them according to the demand and related factors like season time, the number of travelers, etc. and can lower them when the demand is low. That is how the hotel resources and staff will be optimal used when there is the proper need not when the things are not required. 

·      The best thing about this specific management scheme is that it helps the hotel owner and team to understand what their customer demands and wants rather than just anticipating and thinking on their own. The customers appreciate the hotel service, even more, when they know that they take their requirements seriously and put them to actual work. 

·      Revenue management enhances the hotel branding, it not only assists you to get the best pricing rates for the property but also makes sure that the maximum RevPAR for the hotel.  

·      When you have revenue management that is formulated by going through all the details very preciously like previous data analysis, customer preferences and reviews, season time, etc. You can have a revenue plan that will not help you with the best business but also win against the competitors which are important when you are in such an industry where the competition is always at high stake.  

·      You can also extend your business when you know that the revenue strategy is going well and the profits are high. 

Tips to Enhance your Hotel Revenue Management Strategy: 

Here are some tips that will help you to optimize the hotel revenue management strategy for effective and efficient outcomes: 

·      Accumulate the right data: 

Data collection is the most important step in developing revenue management as it helps you to calculate the price rates and strategic plans but the common mistake that most hotel owners do is collecting more information than needed, so they end up with a messed-up revenue plan. So, it is best to focus on the right data that will assist you to have the right revenue and right demands.  

·      Do mapping and location research: 

When you develop a revenue strategy, studying mapping and forecasting is a need as it further helps you to have a perfect plan that will attract the desired guests and customers for your hotel. It also gives you an idea about the traveler's perspective from where they are coming and what they want where they are going to stay, so it depends upon the information regarding the locations and mapping. 

·      Embrace pricing strategies: 

Pricing is the major part of revenue so having a proper strategy about it is very much required. So, try to embrace the pricing strategies as much as you can and formulate such strategies that are easy to manage according to what the customer wants and has to offer.  

·      Focus on the distributing channels: 

Having a good revenue strategy is not enough until people are not well aware of it and it is obvious if they do not know about it, then how they will reach out to you. So, focus on the disturbing channels like having a proper hotel website and various channels like online accounts on various sites so that people can know what you are offering and how they can reach you.  

·      Learning about the market: 

You cannot develop a revenue management plan unless you study the market so that you can know what the rates that are going around are and how the customers are reacting to it. So, a revenue plan with potential can only be formulated after doing full homework about what is going in the market at present.  

The Bottom Line

Hotel revenue management is a new technique or strategy that is being very profitable for the hotel industry which is proven by the higher statistic rates and improved selling profits. With this evolving world, the booking patterns and guest demands are changing every moment, so strong and valuable revenue management will make your hotel business more enhanced and successful.  

This management strategy is not anymore just a basic plan for the hotel but now it is imperative and crucial to have for optimum financial benefits and improved hotel reputation. This hospitality industry is getting bigger day by day so, having revenue management will surely make you stand out in the crowd.  

How to Be a Successful Leader

As we gain experience, build businesses, and earn responsibilities, we have no choice but to increase our leadership skills. Every organization needs a leader to direct the charge for successful execution. But how can you be a good leader?

You might be eager to lead or you might be reluctant. But everyone who is faced with influence has to decide what kind of leader they will be.

The best leaders serve others. Servant leadership inspires more people, gains more influence, and respect, which all turn into a successful leadership model.

Put People First

When we think of serving others, we might think of being polite or asking how we can help. But we have the opportunity to dig into a deeper level of leadership that puts people first.

This means knowing each person’s short and long-term goals for their life (with and without the company in the picture). You support them. You listen to them. People feel valued at the company and they feel you care for them.

This practice creates a vibrant workplace for great results.

Lead with a Vision

How can people follow if they don’t know where to go? Putting blinders on people doesn’t help them and it makes it harder for you to lead. One-step-ahead leadership produces an insecure work environment, not knowing the main goal of the company.

By being transparent and sharing the vision, people know what you plan on doing. They too get inspired and take a sense of ownership. If leaders position their vision as a WHY, or a big- picture mission, employees will take it to heart.

For example, if a brand sells mattresses, they aren’t selling better sleep. They are giving people much-needed rest so that can wake up, conquer their world, and give their full self to their families and careers. That’s something people can believe in and feel like they make an impact.

Lead like a Teacher

As leaders, we often say things and hope others understand them well enough to implement them. If you have ever taught a class or group, you know this usually doesn’t work.

Lead like a teacher by teaching or sharing the information, then show them how to do it, then do it together, and ultimately, give them the freedom to do it themselves. Provide feedback to improve and reinforce their effort.

Give Away Authority

Delegation can mean a lot of things. You delegate too little and get overwhelmed. You delegate too much and seem to lose control. You are too hands-off in management or too hands-on. It’s a balance that is hard to get right.

Instead of delegation, think in authority. Don’t give away roles. Give people full reign over their responsibilities within the boundaries you set.

You have a team that was chosen for a reason. When you layout guidelines and establish clear expectations, let them run with the mission, using their creative and innovative ways to solve and execute the project.

They will take ownership of it and treat the responsibilities given to them as their own.

George Dfouni truly believes Leadership is about people. When we put this at the center of everything, we can be successful leaders.

Virtual Is No Longer the Answer: Hospitality Looks to Hybrid Solutions

When the pandemic hit the industry, everything shook. The U.S. lost 4 million jobs in hospitality. We were one of the most vulnerable: an industry that prides itself on great service and personal interaction. Thanks to the amazing workforce, our grit, and perseverance, we made it through. 

The companies that fared the best in the beginning were already involved in innovation and forward-thinking processes. Most of these had virtual solutions. Their successful virtual strategy took off and grew. What was their advantage? They innovated before they needed to.

These virtual businesses already had customers and guests that were familiar with the process. Unlike many companies during the pandemic, they did not have to educate customers or train staff on how to use it. They didn't need a new marketing campaign to notify the market. They benefited from future-thinking strategies.

Today, virtual is no longer the future. It is expected and if your company is not utilizing the technologies available, now is the time to catch up before it’s too late.

In 2020, Americans spent 7 minutes more on average on social media, despite a concern they were spending too much time on it the  year before. The attitude of "time well spent" and needs are changing. People want physical interaction and virtual solutions that are on-demand and integrated. 

Hybrid solutions give guests the option for physical and virtual interaction harmonized together.

“Business opportunities are like buses, there’s  always another one coming.” – Richard Branson

   What This Means 

Imagine you are hosting a conference for business leaders. 

You have limited occupancy at the convention center . People are restrained by time and location. But people also crave localized and intimate interaction, so you have it available. You also have a virtual option which multiplies your occupancy.

Now imagine a hybrid setting. Someone walks into the conference and meets people. They quickly get connected to a Slack channel where they can easily chat with people at the center or far away online. They hear the main speaker give her talk. During breakouts, you go to a designated area and join a virtual session with people on-site and people from all over the world. 

Anyone who has disabilities with additional on-site needs can easily get captions and aids through the virtual technologies available. 

When you visit some of the sponsored booths, you see something you like. Perhaps you have more detailed questions that the representative can’t answer right away. No problem. They give you a tablet that video calls one of their specialists. You save time and can make the best decision. 

You walk away and see some merchandise. You want it but your luggage can barely close. So you scan a QR code, purchase it, and it arrives at your home in three days.

Your colleague joins you virtually because she’s had to travel for business to manage one of your accounts. She has a great time and wants to meet some of the attendees in person. She uses a localization feature that connects her with virtual attendees in the same city. The following day they meet at a coffee shop and finish the conference together. 

How We Can All Utilize Hybrid Solutions

“There is incredible value in being of service to others .” Elizabeth Berg

Now you have a quick idea of what the future could look like. Many brands are already doing it and the technology exists. The only step is to invest in the strategy, resources, and training to make it possible. 

It’s important to start simple. We don’t want to create fancy features and options without a purpose. Decide what your guests need and how you can fulfill it from wherever they are and whenever they want it. 

The world has changed. Before the pandemic, most of us closely interacted with people. The pandemic put everyone home and much of the workforce moved into work from home environments. Today, social preferences are split, and needs and habits have changed for society.

A hybrid strategy positions us for the future.

Five Ways the Hospitality Industry Will Change Post-COVID-19

Last March, the hospitality industry took a dip that couldn’t have been anticipated. Suddenly, no one was traveling, and trips that had been on the books for months were off indefinitely. Over a year later, countries around the world are beginning to lift their travel bans, and while the world hasn’t returned to “normal,” we are beginning to see how hotels and others in the hospitality industry are reacting to the pandemic. 

In many cases, the changes we’ve seen over the last year may be here to stay. Let’s take a look at how 

1.    Local travel will be favored over international travel 

If you’ve considered a “staycation” or domestic travel in the last 12 months, you’ve hopped on this trend. For the next few years at least, international travel will not appeal or be available to certain groups of people. Americans, in particular, are not permitted entry to over 100 of the world’s countries at the moment. While it is possible to enter countries under certain restrictions, it is often easier and safer to default to domestic travel. 

2.    Contactless is now everywhere

Staying at a hotel is a drastically different experience than it once was. Avid travelers were accustomed to visiting the front desk and having contact with hospitality personnel through nearly every stage of the process. However, to promote social distancing and elevate property-wide hygiene, hotels have rolled contactless programs. If contact between guests and employees can be avoided, it will be. In many cases, this means using an app to check-in, get your key, or request services. 

3.    Road tripping has become ever more popular

Road tripping spiked in popularity last summer. People still wanted to “get away,” but they did not want to board an airplane or any other form of communal transport. Using a personal vehicle opens up the world and allows anyone with a car to explore the world and personalize their trip during this period of uncertainty. 

4.    Sustainable travel will be prioritized

Do you remember the first few weeks during the pandemic last year? No one was commuting to work or flying across the world, and carbon emissions were at an all-time low. The positive impact of this on the environment was so significant that it made national news. As travel makes its come back, sustainable travel will undoubtedly be a priority. Hotel and other hospitality organizations will prioritize sustainable measures and regulations for an eco-friendly future. 

5.    Traditional tourism will be discouraged

The hospitality industries are now encouraging anyone who will be traveling to dive into off-the-beaten-path destinations. Instead of Athens, Barcelona, and Rome, try Thessaloniki, Zaragoza, and Padua. These alternative destinations in the world’s most popular countries will help reduce over-tourism and crowding in urban hotspots. 

Final thoughts

We’d be lying if we said hotels and hospitality would return just as they were pre-COVID-19. The pandemic has made its mark on modern times, and it’ll continue to impact how we act and travel for years to come.