How to Create a Foolproof Hotel Business Plan
Have you ever thought about starting a hotel business? It can be a great business venture that enables you to give your guests a time they will never forget.
A hotel business also allows you to meet a host of new people that you might otherwise never have met. From politicians and celebrities to people celebrating a golden wedding anniversary or couples on a honeymoon.
Now probably isn’t the best time to be running a hotel due to the situation with the pandemic but now is the time to be working on your hotel business plan during the lockdown.
Here’s everything you need to know about how to open a hotel.
Research the Market
The market is the most important factor when starting a hotel business. If you don’t understand the market then how can you hope to create a business that is profitable or offers a service to your guests that they actually want.
Look at what your competitors are doing before you invest in a big property. Think about why those hotels are so popular and who is going to stay there. Who are their top paying clients? And how are they making their money? You could even go to stay there yourself to see what they are doing well and what they are doing wrong.
Once you understand the market and where your hotel fits in you can begin a targeted marketing campaign which in 2020 starts with a great hotel SEO campaign.
Hire Great Staff
Great staff should be integral to your business plan. Without outstanding staff from the porters to the chief operating officers, your business will flop.
Put a lot of energy and effort into hiring people that you think will work well together and who can make your business succeed. Don’t hire someone just because they look good on paper or they have the right qualifications.
You want staff who will go the extra mile for guests, not pursue them in court for writing a bad review on Tripadvisor, generating negative press for the hotel,
Know Your Profit Margins
As well as having an understanding of the market you also need to know your profit margins.
If you don’t understand how much money you can spend vs how much money you earn you have no hotel business. You also need to understand what adds the most value to your probability vs what is a loss leader.
For example, is it worth spending thousands of dollars on an advert in a newspaper if that ad doesn’t convert to sales and bookings at the hotel?
Once you know where your red lines are and where you intend to spend your money you can begin to write a great business plan for your hotel.
Use the Pandemic to Write Your Dream Hotel Business Plan
The pandemic is not wasted time for the hotel business. When Covid is finally over, the world will want to travel to make up for lost time and business will be booming once more.
Use this time to write a great hotel business plan that is watertight and will earn you lots of money and make your customers very happy.
If you’re interested in learning more about writing a hotel business plan be sure to check out the rest of our site.