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27th September 2022

The Financial Challenges of Running a Hotel

Hospitality is one of the most lucrative and competitive sectors in business, but successfully running a hotel can be difficult to say the least. Many different factors from marketing (which is increasingly digital) to organisation contribute to a hotel’s success and having a general understanding of how they affect your business can help minimise any challenges.

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The Financial Challenges of Running a Hotel

Hospitality is one of the most lucrative and competitive sectors in business, but successfully running a hotel can be difficult to say the least. Many different factors from marketing (which is increasingly digital) to organisation contribute to a hotel’s success and having a general understanding of how they affect your business can help minimise any challenges.

Prospective hoteliers would be smart to keep ahead of any potential hurdles, but don’t worry if you’re not sure what to keep an eye out for. Take a look at our tips that can help your hotel stand out and run smoothly.

Responsibilities

The list of responsibilities when running a hotel is never-ending, but some stick out more than others. Keeping your customers and employees safe comes to mind immediately. Despite your best efforts, things can go wrong and that’s why it’s important that you have the right insurance for your hotel in place.

Customers are unlikely to return if they feel unsafe in your establishment. It will also have a negative impact if the property is seen to not be properly maintained. This could lead to avoidable accidents occurring and people suffering injuries on your premises.

The importance of advertisement

With COVID lockdown and restrictions being lifted, the hotel sector is busier than ever. One way to stand out from your competitors and generate interest in your brand is by investing in sophisticated advertising campaigns and developing a strong storefront.

Let potential customers know what you’re offering and how it sets you apart from competing hotels by developing an optimised website and using techniques such as marketing automation. Social media is a great tool you can take advantage of to build your reputation and encourage customer loyalty by providing personalised offers.

There are so many different ways to market your hotel that can help drive up your website traffic and create a boost in revenue from bookings. The more eyes on your hotel/brand the more bookings you can expect.

Ask what your customers think

The best way to stay on top of what needs improving and what is running well in your hotel is by asking customers about their stay. Building on any constructive criticism will only lead to higher standards of service and increased bookings.

Positive reviews are the lifeblood of the hospitality industry. The more confident customers feel in their decision to stay with you, the more likely they are to book with you again or recommend your establishment to friends and family. In fact, it was revealed in a study that 76% of hotel-goers were willing to pay more for a hotel with higher reviews.

Make sure to pass over a card with the hotel’s information for multiple review platforms and encourage customers to provide feedback when they check out.

Having said that, feedback is only half of the whole point of getting it in the first place. You will need to take action to the best of your capability in order to turn any criticism into more positive reviews.


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