In the past few days and weeks I have had the opportunity to talk to many independent property owners and managers about the current market, occupancies and business trends.
While no one was 'over the moon' about business, everyone commented that this past summer has been good but the winter looks threatening.
I got to thinking about the deeper meaning of what they all meant when they said 'a good summer'.
When I asked what marketing or sales steps they had taken to gain maximum advantage of the 'good' summer, they mentioned a few things but the overriding subject was the increased use of OTA's.
OTA's have become an integral part of our traffic but it comes at a large cost. When the exorbitant commissions have been deducted, is the remaining revenue what was expected, and did it sufficiently cover operating expenses to leave the profit budgeted?
Are properties relying so much on OTA's that they are placing all other segments on the back burner? Sure, it is relatively easier to grab OTA business and come to believe that it is the golden answer to all woes, but this is done at the peril of the operators.
A lot of hotels take the approach that guests will keep coming because of the value for their dollars at the cheap online rate offered and this starts a chain reaction in the property. Less money is available for renovations and upkeep, corners are cut to save precious resources in anything from cleaning, food variety offered, landscaping, general maintenance and others.
Less emphasis is placed on cultivating returning guests, taking real care of in house guests while on property, and answering the needs of the guests. If you don't believe me go to Tripadvisor and pick from any number of independent properties. You will learn a lot about the real 'identity' of the hotel, the staff attitude to their greatest asset, the guest, and also get a sense of the physical situation at the property.
I would venture a guess that many are in a downward spiral that can lead to only one thing, bankruptcy.
So what can be done before it is too late?
It is simple and yet many ignore what should be followed:
1. Keep your property maintained. That means rooms, public areas, restaurants, outdoors, everywhere.
2. Keep your property clean. Make sure that correct policies are followed to make sure that everywhere the gusts goes is spotless.
3. Communicate with your guests. make sure that they are happy and most important, leva happy!
3. Cultivate an independent identity for your property. Do not try to copy or compete with the big guns...you will not succeed. You need guests to come through your doors because they want you, not another generic place.
4. Turn first timers into returning guests. Offer them returning rates to come directly. Returning guests are the most valuable asset a hotel has, and loyal customers are the cheapest maintenance customers.
5. Make sure that all HVAC, water systems, drainage, and other systems are operating smoothly. Howe many times have you read comments like......'The site says there is AC but there was not any or it did not work'?
6. Make your website attractive and above all honest.
7. Get involved with your community and contribute. The new 'guests', the Millenials are looking for a place to stay that does good to the environment and contributes to the community it is in.
There are many more steps that can be taken but the above are some of the lost important ones.
Oh, and make damn sure that the staff are courteous and knowledgeable.
Have a great evening!
Stephen
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