If you operate a hotel business in a tourist hotspot, you might be well acquainted with the competitive nature of the hospitality industry. A healthy competition between companies within a specific industry yields several positive outcomes, as it leads to better services, development, higher overall quality and as a result, more satisfied customers. Therefore, rather than viewing competition as a challenge, it can be leveraged to your advantage, benefiting your establishment in numerous ways.
You have to be up-to-date with trends and changes affecting your hotel for long-term success. When we talk about changes, this includes the activities of your competitors. Even if your hotel’s performance is outstanding, it’s very important to always keep an eye on where the competition is, where they’re heading and how fast they’re getting there.
If one of your main competitors is preparing for innovation, introducing new services, changing their marketing strategy, or announcing a new manager, you need to know about it as soon as possible. This way you can keep up with industry trends and keep your hotel at the ‘top of the game’.
It’s also worth watching not only your direct competitors but the international hotel service provider market in general. The news and trends will sooner or later appear in your region. If you step in on time, you can even gain a significant competitive advantage from them for your hotel.
There are several ways to identify and group your competition. Your case may be different, but when I worked as a hotel manager, I used the following methods:
Once you've identified your main competitors, there are several ways to track them:
Do market research and find out what sets your hotel apart from the competition: Cheaper prices? Better location or unique services? Maybe an event or twist in the story of your hotel that makes it more special than the others?
To effectively differentiate yourself from competitors in a saturated market, you can focus on creating a unique value proposition that highlights your hotel's distinctive features or offerings. This could include emphasizing your hotel's unique location, specialized services or amenities, eco-friendly initiatives, or themed experiences tailored to specific guest preferences. Additionally, you can invest in branding and marketing efforts that showcase your hotel's unique selling points and resonate with your target audience. By consistently delivering exceptional experiences and showcasing what sets your hotel apart, you can attract more guests and stand out in a competitive market.
“You never know when the person you're competing with could turn into a valuable ally.” - H. O. Maycotte, Forbes
Once you get to know your competitors, do your best to maintain a professional and good relationship with them. Healthy competition benefits all participants. The most beneficial goal for you may be to build your business circle and surround yourself with respectable partners.
Join other hotels for charity. For example, find some hotels and offer them a partnership in a program to promote sustainable tourism. Start a campaign in which you give part of the profits from your reservations on wildlife conservation or reforestation programs. Such a good cause sure will be appreciated by guests. Especially nowadays, when ecotourism is playing an increasingly important role.
You can increase your revenue and the satisfaction of your guests through mutually beneficial partnerships: if your accommodation has an excellent restaurant and your neighbor has special wellness facilities, you can both benefit from it. During the day, your guests can relax in the spa next door and their guests can enjoy your unique dishes for dinner.
You can collaborate with local businesses beyond direct competitors to enhance guest experiences and promote tourism in the area. For instance, you can partner with local restaurants to offer exclusive dining experiences or collaborate with tour operators to provide guests with discounted or curated sightseeing packages. Additionally, you can work with local artisans or cultural organizations to offer workshops or events that showcase the region's unique heritage. By fostering these partnerships, you can create a more immersive and memorable experience for your guests while also contributing to the local economy and community.
A hotel can implement various strategies to foster innovation and stay ahead of evolving industry trends. One approach is to establish a culture of continuous improvement and encourage employees at all levels to contribute ideas and insights for enhancing guest experiences and operational efficiency. Additionally, you can invest in research and development initiatives to explore new technologies, services, or business models that have the potential to disrupt or revolutionize the hospitality industry. Collaborating with industry partners, startups, or academic institutions can also provide opportunities for learning and innovation. Moreover, staying informed about emerging trends and consumer preferences through market research and networking with industry peers can help you anticipate changes and adapt your strategies accordingly. By prioritizing innovation and agility, you can position your hotel for long-term success in a dynamic and competitive landscape.
Find a unique selling point of your hotel that sets it apart from the rest. To determine your sales advantages, you need to take the time to analyze and evaluate your competitors. The high standard of your services and the impeccable work of all staff who come into direct contact with guests should always be the top priority. The professional staff and quality services always lead to loyal guests.
Hotel competition is a bit like a board game in which you have to stay alert and step in immediately when certain changes happen in the market. So “play” fairly and respect your competitors who may one day become your partners.