The hospitality industry is one of the world’s major and fastest-growing sectors. Today, it ranks as the greatest employer on earth (after the government) offering a wide variety of jobs in different sectors within the hospitality, travel, and leisure industry such as hotels, resorts, and restaurants.
Starting a business in the hospitality industry
Listed below are key success factors in starting a business in the hospitality industry:
1. Determine the Best Location
Location has been the most crucial critical success factor traditionally. In the right location, where competition isn’t fulfilling all customer needs, a hotel can thrive. However, in an area that has heavy competition from existing hotels, success might not be so forthcoming.
2. Plan for Capital
Whether the business owner has a hotel, builds one from the scrape, or refurbishes a building into a hotel, an enormous amount of money is needed. Where capital is not available, it can be borrowed from Commercial or Investment Banks.
3. Have a Business Plan
A straightforward, clear, and realistic business plan is necessary. As a sound entrepreneur, not only should you think about your own concern, but you might have to also convince any lender or investor why it is a viable business opportunity.
4. Provide Exceptional Service
Hotels can achieve high levels of success if the staff is knowledgeable, courteous, and capable of resolving any issues that arise. Providing quality service also includes remembering the names and preferences of repeat visitors and giving advice about attractions and surroundings.
5. Structure a Smart Pricing Strategy
Set a smart costing strategy that raises hotel occupancy. Determine room rates predicated on market and costs research. Pricing factors include:
- Staffing costs
- Room category
- Time and amount of stay
- Maintenance costs
- Competition pricing
6. Be Flexible
Customers can have different expectations of a hotel, so your staff needs to be given the power to make decisions to support them when possible.
An administrator with the expertise in critical decision-making can turn a predicament into a workable situation.
7. Focus on Quality Management
Quality management includes staff satisfaction and involvement.
By concentrating on staff satisfaction as well as customer service, the likelihood of employees being happy can be increased and, subsequently, they will provide excellent customer service.
8. Employ a Strategic Marketing Plan
The goal of a good marketing plan is to ensure long-term success. Employ a strategy that will reach the target market segments. Use marketing, public relations, advertising and sales efforts to gain brand recognition and ultimately drive revenue.