Elevating Beyond Your Competition
As people continue to speculate whether or not the longest industry up cycle ever will sustain itself through 2020 and into 2021, individual hotels and resorts continue to push their top line performance, improve GOP, and increase their returns on investment. Any macroeconomic pressure will be on top of increasing capital and labor costs, shifting guest preferences, and a changing marketing and distribution landscape. The competition for guests will increase, and your competitors will keep making moves.
When your competition makes these moves – asset improvements, service and amenity changes, promotions and new sales tactics – it can be easy to fall into one of two reactions: a) “let’s do that too” or b) “we can’t do that; we have to be different.” Rather than simply reacting to the competition, take the time to evaluate your competitive landscape and formulate a strategic response based on three questions:
- Which guests can my property successfully and profitably target?
- Which specific hotels and resorts does my property compete against for those guests?
- How is my property (its physical product, service, and other offerings) uniquely positioned to capture those customers?
You should not simply aim to be different from your competition in every way, instead aim to be
in the areas that guests value most and that you can uniquely, consistently, and profitably deliver. Answering these questions will help you and your leadership team create a comprehensive plan for physical renovations or refreshes, service and amenity innovations, sales initiatives, and marketing and promotional campaigns.
Dig into the differences that you can uniquely deliver and those for which your guests will pay a premium. This approach will not prevent a downturn, but it will position you to beat your competition regardless of whether the economy is moving up or down.
Insight provided by Claiborne Irby