5 basic steps to stay ahead of the competition

The hospitality industry is a dynamic business that runs double speed just to stay firmly in place. It is forever under the influence of forces that urge it to embrace change more frequently than most other industries. The customer base demands change or update continually as well as other hotels in the region and elsewhere that push you to look within.

The bottom line is almost always the plank from which business strategies spring up and from where the company vision gets its focus. To keep a healthy bottom line, hospitality companies must always endeavour to retain their leading position (if they are market leaders; otherwise aspire to be one), increase their market share and always stay ahead of their competition.

Here are five ideas for you to employ to remain successful in the growing hospitality industry.

1. Monitor your competitors

According to online surveys, more than 47% of accommodation industry players actually watch their competitors closely, while 49% were less vigilant, and 3% were not concerned at all. While it’s great to trust your own business plan, part of it must be based on the activity of your competitors.

This means you need to pay attention to their prices and promotions so you can respond in a timely and appropriate manner. For example, if you set a room rate at the same price as your competitors and one at a slightly higher rate, you can still attract deal seekers without completely sacrificing your opportunity for larger revenue.

Similarly, if you study their promotions you may find you can afford to offer better deals or extras and draw more guests to your property in the lead up to an event or busy time of year. You can also use your analysis to add value and increase midweek bookings.

Think about how you can give your guests that little bit extra. Note that constant promotion or discounting could devalue your property in the eyes of travelers so make sure to be strategic with your timing.

Here’s how you can keep abreast of what your competitors are doing:

Set up alerts and notifications for their rates with a pricing intelligence tool

Sign up for their emails

Follow them on social media

Analyse their SEO and improve your own

2. Listen to your guests

The feedback you receive from your guests is extremely important. You need to work hard to secure fantastic online reviews because if you do, you have a justifiable bargaining chip with which to increase your rates.

In addition, your guests will usually explicitly list your property’s strengths and weaknesses so you know where you can make an improvement. They might even give you a good indication of how you compare to the local competition.

Ensure your front line staff is constantly taking feedback on board and reporting it back. Satisfied customers become free brand ambassadors so get as many onside as possible.

3. Expand your knowledge and management skills

The more you know about your profession, industry, and local market the easier it will be for you to make successful strategic decisions. There are multiple ways you can become better informed including:

Catch up regularly with other industry professionals

Educate yourself on any knowledge gaps

Subscribe to industry newsletters

Follow relevant and prominent figures on social media

4. Be introspective about your business

While it’s important to monitor competitors, copying them won’t get you anywhere. Focus on what makes your property special and emphasise this in your marketing to create a point of difference for potential guests.

Maximise your level of service to ensure the travelers you do attract become long-term customers. This will keep your direct bookings high, giving you more revenue and thus flexibility for your rates. Increasing your direct bookings will lower the cost of your distribution and boost your brand awareness.

If a new competitor arrives, resist the urge to immediately match their prices. Their offering may not necessarily be more attractive and if they do bring more travelers to the area you can work on developing plans to capture a slice of their pie.

5. Capture data in real-time

When the market and your competitor’s rates can change at a moment’s notice, you need to need to be receiving the information you need instantly. With pricing intelligence tools available, this data is immediately available to you.

It also enables you to track competitors and be alerted whenever they make a change to your previously created rules.

With such tools like you can also perform your own forecasts and predict demand for the local hotel market, meaning the rates you set are more accurate and you won’t lose revenue.