Learn the top 5 problems hotel owners encounter.

How to confront them and stand out in a crowded market.

Running an independent hotel is one of the most rewarding experiences one can have. However, like anything good, it has its fair share of pain. This episode looks at the most common 5 problems hotel owners encounter and gives you some practical solutions for each. We go into much more detail in the “Check-in To Success: Building & Running Your Hotel Business” course, where we share what you need in order to stand tall in the hospitality industry.

Let’s look at the top 5 problems hotel owners encounter.

1. Crowded Positioning

The Problem: Independent small hotels cannot match the fight put up by the larger chain and boutique counterparts.

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Solution: Use your unique story and local culture to brand your hotel. Bring out what really makes your hotel stand out, be it the history or architecture and personalized service. Involve customers in these stories using social media and your website. Create unique experiences like local tours, cooking classes, or cultural events.

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Example: One small Cornwall hotel launched Cornish pasty-making classes and found them to be a massive success with visitors, therefore driving up social media engagement.

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2. Challenge of Operational Efficiency

The Problem: Ineffective operations that drive up costs and reduce guest satisfaction.

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Solution: Invest in technology to drive efficiencies into the business. Invest in property management systems that automate the process of making bookings, check-ins, and check-outs. Invest in training staff to be efficient and motivated. Periodically review how the standard operating procedures could be improved.

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Example: A hotelier in Cape Breton, Nova Scotia, Canada implemented a PMS system that reduced check-in time by 50%. It made its hotel guests and staff mutually very happy.

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3. Bring the Guest Experience to Life

The Problem: Guests expect superior levels of service and unique experiences that are hard to operationalize and deliver consistently.

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The Solution: Personalize. Use all the data of your guest’s past visits to tailor their return experience, from welcoming them back with their favourite drink to the basket of local treats in their room. Listen and watch for their input, and then using this feedback to make more improvements for their next booking. Offering loyalty programs can also motivate guests to return.

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An example: a little boutique hotel in England’s Windermere’s Lake District that sends personal thank-you notes to every guest after they check out. They report an amazing rise in positive feedback and return bookings.

4. Marketing Right with a Measly Budget

The Problem: It can be overwhelming to try to compete with the marketing budgets invested in by the big hotel chains.

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Solution: Adopt inexpensive digital marketing tactics. Implement digital marketing tactics using social media, content marketing, and SEO. Partner with other local businesses in your area to cross-promote. Remarket to past guests through email and entice them back with exclusive offers.

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Example: A Napa Valley inn started a blog about all the great things to do in and around Napa Valley, resulting in higher natural search rankings and more bookings from organic search.

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5. Coping with Financial Pressure

The Problem: Finance management under economic fluctuations creates tremendous stress for a hotelier.

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The Solution: Have a good financial management system. Monitor your cash flow, budget, and expenditure at regular intervals. Have additional sources of revenue, like a spa, restaurant, or function hosting. Consult professional financiers for planning and investments.

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Example: An independent hotel in Edinburgh, Scotland diversified into weddings and corporate events, and it quickly became a regular supplementary income, doubling its annual profit.

Craving more ingenious tips to transform your hotel experience? Dive into our exclusive guide, ‘Unlocking Hospitality Success: 25 Must-Know Insights for Independent Hotel Owners’. Consider it your personal roadmap to thriving in the hospitality world. Don’t miss out on this golden opportunity to revolutionize your establishment. Check the link in the show notes and start your journey to the top!

Which of the 5 problems hotel owners encounter struck out the most? Are you going to try any of the solutions?

Share your thoughts with us in the comment section below!

In Conclusion

While many problems will pop up in an independent hotel operation, the right strategies can turn them into growth areas. Handling the top 5 problems hotel owners encounter is an excellent start to keeping your hotel on a good growth path. This can be done by brand differentiation, streamlining operations, enhancing guest experience, marketing inexpensively, and wise handling of money.

Ready to take your hotel management skills to the next level? Explore the “Check-In To Success: Building & Running Your Hotel Business” course today and join a community of successful hoteliers. For more information, check out the link in the show notes.

In the next episode, I will discuss Ways to Improve Your Hotel Bookings.