How To Choose Which Direction?

[Robert Frost]

Ok, so I have my premises and my idea, but am a little stuck. I want my hotel to be a success (obviously) but I don't want to struggle with it.

I'm currently trying to decide which side of the market I go with - do I go Luxury (aka Cromlix and Andy Murray) and therefore charge a lot of money per room per night, or do I go more basic and charge less, hopefully having more customers.

What would you do?

 

[Gemma Rowlands]

Have a look at what's around in your local area/the area in which you hope to build your hotel. Are there already some there? You don't want to just copy what's already around, there has to be something different, that people can only get from you. Market research is key. You don't want to build a hotel only to find that it's not something that could be of use to anyone.

Maybe get some questionnaires out there, have some overnight stays at local places yourself to see exactly what they offer, and see what you could give your customers that nobody else can.

Whatever you choose to do, just don't rush into anything. You have to be able to cope with what you decide to do, and you have to appeal to the people who you're aiming your hotel at.

 

[Liz @ Human Nature]

Have you tried playing with some numbers? As in what would your costs be, and how much income would you expect to bring in, with each different scenario? This might clinch it for you. You'll need to think through staff required and all sorts of other things.

The other way to look at it is to think about what is important to you - do you have values that would push you in one direction or the other? Are you committed to a high level of service that warrants the higher price tag? Or do you believe in offering great value for money that makes your hotel more accessible to everyone?

 

[Branded Merchandise]

I agree with both Gemma and Liz. I think the biggest question I'd be asking myself is 'What is my competition in the area and what are they doing?' Would there be a demand for either option? You don't want to build a luxury hotel and find out there are another 20 in the area. Similarly, you need to be sure there is a market for a luxury hotel in that particular area

 

[Gemma Rowlands]

I agree with both Gemma and Liz. I think the biggest question I'd be asking myself is 'What is my competition in the area and what are they doing?' Would there be a demand for either option? You don't want to build a luxury hotel and find out there are another 20 in the area. Similarly, you need to be sure there is a market for a luxury hotel in that particular area

Yes, checking out the competition is vital.

AND you have to make sure you offer something they don't. It takes quite a leap of faith for a customer to choose a different place with probably very few reviews, so they need to have a reason to do so.