POSITIONING OF YOUR HOTEL IN COMPETITIVE SET is the most important exercise which has to be implemented with caution ,market intelligence and operating environment of the city. In order to maintain an important position rather respective position it is must to analyze the market economic conditions , travel trends , operating segments and market penetration thresholds.
THINK LONG TERM- it is often seen the hoteliers making mistakes by establishing short term gains or opportunity benefits rather than long term , the situation demands the focus should be on long term plans , may be establishing five year strategic plan which is reviewed every six months. The current or short term marketing exercises, brand building is undertaken according to the reviews of the long term planning.
ESTABLISH CLEAR VISION- Establish the clear vision of the company, the segment which your hotel serves the best, the design of services, employees and HR focus to cater to the particular genre of clientele. One should focus on training the employees to make them understand the vision of the organization. The sales and marketing efforts should be carried on cumulative to the vision of the establishment. Remembering the old school theory –OUR employees are the brand ambassador of the hotel and it is their behavior, presentation and act which establish the identity of the hotel or resort to the general clientele.
STRATEGIC INTENT-define your goals clearly, to yourself, employees and marketing and sales team .Every effort done in has to be done in the same direction with common understanding and unified direction. There has to be broad framework of the revenue and expense budgeting. The revenue forecast has to clearly define the benchmarks of average rates v/s each segment the hotel operates or sees as potential market. The marketing plan to tap such segments and visual identity of the hotel print material towards that segment. This could be as simple for one or two segments or as complex and varied as in case of multiple segments. It is often advised that the best plan for success of unit is to operate in multiple segments. like corporate travelers ,meetings and conferences ,weddings and events, holiday makers or inbound tourists.
KPI’s- it is important as one should always quantify the performance indicators clearly. It relates to the outcome of the organizations business plan and competitive vitality .KPI’s in simple term are those significant measures used individually or in combination to monitor achievement of the quantifiable objectives. The focus has to be on performing revenue segments thus increasing the market share in such segments. To penetrate in new market segments where the unit can successfully deliver the services and meet the requirements.
The plan should prioritize initiatives based on the Company’s goals and established key performance indicators. A SWOT analysis, trend and market review, competitive analysis as well as any other pertinent factors that will effect your business over the long term should be outlined in the Strategic Plan to support the Vision, Strategic Intents and Strategic Objectives
What is the age of your property? How frequently do you update your facilities? What are your target markets ? Which markets would you like to attract or expand into, What types of properties are opening that will compete with you? What are the developing trends that may affect your business i.e. spa, wellness? While these questions may seem obvious, they should all be considered when developing an effective Strategic Plan. One of the key factors in developing your plan is your knowledge and understanding of current and evolving trends – on both the local and global levels – and how they impact your hotel.
To summarize, strategic planning determines where your company will go over the next three to five years, how it is going to get there and how you will assess the achievement of your goals. Would you be able to create a niche in the market for your product, would you have enough loyal customers to keep you going , wont you be in the trap of competitive pricing or discounting to ensure your daily target occupancies are met with . Mostly in hotel operations, we become so preoccupied with immediate issues such as guest complaints. Relationship management, cost control and maintenance issues that we lose sight of our ultimate objectives. Developing a strategic plan is a virtual necessity, to keep an organization focused in order to ensure its long-term profitability and growth
