The hotel industry is a highly profitable and competitive business. According to the Bureau of Labor Statistics, the average profit margin for the hotel industry is 9.4%, which is higher than the average profit margin for all industries (7.0%). Furthermore, the hotel industry is growing faster than the overall economy. The number of hotels in the United States has increased by 2.5% over the past year, while the number of jobs in the hotel industry has grown by 3.5%. This growth is likely due to the increasing popularity of travel and the development of the sharing economy (such as Airbnb), which has made it easier for people to book rooms without going through a hotel.
Despite the increasing competition, there is still room for new hotels to enter the market. The average occupancy rate for U.S. hotels is currently 66%, which means that there are still 34% of rooms that are not being filled. Furthermore, the average daily rate for U.S. hotels is currently $128, which means there is plenty of room for hotels to increase their prices without fearing losing customers.
However, it can be competitive. To be successful in this industry, hotels need to provide services that will make them stand out from the competition. Here are some of the hotel services that can add a competitive edge.
If your hotel doesn’t offer free Wi-Fi, you’re missing out on a significant draw for customers. People expect to be able to stay connected while they are away from home, and if your hotel doesn’t offer it, they will likely look elsewhere.
Of course, hotels are massive establishments that need a significant amount of bandwidth to keep everyone connected. To ensure that your hotel has the necessary infrastructure, you should invest in quality Wi-Fi routers and access points throughout the building.
Partnering with reliable internet service providers is also crucial. You want to ensure that your guests always have a fast, reliable connection when in your hotel. Hotel internet can be expensive, especially when setting up a large hotel. But it can make all the difference in customer satisfaction and retention.
In-room entertainment is one of the most critical services hotels can offer. People want to be able to relax and have fun while they are away from home, and having access to movies, music, or other forms of entertainment can go a long way in making them feel comfortable.
The type of in-room entertainment you provide depends on your budget and the age demographic that you’re targeting. For example, if you’re targeting business travelers, streaming TV services like Netflix or Hulu may be more appropriate than an on-site movie rental service.
The goal is to prevent customers from leaving the room, or even the hotel, to get a meal. Room service is an excellent way to do this and can be a critical competitive edge in the industry.
Providing room service isn’t just about convenience; it also allows you to upsell customers on food and drinks they may not have purchased otherwise. It also allows you to increase your revenue by charging premium prices for delivery fees or special services like late-night snacks.
Finally, offering room service will give your guests more options for dining, ensuring that they always have something tasty available no matter what time of day or night.
Repeat customers are where hotels make their money, so it’s essential to keep them happy and ensure they have a great experience. Amid all the travelers and one-time visitors, people will stay in your hotel for extended periods or routine purposes. As a result, they may require more services than the typical traveler.
Offering laundry services is a great way to provide extra value for these customers and can be a competitive advantage over other hotels in your area. For convenience, you can give laundry pick-up and delivery or install washing machines and dryers on each floor.
Another option is to partner with a nearby laundry service to help you stay cost-effective. You can have your staff collect the customer’s laundry and drop it off at the laundromat, or you can arrange to have their laundry picked up and dropped off directly at your hotel.
These are just a few hotel services that can set your establishment apart from competitors. With creativity and hard work, you can create an unbeatable experience for your guests that will keep them coming back time and again.
The key to improving your hotel’s competitiveness is to offer services that your customers value. Wi-Fi, in-room entertainment, room service, and laundry services are all excellent ways to stand out from competitors and give customers an unbeatable experience. With creativity and hard work, you can create something special for your guests that will leave them feeling satisfied every time they stay at your establishment.