Hospitality Sector Sustainable Growth

Business, Hotels, Restaurants

In this article, we explore Hospitality Sector sustainable growth; how it is achieved and how it is maintained.

First of all, an important business lesson! A man bets £5 at 5/1 on a horse, to win. The horse wins by 10 lengths and the man wins £25. So he bets another £5 on another horse, also at 5/1, to win. The horse wins by a nose, and guess what, the man still wins £25.

In the same way, the distance that we are ahead of our competitors in business, doesn’t always affect the level of rewards – it is being ahead that is important.

So how do we keep ahead? Well first we have to get ahead and this can be where investors in hotels, particularly single, independent hotels or small chains might jump the gun. Today, both marketers and consumers talk about ‘experience’. Sadly, the ‘experience’ that some marketers advise hotel investors to offer and implement, is based on the supply side of the equation, not the demand side.

In other words, rather than clearly identifying the primary target audience, the decision maker(s) within that audience, and then creating a deliverable experience with their needs and wants exclusively in mind, some marketers advise investors in hotels to create a generic offering, based on the venue’s assets, and hope that disparate customer types will be drawn to it.

It doesn’t happen in other sectors; why does it happen in the hospitality sector?

Ford Motor Company doesn’t make one car and hope it will appeal to everyone! Currently they are manufacturers of 12 different models of car. It is unlikely that the consumer eyeing up a Ford KA is either seeking, or is possibly able to enjoy, the experience offered by the New Mustang. They are different cars for different audiences; within different markets and requiring a differentiated experience to each other.

In particular, for single independent hotels or small chains, an almost myopic primary market focus is an essential element of getting ahead. It doesn’t matter if your ‘experience’ is a basic offering for the low budget, foreign student, backpacker, or aimed at the very high net worth, exclusive and luxurious holiday sector.

The secret is to understand in detail the needs and wants of that market sector; create the experience; deliver it over and over again, and keep abreast of every change in the buying sector that may require you to modify or enhance the experience.

Understanding, creating and consistently delivering the experience gets you ahead of the game – recognising the need for, and implementing subtle, market led, changes or modifications to the experience keeps you ahead!

Keeping yourself ahead delivers growth. As competitors start to look stale and ‘off trend’ your subtle improvements and enhancements keep the primary target market engaged and delivering strong revenues. These are key factors in developing hospitality sector sustainable growth and maintaining it.

On this site we have additional articles relating to hospitality sector sustainable growth, specifically in hotels and restaurants.

Jeremy Bassett is Head of Strategic Marketing at Hospitality Business Development

He is a Chartered Marketer; Fellow of the Chartered Institute of Marketing; Founder Member and Fellow of the Strategic Management Forum.  

Would you like to know more?

Download our latest White Paper entitled “Why Return on Hotel Investment Can Significantly Underperform” or contact me, Lucienne Mosquera (Managing Director) for an informal conversation about your Investment.