It is a known fact that the hospitality industry was one of the fastest-growing and profitable industries before the pandemic. With the pandemic, the hospitality industry across the globe had its own set of repercussions, and India was no escape to it! However, with ease in restrictions and people adapting to the new normal, the hospitality industry is picking its pace and has started to garner its revenue. If you are wondering about starting your hotel business in 2022, now is the right time!
With lockdown restrictions easing, several individuals have started to take up quick weekend breaks. There has begun an increase in the demand for affordable hotels and lodging, but also luxury accommodations have started to be in demand. Even though one cannot forget how the pandemic hampered the growth of the hotel industry, the hospitality industry always offers a rewarding experience to all hotel owners or those who want to start a hotel business. With the hotel industry all set to seek its boom, it’s safe to say that it is the right time to start your own hotel business! In this article, we shall talk about how you can get started with your own hotel business, the costs that can likely arise, and everything you need to know about starting your own hotel business in 2022.
In today’s world, starting a hotel business can seem to be an effortless task due to the instant access to resources and given technological advancement. However, the pandemic has taught all the hoteliers to rethink their hotel business strategy and ensure that they plan diligently. They must ensure that their establishment (hotel) is well prepared in infrastructure, services and lodging and is well-equipped to face all the challenges. One must remember that it takes a lot of time to start a hotel business, and you must take the enormous step to take a risk and earn a higher amount of profits.
How to Get Started With Your Own Hotel Business?
As we understand how to get started with our hotel business, we have brought you some expert tips and advice from the experts! Let’s read on to find out!
Discovering the market need
The first and foremost step you need to take while starting any business is to identify the market gap. Similarly, for anyone who wants to start a hotel business, it is essential for you to look into multiple aspects such as industry trends, location, type of hotel. It would be best if you kept yourself informed on a recurrent basis. Once you understand the basic information about the industry, it is time for you to start market research for your hotel. Start by identifying the need in the market by looking into areas such as your audience, goals, competitors and other such related characteristics. To intensify your search, you can look into the following features such as;
- Type of Property – It is well-known that all hotels are not the same. The first step you must take is to determine the property type. You must start by thinking about what you will offer to your customers in your restaurant. Make sure that you have ample options for your services and ensure that they are unique compared to other hotels around your location.
- Size of the Hotel – The next important factor you must look into is the size of your hotel. You must figure out the number of rooms you will offer and how different your establishment (hotel) will pan out compared to your competitors serving in that particular location.
- Location – As for location, you should now look into factors such as area of operation, demand in the area, amenities in the site and if your hotel is close to airports, beaches or other essential venues.
- Audience Demographics – You should now look into your target audience or guest demographics, such as frequency of visits, travel purpose, and other travelled-oriented characteristics. You must determine whether your target audience will be travellers, tourists, businessmen, families, couples, solo travellers or other related demographic groups. Understanding your audience demographics will help you create a marketing plan for your hotel business and give you a competitive edge.
Crafting Your Strategy
Upon understanding the needs of the market, you must create a solution so that your hotel business will address the market demand. You must ensure that your hotel plan has a unique solution with respect to the concept, location, ambience, amenities, marketing, promotion, and services. When you figure out these concepts at an early stage, it will help your business stand against the competition and capture the market strategically. You must look into other important elements such as pricing and revenue, customer satisfaction, sustainability and hotel management and maintenance.
Determine Your Numbers
Once you have completed chalking down your strategy, it’s essential to plan all your numbers and ensure that your hotel business turns out to be profitable. You must determine all the room revenue, hiring cost, license and permit, and other operating expenses. Once you have determined all the costs involved, we should look at the sources of finances available for your hotel business. You should also project all your potential cash flows and then opt for credit, either long-term loans or short-term loans.
Doing Your Paperwork
We all know that starting a hotel business involves quite a lot of regulations with respect to license, finance, insurance and other related regulatory measures. You must approach the proper authorities and get all your business requirements according to your hotel business. You must also get permissions related to your location, building, renovation permits and licensing and serving food and alcoholic beverages. Given the pandemic, you must also ensure that your hotel business adheres to all the health and safety protocols laid down by the respective government and regulatory authorities. Once you complete your paperwork, you must check with the requirements at the local and state level and ensure that there are no mistakes on your part.
Launch Launch Launch!
Once you have completed all the above steps, it’s time to take action! You are now ready to launch your hotel business in the market. With your plan, the right team and a well-defined strategy, it’s time for you to bring your hotel business live! You can launch grandly and introduce your hotel business and yourself to all your partners, influencers, and other potential stakeholders.
We are sure that starting your own hotel business is no longer a strenuous task! It has many risks, but it’s just part and parcel of every business. It’s time to get your planning on track and launch your hotel business today! Start your hotel business and get cooking!