The most important thing to grow in an industry is to learn from the competition. And believe us, there is no industry / no business near the hotel industry in terms of the competitive environment. You may already know how difficult it is to stand out from the competition when you work in the hospitality industry. If your business is stuck in the same place it used to be, even though you’ve changed your business and invested heavily, my friend’s benchmarking is the solution for you.
Competitive benchmarking is a simple assessment of your business against your competitors. In this way, you will learn about the current position of your company and the improvements that can be made to keep up with the best in the field. Reforbes first at the finish line! For example the reservation system, which is like the front for each hotel. Your customers reserve via the reservation system. Let’s say you still use the old and traditional reservation methods that your customers need to call your reservations staff to reserve a room. At the same time, however, your competition uses the latest technology, which enables you to book online through the website and a custom application built on the basis of a robust hotel reservation script. Then it is obvious that the competitor would get more customers, as it offers the users a simple booking.
This is what competitive benchmarking compares you to the best in the industry. All you have to do is evaluate each element of your business with your competitors. This is an effective technique that will really help you improve your hotel business.
If you are unfamiliar with this topic, you need not worry. We offer four ways to improve your hotel business with competitive benchmarking. So, stop by and read on.
Analyze your competition
The very first and most important step in competitive benchmarking is to know who your competition is. That way, you can list the options your customers have. While it’s important to know where your customers can go, you really need to focus on the question: “Why should you go to your competitors?”. Here you really start with the analysis of your competitors. Yes, sometimes you may think that this is pointless, but trust us that this is the way up.
Once you’ve decided on your competitors, you’ll need to answer the question of what your customers are letting off of you. How is your competitor better than you? What do you offer, what you are not? These questions will be answered as soon as you compare all the service and business elements. For example, you can analyze your business based on the following criteria:
- Management
- Facilities
- Prices
- Business location
- customer approach, etc.
Once you start the summary of the reports, you will definitely notice the slight differences between the hotel service and the one sitting upstairs. Now the last and last step is improvisation. If you know why your sales are falling and why you are losing customers. Then make some changes and make sure your customers stay. We know that changing the way you conduct your business can be a bit chaotic and frightening for some hotel owners, but it’s worth doing so.
Collect informations
We’ve discussed the ways you can beat your competition. And as we said earlier, the one with the information wins in this fight. So you can not go out to see random things in your competitor’s hotel and make a list where you can do the same thing. What you need is a right strategy to gather the right information. So there are only a few standards that can be used to collect data.
Information about room types, equipment and the most important prices.
The two most important things a customer sees before making a reservation are the type of room and furnishings. And the other is the price to what they offer. Once you hear about it, you’ll see why you’re behind your competition. Remember, the goal is to compare every element of the business from a customer’s point of view.
- To whom do they address themselves? It is important to know that every person has a different taste for different things. So if you think that every person you meet will like your hotel, then it’s a mistake. You can not convince everyone to like it, and it’s not a good idea to do it. For most companies are purposeful. The same applies to your competitors. When you look at their rooms and facilities, you have a clear idea of their target audience.
- Using the email newsletter: Email is considered one of the best ways to implement the marketing strategy. That’s why hotels and restaurants use it to run marketing campaigns. Here you can get in touch with your customers about different offers and discounts etc. This may be an important factor or your competitor’s customer as it is a good source of information for you.
- Social Media: It’s a modern world, and every business today is online, either through the website or through social media. You can gather lots of information about the development of your competitors through their social media handle.
Use the latest technology
To successfully run and operate a hotel is no easy task. And if you do not use technology, it just gets harder. Similar to the hotel reservation script, you can use other technologies to make things much easier and faster than you ever imagined. Create a website, present yourself through social media, etc.
