How to Expand Your Hotel Business to Another City
In 2017, the GDP contribution of the travel and tourism industry as a whole was USD 234.03 billion which is expected to more than double by 2028. So, if you’ve been planning to expand your hotel business to another city, it’s the right time to undertake such expansion.
Here are 4 tips on how you can expand your hotel to another city:
Like with any other business, for expanding your hotel business, the first and the most crucial step is in-depth R&D.
For the hotel business especially, collection and analysis of Big Data are important because along with the growing opportunities the industry has to offer, the challenge of a more unique and personalized guest experience is also prevalent.
Diversity among guests is growing increasingly, both demographically and in their expectations. Millennials, that constitute a significant percentage of the global workforce as well as global travelers, seek smart spending, instant satisfaction and exploration as stated by a 2014 Ernst & Young report.
Providing signature experiences, being innovative and adding new services, making use of collaborative technology and keeping up with the changing trends and expectations is a major aspect to focus on in the research phase. This is in addition to the research on real estate, smart pricing strategy, and competitors’ strategies and services.
Collaborate with OTAs
Determining multiple independent online travel agents as well as popular travel websites that host listings and reviews is of high priority when expanding your hotel business to a new city.
You have to ensure that you provide an attractive and appropriate hotel listing along with multiple, clear pictures of your hotel including different types of rooms. Describe all the available amenities and facilities well.
Collaborating with online travel agents and websites to offer deals and discounts to drive more bookings and for promoting your new hotel is a good way to begin marketing for your new property.
Capitalize on the selling point of the city
When planning to expand your hotel business to a new city, you should be aware of why tourists, domestic and foreign, come to the city. A deep understanding of the selling point of the city, it’s local customs and the cultural uniqueness it offers is critical.
For instance, tourists coming to the cities of Jaipur and Jodhpur look for an experience that’s rich in culture, art, cuisine and expect a royal experience. Hence, while setting up a hotel in Rajasthan you will have to ensure that the architecture and the decor are all in sync with local values.
Vibrant folk-art forms, including puppetry and dance forms like Ghoomar, Kachchi and Chari, are other tourist attractions. Hiring local artists to perform at the hotel in the evenings to provide your guests an authentic experience would work well.
In a similar fashion, operating in any new city requires you to integrate its charm and selling points into your hotel.
For your existing hotels but especially for when you’re expanding your business to a new city, digital marketing is key. Have a variety of informative and engaging blog posts about fun things to do and explore in the city. It adds more value to the guests’ experience and positions you as a trustworthy expert of the area.
Expanding your business to a new city requires considerable investment. Bajaj Finserv offers hotel financing that will help you pay for everything right from the property and license and permits to the equipment and personnel. It can also help you to meet your working capital requirements and in your marketing efforts.
Hotel financing provided with Flexi Loan facility making financing convenient and more affordable by enabling you to withdraw and repay funds as per your business’ financials.