Market saturation in the Hospitality Industry is an issue that every business can now testify.
Market saturation comes into an industry when the number of service providers maxes out in the industry. The same thing is happening in the hospitality industry.
Basically, in a saturated market, some so many players, that generating bookings becomes very difficult due to competition.
Hospitality business goes way back long. Ergo, there so many hotels crowding the industry.
This gives the traveler a lot of options to compare making life difficult for the hoteliers. Travelers want several perks with their bookings and that too in limited prices.
And if you do not offer that then you lose a guest.
This makes the hotel business a complex affair. But this does not mean that you have to avoid the market. The hospitality industry has a lot to offer.
We have to understand that the industry is crowded due to a reason. It has the capability that it can sustain this large number of businesses.
1.34 billion international tourism departures are expected in 2020 which is a 3% rise from the last year.
So if we see it from an alternative perspective then we will see a lot of opportunities. And we have to seize these opportunities.
So let us now check out some of the ways by which we can be a step ahead of our competitors and survive market saturation in the Hospitality Industry
There is a reason behind the success of boutique hotels. They offer a unique stay experience.
Guests these days search for meaning in their travel. They want something to remember, that makes their every journey distinctive.
For mainstream hotels, it does not mean that they have to do anything out of the box or just change hotels upside down but they need to define their a loud and clear USP.
A Hotel’s USP or Hotel’s Unique Selling Proposition is that facet of your hotel business that sets you apart. This is the feature that your opponents lag. So your Hotel’s USP is one of the primary things that attract guests to your hotel.
In our industry, we call our customers guests. They are not mere leads or sales opportunities, they are our guests.
They are going to stay at your hotel, they will expect that human touch. Their interaction with you, your staff and your property will create a memory for them.
So if things are so abstract then they ain’t returning.
To survive the competition you need loyal guests. Guests you overlook the pricing and even amenities and choose you.
You need to give reason to these guests to keep returning to your hotel.
So you will have to develop a relationship between your guests and your hotel brand. Loyalty programs are very effective for this purpose.
When the market is crowded with options people tend to opt for the one which is vouched by someone trustworthy.
And this is the basic idea behind influencer marketing.
Influencer marketing is a form of social media marketing involving endorsements and product placement from influencers, people and organizations who have a purported expert level of knowledge or social influence in their field.
Basically an influencer is a person who has fame or has a following in the niche i.e. hospitality for us. He has an impact on the audience which can be your hotel guests.
This helps you to gain trust in no time. The audience trusts the influencer and the influencer trusts you, you can do the rest of the maths.
Many think that influencer marketing is a costly affair but the contrary is true. It is a cost-effective method and ROI is good.
Your pricing strategy is very important if you want any success in a saturated market.
Now we do not have to be confused that we have to decrease the pricing, no not at all. Excessive discounts have several disadvantages.
An immoderate discount strategy will make the survival very difficult, also send a wrong message in the market.
There is a need for proper marketing research before you price your rooms. The modern travelers are willing to pay if the price is justified with the value.
Then you have to give the static price strategy and adapt the dynamic pricing strategy. The price will depend on the demand at that time of the year.
You must also do proper competitor research before doing the pricing of your room.
It is very important that you keep updating the various process in your overall hotel business. You need to change as per your competitors, inventory distribution channels like OTAs, customer expectations, time of the year and many more.
For this, you will have to be vigilant and take the help of the data that you collect from your customers.
You need to make data-driven decisions. And with quick educated changes you will be always ahead.
The bottom line is that the hospitality industry is very fruitfull and still it can sustain all of us. The industry is booming with the rise in global travel.
With the right decisions and steps, our business can also grow with the industry and survive market saturation in the Hospitality Industry
Thanks for the read.