Once we have a hotel business idea big and detailed enough, we will start implementing it hotel business steps such as business planning, infrastructure architecture and hotel construction, then menu planning, staff recruitment, reception…
Many people, when they see a hotel that is crowded, often whisper to each other, “They must be doing a lot of money”. But only people in the profession understand that the hotel business is a arduous process, requiring the manager to have passion and a lot of effort.
What does the hotel business need?
Not to mention capital, the first thing that is absolutely important in the hotel business steps is the knowledge and understanding of the hotel and restaurant industry.
As a hotel manager, you not only need to have passion, but also a deep understanding of the restaurant industry, flexibility to deal with events that may occur at any time. Interaction ability, thinking ability…
All will help you know how to organize and manage everything from creativity, aesthetics, hotel style, to financial literacy so you can calculate your break-even point, how to effective investment.
Any business needs marketing, and so does the hotel business. Only when you have marketing knowledge can you determine which segment your hotel is in? Who is the main target audience? What is the market trend in the near future? In today’s business era, the manager who has a good marketing mind, is creative, knows how to anticipate trends, that person wins.
Budget planning for hotel opening
Many people often ask the question how much capital is needed to open a hotel and do not know whether to run a hotel business or not? Really this is a difficult problem, and there will be many different answers, depending on the size of the hotel you want to build, where is it? What is the form of the business and what is the menu like?…
For example, you may just want to build a budget hotel, serving middle-income guests, visitors at some locations near bus stations, hospitals; Or the type of mini hotel, focusing on beautiful architecture and Asian and European dishes; Or it could be a high-end hotel, serving a high-income market segment…
By listing in detail your purposes and needs according to the original business idea, you will be able to account for all the money needed to run a hotel business. One thing to note, you should always account for clear costs for both phases: initial costs and operating costs (after opening the hotel).
Never spend all the capital you have on the initial cost, because after opening you may have great difficulties in the first months of business, maintenance fees..
Research the target market that the hotel is targeting
Market research is one of the most important steps in the hotel business. Today, people’s need for rest and convalescence is no longer as simple as before, everything requires raising the level of art and great creativity from the bedroom design space, the creativity of the head. kitchen in dishes to please diners, accompanying hotel services for customers to enjoy…
The hotel business can also be likened to “marriage of a hundred families”, we must do well all the requests of our guests, if we want to bring the best experience to customers and face fierce competition from competitors. painting.
Moreover, not 10 guests using hotel services are satisfied with what you are providing, but each person will have a different feeling. That is to say, no hotel can ever appeal to the entire customer market, and when running a hotel business you need to target the target market (about 5-10% of the entire market) and Serving them well is a success.
Which market segment will you choose for your hotel? According to age, personal preference, income or a particular feature (mini hotel, special hotel, high-class hotel…). Based on this segment, next you will study the characteristics of each object to find the most suitable way of doing business.
For example, when dividing by age, you will see that the previous generation 7x are people with stable careers, like luxury and calm, while 7x – 8x are mature and mature, they care a lot about values. substantive and quiet, doesn’t like to be boisterous, or to be noticed. With the 8x generation up to the present, they are very active, like to experience new things, are easily attracted to trends and like to assert themselves…
Likewise, you will analyze other characteristics to find the target customer segment that fits your hotel idea.
Hotel opening location
Location is also an important factor in the steps of the hotel business. This is a dilemma that managers find confusing. If you choose a location with a beautiful location, large scale, near the central areas, the cost is expensive. But if it is the suburbs, far from the center, it is difficult to attract customers. Some points you need to keep in mind when choosing a place to do business:
– Ability to attract guests: Is your hotel location near tourist areas, bus stations… How many visitors will your hotel attract per day?
– Traffic: Check if your hotel is close to important traffic points? Approximately how many people walk and ride each day? And importantly, is your hotel convenient for customers to stop by?
– Calculate the cost of renting the right place: To do this, you first need to account for profit and loss based on the surveys you have done. Of course, this number is only a theoretical approximation, but it will show you with that amount of revenue, how much money should you rent to open a hotel to ensure it is still profitable.
– Parking: The hotel must have a convenient parking space for guests. If the space is large, arrange parking in the yard, if the area is small, there must be a basement for parking.
– Neighborhood hotels: List all the hotels in the area near you, poll these competitors and compare with what you are offering to learn, to evaluate… From there you will find Our hotel’s unique features ensure we don’t fall behind our competitors, and affect sales.
– History of the place: find out about the place before deciding to rent or not. Who were the previous tenants and why are they not renting anymore?
– Future development: Learn the local planning strategy to know in advance if there are any changes related to the place you intend to rent?
– Terms of the contract: carefully study the lease contract to have the most reasonable agreement, as well as the procedures for granting a hotel business license
The most core issue in the hotel business is the premises as it effectively generates 80% of the revenue. If you choose a bad position, even with a good manager and a perfect marketing plan, it is very difficult to bring good results. So study carefully the steps of the hotel business before embarking on the practice so that you have the most satisfying business results.