Vietnam is a country with many favorable conditions for tourism development. Currently, when the tourism industry in Vietnam is growing, the accommodation service industry has exploded along with it. The hotel business is an exciting yet challenging field. So What is the hotel business?? What do you need to prepare for an effective hotel business? All will be shared by Sapo.vn in the article below.
1. What is the hotel business?
The hotel is the investor’s accommodation business, with full facilities to meet the needs of customers during their stay at the hotel.
Hotel business is a business activity on the basis of providing accommodation, dining, entertainment, entertainment and many other services to meet all their needs at tourist destinations in order to earn money. profit.
Hotel business includes two types of accommodation business and catering business. The accommodation business is the business of providing bedroom rentals and other additional services to guests during temporary stays at locations for the purpose of making a profit. The hotel catering business is a part of the hotel business, which includes the activities of preparing food and selling it to customers for profit.
2. Characteristics of the hotel business type
– Depends on resources at tourist sites: Tourism resources are the factors that motivate people to travel. The more beautiful tourist resources a place has, the more people visit it. Therefore, the hotel business in those areas will grow even more because tourists are the most important customers of hotels.
– Large investments: The initial cost of land rental and hotel construction as well as initial equipment purchase is very large, requiring investors to have a large enough capital to pay for these. The quality of the hotel’s facilities depends on the type and rank the hotel wants to aim for. This is also the reason for the increase in initial investment costs.
– Regulatory: The hotel business is influenced by many factors and is seasonal. Tourism resources depend on the fluctuations of nature, influenced by weather and climate. When it does, it causes seasonal fluctuations that fluctuate the number of tourists coming to that place. That leads to a change in the seasonal hotel business.
– Large direct labor use: The product of the hotel industry is a service. This service is made available by the service staff in the hotel. Therefore, the hotel must employ a large number of skilled workers so as not to affect the quality of service. The cost of hiring and training workers is also a challenge for hotel business owners.
See more: What is accommodation service? Types of accommodation services available today
3. Types of hotel business today
The hotel business in Vietnam is growing day by day with a variety of business types. After learning what the hotel business is and the characteristics of the hotel business, Sapo will continue with readers to learn about the current types of hotel business. There are many bases for dividing hotels, the common ones are the following types.
3.1 Based on size
When dividing the types of hotels by size, hotels are divided into 3 main types:
– Small hotel: Small hotel business, also known as mini hotel business, has a scale of 10 to 40 bedrooms with the main purpose of providing accommodation services for customers, rarely with accompanying services. Therefore, the cost that customers have to pay for a mini hotel is usually quite small.
– Medium hotels: Medium-sized hotels usually have from 40 to 90 bedrooms, providing more food services and some other additional services. Medium-sized hotel business projects are often very popular in tourist destinations or resort areas. This type of hotel will have a higher cost than a mini hotel.
– Big hotel: Large hotels have the number of rooms up to 100 rooms or even a few hundred rooms, providing a variety of accompanying services such as dining, entertainment, spa, … At large hotels, the equipment in the room often more modern, professional staff are well-trained and professional.
3.2 According to the degree of linkage
Includes 2 types:
– Group hotel often own many hotels present in many different tourist destinations in the same country, even present in many countries around the world. Services in these hotels are diverse with modern equipment, luxurious space, many services with high costs.
– Independent hotel usually only available in a certain location with a small scale, moderate prices and only providing the usual services.
3.3 Based on geographical location
– City hotel located in big cities such as Hanoi, Ho Chi Minh, Hai Phong, Da Nang,… with modern infrastructure and professional staff.
– Resort Hotel Hotel is a type of hotel built in resorts to serve the resting needs of customers. These hotels often have other high service prices accompanied by quality services to meet the needs of relaxation and rest of customers. Service prices of resort hotels are often higher during the holidays when people’s demand for travel and rest increases significantly.
– Roadside hotel built in major traffic axes or important roads. This type of hotel mainly caters to travelers who need to rest. Besides accommodation services, the roadside hotel also provides catering services and vehicle maintenance.
– Hotel in transit are hotels built near airports, ports or border areas. This hotel mainly caters to guests who want to transit or individuals need a place to stay because of sudden changes in schedules.
See more: What is Overbooking? How to handle overbooking in hotels effectively?
4. Features to keep in mind when making a hotel business plan
4.1 Business products
Hotel business is a business activity in the service industry, the products of this business type are intangible, so business conditions are also more complicated. Customers tend to evaluate service quality through tangible criteria such as price, environment, utilities, accompanying services,… In particular, business activities are greatly affected. much by the attitude and professionalism of the staff in the hotel.
4.2 Target customers
The target audience of the hotel business is quite diverse from the popular class to the upper class, so the types of hotel business are also diverse to serve different types of guests. However, you cannot choose to operate all types of hotels to serve a variety of different types of customers. Therefore, you need to research and clearly build your target customers, what their needs are to choose the right type of hotel business.
5. Things to prepare when doing hotel business
5.1 Capital
Capital is a prerequisite for all business activities, of course the hotel business is no exception. Hotel business requires a huge initial capital investment in location, building infrastructure, purchasing furniture, paying wages to employees,…
The amount of capital invested in the hotel business is large, but the recovery time is quite long. Therefore, before doing business in hotels, investors must plan and prepare for themselves a large enough capital to cover the above expenses.
5.2 Thorough market research
Investors need to do market research to answer the following questions: Who are the hotel’s target customers? How often do they visit your hotel? What type of hotel business do you choose? Should you choose the service and price at what level?…
The initial capital that investors spend is very large, so they need to study the market carefully to make smart investment decisions to avoid losses.
5.3 Select type and location of business
The type and location of the hotel business are extremely important factors, contributing to the revenue growth process when doing business. Customers often tend to choose accommodation facilities near tourist attractions, easy to move for convenience for going out.
5.4 Completing business licensing procedures
The requirements on hotel business conditions are required in legal documents such as: Law on Tourism 2017 Decree No. 168/2017/ND-CP and Circular No. 06/2017/TT-BVHTTDL. In addition to the business registration license, the hotel must also ensure the elements of security and order, fire prevention, food safety and hygiene, and a hotel star rating certificate.
5.5 Recruitment and staff training
Employees are one of the important factors that directly affect the hotel business process. Customer satisfaction brings reputation, profits and growth opportunities for the hotel. Professional qualifications and ability to communicate affect the customer service experience at the hotel. Therefore, if not properly trained, employees will deviate from the hotel’s goals and vision.
5.6 Formulate specific business strategy
Before starting a business, the investor needs to have a detailed business plan along with strategies to develop the business. Hotel business strategy is one of the key factors to increase room sales as well as increase revenue effectively. Not only that, a good business strategy also helps you create a good experience for your customers. When formulating a strategy, investors should base on factors such as target market, customer segments, competitors, market trends, etc.
5.7 Using hotel management software
The process of applying technology to hotel business management is no longer strange. Using hotel management software makes the management and operation process easier. All activities from customer information, employee manipulation, room availability, revenue, reports, … are synchronized on the software. Business owners can easily monitor activities remotely on mobile devices when away from the shop. It not only brings professionalism but also helps business to be more efficient.
Sapo has just shared with you information related to the hotel business. Hopefully through this article, you have a better understanding of what is the hotel business? Types of hotels today and how to run the hotel business effectively. Wish you successful business!
