How would you like to have a constant stream of hotel guests and not have to compete on price?
Competing on price is no longer a magic solution for attracting guests. According to the Entrepreneur, competing on price is becoming less attractive. While you should not over-price yourself out of business, competing solely on prices is likely to land you into a low price trap that could easily put you out of contention.
The problem with relying solely on price competition is that you can find yourself in price wars that deplete your profit margin. You are also likely to lower standards in an attempt to justify the price cuts.
There is a better way!
Below are five proven ideas on how to attract guests without getting into unsustainable price wars.
- Always Over-deliver
Don’t let a guest check out of your hotel with a cheated expression on their face. Aim to deliver more value than what they expect. Seek to provide the best service at the lowest possible price. This should be clear in your promotions. Let prospective guests know your UVP (unique value proposition). What makes you special? What can they take away from your service that they cannot get anywhere else? If you over-deliver on value, guests will have good memories about your hotel and will make a mental note to return or recommend you to others.
- A Touch of Luxury and Royal Treatment Helps
There is one thing you can be sure of: when you treat your hotel guests like royalty, they will appreciate the extra effort. Making guests feel special does not have to be expensive. For instance, an infectious smile is free, but it can have a tremendous impact on a guest.
- Be Competitive
If you are offering a service that is as good as that of your competitors, your prices should not be any different. However, do not be competitive on price alone. Provide a quality service that would make a prospective guest choose your hotel. You should also resist attempts to enter price wars that could see your profit margin disappear.
- Lavish them with Exquisite Hotel Amenities
Nothing makes a guest feel special than being provided with luxury hotel amenities. Whether it is the shampoo, soaps, lotions, shower caps, robes, etc, let each of these amenities reflect your desire to please. Doing this will set you miles ahead of the competition.