Key Steps to Reposition a Hotel and Gain Competitive Advantage

I have already highlighted on some occasions the importance of involving a hotel’s entire team in the process of implementing a new strategy. It is also important for the management team to inspire guests, partners and staff with the planned initiatives, so they can work with the vision of a “new and improved” hotel. Their interest and support are vital to the success of this inevitably disruptive process. They should also be warned about some of the inconveniences the process may entail, although these will clearly result in a short-term benefit for them. To achieve the new market position, it is absolutely crucial to provide the hotel team with appropriate, comprehensive and concise training so that all staff can deliver this new product and provide the corresponding services. Skipping this step, or failing to give it the importance it deserves, will almost certainly mean that the entire investment of money, time and other resources has been in vain. Management must therefore support employees, explain the repositioning process to them and train them appropriately on how to manage the added services efficiently. It is also essential to conduct a thorough and impartial P&L analysis in order to make sound decisions and avoid having to make corrections along the way. It is important not to move forward with the repositioning process simply because significant costs have already been invested in research and planning. If it is discovered that the process will not generate profits or increase the hotel’s revenue, it should be stopped, regardless of how much money has already been spent on it. We all know hotels that are over-engineered in terms of service and, consequently, in price—far beyond what guests are willing to pay and what can be profitable. Have you ever wondered why? Perhaps the explanation lies in the previous paragraph. Improving the quality of services provided Service quality could not be more important in the hotel industry. One of the main attributes that keeps guests loyal to a hotel is the quality of the services they receive. A hotel may have highly attractive facilities and design, and these may attract guests, but facilities and design alone are not enough to keep them loyal to the hotel. In general, guests like to be treated properly and to feel respected. Hence the importance of investing more in improving the quality of hotel services, focusing on employee training and creating a feedback system through which employees can understand their performance and identify where they need to improve in order to provide better service to guests. This training should also be carried out regularly to reinforce the importance of consistently delivering quality service, or of continuous improvement. Some of the services most guests complain about are internet service, maintenance, quality food service at a price that offers good value for money, well-equipped meeting rooms, and so on. We know that hotel guests, especially those planning to stay for several days, will choose a hotel that provides comfort and, overall, makes them feel at home. Achieving this at the right price undoubtedly creates a significant competitive advantage. Process for improving service quality Understand guest expectations. It is no surprise that the foundation for improving quality is also the starting point for effective customer relationship management. Delivering superior quality begins with a solid understanding of guest expectations. Hotels must make a major effort to understand their guests, their needs and their expectations. This will help the hotel provide better services and meet guest expectations. Although guest expectations may be difficult to meet, management can work to improve its services and be consistent in delivering them. Who said hotel marketing is not linked to operations? Remember: if you do not link them, you will be missing a unique opportunity to gain strong and lasting competitive advantages. Hotel marketing is not just advertising and promotion. Translate expectations into quality standards Understanding guest expectations is one thing, but hotels must work hard to translate those expectations into quality services. It is important for hotels to understand that conducting research to identify guest expectations is not enough. Management must work hard to translate these expectations into quality standards that make sense, can be implemented, are valued by guests, and for which guests are willing to pay. In an industry where guest satisfaction is the basis of competition, hotel management must always stay informed about what guests seek and expect, and continue working to meet those expectations better than competitors do. Maintaining quality standards: consistency in product and service quality is extremely important to the success of any hotel. This is the great secret of major hotel chains, especially luxury hotel brands. There is no other. The best quality standards are of little use if they are not delivered accurately and consistently. It is also important for hotels to understand this concept: it is always about consistency, especially in the hotel industry. No matter how good the service a guest received in the past, if that same guest receives poor service on another occasion, they will feel disappointed and may not return to the hotel unless the issue is properly resolved. Do not overpromise: it goes without saying that guests will be disappointed if a hotel fails to deliver on its promises. The key is to create realistic expectations about what it can and cannot offer. You must ensure that you do not overcommit to guests on your website or through OTAs. Most guests believe that many hotels do not fully deliver the services promised on their websites. Misleading guests can cause great damage, turning disappointed guests into angry ones who feel deceived. Such guests are very unlikely to return to the hotel and, worse still, they may decide to take to social media and spread negative news about it, which will be a very bad situation for the hotel, as information travels widely on social media. days. Therefore, it is much better to be honest with guests about the services that can be provided and to give them up-to-date information on the website. It is important for guests to have complete trust in the hotel. Appearances matter There is a popular saying: 'do not judge a book by its cover'; however, the hotel industry is one of the few cases in which appearance truly matters. It is important to bear in mind that no matter how high the level of service a hotel offers, if its appearance is poor, guests are unlikely to frequent it. In the hotel industry, polished presentation is vital to success. Everything about the property will be assessed through photographs and guest reviews before a guest even decides to book a room. If rooms look dated, the lobby is dirty or the restaurant appears overcrowded, guests will form an initial judgement of the property that will not favour the hotel. The same applies to hotel staff; they must look professional and presentable because they are an integral part of the property and of the overall theatre that shapes the product. Building a strong relationship with guests Timothy R. Pearson, in his book "The Old Rules of Marketing Are Dead" explains the importance of the customer relationship. He says that, in the repositioning process, companies must reinvent their relationship with customers so that the experience itself has value. He also argues that the way organisations interact with prospects and customers determines how those organisations are perceived, and this concept of guest perception is the main objective of positioning or repositioning. Hotels must always work to establish good relationships with their guests. One way they can do this is by fostering guest trust. An integral element of the relationship marketing approach is the concept of promise. Marketing responsibilities include not only making promises and persuading guests, as passive counterparts in the market, to act in a certain way, but also fulfilling those promises, which sustains and strengthens the relationship over time. Another way is by creating good communication with guests; communication in the context of the customer relationship is the ability to provide timely and reliable information. Guests tend to be more loyal when there is effective communication between a hotel and its guests, and this will also help improve the relationship between the hotel and the guest. Hotels can also build a strong relationship with guests through their approach to conflict management. Sometimes people are not upset by a conflict itself; they tend to be more upset by the reaction or the way the situation is handled. If handled properly, the guest may become more loyal to the hotel. Creating a healthy relationship with employees In the service industry, guests not only have an emotional connection with the company or its services, but also a connection—good or bad—with the brand’s staff or customer service representatives. Employees are becoming increasingly important in the hotel industry, and their quality and effective performance matter more because they interact directly with guests and are responsible for satisfying them—not the organisation’s strategies. While it is important to create a healthy and strong relationship with guests, it is even more important to create a strong and healthy relationship with employees.