When to Reposition a Hotel: Key Signs and Strategies

Hotel businesses are part of an ever-evolving industry. Guest tastes and preferences change over time, and hotels must adapt to remain competitive. Sometimes, this means repositioning the hotel business. But how do you know when the right time to do so has come? In this article, we will explore the signs that indicate it is time to reposition a hotel business, and how to do so effectively.

What is hotel business repositioning?

Repositioning a hotel business is a process in which the marketing strategy and service offering are changed to attract a new target audience. This may involve changes to the brand, décor, service offering, pricing and value proposition. The goal is to improve the business's profitability and keep pace with market trends.

Signs it is time to reposition a hotel business

1. Declining occupancy or financial performance

If the hotel's occupancy has declined in recent years, it may be time to reposition the business. This may be due to a variety of factors, such as competition from new hotels in the area, changing guest preferences or a poor online reputation. Repositioning can help attract a new target audience and improve occupancy.

2. Changes in guest demographics

If the hotel has been serving a specific target audience for years, but guest demographics have changed, it may be time to reposition the business. For example, if the hotel has primarily catered to older guests but there are now more young people in the area, it may need to change its service offering and marketing strategy to attract this new target audience.

3. Changes in the target market

If the hotel's target market has changed—for example, if a new customer segment with different needs and preferences has been identified—repositioning may be required to adapt to that new market and attract those guests.

4. Changes in market trends

Market trends are constantly changing, and hotels must adapt to remain competitive. If the hotel has been offering the same services and décor for years, it may need to reposition itself to keep pace with market trends. For example, if boutique hotels are gaining popularity in the area, it may need to update its décor and service offering to attract this new target audience.

5. Changes in the offering and services

If the hotel has made significant improvements to its facilities, services or amenities, it may be necessary to reposition it in order to properly reflect and communicate those changes and attract a new guest segment that values those improvements.

6. Changes in the brand or ownership

If the hotel has undergone changes to its brand or ownership, repositioning may be required to align the hotel's image and value proposition with the new brand identity or the new owner's vision.

7. Changes in the competitive landscape

If there are new hotels in the area offering services similar to those of the hotel, it may need to reposition itself to differentiate from the competition. This may involve changes to the brand, décor, service offering or pricing. The goal is to offer something unique that appeals to guests and makes them choose your hotel over the competition.

How to reposition a hotel business effectively

1. Conduct market research

Before repositioning the hotel business, it is important to conduct market research to understand market trends and guest preferences. This may involve surveys of current guests, competitor analysis and market studies. The information gathered can help determine the new target audience and service offering.

2. Define the new target audience

Once market research has been conducted, it is important to define the new target audience. This may involve changes to the brand, décor, service offering and marketing strategy. For example, if the new target audience is younger guests, it may be necessary to update the décor to make it more contemporary and offer services such as complimentary Wi-Fi and a games room.

3. Change the brand image and visual identity

If repositioning involves changes to the brand and décor, it is important to implement them effectively. This may involve hiring an interior designer to create a new design that appeals to the new target audience. It may also involve changes to the logo and visual identity to reflect the new service offering.

4. Change the service offering

If repositioning involves changes to the service offering, it is important to implement them effectively. This may involve adding new services that appeal to the new target audience, such as a games room or a rooftop bar. It may also involve removing services that are no longer popular with the new target audience.

5. Change the marketing strategy

If repositioning involves changes to the marketing strategy, it is important to implement them effectively. This may involve changing marketing channels to reach the new target audience, such as using social media rather than print advertising. It may also involve changing the tone and message of advertising to appeal to the new target audience.

Conclusion

Repositioning a hotel business can be an effective strategy for improving profitability and keeping pace with market trends. Signs that it is time to reposition a hotel business include declining occupancy, changes in guest demographics, changes in market trends and changes in the competitive landscape. To reposition a hotel business effectively, it is important to conduct market research, define the new target audience, update the brand and décor, change the service offering and adjust the marketing strategy.