Opinions are divided regarding the outlook for the independent hotel market. Some experts believe that, in the long term, independent hotels are heading toward consolidation. In other words, they are moving toward having to join large chains or franchises in order to avoid falling behind, as the hotel market is expected to become increasingly sophisticated, which brings with it the need to invest heavily in digital and technological transformation, management, and talent retention through training. These seem like significant challenges for tourism-related small and medium-sized enterprises.
However, on the other hand, there are experts who argue for and defend the viability of independent hotels. In this case, they advocate the idea that hotels should strive to maintain a unique and distinctive product that, in this way, sells itself. Furthermore, it is argued that hotels that can thrive in a specific niche have a chance of remaining viable in the future, provided they are able to adjust their rates to a highly competitive market.
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Areas Independent Hotels Need to Address to Secure Their Future
On November 24, 2022, a Keytel convention (the first alliance of independent hotels with over 3,000 member hotels in 80 countries) was held at the Hotel Puerta América in Madrid, Spain. The future of independent hotels was discussed at this convention. Based on these discussions, certain conclusions were reached that we would like to outline below, as they will be of great help to owners who want to know how to maintain the viability of their business over time.
It is important to balance the marketing mix
Keytel representatives explained that “an optimal sales strategy is one that achieves the best results with the least effort and cost, and in achieving this, the direct channel plays a key role, as it offers the greatest opportunities for building customer loyalty and the highest value for complementary offerings.”
In this regard, direct sales must be optimized through far-reaching commercial strategies. To this end, these strategies must take into account B2B (business-to-business) and B2C (business-to-consumer) distribution, as well as the hotel’s mix of distribution channels.
In addition, revenue management and digital marketing will be key to attracting customers and optimizing profitability.
The topic of sustainability
The topic of hotel sustainability was titled “The Competitive Regenerative Hotel” at the convention . In other words, a hotel must contribute to the economic, social, cultural, and environmental development of the community where it is located. It is estimated that certain demographic segments, such as Europeans, want to travel more sustainably. However, hotels do not know how to tackle this enormous challenge.
Therefore, every independent hotel owner must take the necessary steps and make the necessary effort to ensure that their hotel operations have the least possible impact on the environment.
Technology as a Tool for Improving the Customer Experience
In Spain, the digitization index for the hotel industry stands at 46 out of 100. In recent years, technology has played a key role in hotel marketing. And it can be used to improve areas such as customer loyalty.
Having integrated, user-friendly technology is important for improving the customer experience. This technology allows you to process customer data and turn it into insights. It also helps streamline processes. One example is the use of software such as PMS or CRM. However, it’s important to keep in mind that implementing technology requires an investment. It also requires extensive knowledge of hotel processes.
Among the areas of expertise of specialized hospitality consulting firms, such as IHCS, are the knowledge and tools needed to properly position and strengthen independent hotels so they can achieve maximum long-term success. Please don’t hesitate to contact us if you’d like our help in securing the future of your independent hotel.
