1. Determine the Best Location

Location has traditionally been the most important critical success factor. In the right location, where competitors are not fulfilling all customer needs, a hotel can thrive. However, in a neighborhood that has heavy competition from existing hotels, success may not be so forthcoming.

2. Plan for Capital

Whether you buy an existing hotel, build one from scratch, or renovate a building into a hotel, you will need millions of dollars to invest. Assuming you do not have this money, you will need to seek bank loans and/or angel investment in your hotel.

3. Have a Business Plan

A simple, clear, but persuasive hotel business plan is necessary not only for you to think through how you will take on the opportunity, but for you to convince any investor or lender that you have the ability to do so. No savvy investor will be attracted by a lack of planning.

4. Provide Exceptional Service

Hotels achieve this critical success factor by ensuring the staff is knowledgeable, courteous and capable of resolving any conflicts that arise. Providing quality service also entails remembering the names and preferences of repeat visitors and giving advice about attractions and surroundings.

5. Implement a Smart E-commerce Strategy

A successful e-commerce strategy maximizes the economic value of your website and relies on three key factors:

• Your website’s visibility
• Your website’s sales focus
• The bookable offers you promote on your website

6. Structure a Smart Pricing Strategy

Set a smart pricing strategy that increases hotel occupancy. Determine room rates based on costs and market research. Pricing factors include:

• Staffing costs
• Room category
• Time and length of stay
• Maintenance costs
• Competitor pricing

7. Be Flexible

Customers can have completely different expectations of a hotel, so your team needs to be given the authority to make decisions to accommodate them when possible.

A manager with the authority to make exceptions can turn a situation around and earn a good reputation for quality customer service.

8. Differentiate

There are two fundamental ways to differentiate and gain a competitive edge: be better and be different:

1. Be significantly better at something that everyone provides by doing the underlying activities differently.
2. Create a meaningful product attribute that the competition doesn’t offer.

9. Focus on Quality Management

Quality management includes employee satisfaction and involvement.

By concentrating on employee satisfaction as well as customer service, a hotel can increase the likelihood that employees are happy and, in turn, provide excellent customer service.

10. Invest in a Strategic Marketing Plan

The goal of a hotel’s marketing plan is to ensure long-term success. Employ an integrated strategy that will reach your target market segments. Utilize marketing, public relations, advertising and sales efforts to gain brand recognition and ultimately drive revenue.