Hotel owners and others in the travel and leisure industries have to do lots of research on a piece of property before knowing if their plans will work. If their ideas pan out, then they must come up with a lot of money to purchase the property, rehab and upgrade, then advertise and finally hire staff. Although there are big potential gains in the hotel industry, there can be quite a few risks. Therefore, hotel owners tend to make slow and methodical moves. Learn these three creative ways to keep your hotel business in the black without taking unnecessary risks.
1. Seek Out Local, State, and Federal Contracts
For the most part, hotels and vacation rentals are associated with, well, vacation, travel, and leisure. Bungalows by the beach, hi-rise hotel rooms in NYC, and even quiet little quaint cottages by the edge of the woods all offer a chance for guests to getaway. But that doesn’t have to be the target audience that your hotel caters to. Contractors, business professionals, medical experts, federal workers, and even displaced families all need somewhere to call home. You can go down the corporate contract route, but nothing is guaranteed like a government-backed housing contract. Your hotel will have higher occupancy rates while your business receives funding at pre-determined intervals, allowing you to have better control over your cash flow.
2. Make it Easier for Visitors to Get to You
Larger, well-known hotel chains frequently offer shuttle services for guests to and from the local train station, airport, or seaport. On the other hand, not all hotel owners operate out of major cities where this type of service would be all that feasible. Instead, you should be looking at all transportation methods and options. Setting up an account with Uber or Lyft would enable you to help transport guests from almost any destination to the front door of your hotel. It is less costly to insure a minivan than a shuttle bus, so that could also be an option for hotel owners with smaller operations. Operators of short-term stays, motels, and even bed and breakfasts can get more business by helping facilitate transportation.
3. Invest in Hotel Upgrades
Whether the furniture in your hotel needs to be replaced or you simply want to update the motif, hotel owners that regularly invest in upgrades do the best. Now, how hotel owners get the money they need to complete upgrades differ greatly. When a hotel operator takes money straight out of their profits to make an upgrade, there can be concern about running out of money. Review all business loan options and pay careful attention to what your repayment schedule will be. Doing something such as upgrading your hotel so that all rooms have keyless entry means you can start to advertise it as a luxury property.
All hotel owners look at keeping their properties profitable in various ways. You might tout your hotel as being the cleanest short-term rental with the nicest and classiest staff in town. If your hotel caters to a lot of busy business professionals, offering the fastest internet and keyless entry to rooms could be a good draw. Always look at doing more than the minimum to keep your hotel making money.