Ready to dive into the world of hospitality and start your own accommodation business? Here are 3 simple and basic tips to get you started:

  1. Location, Location, Location: Choose your spot wisely! Whether it’s a quaint B&B in the countryside or a trendy boutique hotel in the city, location plays a huge role in the success of your accommodation business. Consider factors like accessibility, nearby attractions, and target audience preferences to find the perfect spot to set up shop.
  2. Focus on Guest Experience: In the hospitality industry, happy guests are your best marketing tool. Pay attention to every detail of the guest experience, from friendly customer service to comfortable amenities. Create a welcoming atmosphere that keeps guests coming back for more and recommending your accommodation to others. Creating delight for your guests would be key to having a successful hotel business.
  3. Embrace Technology: Don’t shy away from the digital world! Embrace the digital future of the hospitality industry. Embracing technology can streamline operations, enhance guest satisfaction, and give you a competitive edge. Invest in a user-friendly booking system, leverage social media to connect with guests, and consider implementing smart features like keyless entry or in-room tablets for added convenience.

Back in 2017, it was published in Statista that the global accommodation industry was worth over 570 billion US dollars at that time. Although no official figures have come out since then, it isn’t that difficult to estimate that the value has only increased, and quite significantly at that. This conclusion is easy to draw because the size of the travel, tourism and hospitality business as a whole has grown with the astounding speed in the last 2 – 3 years. Hospitality Industry statistics are quite complicated but the amount exceeds a Trillion $ in 2024.

What it all means is that right now, it’s truly a perfect time to tap into the accommodation business, and we are going to share three more advanced tips with you to help increase your chances of success in that venture.

 

Tapping into the Hospitality Industry: 3 Tips for Starting an Accommodation Business

Importance of Accurate Estimations

Hotels, hostels, motels and the like are all essentially real estate, and real estate in a tourist spot is not going to be cheap. Therefore, the importance of estimations is profound here. To understand the concept we are discussing, go through the following key estimations which must be on point:

  • The budget: a minimum and a maximum possible figure for the venture
  • The type: Is it going to work better as a hotel/motel/bed & breakfast/inn/hostel/apartment?
  • Expected revenue generation and profit margins
  • How long should it take roughly to break even?
  • Resale value estimations of the property as a backup and prospect

Most of these and more are also going to be key in forming and executing a proper business plan for your hospitality business, which leads us to the next point.

Finding Investors and a Good Business Plan are Closely Interlinked

A proper business plan is key to making a good impression on potential investors, and in most cases, starting an accommodation business does require a few investors.

After all, to put their faith and money in your vision, they must be able to see it as a profitable investment. A few key attributes of a good business plan for the accommodation business are as follows.

  • Day-to-day operations structure
  • Management structure and key personnel
  • Key metrics identification for business funding, revenues, and profit
  • Project planning, targets and goals across all sectors, both from micro and macro perspectives
  • Customer identification, marketing plans, market analysis, location prospects, etc.

Don’t forget to support your estimations, citing, stats, etc. with graphical representations, wherever possible. One of the articles from 2018 by Entrepreneur. com here is still good in providing a few useful tips for those looking to start a hospitality business.

Nothing Beats Quality in the Service Industry

The hospitality business is based on the idea of providing people with a break from the mundaneness of regular life, therefore, the quality of hospitality service in your place must be top-notch.

Some of the factors which are key in determining the all-important quality of service in any accommodation business are as follows:

  • High-quality and easily available room service or concierge service
  • A steady supply of hot water, proper room heating and cooling
  • Quality food from the kitchen and a variety in menus
  • Restful, comfortable beds in every room; try using the best memory foam mattress after going through honest reviews
  • Beautiful décor to match the overall theme of the place
  • Helpful reception desk and reliable security
  • Guidance and assistance in exploring the nearby locations

There might be other factors worth considering as well, as long as it stays true to the idea of improving the quality of services provided to the guests.

The experience they have in your place will be reflected in the form of online reviews, word-of-mouth marketing and return business; all of which are crucial in generating revenue and building a good reputation in the accommodation business quickly.

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