Most of the time, the executive summary is written last because it gives a clear overview of your whole business plan. Investors and lenders look at the first page to decide if they want to keep reading, so put the most important information at the top. Give a description of your hotel, a summary of your market analysis showing that a new hotel is needed, and a list of why you are the best person to fill that need.
In the company overview, you can learn about your hotel as it is now. Talk about how it got started, what it does now, and how it is legally set up. List the important things that have happened in the past, like getting key funding or hiring a well-known hotel manager. Provide more information about your hotel’s unique qualifications. It could, for example, be in an old building or have the only day spa in town.
Most cities have dozens to hundreds of hotels, which can make it hard to figure out how to study the business. But you should only pay attention to your relative market, which is the part of the hotel business that is like your hotel. Is it run by a small family? Small hotel with high-end service? A place to stay at a resort that has its own restaurants and activities? Choose the niche you want to go after, and then look into the trends and future predictions that affect that niche. As you do your research, make a plan for how to deal with any problems you find.
Everyone who has ever traveled is a potential hotel customer, but not all of them are your potential customers. Who will pick the hotel? Are they going somewhere for business or for fun? Are they here for a wedding or something else special? Do they travel with babies and toddlers? How often are they going to come to your city? Are they aware of costs? Do they want the most modern conveniences? Luxury sheets and bathrobes? Are they hardy, outdoorsy people? Find out what kind of people your customers are and how they choose where to stay. Then, figure out what their specific needs are and make a plan to meet them.
Not every hotel in town is directly in competition with yours. People who sell to a different market and restaurants and other businesses that meet a different need in your market are indirect competitors. Describe each of your direct competitors, or other hotels that are in the same market as yours, and explain how yours is different. Put all of your indirect competitors in one group and talk about them as a whole.
Hotel Marketing Plan
A marketing plan for a hotel is what you do to get people to stay there. A marketing plan starts with the four Ps (Product, Promotion, Price, and Place) and doesn’t forget to keep customers and form key partnerships. All of these things should be geared toward the people who will stay at your hotel in the area(s) where you will be doing business.
Product: The services at your hotel
In every hotel, the main thing they offer is the same: a place to sleep for the night. Once this foundation is in place, the options are endless. Services can include entertainment (like a nightclub or movies in your room), food (like chocolate on your pillow or a five-star restaurant), communication (like high-speed wireless internet), and health care (i.e., a pool, fitness center, spa). Think about whether your customers would be interested in unique services or if it would be better to offer a full suite of tried and true services. No matter what you choose, make sure the information is clear and has just enough detail for the reader to understand the level and type of service.
Promotion – How to spread the word about something
Promotion is how you let people know about your hotel and what makes it special. It’s also how you turn people into guests. Who you want to buy from you will affect how you market your business. Instead of thinking about how other hotels find customers, think about how the customers you want find hotels. This method will help you find out where these users are looking for hotels, whether it’s in travel books, magazines, websites, or other places.
Keep in mind that the press is the best way to advertise that money can’t buy. Consider whether a public relations plan could help make this happen.
Price: The Right Range of Prices for Your Hotel
Your marketing plan needs to show where you want your prices to fall in the range of what’s available. How much you charge directly affects how much money your hotel makes and how people think of your brand. People might not believe you if you say your hotel is the next Ritz-Carlton but the price is average. Pricing is about finding the right price that represents your hotel, covers costs, and leaves room for profit.
Place is where your services and customers meet.
Place is more than just where you decide to put your hotel. In this case, “place” means “distribution,” which means that this is how customers can book hotel rooms and get other services you offer. This place can be found through websites, travel agents, or sales staff, and each option has its own costs and benefits.
When a guest arrives at your hotel, the service doesn’t stop. This involves both your staff and the way you talk to your guests (i.e., phone systems, TV ordering, even doorknob signs).
Keeping a customer
Most of the money spent on customer service goes toward getting people to buy for the first time. Tell me how you plan to keep customers coming back. Keeping an old customer should be much cheaper than getting a new one. For example, loyalty programs give rewards to people who keep coming back. Customer relationship management (CRM) software can also store information about what each guest likes and doesn’t like, making it easier and more fun for them to come back to your hotel.
Lastly, think about how you will grow your business with the help of your hotel’s neighbors, the local government, and other important people. You might be able to get guests from or send guests to a number of local businesses, which will make the experience better for those people. Just think of a few important partnerships that will work out because they are important to both sides. Don’t say you want to work with every company on your street. You would be too spread out.
The operations plan shows how you are going to reach the goals you set up front. Everyday short-term processes are the individual tasks that need to be done to make reservations, check in customers, clean and maintain the hotel, deal with luggage, settle accounts, and so on. Your business goals, like reaching a certain rate of occupancy or adding a restaurant, will be met through long-term processes.
If your management team is strong, investors will be more likely to put money into your hotel. Look at the parts of the backgrounds of your key team members that show they know how to grow a business. If you can show how a strong advisory board will directly affect how the company grows, it can help you get over your weaknesses.
The financial plan for a hotel can be hard to make because investors and lenders look at it very closely. In this section, each source of income is broken down by when it is expected to start and how important it is. It also gives a summary of past and future Income Statements, Cash Flow Statements, and Balance Sheets. It also talks about outside funding sources. By looking at other businesses in the same field, you can make key assumptions that are both reasonable and verifiable. Lastly, a good exit plan shows that you understand the market and are ready to take advantage of profits.