Number of 2019 to 2023 on asphalt road surface with marking lines
By Larry Mogelonsky, MBA, P. Eng. (www.hotelmogel.com)
In this current age of disruption, we are being challenged on multiple fronts for the hearts and minds of our consumers. While the hotel industry has been quite buoyant over the past few years, this does not mean that these numbers will continue perpetually. As the only constant is change, you need to start thinking of how you are going to profoundly upgrade the guest experience in order to make yourself future proof.
For instance, you can longer myopically think that such factors like the growth of the home sharing economy have not had an effect on our businesses, especially when you consider the number of listings that are whole units within key urban markets. Look no further than the detailed macro-statistics on year-over-year delta RevPAR and rate stagnations. Rather than hellfire and brimstone, you should be glad to see such changes come as they are in my mind long overdue and, as they say, necessity is the mother of invention.
At this time, you must look for what will help your property sustain its competitiveness in a world where consumers have options beyond the traditional hotel. Your mission is to ensure that they will continue to consider your property as a viable option, even as boatloads of newer and trendier accommodation options present themselves.
The first and most fundamental step to reinventing your hotel is to no longer think of it as just heads in beds. You must reorient your mentality towards viewing your property as a place where both travelers and locals like to congregate. In effect, how can you make your property a destination in and unto itself?
In this sense, you must create an experience so that your hotel is no longer interchangeable with any other in your comp set. There is always that elusive ‘x factor’ to distinguish you and to add another emotional driver so you are never solely competing on price.
As a thought exercise, consider modeling yourself after an all-inclusive resort, considering how you can keep your guests interested in staying on property for 24 hours a day. This task is simpler on a resort with a pool, a beach, sports facilities or nearby hiking trails. Nonetheless, there are fascinating amenities that are emerging for midtown hotels that emulate this ideal – look no further than the ‘living room’ concept.
Hotels will survive the age of disruption by diversifying their appeal to various stakeholders. Guests come to stay, to dine and to meet. Members of the community must likewise come to recognize your property as an abode for social mingling and for exquisite yet approachable cuisine. What about the pastime of shopping and the delivery of unique retail options that are unavailable elsewhere in your locale? Moreover, have you ever considered transforming a part of your hotel into a flexible collaborative space that can accommodate the modern, portable, 24/7 worker? Lastly, how can your hotel become a bastion of learning for the greater community? Just a few thoughts to consider.
Altogether, this means changing the paradigm as to how we look at all of the public spaces within the property and how they might become multifunctional. We have to stop looking at the profitability of every single square foot and instead look at how our rooms can be better utilized to build the overall profitability through social amplification.
A true dialogue is needed to get the hotel revolution underway. To fundamentally reinvent your hotel, you must reinvigorate your efforts to foster a community environment.
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Editor’s note: To discuss business challenges or speaking engagements please contact Larry directly.
