HOW DO WE STAY AHEAD OF THE COMPETITION?

Assess your competitors

An inspection of the exteriors of your neighbouring competitors’ hotels will soon tell you if the outside of your own is up to scratch. It should be at least as good as, preferably better than, the others. Remember AIDA, the principles of selling (see pages 142-4). Unless your hotel creates the ‘attraction’, you have fallen at the first hurdle.

Study your competitors’ advertisements. Do they give you any ideas? Is there anything in them that ought to be in your ads? Are they advertising anything that you ought to be doing? Would dinner by candlelight go down well in your hotel, for example?

From time to time and without any prompting, your guests will tell you about other hotels they have stayed at, the way they do things, good as well as bad. Sometimes you may think them indiscreet and wonder what they will tell others about yours. At least take notice of what is said. Feed off others’ ideas – it may help you boost your business. Never fear the big hotels, nor the cheapie B and B. They are, or should be, in different leagues.

Be different

The occasional ‘way-out’ hotel rarely flourishes, so don’t be bizarre, just different. Be the best of your type of hotel.

If your food is exceptional, make a meal of it in your advertisement. If you make a point of presenting the food attractively, say so; food first ‘tasted’ with the eyes. Proclaim, if it is so, the fact your food is freshly cooked using local produce. Then make sure it lives up to what you’ve said about it when you put it on the plate. (Incidentally, in most cases oval plates allow you to present food to best advantage.)

‘Comfort’ is another key word. Hotel beds generally are dreadfully uncomfortable. A large proportion of the population suffers from back pain. If it is made worse by the fact that your beds sag in the middle repeat bookings will not result. Back sufferers who find your beds give them proper support and allow them to sleep well will be only too pleased to return, if only to be guaranteed a good night’s sleep.

Provide the best quality beds you can and don’t keep the fact to yourself. You will then rank among the small minority who give this subject proper consideration.

By keeping a record of all guests in your index book, you are already exceptional. Among the data will be any birthdays, anniversaries and the like that come to your notice. Whether you bake a little cake, give a small box of chocolates, or recognise the occasion in another way, you will be providing that extra touch. Things such as a small gift in the bedroom on arrival, flowers on the table, individual name tags for serviette holders, make guests feel they are other than a commodity.

If you want to be really different designate your bedrooms according to the colour scheme, or in line with the flower depicted on the wallpaper. It might be ‘Bedroom 1’ to you, but guests could know it as ‘the pink room,’ or ‘the honeysuckle room’. Use your own imagination to create the sort of experience for your guests that they will want to repeat.

Be professional

Without going over the top, make sure you always appear tidily dressed in front of your guests. A good appearance combined with a professional, caring attitude will earn you the respect of others. When you know what you’re doing, it shows.

Be friendly

Surveys of hotels without exception level criticism at a large number of hoteliers for being miserable, even surly. You may ask what they are doing in the business since guests don’t go back for a second dose of doom and gloom.

You will not always feel like being friendly but your livelihood depends on it. Hoteliers who have to maintain a high advertising budget suffer in leaner times much more than those who build up a happy family of regular guests.

How do we stay profitable?

Charging

Would you object to paying for a glass of tap water? Some hoteliers make a charge to cover the wear and tear on glasses and the washing up. Most, thankfully, regard it as being mean.

How about filling a thermos flask with boiling water? If no charge is made, who pays for the electricity?

You will deduce there is a fine line between what it is acceptable to charge for and that which should be complimentary. If you would expect to pay for a service, make a charge. If it is borderline, a small donation in the hospice tin might be appropriate.

Keep tariffs realistic

Keep tariffs at a level that provides you with a sensible profit. As costs go up, so will your guests’ incomes. No matter how much you may enjoy your new lifestyle, do not undercharge. Increased costs to you must be reflected in higher tariffs. At the same time, giving value for money is essential.

Pursue losses

If you do not insist on payment of debts, it is unfair on the guests who pay and who will have to share the burden that debtors cause. If your procedures for settlement of balances are tight enough, you will not be owed money from that quarter. Losses caused through bookings not taken up are less easy to control.

Once someone has made a booking, they have entered into a legally enforceable contract. If they do not turn up or contact you and you lose money as a result, it is right for you to pursue your loss, ie the profit you would have made. You cannot claim for meals you did not provide and which were not spoilt.

A letter sent by recorded delivery, formally requiring payment, should be written first and a copy kept for your records. This letter should end, ‘Unless payment in full is received by ... (giving seven to ten days) a summons will be taken out against you in the County Court. In this event, the above amount will be enhanced by the Court fee.’ Be very firm – you don’t want this sort of guest to make another booking.

Such a letter will usually be enough to get payment on its way to you. If not, booklets detailing the procedure for small claims (less than £5,000) and for enforcing judgements are available from County Courts in England, Wales and Northern Ireland, from Sheriff Courts in Scotland and from Citizens Advice Bureaux.

Small claims procedures are generally informal and you need not employ a solicitor. If the client is in the wrong and your letter did not work, the issue of a summons will in the vast majority of cases have the desired effect since the defendant has only about 14 days to either pay the money into court or enter a defence. Bear in mind, however, it is no advantage to obtain judgement if the debtor has no money.

You will now see good reason for requiring deposits whenever possible and for getting accounts settled other than by unguaranteed cheques.

FINAL HINTS

• Know what you’re doing.
• Work hard at being a success.
• If financial problems should loom, get help immediately (Business Links have a ‘troubleshooter service’).

And remember:

• the right attitude, plus
• good food, plus
• high standards of comfort and cleanliness, equals
• contented guests, equals
• repeat bookings and recommendations, equals
• full bedspaces, equals
• profit.

CHECKLIST

Have you:

• Set the tone for your hotel?
• Decided on the house rules?
• Decided the level of service to offer?
• Decided what facilities to offer?
• Decided on your menus?
• Ensured your hotel is different?

Do you:

• Know how to assess the competition?
• Know how to run a bar?
• Know the law relating to hotels?
• Know how to take a booking?
• Know how to deal with the ensuing correspondence?
• Know how to keep ahead of the competition?
• Know how to pursue losses?
• Know how to stay profitable?
• Have the determination to succeed?

Food for thought

You will not please all of the people all of the time. If you please most of the people most of the time, you will be a success.

HOW DO YOU SURVIVE IN A RECESSION?

Recessions in business, whether major ones like a downturn in the economy or minor ones like spells of bad weather, can and will affect your livelihood from time to time. Those who have over-borrowed are worst affected.

Much of the advice given so far is designed to make you run your business professionally and cost-effectively. This is always important but particularly so when visitors are thin on the ground.

Many hoteliers, noticeably those at the lower end of the scale, show a marked failure to appreciate the needs of the market, in particular the standards required. In other words, they are nowhere near professional enough.

Even in bad times, a number of businesses continue to thrive. Ask yourself why. They are the ones doing things right. A need always exists for good hotel accommodation and if you have chosen your location carefully and stand out from the crowd, yours will be one of those businesses which thrives in almost any circumstances. It requires much effort and a determination to succeed, plus:

• the right attitude: impress your guests at all times
• knowledge of your job, your market, the law
• control over your cash flow, your business strategy.

Respond to your competitors if necessary by offering for example bargain breaks and other inducements. Diversify (see page 151) if you can.

In keeping your finances under control:

• carefully assess stock levels and keep nothing that does not sell well
• lay off or cut back hours of staff without allowing sentiment to intervene if it’s your survival at stake
• ruthlessly cut out advertisements that don’t pay their way.

Even in the poorest of seasons, never:

• reduce your tariff below viable level
• cut corners (your guests will be the first to notice)
• panic (remember the £5,000 advertisement?).

If in spite of everything survival is in doubt, get immediate advice from:

• Business Link
• your accountant
• your local hotel or trade association.

If survival in a recession is an achievement, just think what you can achieve in better times!