Despite taking an understandable hit during the COVID-19 years, thanks to the rise of building websites on dedicated platforms and the popularity of booking online, the hotel industry is still, according to Statista, a trillion-dollar industry. Statista reports that despite a decline in the hotel industry during the COVID-19 era, it is still a trillion-dollar industry. This is due to the popularity of online booking and the growth of websites built on dedicated platforms.
The fact that people will always need a warm bed and a roof over their heads while on vacation means hotels will always be popular. Hotels will always be in demand because people will always want a warm bed, and a roof above their heads when on vacation. That means selecting a hotel as a business model is an easy choice. It is therefore easy to choose a hotel business model.
Less easy, though, is actually putting that idea into practice. It’s harder to put that idea into action. With so many legal and regulatory hoops to jump through, and so much competition already out there, establishing – and growing – a hotel is no mean feat. Establishing and growing a hotel can be a difficult task. There are many legal and regulatory hurdles to jump through and there is already so much competition.
Market Research and Planning
First things first? Assessing the state of play in your local hotel business. Assessing the current state of your local hotel industry. You’ll need to analyze the lay of the existing hospitality land – and that means researching the market. You will need to research the market in order to understand the current hospitality landscape.
Undertaking market research for your hotel will help you understand and meet the evolving needs of your future guests, while staying on top of emerging travel patterns, popular booking platforms, and current hotel market dynamics. Market research will help you to understand the changing needs of your guests and stay on top of new travel patterns, popular platforms, and current market dynamics.
- Consider the demographics, psychographics, and behavioral characteristics of your potential guests to understand your hotel’s target audience. To understand your hotel’s audience, consider the demographics, psychographics and behavioral characteristics.
- Identify your hotel’s niche within the broader hospitality market (such as eco-friendliness, luxury, or catering to a specific demographic of guests) to differentiate it from competitors. To differentiate your hotel from competitors, identify its niche within the broader market of hospitality (such as eco-friendliness, luxury or catering to a certain demographic of guests).
- Research your hotel’s direct competitors – both local and online – and evaluate their online presence, pricing strategies, customer reviews, and overall market positioning. Research your hotel’s competitors, both locally and online. Evaluate their online presence, pricing strategy, customer reviews, as well as the overall market position.
- Establish clear, achievable business goals (both short- and long-term) that align with your vision for your hotel. Establish clear and achievable business goals that are aligned with your vision of your hotel.
Legal and Regulatory Considerations
Starting a hotel in the US isn’t as simple as throwing open your doors and lighting up a green neon ‘Vacancy’ sign. It’s not as easy as opening your doors and putting up a green neon “Vacancy” sign in the US. You’ll have your fair share of regulatory red tape to wade past until you can legally accept your first guest. You’ll need to navigate through a lot of red tape before you can legally accept a guest.
| Legal Requirements | Description |
|---|---|
| Business Structure | Choosing a suitable business structure (for example, sole proprietorship, partnership, LLC, or corporation) and registering your hotel with the relevant state authorities. |
| Federal EIN | You’ll need to obtain a Federal Employer Identification Number (FEIN) from the IRS before you can hire your first bellboy or valet. |
| Zoning Laws | Checking zoning laws and land use regulations to ensure your chosen location is suitable for a hotel, then obtaining the necessary permits and approvals from local planning and zoning departments. |
| Health and Liquor Licenses | Obtaining health department permits for any on-site dining facilities, plus a hotel license and – if you’re planning to operate a bar at your hotel – a liquor license, too. |
Creating a Strong Online Brand
The hospitality market will always be bustling with competition. The hospitality industry will always be awash with competition. So, your hotel will need a strong brand to cut through all that fluff and help you not only grab and hold your potential guests’ attention but also convince them to stay at your hotel over the others. Your hotel will need to have a strong brand in order to cut through the clutter and convince your guests to choose your hotel instead of others.
Start by developing a unique, memorable brand identity, defining the unique value proposition of your hotel, designing an unforgettable logo, and selecting a color palette and font that are consistent.
Online Booking Systems
Before you can start accepting bookings, you’ll need to get online to create a website for your hotel. You’ll need to create a hotel website before you can accept bookings. The easiest way to do this? Through a website builder. By using a website creator.
Website builders are tools, such as Wix, Squarespace, and GoDaddy, which allow you to create an online presence for your hotel – quickly, easily, affordably, and without needing to know how to code (or needing to pay someone who does). Website builders, such as Wix Squarespace and GoDaddy allow you to create a web presence for your hotel quickly, easily and affordably without having to know how code.
Not all website builders are equal, though, so our guide to the best website builders will help you pick the right one for your hotel. Our guide to the best hotel website builders will help choose the right one.
Digital Marketing Strategies
How you market your new hotel online will have a large, and direct, correlation with how successful it will be. How you market your hotel online has a direct and large correlation to its success. So how can you employ digital marketing strategies to best effect? How can you use digital marketing strategies most effectively?
Utilizing Online Travel Agencies (OTAs)
Online travel agencies (OTAs) are sites such as Expedia, Hotels.com, Booking.com, and TripAdvisor. Online travel agencies are sites like Expedia, Hotels.com and Booking.com.
- Negotiate early and fiercely to secure a favorable commission rate and contract terms. Negotiate aggressively and early to secure favorable contract terms and a commission rate.
- Explore partnerships with niche OTAs that cater to your hotel’s specific target market. Consider partnering with niche OTAs to reach your hotel’s target market.
Online Reputation Management
In hospitality, good reviews are, arguably, more important than in any other
