Before you begin making your hotel budget, you will have to create a Market overview. This will help you understand where the market is headed.
In order to make a market overview, start with a broader picture and then come down to the micro market in which the hotel is situated
The hotel industry depends on people traveling either on business or leisure. Primarily people travel for work. If industries are booming the leisure travel also increases as people have higher disposable income to spend.
Sites like World Travel and Tourism Council can help understand the broad perspective of the travel market and its future outlook.
The consistently help to produce reliable statistics and have many reports that you can download to understand where the market is headed.
In addition you always have the various Financial publication that can tell you the state of business around the world.
Country reports that companies like HVS and other consultancy companies produce should form the basis of understanding the long term demand and supply in the hotel industry. This helps us to understand where is the country is headed.
Your market overview
In the hotel industry, some mature markets are very competitive and being on the right side of the street will make the difference between high occupancy and lower rates.
This key understanding will help you make your budgets effectively
If your hotel positioning is correctly done you should attract the right target audience to your hotel. That will help you to fill your base business as you look to improve your RGI premium.
While making the market overview consider the following:
- Are new companies coming into the market
- Is there any plan to improve the airport
- Is there any new infrastructure project planned that can impact your hotel
- Are there any new flights being introduced which can impact your hotel occupancy
- Is there additional supply coming into the city in your market segment.
Ask all these questions before making your budget.
What else do you consider from an overview perspective before making a budget?
And if you are interested in training your team, do check out our training plans for hotels