How to attract the right guests

In How to by pimpmyhotel0 Comments

Reach your favorite target group!

There are products on the market that are just bought by people who belong to a particular social class. For instance, Burberry, Louis Vuitton, Gucci, etc., people that do not have any thoughts about spending money or get a guilty conscience while purchasing products from these companies. Buying and wearing these products provides a specific reputation. This reputation is exactly what some people are looking for. Personally, I am a big “Apple” fan!

How come that only people of a specific social group are entering these stores. Well, first of all it has to do with the price and second with the style and design. There are many window shoppers but the people that enter such stores are just a few. The people that can afford the prices, are the people the store owners are looking for.

Now, that you have a vivid example in front of you, I like you to implement the same principles to your hotel business. When we started and opened our first hotel, I talked to many different hotel owners and I asked them “how much should we charge for a single room per night”. All of them told me that we should charge only 55€ due to the location and the overall environment; in addition, it would not be possible to charge more than that. By and large, I am thankful for their information and insights, but to be honest, they all have been too negative and without any vision.
Here in Frankfurt I have seen many hotels that charge just 55€ for a single room per night. I have to say that these hotels have a great location; unfortunately, these low prices attract guests that do not always care much about the hotel’s furniture, House rules, Staff, other guests staying at the hotel or breakfast manners.

I was definitely not looking for guests that do not take care of our property; therefore, the prices we offered to the public have been around 70-79€. As soon as the online booking portals promoted us as a new hotel in Frankfurt am Main, we received many guaranteed bookings. Our hotel was fully booked even before we opened our doors for the first time. That was just amazing. During a fair time we charged much more, but to make sure that we received some bookings, we did not charge extraordinary prices. For fair times we started to charge 170€. 170€ for a single room during a fair is really not expensive here in Frankfurt am Main. Slowly but surely, we realized that our guests are all business people. More than 90% of our guests are staying in Frankfurt due to their work and appointments they have with their clients. It really did not take us more than three weeks to have regular guests. We started to see the same guests over and over again. Luckily, our regular guests informed their colleagues about our great service and accommodation; and so we were able to capture even more regular guests.

After our introduction to the market which took us more or less six months, we increased the prices once more. We increased the prices for a single room up to 85€. This price assured us to reach the target group that we were looking for; and so our hotel has become a business hotel.

Our regular guests received a special price during the six first months and as soon as we told them that we are increasing the prices, they did not hesitate to keep on booking. Even before our regular guests could ask us why we are increasing the prices, we mentioned a couple of reasons. Higher prices give both parties advantages. By earning a bit more, we can spend more for the sake of our guests. We were able to offer a much brighter breakfast, we implemented some additional tools in the rooms and we were able to renew our facilities more often. Giving our regular guests these information and goals, they entirely understood our measures. We increased our prices without any hesitation, based on the quality of services we are always providing. If you are certain that your service is faultless and you believe that it is underpaid, then increase it without even pondering about it.

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