Hotel Success Myths You Need To Know

Want to make your hotel a success? Many of us think we know what it takes to run a profitable hotel. But in fact, there are few hospitality myths that can blind our judgement. The hotel industry has evolved quite a lot in the last few decades, and some traditional success strategies have started to lose relevance. Below are a few examples of hotel success tips that are actually misconceptions (and what you should be doing instead!)…

Myth 1: Discounting rooms to achieve full occupancy is more profitable than leaving rooms empty

Many hotels assume that it’s better to give away rooms at a discounted price than it is to leave them empty. After all, every guest is extra income, right? The problem is that each guest costs you money – they use energy and water, you have to clean their room and you may have to replace room supplies like soap and toilet paper. If you slash your prices too much, you may not actually make a profit on your guests. This is particularly the case with upscale hotels that spend more per guest – reducing discounts or opting for an occupancy of 84.6% (according to studies) may actually be better. Hospitality revenue management software can help you to find the right sweet spot when it comes to pricing and occupancy.

Myth 2: Luxury room amenities are necessary for positive customer reviews

A lot of hotel owners think that they have to splash out on luxurious hotel room amenities like a rain shower or fancy hairdryer to get good reviews – even if they are marketed as a cheap and basic hotel. However, these are only important if you’re trying to achieve the traditional 5 star rating rather than a 5 star customer review on Google. Online customer reviews tend to be based more on customer service, cleanliness and comfort. You can still get a 5 star review for a basic hotel room so long as it is clean, the bed is comfortable and staff are friendly and helpful. 

Myth 3:  You should disallow dogs from staying in your hotel

It’s also common for hotel owners to disallow dogs from staying at their hotel. This is largely because of the risk of a dog causing damage. However, it’s important to consider the changing audience demographic – more people are owning dogs and are taking them on holiday, and they need somewhere dog-friendly to stay. Advertising your hotel as dog-friendly could actually attract many guests you wouldn’t otherwise get. Even simply offering a few dog-friendly rooms could lead to an increase in business. 

Myth 4: WiFi should always be free to customers

There is a fear that charging customers for WiFi will put many of them off from staying at your hotel. However, many customers are actually willing to pay a small fee for WiFi – and this can be an easy way to make some extra income. This is particularly the case with hotels where guests are likely to stay for more than a few nights. Just make sure that your guest WiFi is fast and reliable so that it’s worth paying for, and do not charge too much.

Myth 5: A prime location is key to success

While it’s true that your hotel does need to be located somewhere that tourists or travelling professionals will visit, you do not need to be in a central location near all the attractions to guarantee guests. The internet has made it easier for hotels located on the outskirts or quiet side streets to get noticed – all you need to do is invest a bit of money in social media marketing and SEO. The internet can be a particularly effective tool for securing last minute bookings – you no longer have to rely on guests driving around late at night looking for a hotel.