Hotel Business Plan
If you are looking for more than just the basics on Hotel Business Plan in India, you have come to the right place. Keep on reading further to know more about the following business plan.
As we all know that, hotel sector is the most important part of the travel and tourism industry and if you are looking for a startup idea to sustain your livelihood, you can definitely consider it.
Due to globalization, people have come to know more about the luxuries and comforts of staying in a hotel. Hotel business is something which can never go out of fashion, so it is a good option for a startup.
India is one of the leading countries whose travel and tourism sector contributes a huge chunk to the nation’s GDP and the demand for hotel accommodation is growing by the passing minute. Another reason for you to consider hotel business as a full time job.
Now let us look at the steps you have to follow to build your own hotel business plan.
Step 1. Prepare a Proper Strategy First
Your business strategy will have a snapshot of your hotel’s growth plan in the next 5 years or more. Your hotel business strategy should include the goals regarding your hotel business, obstacles, SWAT analysis of the industry as well as your in depth plan for meeting the goals.
Our suggestion is to make your business strategy short and crisp that provides a clear cut outline of your entire hotel business.
If you plan to obtain business loan from the lenders in the future, you have to know that the investors first go through the first page and decide if they want more time to read it or not. It is hence vital to lay out all the critical information up in the front like your market analysis.
Step 2. What is an Industry Analysis?
Doing an industry analysis can seem a bit sturdy, given the number of many hotels being opened all across the nation everyday.
Your focus should be mainly on the hotel sector that mirrors your hotel plan. You will have to plan out whether it is a small hotel with just the basics amenities, if it is an upscale boutique hotel, if it is a luxury resort or a 5 star property with modern amenities. You also have to target your desirable niche and accordingly analyse the trends that can affect the market niche in the future.
Step 3. What is a Market Analysis?
Hotel or not, customer is considered as the king of the market, so you have to understand the needs of your customers accordingly and answer some of the questions, such as what kind of customer will choose your business, are they travelling for pleasure or for some other reason, what is their ideal budget, are they with children, how often they might visit your hotel, what are their expectations from your hotel, what are the latest amenities, does your hotel have luxurious interiors and so on.
It is hence important to figure out your customers’s demographics and create your hotel business plan according to it.
Step 4. Know your Competitor before creating your Hotel Business Plan
Two types of major competitors you have to analyse are direct competitors that include hotels which target your market and indirect competitors which include a broader sector like restaurants and other businesses that are also a part of your market.
You will have to make a proper hotel business plan according to the specialty of your hotel.
Step 5. Plan your Marketing Properly
This step includes product, price, place and promotion. The product is your hotel and its services, price being the rates of your products and services, place being the physical location of your hotel.
The most important part of any business is promotion and that can be done by the use of various platforms such as:
- Use social media.
- Write blogs that fit with your branding.
- Create a captivating web experience.
- Offer packages and promotions.
- Support local schools and colleges.
- Support local businesses.
Step 6. Carry out the Operations Carefully
Short term operations may include day to day tasks of booking reservations, check-in and check-out clients, luggage handling, housekeeping, accounting and so on.
Your long term operations may include the different ways in which you plan to meet your goals like achieving a certain rate of occupancy, adding more restaurants to your list and other such additional services which can attract potential customers.
Step 7. Create a Management Plan
A good management team is the backbone of your hotel business.
This management plan will not only convince financers to invest money in your venture, but it also ensure smooth functioning of the operations in the future.
Step 8. Create a Financing Plan
By taking the growth of your business in mind, various leaders like banks, NBFCs including digital NBFCs like Lendingkart are willing to invest in this growing market. Our suggestion is to use this opportunity well and create a proper financing plan while you can for future use.
Some additional points
The following areas are to be considered before working on your hotel business plan:
- Best location for opening a hotel
- Exceptional hospitality and customer service techniques
- Smart e-commerce strategy to be followed like website and social media marketing focus
- Smart pricing strategy
- Maintenance costs
- Competitors pricing
- Quality Management
- Investment in a strategic marketing plan
- Understanding competitors marketing strategy
The following are the basic costs one needs to incur before investing in a hotel business:
- Building, Renovating Refurbishing or Buying Hotel Property and raising it
- Working Capital for Staffing and other Fixed expenses
- Marketing costs
- Operational costs
- Luxury costs
- Licenses and Legal considerations
The following Licenses has to be acquired by the hotel business owner:
- Food Safety License from FSSAI (Food Safety and Standard Authority Of India)
- Health and Trade License from Local Civil Authority in your area.
- Eating House License from Licensing Police Commissioner.
- Fire Department License from fire department
So this was our article on how can you build a hotel business plan in India. I hope you enjoyed reading this article as much as we enjoyed making it.
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