Hotel/Motel Market Examination
Developing a strategy for an existing business or perhaps conducting a feasibility study for a fresh venture needs a thorough examination of market conditions. Industry conditions close to you have an important impact on earnings of your lodge or conventional hotel. The strength of the neighborhood lodging industry affects how many areas you can offer and the rates that you can fee. This guidebook will help you assess your industry so that you can gauge the potential of the operation and make more informed working and expense decisions. Around the pages that follow are a group of checklists that will help you collect and analyze details as part of a hotel/motel market analysis. The checklists, tailored to the hotel/motel industry, will serve as a learning tool to help you understand the many industry factors that impact your profitability. Data collected within your analysis can now be used to foresee future occupancy levels and rates. Types of Concerns Answered Your market research will help you answer questions such as: вЂў вЂў вЂў вЂў вЂў What tendencies are happening in the lodging industry? Are local monetary and visitation trends advantageous? Who will be my opponents and how powerful are they? What are the potential places to stay market portions in the region? What guests and average room charge could I attain?
Applications The guidebook is designed to provide you with a great industry-specific industry analysis formatting that can be used within a feasibility analyze, business plan or perhaps marketing plan. It can be used to analyze the market potential of an existing property, a house expansion or possibly a new creation. Existing providers can use an industry analysis to identify opportunities to improve sales. The analysis can offer valuable information on market circumstances to help in forecasting and budgeting. It also provides a groundwork for a powerful marketing strategy. Market Analysis Components вЂў вЂў вЂў вЂў вЂў вЂў
Industry Trends Area and Center Area Characterisitcs Competition Learning Your Client Projecting Sales
Prospective operators can use an industry analysis to project product sales volume for a new accommodations venture. The analysis provides essential info required within a business plan or feasibility analyze. The risks of a business expense are decreased by careful analysis in the market. Making use of your market analysis findings, you may estimate the financial potential of your enterprise by creating financial projections. Guidebooks and software pertaining to developing resort and lodge financial predictions are available through University of Wisconsin-Extension Center for Community Economic Development. Conducting Your Analysis The sections that follow include data collection checklists and worksheets. While the section on predicting occupancy and average place rate ought to be the final step, the different sections may be
completed in any kind of order. Remember that your efforts in studying the market will provide you with information to make better, more knowledgeable decisions.
Studying nationwide and local industry trends will help you determine opportunities and threats which may affect the profitability. Relevant trends might include the expansion in demand for overnight places to stay, changes in travelers' lodging needs, and fresh, innovative real estate that are opening around the nation. Sources of trend information contain: вЂў вЂў вЂў вЂў вЂў American Hotel and Motel Connection; State and native hotel/motel groups; Hospitality industry databases (available at many colleges and universities that offer a hospitality program); Industry publications (such since Cornell Lodge and Restaurant Quarterly, Hotel & Motel Management and Lodging); and Other industry related research provided by accounting and consulting companies specializing in the lodging industry.
The sector trends directory provides a test of matters you might want to analyze as part of your marketplace analysis. Growth in Industry- Occupancy and Room Prices Limited service vs . full service...