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| https://www.thetimes.co.uk |
The economic principle I researched was: Because of scarcity, people choose. All choices have an opportunity cost.
There are many decisions that need to be made when it comes to making a profitable
hotel or when it comes to recreating the image of a failing hotel. Throughout my research, I
believe that I have discovered exactly what it is that draws consumers to one hotel and what
factors repel consumers.
One major trend that I kept coming across in my research was the importance of a good
website. Some hotels even post misleading photos that make their very poor quality hotel
look so much better.It is interesting to see that so many of my sources started their articles
about stressing the importance of having a visually pleasing website.
Being presentable is one thing that, when it comes to successful hotels, is extremely
important, but having a gimmick is also important. There are many hotels around the world
that are known for their strange way of running things. The Swedish Ice Hotel is just one
example of successful hotel with an interesting and odd gimmick.
Understanding that competition is something that drives prices is very important for hotel
owners. Knowing the difference between a Motel and a Hotel and the difference between a
Bed and Breakfast and an Inn are important on both sides of the hotel transaction. The Hotel
can adjust their prices based on what they offer and the person booking a room should know
that a hotel or an inn can serve breakfast, but a Motel usually does not.
Going back to my original question, “What kinds of decisions do hotels make in order to
increase profit?” I believe that I have the knowledge required to answer thoroughly. A person
starting a hotel needs to know beforehand what kind of hotel they are going to become and
what they are going to offer. A bed and breakfast is going to have different people booking
the rooms than an Inn or a Motel, or even a Hotel. The owner needs to have a good website
that is honest about the photos that appear on the website, or at least has access to
professional photographers who can find the perfect angle that makes their business look
the best without obvious discontinuities. Finally, in order to be successful, a Hotel needs to
decide what kind of style would go best with their location. A modern hotel makes the most
sense in a city and a rustic hotel in a wooded area. Having the wrong gimmick for their
location can have a huge impact on their success.
All in all, the hotel business is by no means an easy one. Understanding that because of
scarcity, people have choices and those choices have opportunity costs is vital to the
success of the hotel.
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