How can a small hotel create more value than a big one?

Big hotel chains just seem like they have more benefits and everything figured out. While they do have advantage of well proven systems and big teams, what if you have more opportunities exactly because you are small?

This is how I see it.

Moral of the story: All you need is already in your fish tank, read: within you. You are actually in the right tank.

Big chain hotels are big fish but swimming in the small pond, at least a saturated one. On the other side, you are a small fish in a huge pond. So, really, what does it all mean?

There is a space in market which is referred to as red oceans. This space is run by competition where everyone are focusing on being better then others and getting greater share of an existing market. Since everyone are following the same trends, justifying the same decisions, taking the same risks, everyone are getting similar results.

Some have better reputation and this is when bigger players win. They are just easier to trust. Unfortunately, the price is an important factor of differentiation here so smaller hotels play this strategy. So wrong. This is the known market. If you choose to swim with them, you will forever follow and never lead. So, how can you create more value and increase your revenue because that is what the value does eventually?

Focus on opportunities, not limitations.

What is the value you already give to your guests? Would they state the same things?

What is the value you can create and offer that you haven’t so far? Really, why not?

Remember, whenever value is being mentioned, it is the value perceived as such by end customer, your guest in this case. Certainly, making your business more efficient and effective is what represents value BUT for you. That is the key. It is not about optimisation of your processes, lowering costs, increasing prices, having some parts of systems automated etc but about providing more comfort, joy and convenience to your guest.

This value should be seen and felt by your guests directly and easily. This value is created for them, not for you nor business model, nor industry. It only has to do with guests. This is why we are talking offer.

Think about your offer and answer next questions.

What is it in your offer that you can reduce?

What is it in your offer that you can increase?

What is it in your offer that you can eliminate?

What is it in your offer that you can create?

What is it that you can reduce?

Less is more, remember? Imagine, this has noting to do with abundance. In fact, when all of the things that are really needed are provided, there is everything. There is a fine point when extra goes from having additional value to being a burden that spoils the atmosphere and dilutes the original flavours. Then, the real question is: why do your guests choose you?

Quality over quantity.

Essence of what makes you better than anyone else anywhere else.

Therefore, reduce everything which only purpose is to increase quantity. There are probably some things that you once included in your offer only because it was standard in the industry at that time. It was not something you ever questioned whether or not it fits your concept at all. It just needs to be offered because a hotel can't be a hotel without it. OR a good hotel can't be a good hotel without it.

Such parts of offer usually make significant costs in your economy structure. Some examples are: all-inclusive offers, buffet table for meals, spa and wellness facilities, hairdresser, store, TVs in rooms, etc. These appear to be standard for an industry, but are actually blocking your fresh and unique ideas. Ask yourself, how can you offer that service on your own terms so that it fits your concept completely? Maybe you can only do a la cart or room service, have spa in room or organise shopping experience with personal stylist in a mall nearby.

Anything that speaks more of your language is better than what everyone are used to. Attention, it is because we are used to standard offers, not to our needs being fulfilled.

What is it that you can eliminate?

While considering what can be reduced, some things may appear to be completely irrelevant for your concept. They were once added because it seemed you need them, but do your guests need them?

What drives your costs, demands lots of effort and you do not receive plenty of gratitude for it?

Cross that one out immediately and leave a potent emptiness for now.

Let’s be bold here and just cut everything that does not completely make sense to your values. This has everything to do with your concept and your unique selling point. For example, why bother having receptionists if your mission is the automation of services, less personal contact, ultimate privacy etc., or why bother having buffets if your guests always eat same breakfast and lunch at the same time and they usually have it delivered in their room OR they prefer personal chef.

You may be thinking about other guests who may not like things offered this way and still need the traditional way of anything, the way they are used to, but why would you want to indulge these kind of guests? Your goal is to have less of these and eventually none, you do not want these guests to come back. You want the ones who your specific service is created for. They will be beyond happy to find out about you and pay more for this kind of experience made with only them in your mind. The funny thing is that by profiling this way, you are giving permission to everyone to question their needs and some will just embrace it and become your ideal guests.

Don’t worry about extracting too many things now. Go ahead and do this and previous step again, because in the next two you will start adding the right things.

What is it that you can increase?

Now that you have made your system lean, let’s add some spices from your own garden.

What might that be?

First, think about quality. Increase quality! Whatever left standing after previous two questions, write a reason why you left it and then consider increasing that specific experience. How can you make it better, easier or faster? Maybe more special or customised?

Second, now, think about quantity. And patterns! There might be some parts/services that you provide/have because you really wish to expand on these. They never seems well-fitted because you were concentrating on rest of the market and what you should be offering instead. Write a reason why it matters to you and your property. How can you emphasise it and even reflect in other things?

Finally, think about matching values. What I mean by this is matching your values with your guest's. What is it that you consider part of your story, concept, brand personality that can attract specific kinds of guests? Elaborate on these and encourage yourself to reflect these in other parts/services that are present in your hotel.

What is it that you can create?

Lastly, create value! The one that is truly needed, really wanted but also funnily alluring.

This is the most important thing but should be left for the very end because if you start adding more things to your offer without cleaning it out first, you will just increase your costs and make your business more complicated.

So, what is your promise to your guests?

Why would they choose you instead of someone else?

This is the question.

Big chain hotels are just boringly the same. Sure, they provide trust to their guests because of their consistency just like any famous franchise, but YOU have great possibility to create community of the guests who need you and your concept. The ones craving for someone thinking about their needs, understanding how one hotel room can become their home for a while, listening to their visions and giving them opportunity to be their best version of themselves, have their best time or simple have it just like they would like.

Have you ever had ideas that seemed crazy to offer? Well, theirs time has come.

Add things that are truly part of your concept, even thought they may seem like they don’t belong to this industry simply because no one offers them. Think about your values, your branding personality and go big on brainstorming ideas such as, stretching equipment in room, painting canvas on the balcony, private pet, private chef, meditation corner in apartment, dishes for tea ceremony, etc. Anything is possible if genuinely accompanied into your story and it will be a big deal for your ideal guest who shall appreciate it and enjoy it.

I invite you to share your business wisdom! Tell us, in which ways big chain hotels truly inspire you, if they at all, and what do you think you can learn from them? Comment bellow.

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