Before You Buy a Hotel: New Technological Trends

Before you buy a hotel, it’s important to have a good idea of some of the technological trends that exist in the industry. The rise of the Internet has made hotel booking a completely new business. Having knowledge of how this technology works can give you an edge and make sure your hotel is gaining as many customers as possible. The trend of peer-to-peer industries, or the shared economy, is something that hotel owners also need to navigate. These technologies have really leveled the playing field for all business owners.

How Technology Affects Competition

Online travel agencies have become an extremely prominent facet of the hotel industry. Unless someone is a dedicated consumer of a single brand, they’ll usually shop around and compare prices on hotels before booking. Online booking sites take all of the extra work out of this process. Consumers can go to a website, see all of the prices, and book straight from that site.

This has been sort of a double-edged sword for the hotel industry. On one hand, you can easily fill your vacant rooms, and on the other, your competition is displayed directly next to you. If your hotel is of similar quality to the hotel next to it, and their price happens to be lower, the consumer will most likely choose them. That’s why it’s important for you to set your hotel apart from the competition. When you buy a hotel make sure it’s one that stands out.

The Rise of the Shared Economy

Today one of the hottest hospitality trends is the idea of the shared economy. This is when someone rents out their property or a room in their property to others. This is a peer-to-peer system, and it’s a consideration you need to have when you buy a hotel.

Companies such as Airbnb have made this process as easy as booking a hotel. Any consumer can advertise their house or apartment on the service, and any consumer can book their reservation through the app or website. Hosts and guests are able to send each other messages, and both have ratings to indicate whether they are a reliable host or guest. These sites advertise themselves as an opportunity to really immerse yourself in the city and feel like you live there during your stay. This has caused these services to gain a good amount of traction.

These sites have raised a few problematic questions for hotel owners. How can hotels compete, or should you market a hotel as a different experience? For the most part, it seems that marketing your hotel as a different experience seems the way to go. Hotels still offer many things that these shared economy sites don’t. For instance, many of these sites require you to book a minimum amount of days. With hotels you can book however many days works for you.

Hotels still carry a hospitality aspect that is hard to match. Most hosts on shared economy sites can’t afford to keep a cleaning and room service staff on duty at all times. Hotels also offer 24-hour reception. If you arrive late to an Airbnb and you can’t obtain a key, you may have to wait for the host. Hotel reception is there to help you at any hour.

In short, shared economy sites will inevitably take some customers from your bottom line, but not enough to significantly affect your profits.

Buy a Hotel With A Reputable Broker

When you buy a hotel, make sure it’s with an experienced and connected part of the industry. Southeast International is a trusted broker and will help you buy a hotel in the price range and location you want. When you buy a hotel, know that you’ll be purchasing a property that can truly compete with and thrive in a tech-driven industry. Contact us today or view our website for more info.