Hotel market positioning refers to the unique identity that your brand has created in consumers and how it is distinguished from the guest experience that your competitors offer. The better your positioning, the more likely guests are to book a room with you and become loyal, repeat customers.
But what does this mean in practical terms? How can you position your hotel in a way that boosts your reputation and generates more revenue for your business?
In today’s post, we are going to look at what market positioning is, how it works and how using our unique HQI™ can help you better position your brand and increase your overall performance levels.
What is hotel market positioning?
Hotel market positioning is your brand’s unique selling proposition: how you convince guests to stay at your hotel over your competitors. Your positioning is built on a number of elements, including your image, your reputation, and your unique selling point. The key is being clear about who you are as a business, what value you have to offer, and why you are qualified to meet the specific wants and desires of your target market. And the first step in achieving this is understanding who your market is.
Who are your target guests? How big is their budget? What do they value in a hotel experience? What do they like and dislike about your competitors? How should you market yourself in order to stand out from the crowd and attract their attention? Which unique benefits can you offer?
Understanding the answers to these key questions will help you build a solid market positioning strategy that appeals to your target demographic and gets traffic through your door.
How does it work?
The first step in effective market positioning is creating a solid brand. Hotel branding goes beyond your name and your logo. It’s about communicating your values and your unique identity to your target market. You need to create and promote a narrative that builds a positive reputation based on your value proposition. If you can do that, then you have taken the first step towards cementing your position as a key player in the hospitality industry.
However, hotel market positioning is not just about branding. It’s also about identifying your most profitable target segment in the market and creating a level of service that meets their expectations. And in order to achieve this, you need to have in-depth knowledge of what your competitors are offering, what resonates with your target market, and what you can do better in order to convince them to choose you over another hotel.
So, where can you get this information from? How can you collect as much valuable data as possible without spending your entire day conducting market research?
It all comes down to using the right tools.
How an HQI™ can benefit your business
At BEONx , we have developed a unique Hotel Quality Index™ (HQI™) that enables you to assess your hotel’s reputation and position in real-time so that you can make the necessary adjustments to improve your RevPAR and market positioning. With this tool, we have redesigned the hospitality industry benchmark assessment model in order to help hoteliers better qualify rates and competitor sets in their revenue management strategies.
The system uses an advanced algorithm that understands how weight should be given to historical data at any given time, in line with changes in customer behaviour and predicted demand trends. The tool also takes into account the strategies and behaviours of your competitors, providing you with improved fair pricing elasticity and more detailed forecasting abilities.
Developed with input from former hotel revenue managers, our HQI™ uses Artificial Intelligence to analyse external market data, including online reviews and ratings, in order to calculate an overall quality score for hotels. This data can help you understand your quality-pricing positioning in your compset, so that you can quantify your sales probability and price elasticity. You can then use this information to create an effective sales strategy that cements your market positioning, attracts new and returning customers to your hotel, and boosts loyalty and your guest experience.
Don’t just take it from us – our hotel partners have seen an 11% increase in RevPAR in the first six months of using our unique HQI™ algorithm!