A hotel price war is a helpless choice and also lowest level of market competition. In case of failure, hotel may suffer.
Sometimes, in order to attract traffic, hotels use low prices to attract guests and increase occupancy in their hotels. This is not really practical for long term operation of hotel. There is a strategic problem here, that is, type of online drain is not for sale, but for drain. In a specific transaction, online payment cannot be made and offline payment is required in order for hotel reception to be able to upgrade. Often such guests are disloyal, and they only relatively solve current lack of traffic.
Hotel prices do not make guests loyal. There are several types of loyalty that confuse hotels:
First, Faction Loyalty
Such clients are more price sensitive. As soon as hotel prices return to normal, such customers will stop spending money.
For example: at beginning of opening of hotel, price is set low, and when occupancy increases, price must be indicated. We will find that this will result in loss of some customers.
Second, lazy loyalty
Due to convenience of accommodation, they don't want to be a hassle. Although they are not very happy with hotel, they will continue to stay.
Third, monopoly loyalty
There is no other choice. There is no hotel in a certain area that guests can choose from, so I have no other choice but to choose this hotel to stay. As soon as other options appear, probability of losing a client will be very high.
The above three types of loyalty are unreliable, especially for price-sensitive customers.
So, what factors make customers loyal?
This mainly refers to design of hotel, quality of rooms, dishes in restaurant, space and furnishings in public areas. The core here is hotel products, Mr. Peng believes that hotel products are core value.
As for products, it can be optimized based on pain points of guests. What pain points did guests encounter during check-in process, such as bed problems, poor soundproofing in room, weak water in shower, uncomfortable furniture, etc. This must be combined with positioning of hotel, especially with needs of target guests.
Service here refers to personalized service. In fact, it is very difficult for most hotels to achieve this. Because in order to be able to provide personalized services on spot, we need customer data support. We need to understand customer's customer attributes, intrinsic and extrinsic attributes, customer characteristics and scale, etc. Otherwise, experience alone can be relied upon.
The key here is client data and implementation.
Third, a sense of belonging
The key for a hotel to realize guest redemption is to provide guests with a sense of experience through equipment, satisfy guests through services they provide, satisfy guests psychologically through respect for guests, and finally provide guests with a sense of belonging. A decisive step in building loyalty.
In specific process of implementing a hotel, there is one experience: communicating with family and friends. This will give customers a sense of belonging.
This is a comprehensive indicator. A simple understanding makes guests feel like staying in ourhotel is "valuable" or "super valuable". Regular guests will make psychological comparisons based on experience and finally judge cost effectiveness of a hotel based on perceived value.
You see satisfaction in your mouth, but you don't see satisfaction in your heart. After all, it is guest loyalty.