If opening an accommodation business is something you've been thinking about for a long time, here are some of the characteristics of the tourism industry you'll have to consider before investing.
- This industry generally is based on long term investments of over four years and often the first two years run at a loss
- You must be able to fund the shortfalls, especially during off peak seasons
- Do you have an existing network to build a client base from?
- Identify a niche and build your offering around that niche. Create a differential advantage that is of value to your target market
- Be visible and accessible to main arterials and attractions relevant to your target market
- Have a professional-looking website where visitors can book online
- Link up with complimentary services - such as a day-spa or shuttle service - so your business can form part of a holistic experiential package
- Customers would like to know that standards they can expect from an establishment, so it is good to have a star grading
- You must be totally accepting of the fact that this type of business takes up a substantial portion of your life
- You need to be friendly, courteous, pay attention to detail, delight in serving your customers
- You need to be interested in people and their diverse cultures
Everyone goes into business with the objective of making a profit, but this kind of business won't work if you don't have a passion for it. Again, you won't be making a quick buck, so if that's what you're after, you may want to think about trying something else.
Copyright © 2016 Business Partners Ltd. All rights reserved.