| Suppose you have got a brilliant new concept for a | | | | regards to business decisions. Profitability hinges |
| hotel or similar hospitality industry establishment. It is | | | | greatly on the hotel's ability to project and follow |
| not enough to just run away with that idea and head | | | | trends in order to keep occupancy up throughout the |
| on to the drawing board. There is another important | | | | year and onward. Identifying industry trends is also |
| thing to do before planning how many suites the | | | | important to foster growth in terms of the services |
| hotel has or how large the restaurant will be. That | | | | the hotel provides. |
| thing is something called market analysis. | | | | Determining the demand for the kind of lodging you |
| Market analysis is, plainly and simply put, an | | | | are offering is also an important part of the market |
| examination of the different factors involved in your | | | | analysis. Suppose you are planning on building a |
| particular business. This helps a potential business sort | | | | high-caliber 5-star property, but the market only has |
| out the current market conditions in the area where | | | | the capacity to support a 3-star or lower kind of |
| it plans to set up shop, addressing all sorts of needs, | | | | hotel. There is going to be some adjustments on |
| identifying strength of demand, and ultimately getting | | | | your business plan, depending on the projected |
| a feel for the projected success of the | | | | demand. |
| establishment. | | | | Going hand and hand with identifying the level of |
| Location, location, location-when it comes to starting | | | | demand is your market segmentation, allowing you to |
| up a new hotel, one of the first things to be | | | | target particular groups of people in order to |
| identified is the location. This does not have to do | | | | delineate the kind of accommodations and services |
| with just whether you are putting your hotel in a | | | | your establishment will offer. This helps the business |
| "good spot". It is also a good practice to determine | | | | become more focused to cater to particular kinds of |
| the proximity of the space to vital establishments, | | | | needs, preferably needs of people who are located |
| identify competition within the vicinity, mark the level | | | | within the area you are building the establishment in. |
| of people traffic, and find out upcoming | | | | After taking the necessary steps in the market |
| developments within the area, among other things. | | | | analysis, proprietors can then go to the next step of |
| There are also many other factors involved in | | | | projecting various variables. These include projections |
| analyzing the location, not the least of which are | | | | such as the market's occupancy over a year, sales, |
| social concerns, environmental condition, and any | | | | and the hotel's own room occupancy. |
| political factors in the area. These factors are to be | | | | With a definitive market analysis in tow, the business |
| considered on top of the basic factors like size and | | | | plan for the new hotel can then proceed more |
| potential growth, transportation, and other tourist | | | | smoothly and with fewer complications. The market |
| activity in the area. | | | | analysis is designed to help new businesses analyze |
| Also among the first and most important things to | | | | the market's potential as well as determine valuable |
| identify are industry trends, which will go a long way | | | | factors that can make or break the hotel's |
| towards determining what approach you take with | | | | performance. |