When it comes to running a scalable and successful business, you always want to be thinking about how to increase value, thinking up new and innovative ways to grow and solve problems that keep you stuck in the same place. In my experience running an accommodation business, I’ve come up against this problem time and time again, and have picked up a few key tips on how you can go about increasing value, and with it setting your sights on a more profitable future.
In this article, I’m going to be sharing my five top tips on how to increase the value of your accommodation business with you. Enjoy!
#1 – Increase Your Demographics
When I first took over my accommodation business, our clientele was very closed and specific. This is never good for business, particularly if you’re looking to scale. We noticed that the regular visitors to the park all lived within 150 kilometres, and we weren’t attracting anyone further afield. So we did some target marketing and looked at new demographics we could appeal to. Not long after, we were bringing in guests from all types of different demographics, and from there the business started to grow and with it so did its value.
#2 – Quality and Presentation
A lot of value comes down to appearances, particularly in the accommodation industry. When we realised just how important this was, we immediately began investing resources into the quality and presentation of the park. It now looks better, the guests are happier, and with that the value shoots up.
#3 – Increase Your Revenue
It sounds like a pretty straightforward thing to realise, but if you increase the revenue of your business then the value shoots up too. The counter-intuitive trap that many owners in the accommodation industry fall into is to offer discounts in order to attract more guests. And while more guests is certainly a good thing, they’re not going to increase your revenue (and therefore value) if they’re paying 20% less than you should be charging.
Instead of working with discounts, invest your resources into improving the experience of your guests. That way, you’ll attract the right clients who are looking for quality rather than a bargain.
#4 – Reviews and Referrals
The better your business looks to a prospective guest, the more value it will have overall. Make sure that your business is attracting regular reviews on sites such as Tripadvisor and Facebook. If it’s not, then ask yourself why and maybe start pushing your regular guests to leave some online feedback.
Remember, online presence is incredibly important in all sectors nowadays, so you need to make sure your business is featured in the right places. Guests who are willing to pay a bit more money for an experience are almost certain to look for reviews and referrals before they part with their hard-earned cash!
#5 – Knowing Your Target Audience
I’ve already talked about widening your demographics, but you also need to know who your ideal clients are in the first place. Thanks to social media, there are plenty of ways to do this, but it’s important that you invest time and resources into getting it right. Then you can start targeting your marketing at the right people, meaning more clients and ultimately more value.
There are so many reasons why you should be focusing on improving the value of your business, and it’s not just about directly making money. Having a higher-valued business is a great way of improving your networks, increasing the options for you and your business partners, and being able to create opportunities such as selling and exit strategies.
Hopefully, with the above tips you’ll be able to start channelling your energies into the right places, and before long see some positive results for you and your business.