Diversification can help hotels enhance their offering

Achieving differentiation in the hotel industry is a key element for offering guests a memorable and quality experience. Diversification strategies in business are nothing new, but the mass acceleration and adoption of innovation that we’ve seen take place over the past two years is evident. Over the last couple of years, the hotel industry has come under increasing pressure to adapt and modify their offering to match the changing needs of their guests, notably following the pandemic. With 70% of business travellers aged 25 to 30 wanting to extend work trips for a mini holiday and Wi-Fi coverage a ‘non-negotiable’ for over half of travellers, many hotels are having to reimagine their offerings to meet the expectations and needs of their guests. Additionally, with energy bills continuing to rise and the cost-of-living crisis hitting the hospitality sector the hardest, hotels would do well to embrace a diverse offering which could improve their business model to face the economic challenges which lie ahead, and most importantly, enhance their guests’ experience. Travellers are now more than ever looking for unique experiences, as cited by 65% of travellers who responded to Skift’s market research. It is therefore important that hotels cater to this desire to escape by taking part in unique and luxurious experiences. The regular murder mystery events, conservation shark tagging, and artist experience that we offer at Burgh Island provides guests with thrilling experiences that will stay with them for a lifetime. By expanding your offering to include activities such as these, hotels will not only keep guests on their toes, but it will also provide guests with the holistic getaway which many travellers are now looking for. Whilst it is important to recognise that many hotels may not have the facilities required to provide elaborate events such as a murder mystery night, beginning the process of diversification represents an opportunity for the hotel to explore profitable ways in which they can partner with local businesses for these experiences. Hotels located near the sea can look to forge partnerships with the local fisherman that are able to provide guests with fishing lessons or a unique dining experience, in turn building a bridge between the hotel and the local community. During the difficult economic times that lie ahead, these vital connections to the community will help hotels support local businesses and industries as they struggle in the face of reduced demand and rising energy bills. Only by banding together can the hospitality industry continue to thrive in the coming months. Another way hotels can diversify their offering is through selling tasteful souvenirs that provide guests with an iconic memento to remember their holiday. At Burgh Island, for instance, we have curated a variety of gifts that allow guests to take home a piece of the wonderfully wild magic and mystery that engulfs every aspect of the island. Selling these souvenirs can provide hotels with a vital secondary source of income and can help establish the hotels brand as a luxury and well sought-after destination. Additionally, using an online store to sell these products can encourage former guests who had stayed at the hotel to revisit their experience by purchasing an item, which might remind them of their stay and even encourage them to return. With 2023 now upon us, many hotels will see the upcoming year as something to fear. Rising inflation and energy bills are indeed a great threat to the hotel sector. Yet, as the pandemic showed us, hotels are more than capable of rising to the challenge. Indeed, hotel bookings in the UK as of July 2022 were up 173% year-on-year. Whilst bookings have been showing signs of stagnating in the short term, the industry is set to continue to grow in 2023. A recent survey by StaySure revealed that one in 10 people spent most of their money on holiday souvenirs in 2022. Therefore, this new year with many households missing their favourite holiday destinations as families cut back their spending, hotels up and down the country can begin to diversify their offering so that they can reduce the impact of any short-term downfall in occupancy rates. Finding creative ways that offer both souvenirs and distinctive experiences beyond significant holidays will enable your hotel to create a significant source of revenue, which can be used to enhance your primary offering in the long term. Hotels that begin to diversify their offering now will be able to cash in on this growing trend in 2023 and beyond. Finding creative ways that both offer distinctive guest experiences, while also boosting revenue, will be key for hotels to continue the path forward towards recovery.