Strategy for Independent Hotels

Is your hotel struggling, and you’re not sure how to turn profitability around?

If your hotel is not performing as it used to, it’s a sign that something isn’t working. Sometimes the problem is reflected in concrete figures; other times, it’s just a feeling. But rarely can hotel profitability improve without first focusing on the quality of what we offer.

One of the first warning signs is the GOP (Gross Operating Profit), the key indicator of operational results. If the percentage of profit over revenue is decreasing or remains too low, something is wrong—especially in a market where tourism continues to grow.

The key is identifying where the problem lies: Are we missing revenue opportunities, or are our costs rising too fast? Or perhaps it’s a mix of both.

Reputation: The Key Indicator

Before making decisions, it’s essential to assess your hotel’s reputation.

• Are guests satisfied?

• Do we receive good reviews?

• Have we lost repeat customers?

• Is our team motivated?

This analysis will help identify key areas for improvement—from optimizing pricing strategies to determining whether our product has become outdated. A well-rated hotel has a stronger ability to increase revenue without solely relying on price competition.

In this article, we’ll focus on evaluating whether the problem lies in revenue generation, leaving cost optimization strategies for upcoming discussions.

Is Your Hotel Properly Positioned in the Market?

To maximize your hotel’s potential, you need to analyze its price positioning and product offering. This means conducting a hotel benchmarking process and comparing your hotel with the competition. Effective hotel management isn’t possible without keeping an eye on the market.

You may discover that the issue lies in a poorly defined product, incorrect pricing, or attracting the wrong target audience. In any case, now is the time for a thorough analysis of possible solutions.

If the issue is related to the product, investment may be required. If it’s a case of obsolescence, an investment will be necessary, along with a clear repositioning strategy. The key will be securing financing and redefining the product to meet current market demands.

Marketing & Sales for Independent Hotels: The Fuel for Your Business

Let’s assume that your product and pricing are well-defined. The next step is ensuring you’re gaining market traction.

Surprisingly, many hotels allocate minimal or no budget to marketing. But without visibility, there are no bookings. The market works like a funnel: if you don’t generate leads at the top, you won’t get bookings at the bottom. And let’s be clear—this isn’t free.

• Who is responsible for your hotel’s commercial strategy?

• How many market segments need to be targeted?

Independent hotels face greater challenges since they lack corporate structures that share costs among multiple properties. Defining a strategy that maximizes revenue generation while keeping expenses under control is a delicate but essential balance.

Have you considered partnering with a national or international hotel brand?

Revenue Management Strategies: Every Euro Counts

Revenue management is critical. If we don’t optimize pricing, we’re leaving money on the table.

• What tools are you using to manage your rates?

• How often do you review your pricing strategy?

• Who is responsible for revenue management, and how much time do they dedicate to it?

Dynamic revenue management ensures that each room is sold at the best possible price at any given moment. The more effort we put into this area, the greater the impact on hotel profitability.

So, ask yourself: Is revenue management an expense or an investment?

Final Thoughts

Running a hotel is no easy task. Independent hotel management is demanding and requires passion for hospitality and guest service. If you feel your hotel needs a change of direction, Welvia Hotels can help you identify key areas for improvement—because real change doesn’t happen by doing the same things over and over.

📌 In our next article, we’ll analyze cost optimization in hotels and how to improve profitability without compromising quality. Stay tuned!

📍 For more information about Welvia Hotels follow us on social media: @WelviaHotels.

📩 Contact: welvia@welviahotels.com