Seven Ways to Recession Proof Your Tourism Business
Since the world has become an “International” tourist market, with ever cheaper low cost airlines, and on-line booking services. Competition is tough, as demand is much lower than the global supply of available accommodation. How do you recession-proof your tourism business?
No matter where you are or what services you offer, to today’s future travelers- the world is becoming one big choice of destinations. Regional low budget airlines cut traveling costs, whilst the internet allows travelers to search, and compare places to visit.
How do you, compete with global competition?
1. Think Globally
Focusing on one nationally or region for visitors cuts off opportunities for business. Join an online booking agency,-offer services which suit a wide range of nationals. A fast growing global middle- class, is the ideal market you should aim at.
2. Strategic Pricing
Smaller Hotels and Guest Houses should offer a wide range of prices to suit everyone’s pockets. Offer ‘local’ specials to attract locally based people to stay in your accommodation, whilst arranging your rooms to suit the price brackets of a wide variety of potential guests. A mid-range Guest house could offer Dormitory to deluxe accommodation.
Network local clubs and organizations, and offer group specials. If your area has beautiful areas where you can hike or cycle- search and contact relevant hiking and biking clubs.
4. Long Term Accommodation
Many tourist areas often have a glut of accommodation, but by offering low cost long term accommodation with support. You can fill up those empty rooms, and maintain a steady income flow.
5. Think Locally
Local tourism should never be ignored. Advertise locally, offer “specials.” If you have an empty bar area, with rooms- offer private parties with accommodation. Families who have visiting relatives, but have limited space, could also use your accommodation.
6. Added Value
Attract customers by offering a weekly or monthly attraction. Singles or Music nights are great for bars, and cafes. Small Hotels could have an informal “flea” market or Club nights for local clubs. Offer a free bottle of good wine for each couple, who take a room from you.
7. Business Rates
Many Hotels in Asia, where often there is a glut in accommodation offer “business” or “transit” rates. Visitors can rent a room for a few hours at a fixed rate. In bigger Asian cities,- High end Hotels make a high percentage of turnover from offering “business rates.”
Empty Hotels, Bars, Cafes and Resorts are a natural consequence of Global tourism. However by thinking locally, and globally- you can not only survive a recession but completely recession-proof your business.