bripat9643
Diamond Member
- Apr 1, 2011
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Yes you will, a long with all the others motel owners, of course there will be a price war among all motel owners in your areas, you may undercut them just to stay full. You may work with shorter staff, and use cheaper towels and sheets. You will get it one way or another.
Oh, to the contrary. Instead of working with fewer staff, I will use more staff! Instead of cheaper linens, I will use more expensive linens! And I will rotate them out of use more often! I will provide better quality tangibles, and better quality service. That is how I will stay full when other hotels in the area are only at 70% occupancy. In fact, my hotel sets the rates for our comp. set, and leads occupancy while doing so.
As someone who travels a lot, I have noticed that the quality of hotels has gone up considerably in the last decade. They now all have flat screen televisions, and they have a lot better beds and bedding than they used to. 10 years ago most hotel beds hurt my back because they were so hard. Now a lot of them have pillow top beds and they have down comforters and 400 thread/inch Egyptian cotton sheets.
Yep. Instead of racing to the bottom rates we've raced to maintain demand through improved quality. Going cheap just isn't worth it. I'd rather convince people to stay with me at higher rates, so it makes more financial sense to provide a better product and maintain high rates, than to let quality suffer and then bottom out my rates in to try to beg people to buy.
And it's exactly the reason why I could double the the pay of every single person who works for me right now, and still come away with a very nice profit. But why should I? If people agree to work for $10/hr then that's what I'm going to pay them.
Going cheap and going quality are both strategies that have worked. Wal-Mart pursues the former.