Five star hotels are many... but exceptional hotels are few. To guarantee an exceptional stay to customers, luxury hotels around the world select a panel of experts to evaluate the quality of their decor, refinement of their atmosphere and excellence of their service. An indulgence rather than a necessity, sumptuous or expensive, abundance or great ease and comfort - these are all definitions of luxury, but after asking people “What is your definition of luxury?” they replied: "A 'luxury experience' is something that simply makes me feel good or special. Nowadays in this stressful world, people are looking for a kind, personal and familiar service and those are some of the reasons why a luxury hotel is a good investment. In this business plan, you will find all the information related to the business of owning and operating a luxury hotel in a successful way.
Fence Company Business Plan
A luxury hotel business consists of comfort and special services, facilities designed mainly for business people who want to be well taken care of through tailor-made services. The hotel is usually in a secure and central area surrounded by many other stores, creating an area of commerce around the luxury hotel. It is a facility that is well-furnished, a place with pools, yards, spa, gym, restaurant and even golf courses. Other amenities that can be added to the comfort and ambiance of the facility. It is a place that can be attractive for all types people but that can’t be afforded by everyone. In this section of the business plan, we will detail how the luxury hotel business work and what it has to offer to its particular audience.
Luxury hotels essentially provide accommodation and personal services for business people and of course families who want to be comfortable and cozy during a travel or for a day off. Basically, the business in the luxury hotel industry provides a significant range of services such as room service, dry cleaning, spa, personal trainers, exquisite meals and others. The location is really important for the hotel. This section of the business plan presents important information about the luxury hotel industry and the strategies to position your business within its intended marketplace. It will also identify who your main competitors are and what you have to offer that exceeds what they currently have.
The operations plan section of the luxury hotel business explains the essence of the company, the logistics, staff preparation, working schedules, and every detail regarding the operations of the business. The luxury hotel business is a customer-centric hotel with a service culture that will be deeply rooted in the fabric of the organizational structure and indeed at all levels of the organization. As a matter of fact, the operations plan mission within the business plan for the company is to help you deliver a reliable, genuine, caring and excellent service superior to what competitors can offer and to ensure that the luxury hotel enjoys over 90 percent occupancy in most periods of the calendar year.
Luxury hotels are coming into the market well-prepared to favorably compete in the industry. The place should be well located and visible, with the right atmosphere for business people and for sophisticated guests. In this chapter, we will outline the marketing plan and the correspondent strategies to make the business grow and become well-known in the area. Profits per room at luxury hotels can be twice as much as in a mid-price hotel, and four times more than a budget-conscious alternative.
The target market for luxury hotels business consists of upper class population and business people who travel to meet with colleagues, associates and co-workers. Understanding the demographic composition of the target market can help you tailor your facilities and services to them, considering most of the clients are politicians, business people or travelers who are visiting the country and who are accustomed to a luxurious lifestyle.
Nothing says luxury hotel more than a big and beautiful structure which will be your best publicity. Additional to this some of the strategies listed in this section include: social meetings to let customers now about the service and facilities, advertising in social media platforms, five-star reviews in well-known travel review communities and a public relations campaign that involves hosting several high-profile events to attract your target market. All these and other promotional strategies will be thoroughly described in this section.
Running a hotel is no easy thing and finances must be kept in close watch to make sure the business becomes a profitable and sustainable venture. In this chapter of the business plan, you will find a complete explanation of the financial projections for the business with a time horizon of three to five years.
The prospects for the luxury hotel industry look promising. The main revenue sources for the business will come from bookings, tailored services, the use of certain facilities within the structure, spaces leased to other businesses and fees charged for many different concepts. There are many other revenue sources for a hotel like this, and you will find a comprehensive list of all of them and the potential figures they could generate in this section.
In this portion of the luxury hotel business plan, there is a list of the major expenses the business will incur including staff, room maintenance, security, supplies and utilities. All these will be listed and you will also find strategies to keep these in line to make sure your luxury hotel remains profitable.