Compared to Traditional Hotel Industry, What Are the Strengths and Weaknesses of Airbnb

At that place'south no question the hotel industry is a vast sector that is responsible for trillions of US Dollars in the grade of revenue. That being said, SWOT analysis of the hotel industry is, therefore, paramount.

SWOT analysis of the hotel manufacture or the hospitality industry overall helps in devising a proper plan to stay ahead of the competition.

Its magical allure lies in the fact that it can help hoteliers globally to develop and implement sound and robust business strategies.

As you lot might expect with an industry with such a massive financial musculus, you need to have a articulate-cut business strategy.

Which begs the question: exercise you lot really know your hotel industry?

Even before we delve into information technology, what really is a SWOT Assay?

Simply put, a SWOT Analysis is a rundown of all Strengths, Weakness, Opportunities, and Threats facing a particular industry or niche.

Herein, we will provide an outlook for the hotel industry as a whole.

Our analysis will particularly focus on its primary business strengths, weaknesses, and how these pitfalls can exist harnessed into natural advantages.

With this information, hoteliers can gear up business goals which can be reviewed at least in one case a year.

Read on to get a good glimpse of how the hospitality industry and specially the hotel industry is panning out.

Strengths of the Hotel Industry

If you are a hotel manager, possessor of a hotel or restaurant, travel enthusiast or a wannabe entrepreneur in the hotel manufacture; understanding the SWOT analysis of hotel industry is a must.

Groundwork of Hospitality and hotel manufacture might aid to sympathize the zest of Service in the hotel industry and hospitality and explore the analysis further.

Right off the bat, we volition take to admit that the hotel industry's strengths vary from ane region to another. Every region has its ain advantages and disadvantages.

Just, the starting time step in the SWOT analysis of the hotel industry begins with an incisive await at its universal primary strengths.

1. Provides Condom Abode Away from Dwelling house

It'due south undeniable that the hotel industry provides safe accommodation for people when they are away from their homes.

The industry itself boasts millions of decent rooms.

With a variety of hotels across the globe – from boutique hotels to the grandeur international proper noun brands and everything in betwixt, there's always a hotel that volition fit a client's needs.

They offer everyone a place to kick dorsum and relax abroad from all the hustle and bustle of everyday life and work.

Without the hotel manufacture, vacations and route trips wouldn't exist safer or even possible.

What else tin can yous offer to customers equally a hotelier?

Remember about it. It volition fall nether strengths.

2. Contributes to the Local Economy

As an industry that wields meaning financial ability, the hotel industry can certainly tide things over in the local economies.

Sure, it's local attractions that bring masses to the community, but it'southward the hotels that go along them there.

When people stay in a identify, they swallow local services and goods.

They will visit local malls, eat in local restaurants, and shop in local stores.

And, where do all those top dollars finish upward? That's right – within the community.

So, the Hotel industry is a benefaction to the customs.

3. It is a Mammoth of an Employer

Again, the hotel manufacture is an enormous sector that employs many people in myriad disciplines.

Think in the line of management, groundworks, landscaping, banking, service, and entertainment to name a few.

There are a lot of Astonishing facts about hotel industry with fundamental facts being that within the next couple of decades 1 out of 10 people could be a hotelier or hospitality professional.

Even later a huge setback due to the COVID-19 pandemic, the hotel industry would however be 1 of the biggest employers globally.

4. High-Profit Margin

Although the hotel industry requires huge initial capital, it's even so a worthy investment as the cost of labour is lower, and the profit margins are higher.

However, this is not the case across the globe.

While Asian, Latin, African, and Heart Eastern hotels enjoy cheap labour, those in Europe and the Americas are paying a premium in wages.

High-profit margins are key strengths for the following sub-sectors of the hotel industry.

Luxury hotels and resorts
Boutique Hotels
All-Inclusive Resorts
Casino Backdrop
Spa and Lifestyle Resorts

and more.

Weaknesses of the Hotel industry

Now, this is a crucial part of the SWOT assay of the hotel industry. Later on all, mastering the weaknesses is what that gives hotels the competitive edge.

Allow's expect at a few of the weaknesses that we need to be careful with.

i. Loftier Hotel Rates- Huge setup toll

Hither's the thing: high-cease hotels charge thousands of Usa Dollars to stay at that place for a single night.

The problem is that these rates are non inside reach of an average household in today's world.

And then, the hotels are losing customers to competition inside and exterior the industry.

In essence, in that location's a express demographic that the hotel industry tin marketplace their services and products to.

Although there are affordable hotels out there, they usually offering lower standards of services – and maintenance.

Too, the setup expenses of hotels are huge. It takes a lot of effort and money to build up a hotel then run and manage the same.

It can have years to get to turn a profit zone for high-finish hotels. Huge investment and operational costs are cardinal weaknesses of the hotel manufacture.

2. Unfavourable Tax Rates

In some countries, the hotel industry is subjected to an unfair revenue enhancement structure which, in turn, takes the price of offering hospitality services to a whole new high.

Get this: some rooms attract specific taxes which are charged per night spent there.

As if that isn't worse plenty, some hotels also receive higher sales taxes when pitted against other sub-industries such as bed and breakfasts.

iii. Seasonality of the Hotel Concern and dependence on Tourism

The hotel industry is a function of the bigger travel and hospitality manufacture.

This dependence makes the hotel industry vulnerable.

The business of hotels would depend on the influx of tourists, holidays and season. This seasonality and dependence on tourism is a key weakness of the hotel industry.

Predicting loftier and depression flavor in advance is quite hard. Keep a macro perspective, this gets even more difficult.

As an example, the COVID-19 pandemic has only demolished the tourism sector in 2020.

The hotel industry is directly dependent on travel and thus had to endure huge losses.

This is a archetype example of the over-dependence of the hotel manufacture on external factors.

Opportunities for the Hotel Manufacture

The hotel industry is here to stay; there's no question about that.

The best news is that every community has a raft of attractions and landmarks worth visiting.

What hoteliers have to practice is add a little flair to them, and people from all walks of life will journey miles to partake in their beauty.

In principle, the hotel industry has an opportunity to enjoy a year-circular influx of customers thanks to its modern structure.

During top flavor, hotels typically take in domestic and international tourism – and local tourists during the off-season. And, this is the magical attraction of the hotel industry.

The world is getting globalised, there are more than booking and travelling options. Engineering science is providing a hand in helping the hotel industry grow.

The Hereafter of Hospitality and the Hotel industry is bright for sure.

1. Huge Scope for Technology

Yes, information technology's a primal strength of the hotel industry as the technology still tin be said to be underexplored in hospitality and travel.

Doing a SWOT assay for your hotel business around engineering would open an body of water of opportunities.

Remember in terms of the beneath when exploring engineering for the benefit of your arrangement.

Utilising Artificial Intelligence in client support (Chatbots)
Upgrading the Property Management System
Greater utilise of Automation for check-in and check out
Using Robotics for automatic some part of service
Blockchain for an enhanced payment security
Cloud technology for saving on server resource
Augmented and Virtual Reality helps in richer consumer feel.

And much more would be on your exploration radar while exploring opportunities for the hotel industry.

two. Millennials the new key target segment for hotels

Millennials are creating huge opportunities for the hotel industry.

They dear to travel. They dear engineering science. They intendance for sustainability. They beloved green tourism.

There is a huge crowd that has become the decision-maker for travel and lodging.

All SWOT analysis must have a section for new market segment opportunities.

Millennials should find a separate heading in the opportunity section of the analysis.

Catering to this marketplace has a huge spillover effect on all other segments.

With their varies interests and beloved for innovation, millennials are creating opportunities for the hotel manufacture in 2020 and beyond.

Threats to the hotel manufacture

This again is a crucial part of the SWOT analysis of Hotel industry.

Alternative lodging like Airbnb has already posed plenty threat to the hotel industry.

Boutique Alternatives-Cheaper and more robust hospitality services are mushrooming each solar day. Airbnb is the primary threat to the hotel industry, for that matter.
Prevalent Conditions:Ceremonious unrests in some foreign countries can dampen downward the hotel manufacture both straight and indirectly.
Worse-Than-Expected Economies:The hotel industry is withal reeling back from the aftermath of the world's recession. Unfavourable involvement rates and depression disposable income has cutting downward dramatically footfall in about hotels across the world.
Changing travel patterns:Consumer behaviour is irresolute. Augmented reality and Virtual reality is giving consumers options to enjoy travel without much of travelling. This can directly impact the lodging industry.
Pandemics:COVID pandemic is a contempo case of how pandemics tin can exist a threat of the hotel and hospitality manufacture overall.

Decision

Hither you get. Quick SWOT assay of the industry we love the most.

Hope this has helped yous to know your hotel industry better.

Applied science has a huge role to play in all the four sections of SWOT analysis of Hotel industry but we will leave that to be covered in particular in another post.

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Source: https://www.soegjobs.com/swot-analysis-hotel-industry/