Hotels in tourist areas usually have cyclical business models. They have tourist seasons and off-peak seasons. Some call these cycles other names — convention season, spring break, what have you. During these times, tourists, visitors, and convention goers have a hard time finding cheap or affordable lodging. During peak season, hotels are full, and things are very hectic. However, during the offseason, hotels have to find ways to drum up new business.
Sustaining Profitability on Lean Seasons
Hotels in the US continue their streak in profitability and occupancy rates. Hotel capacities have also increased through the years. This growth is attributable to an improving economy, an increase in the number and variety of conventions, as well as non-traditional business promotion methods. True for most businesses, online marketing is making an impact on the sales hotel and resorts operations. It is also a result of competition from small bed and breakfast operations as well as alternative and non-traditional lodging choices.
The AirBnB Business Model
In recent years, AirBnB has been making a big impact on the hospitality industry. Its operations may not be that significant to affect traditional hotels, but it may indirectly contribute to the increase in the number of travelers. Adapting to mobile trends, AirBnB has been successful due to how it has tapped into social media and created a strong online presence. Effective hospitality digital marketing methods allow hotels and resorts to create their niche. They can funnel down and attract a loyal following, which convert to sales. With the use of the right search engine optimization and social media techniques, hotels can capture their audience and present themselves in a unique light.
Self-promotion and content marketing via social media takes some time to bear fruit. It still proves to be very profitable. Hotels and resorts can create their own buzz and promote their community in a way to drum up tourism and business for the general area.