What to do When a big Competitor Comes to Town

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When you run a smaller hotel, it can be terrifying to discover you’re about to be competing with one of the larger chains for reputation, facilities and guests. But never fear- there are ways to not only survive but thrive when that big competitor arrives on the scene. Here’s our quick guide to keeping your cool.

Focus on Marketing

Larger brand offerings have an array of benefits which smaller hotels simply don’t possess – one of the most beneficial of course being a much larger marketing budget. However independent hotels needn’t despair, as a clever marketing strategy can help to curb some of the damage caused by these more illustrious companies. Consider which large hotel chain a customer is likely to choose instead of you – which will they see first? What marketing activities are these larger brands engaging in which you are not? What is the appeal of your hotel, and how can you express this in your marketing efforts? Particularly with online bookings, the competition is fierce, and the millions spent by larger hotel chains often produces favourable results. Decide what marketing activities are best suited to you, and try to ensure they are scalable, so that with increased success (more bookings, greater profits) you can continue to engage with them in more meaningful and impactful ways.

Reassess Your Customer Service

One of the key reasons a customer may favour a smaller, independent hotel over one of the big chains is the possibility of a more custom-built service. In the age of boutique hotels and an increased focus on tailored offerings, this is one way you can really play to your hotel’s strengths in a very significant way. Remember however that larger hotels are already wising up to the possibilities of personalisation, using ingenious data solutions to achieve their goals. Understanding how your company can build better customer service will help set you in good stead for the years ahead.

Play to Your Strengths

The unique proposition of a larger brand is quite distinct to smaller hotels, and many of the USPs which these companies thrive on, and their customers expect, are out of reach for more modest companies. It’s important you understand your own unique selling proposition, as well as how to sell it through your marketing and communicate your brand values in every interaction customers have with you via your customer service.

Partner with a Franchise

If you want to have the best of both worlds, retaining your individuality whilst gaining the insight, expertise and experience of a much larger company with success around the globe, then your best option is to partner with a franchise such as Magnuson Worldwide. As a worldwide top-10 hotel brand and a magnificently low-cost option for hotels in search of franchising, the Magnuson name carries significant weight in the hotel world – and can help you develop your existing proposition with the full support of established hotel professionals who really know what they’re talking about!


Calculate your increased profit by switching to a Magnuson Hotel brand

While most major brands charge an average of 15% of total revenue with complex additional charges and corporate renovations, Magnuson offers one simple 5% of gross fee. See how much you can save with us.

Published 09 Jan 2018

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