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A Guide To Start Accommodation Business (Part 1)

A guide to start accommodation business (Part 1)

Accommodation is a potential field for those looking to do business. So what is an accommodation service? How competitive is this industry? What does an accommodation business need? We will answer these questions in this article.

What are accommodation services? 

It is the provision of sheltered places for guests with all well-equipped facilities such as beds, restrooms, wifi, air-conditioners and other main services for travelers with a fee. 

In addition to the basic service of providing accommodation, nowadays, many accommodation services are also combined with catering services, entertainment, health care…

What are accommodation services?
What are accommodation services?

There are some  types of roofed accommodation establishments, including: 

  • Hotel 
  • Tourist village
  • Villa 
  • Serviced apartment 
  • Tourist camping 
  • Tourist guest house 
  • Homestay 

The accommodation industry has a great development potential according to the increasing travelling demand.

Accommodation service has great potential 
Accommodation service has great potential

Alongside the great growth potential, there has been fierce competition in this industry. There are lots of investments to build more properties and hotel groups, so you must understand the process of establishing an accommodation business and draw out effective business strategies in order to stay competitive in the field. 

Step-by-step instructions to start accommodation business

Some basic guidelines are recommended to implement the accommodation business, let’s take a look to have an overview for your plan. It includes three main stages:

Strategic Planning 

To start planning, you can follow these steps:

  • Determine the type of accommodation
  • Determine the ideal location for your accommodation 
  • Plan the budget thoroughly
  • Purchase the required facilities and equipment 


As an investor, you need to:

  • Choose a reputable construction team, make sure that they can execute as exactly as the original design.
  • Set up required facilities and areas for construction like surrounding safety barriers, areas to gather materials, water and electricity supply, etc.
  • Regularly supervise the construction process to mitigate mistakes.
  • Project inspection.
Starting to construct your accommodation
Starting to construct your accommodation

Putting Accommodation Into Operation 

The indispensable things to start operation are business registration, ensuring the full compliance with legal regulations and mandatory certification of the accommodation business such as fire protection system, minimum and maximum room requirements, food safety (for accommodation facilities that provide food service), and many other requirements depending on the specific accommodation type.

Next, you need to recruit staff with sufficient skills and experience to manage and run your accommodation. In the early operation stage, you should prioritize building an experienced labor force which is capable of handling situations well to guarantee guests’ satisfaction. 

Last but not least, it is promoting the service to customers so they will know and want to use the service. Therefore, you should invest in advertising, PR, finding effective marketing strategies to attract customers to come and visit your accommodation.


This article has briefly guided you on how to start an accommodation business. If you are still vague about what to do, do not worry as we will clarify more details of each stage in the next articles. Follow our blog in order not to miss useful information for your accommodation business plan.

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