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A Guide To Start Accommodation Business (Part 4)

A guide to start accommodation business (Part 4)

Business registration, training, planning a marketing and PR strategy are important steps that the hotel owner can not ignore to start the business operation. In this final article of the step-by-step guide to start an accommodation business, Hotel Link will discuss details which you should focus on to run your accommodation. 

Business Registration

Whether operating on a large scale of 4-5 stars, medium as 2-3 stars or as small as business households, investors still need to conduct business registration for their accommodation facilities.

Business licenses to establish business households, joint-stock companies or limited liability companies are registered at the authorized government units.

Business registration
Business registration

It should be noted that depending on the large or small size, your facility must follow the corresponding regulations such as the number of workers allowed to use. For example, in Vietnam, if your business household uses more than 10 employees, it is mandatory to apply for enterprise registration as prescribed in Decree 78/2015/ ND – CP, in Clause 3, Article 66.

You need to learn carefully about your business model, required charter capital, the legal provisions on the business field in your accommodation to avoid any breach of laws .

Building human resources 

Steps to build accommodation facility’s human resources include:

  • Recruitment: The easiest way is posting job vacancies on your social media and website. In addition, it is necessary to take advantage of job search sites, websites and social media groups specialized for the hospitality industry on Facebook, LinkedIn. 
  • Building core departments: they include the reception, reservation department,  sales and marketing department, housekeeping team…
  • Training: In order for the smooth hotel operation process, it is necessary to focus on the personnel training to equip the workforce with good relevant skills for performing their jobs well, thereby providing great and consistent quality services to the customers. For example, there are needs to train skills of processes and softwares used by your accommodation like PMS system for the front desk department, guest check-in and check-out process for reception team, or Channel Manager used by the OTA sales. Besides professional skills, you should also invest in building soft skills for employees to standardize customer service attitudes and bring consistent quality to your accommodation service…

Branding

First, you need to build a website as the official online channel for your accommodation. A Google survey indicates that 52% of guests will search and visit a hotel website after finding information on OTAs. Why? Because they believe this is the most informative channel where they can learn more about available promotions, and they can directly ask questions or request assistance if needed.

Branding and design 
Branding and design

In addition, you need to build a brand through social media channels to increase daily interaction with users. Some popular surfaces such as Facebook, Instagram, Twitter, Tik Tok, etc. attract users, especially young people. They will be potential customers for your accommodation.

Creative contents in images, videos or any other form of interactive contents should be produced and posted regularly on these channels. Advertising can be combined to push the reach to distributed contents, especially for content of special deals and promotions…

Selling rooms through intermediary channels

Other than running ads to sell rooms, you can list your rooms to sell on the intermediary channel.

Selling rooms through intermediary channels will bring a large and stable number of customers.

You can refer to some intermediary channels for selling rooms such as: TA, OTA, Mice, Corporation, Walk-in, etc.

Depending on the tourist markets you target and what are popular booking channels in these markets, you will prioritize investing in the relevant channels. Some reputable global OTA channels such as Booking.com, Agoda, Expedia, etc.

Listing on Metasearch channels

Metasearch is a tool that provides information about travel and hotel products based on users’ online search behavior, and then leads them to the direct website of the service provider. Therefore, this is a very useful channel to increase direct bookings for independent hotels.

Some famous Metasearch channels are Trivago, Kayak, Skyscanner, TripAdvisor, Google Hotel (Search and Map).

Besides the natural visibility, these Metasearch channels also allow running ads like CPC (Cost Per Click) so that hotels can increase their visibility to users..

Operation management by software

To optimize the operation process of accommodation establishment, you should research and use management software such as: Channel Manager or PMS.

Channel Manager helps you connect to hundreds of OTAs distribution channels (Expedia, Agoda, Booking.com, etc.) and manages them effectively.

Property management system (PMS) – Hotel management software 
Property management system (PMS) – Hotel management software

PMS software helps to manage bookings and related activities. Using PMS software helps you save time and costs in managing business processes.

In order to operate your accommodation stably, it is necessary to prepare carefully every step of the way. In particular, you should pay attention to building branding through websites and advertising. If you are still seeking a professional website builder for your accommodation, click here to contact Hotel Link’s website design service.

It is the last part in the series ” A guide to start accommodation business”, we hope that it can provide you with useful information and we wish you success on the business model that you have developed.

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