By Stefano Sciamanna, CMO & Senior Revenue Manager at Lybra Tech
After more than twenty years spent advising hoteliers in every corner of Italy, there is one constant I continue to find, regardless of whether it is a boutique hotel or a hundred-room property: the belief that positioning is a static concept, set in stone on the day of the inauguration.
Often, when I begin a consultancy, the first question I ask is: “Who is your customer and why do they choose you?“. The answer, almost always, is based on a perception of the entrepreneur that is not reflected in the numbers. “We are a family hotel,” they tell me, while the data shows a majority of couples complaining about too much noise at breakfast.
Positioning is not what you think of your hotel. It is the space you occupy in the market’s mind relative to your competitors. And if that positioning is wrong or blurred, you can apply all the most sophisticated Revenue techniques in the world, but you will only be trying to fill a leaky bucket.
Market analysis: looking outward to understand who you are
You cannot define your place in the world without knowing who the others around you are. Competitor analysis should not be limited to “how much they are selling a room for today.” You must dig deeper:
- What are they really selling? If your neighbor has invested in a luxury spa and you haven’t, you are no longer in the same market, even if you are both 4-star properties.
- To whom are they selling? Study their reviews, look at their social media. If their customers are looking for “silence and relaxation” and yours for “nightlife and aperitifs,” you are speaking to different worlds.
Nationality and Target: there is no such thing as a “product for everyone”
One of the most serious mistakes I see being made is homogenization. An American guest has diametrically opposite needs compared to a German guest or an Italian business traveler.
- Practical example: If your analysis says that the US market is growing in your area, you cannot ignore that the average American expects a certain bed size (King Size), impeccable concierge service and, possibly, a breakfast that includes high-quality hot options.
- Ad hoc product strategy: Positioning also means having the courage to remove. If you decide to target the Leisure/Luxury Couples segment, perhaps that children’s playroom taking up precious space needs to become a suite with a view. The quality of the product must reflect the price you want to charge.
Suite or Standard? What the market really wants
If you manage a 5-star luxury property, you must ask yourself: does my market want more “normal” rooms at an accessible price or does it demand the exclusivity of a suite? I have seen properties double their turnover simply by transforming four connecting rooms into two large suites with personalized services, because their target (perhaps Middle Eastern markets or high-end USA) was not looking for savings, but for space and prestige.
The same applies to ancillary services. Does a Michelin-starred restaurant make sense? Only if your target is willing to pay for it and if it acts as a driver for the positioning of the entire structure. Otherwise, it is just a cost that erodes Revenue margins.
My starting point
In these 20 years, I have learned that repositioning is often more necessary in hotels that have been open for decades than in new ones. The market moves fast, needs change, and what worked in 2010 is obsolete today.
Revenue Management starts here: Analysis → Product → Target. Only when these three pillars are solid can we start talking about dynamic rates and sales strategies. Without clear positioning, you are not doing Revenue: you are just hoping the phone rings.
