Broadband’s effect on customers

Hotel Online points out in a recent report that the massive use of the Internet by vast numbers of persons is a very important factor in the Marketing strategy implemented by hotels. Broadband connections allow people to spend more and more time on the web, a tool they consider as a primary source of information. According to this report, they visit three or more websites before taking any decision and spending their money. Thus, the only way for independent hotel operators to compete with franchised hotels is by marketing their hotel aggressively on the Internet. As a result, Marketing efforts based on the look of the website, easy to follow navigation and on providing useful information are becoming necessary.

Because of this aggressive Marketing on the web, hotels are acquiring new customers everyday and their revenues are rising significantly. This market is growing very fast. But the more the Internet market is growing, the faster this market will be saturated and the fiercer competition will become. As a result, hotels’ margins will likely be reduced. Then, how will hotels keep on being profitable? Simply by diversifying themselves differently. The difference between one hotel and another won’t be the price or the look of the website anymore. Hotels will have to be more creative and to find a way to distinguish themselves from other hotels by communicating more on the services offered (indoor pool, wireless connections…).

Published by

Vijay Dandapani

Co-founder and president of a New York based hotel company for 24 years. Grew the firm to five hotels in Manhattan and also developed a greenfield project at MacArthur airport, New York. Speaker at numerous prestigious forums including Economy Hotels World Asia, Lodging Conference, NYU, Columbia University Real Estate Roundtable, Baruch College's Zicklin School and ALIS. President and ceo of New York City Hotel Association since January 2017.

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