New Year, new niche?

One of the things that often surprises owners and managers is that although our assessors are on site to objectively grade the quality, legality and cleanliness of a business, they are also industry experts and are a font of knowledge about hospitality. We recruit our assessors direct from hospitality businesses; they are former managers and owners, and have years and years of experience working in the industry in their own right before becoming a Quality in Tourism assessor. This skillset and first-hand experience makes them best-placed to conduct the assessment, but it also makes them a valuable, accessible and commercially supportive advisor to businesses that choose to take advantage of their skills. One of the pieces of feedback that is regularly discussed as part of our assessor refresher and training days is just how few businesses are prepared or daring enough to decide on a niche and make it the be all and end all of their business strategy. Psychologically it is tough to make a decision that will potentially limit the appeal of your business to one core demographic, yet hospitality is one of the few industries where we don’t see automatic specialisation according to core skillsets or interests. If you think about it, although there are huge, multi-product and multi-service businesses in every sector, they are usually the ones with the huge marketing budgets to pursue an endless stream of new custom, and who rely on convenience and general experience to maximise their sales. I appreciate this is a huge generalisation, but you understand my sentiment here I am sure. Within those same industries, there are then also those businesses who focus instead on their passions, their specialist skillsets, their niche, and who thrive because they become respected experts, ‘master craftsmen’, or gurus in their field. It is these who can charge higher prices, create intrinsic customer loyalty and capitalise on the most powerful forms of word of mouth marketing that keeps their business thriving. The same can be said of the hospitality industry. All too often, hospitality business strategies allude to a ‘unique selling point’ (USP), but in reality focus on how to target the same customers as their immediate competitors; those visiting the area, locals making use of restaurants, hotels and other leisure businesses. Businesses like to use their USPs to capture this core target market, but intrinsically, this approach leaves your business competing with many others in the area, rather than making your own business the destination of these potential customers. So, could next year be the year you find your niche and start to specialise? I know this can sound incredibly daunting, but having a niche and using it as your USP, then widely and unrelentingly communicating that USP can be really effective at driving 100% occupancy, and increasing your revenue per available room (RevPAR). Creating and establishing your niche is probably easier than you think: Start by looking at your business; what benefits can you give to the customer. Are you family-friendly, can you accommodate dogs, are you based on a National Walking Trail or in a bustling city centre, do you have parking? Once you have a list of benefits, look inward. What are your passions, drivers, expertise and personal loves? Hospitality is obviously a very personal and personable industry and if you have a passion that you can share with your guests, so much the better. Establish how you can combine these two aspects to support a particular customer niche. For example, if you are a passionate foodie, do you have the best chef in the area and can you make your hotel a foodie destination. If you are a keen walker, how can you attract walkers and share your passion for you area with their passion for walking. Our assessors have seen an incredible array of niches, from a hotel that offered ‘wilderness survival’ packages, to one that was for naturists, or at a simpler level a gorgeous B&B that only accepts adults, to one that specialises in supporting guests with autism and their carers. Once you have established what your niche will be, you need to do three things: Prepare the business to maximise your support of this demographic; what special needs can you meet. Identify how and where to target your potential customers; can you partner with key brands, can you target relevant magazines, can you get a specialist listing. Plan and execute an effective customer journey, not only to maximise the RevPAR of each guest, but also to encourage them to refer people on. Then, once you have identified your niche and put the plans in motion, focus on absolutely maximising the results of your specialisation and potentially reaping the rewards. Our assessors regularly highlight that the businesses which have managed to successfully specialise are the most popular and profitable businesses they assess, who also have the best customer loyalty. In the spotlight: Saltcote Place, Rye Saltcote Place is a boutique B&B that focusses on the all-round guest experience, and has proprietors who quite simply love what they do. Offered as an exclusive use venue for parties or weddings, or as a traditional B&B, the only time you will see children is if they are invited to the nuptials, otherwise the B&B offers an adult-only stay. Their breakfasts include champagne and their evenings include a complimentary nightcap. What more could a guest ask for? At Saltcote Place, our assessors consistently grade the property at 95%, an exceptional five-star grading, with four out of the eight grading sections scoring 100% - cleanliness, hospitality and friendliness, service and efficiency and food quality. They are also holders of our coveted Gold Award and Breakfast Award. Exceptionally, Saltcote Place is first in England and third in the World for B&B on TripAdvisor, which is testament to the experience that their guests have. In the words of our assessor: “high standards are maintained throughout, as is evidenced by the many very positive guest reviews, and there is little to recommend. Highlights include immaculate housekeeping, high-quality breakfast provision which is much remarked on by guests, and a high level of comfort for guests.” He continues: “Saltcote Place has established a niche as a very grown-up, peaceful and comfortable place to stay, which appeals to those without children, or who want to take advantage of a child-free weekend as a couple. Small touches like champagne at breakfast and a complimentary night-cap both help to create a relaxed atmosphere and a feeling of decadence that is well received.” Speaking about the B&B, co-proprietor Alan Midgely comments: “As a business, the best piece of advice we have ever been given is to take the lead in guest relations before the guest even arrives. Early, proactive engagement that sets the pace of the relationship will help ensure that they enjoy their stay a lot more.” He continues “If I was asked to give advice to other businesses, it would be to aim high, lead from the front and don’t copy failures. If you have or take a good idea, make sure you make it your own.” “For us, the value of being inspected comes in the form of wise counsel from someone who has seen far more than us. It helps us to ensure that we are always ready” Alan concludes. In the spotlight: Llamas Pyjamas, Brougham Llamas in the Lake District may not be your primary expectation for a B&B, but that’s the niche which has been established and exploited by Llamas Pyjamas in Brougham. Capitalising on exceptional views of the North Lakeland countryside, the building has a Peruvian, South American façade and internal décor. The proprietors have established a niche brand, which is used to support the themes and décor of the rooms, activities that guests can experience during their stay, local trekking routes and the onsite Llama Karma Kafe. Achieving a five-star grading, the Llamas Pyjamas consistently achieves superb standards of cleanliness and our assessor notes that huge credit is due to the owners for creating an excellent overall impression. Our assessor comments: “Each room is individually decorated and themed, with objects d’art further enhancing the theming. The accommodation is situated within an existing popular wildlife park and this niche supports continued meeting of the criteria for the Families Welcome Scheme.” The Llamas Pyjamas is aptly named and guests can care for the on-site Llamas, as well as having bird of prey experiences and seeing other animals. The animal theming extends to the bedrooms with an Aztec Room, an Incan Room, a Safari family suite and barn owl cottage. For guests who aren’t here for the niche experience, the quality of the B&B is exceptional and shouldn’t disappoint, but for those who want a zookeeper or wildlife ranger experience, or who adore animals and animal experiences, this establishment is something else. This feature first appeared in the February 2017 issue of Hotel Owner.