Ms. Fields

Sales & Marketing

Room Configuration - Are Your Rooms Configured for the Best and Highest Use?

By Brenda Fields, Founder, Fields & Company

"Build it and they will come" may work in The Field of Dreams, but in the hotel industry, the more accurate sentiment may be "Build it RIGHT and they will come". To realize the highest room sales potential, it is important for owners and managers to make sure that each room is configured to its highest and best use. Many times, with very little expense, room revenues are significantly impacted through occupancy and/or average rate increases, by making minor adjustments. This is especially true in the case of small, boutique hotels, where each room sold has a significant financial impact.

By understanding and implementing a few basic principals, owners and managers can potentially avoid costly miscalculations in revenues and expenses by building it correctly or by reconfiguring an existing property. Some basic principals are:

Know your targeted market(s), i.e. who they are and what they expect

Sometimes, by trying to be all things to all people, the room product becomes diluted, and does not satisfy the need of the core market, resulting in an underperforming hotel. For example, upon new ownership of a high-end, all-suite hotel in West Hollywood, California, it was observed that the large suites had twin beds and the small suites had king beds. The core market was entertainment groups, typically comprised of a lead singer and his/her band. The original room configuration was based on accommodating several guests in the larger suites, which is why there were more beds. But, the core business required the larger suite for the lead performer who expected a king bed. The price sensitive groups would double up to save money. By switching the king beds with the twin beds, and charging accordingly, the hotel was able to capture its core business, impacting occupancy and average rates.

Another example of ineffective planning is that of an urban hotel in a prime corporate transient business location, with enough roomnight potential to fill the hotel three to four days per week. During renovation upon new ownership, all of the guest rooms were changed to connecting rooms, with the idea that this would appeal to families. Additionally, microwave ovens placed in each room for families, but high speed internet access was only available through the business center. As a result, families did not stay the hotel because the rates were above their budgets. The individual business traveler would not stay in the connecting rooms because of noise and lack of privacy, as well as the lack of in-room business amenities. By not recognizing the core market, and by not understanding the needs of that market, the hotel failed to attract the high rated business on which all their proformas were based, despite their location advantage and other strong competitive advantages. The wrong room product was created ad there was ample supply among the competition to meet the needs of the two markets.

Quantify the mix of business

To make sure that you have the right mix of room types (suites, king-bedded rooms, double/doubles, etc.), it is important to understand the desired mix of business. In an urban market, the mix of business could be 80% corporate and 20% leisure. A detailed analysis would address the ideal room configuration which would provide the correct breakdown of kings, twins, double/doubles/and suites. A hotel located on a highly trafficked interstate may cater to 50% corporate and 50% leisure markets. Therefore, in that case, it is important to be all things to all people, and the entire inventory of double/doubles could conceivably work. Therefore, it is important to quantify the desired mix of business and configure the rooms accordingly.

Know your competition and stay current with trends and new standards

After identifying your markets, understand what the competition is providing and what the competition is not providing. Remember the days when a king bedded room was one of the high-rated premium rooms? Now, it is a standard and rarely commands a higher rate just based on the bed-type. Twin bedded rooms have virtually been replaced by double/doubles in most mid-market hotels. Twin beds may be less expensive in linen costs, laundry, and labor, but if they have become obsolete, and the market does not want them, revenues are jeopardized.

Competition drives change and "standards" can change. Staying current and staying competitive will place the hotel in a stronger position to drive business.

As market conditions change, often times resulting in a change of market mix, a few simple tools and a thoughtful analysis will help ensure that owners and managers are continuously reaching the highest room sales potential.

Brenda Fields is a strategist and sales and marketing expert honed from a successful track record in the hospitality industry. Brenda is a member of the prestigious ISHC, recently served on the Americas Board of Directors for HSMAI, and is Immediate Past President of the Hospitality Sales & Marketing Association International. Brenda was honored as one of "The Top 25 Most Extraordinary Minds in Sales and Marketing" by HSMAI as well as the "Leadership Development" award. She is an industry leader and spokesperson; a member of the Editorial Board of HotelExecutive.com; contributes regularly to international publications Hotel News Now; Hotels Online, Hotel Resource Weekly Network News, eHoteliers, and many others. For more information visit www.fieldsandcompany.net Ms. Fields can be contacted at 518-789-0117 or brenda@fieldsandcompany.net Extended Bio...

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