Deciding on its positioning, its identity or simply reviewing the image of its property, we must all go through the market study and be attentive to what is happening.
Here are already some recommendations on the content of a #market study to get the most out of it.
What is the ideal plan? The result of a market study will reveal the following conclusions according to the information collected and analyzed :
Summary of the market study // Hotel, restaurant or any other project.
#Environment //
What is the implantation site? Its accessibility? What is the #economic environment? touristic ? political or other ?
#Market //
What is the offer? What is the demand so far? Summary of interviews with prescribers in the area studied as well as any potential future customers.
#Reviews & Recommendations //
Is the project feasible? Is the project in line with the company’s vision and its objective? Are there any adaptations to be made to get started while limiting the risks ?
#Forecast activity // ideally 3 to 5 years maximum
What is the expected occupancy rate (#OR) for a hotel? Detail by customer segment? What is the volume of customers expected? What is the average expected expenditure? Insight by customer segment? Average room rate for a hotel (#RR)? Average revenue per cover for a restaurant (#RPC)? Average revenue per guest (#RPG) for a spa? What is the expected gross operating profit (#GOP) ?
Detail of the market research plan // Hotel, restaurant or any other project.
- Definition of the study area.
- Project environment. The property location – Accessibility – Past and present demographic data – The economic environment including employment, companies present by sector and development projects – The tourist environment with present and future structures, festivals or events that shape the tourist season –
- Analysis of the hotel market in the study area. The hotel and para-hotel offer by presenting the products, capacity, prices and any project in development – Hotel demand – Qualitative presentation of comparable establishments –
- Qualitative interviews. Interviews with companies, competing establishments but also travel agencies or receptive structures in the geographical area concerned – Collect information on potential flows –
- Project. Opinion on the feasibility of the project – Product recommendation – Recommended categorical positioning – Size and volume as well as price-product positioning – Additional services to highlight according to their potential –
- Forecast results. Forecast occupancy rate, expected customer volume – Customer mix – Expected seasonality – Reductions, average prices or average expenses and length of stay – Additional activities – Forecast turnover – Forecast operating accounts –
For any market study, an up-to-date market study is important but it is also crucial to collect all the information on planned future #developments, new structuring projects or even on the targeted activities in order to also have a clear picture of the #future opportunities or threats.
On new establishment projects where supply and demand are not developed (new destinations under development for example or the creation of a new destination), I advise carrying out this market study on destinations or geographical areas that could be comparable, competitive or similar in the target markets.