SEGA Superstar Hotel

At Sega market, there is a great potential for a regular hotel offering food because the other joints in the area mostly major with beverages. The other eatery is a Choma zone, which caters for a different market segment. Sega center is located on the main highway so customers  are not limited to the local jua kali artisans and business people but even those travelling across from Busia, Bumala, Ugunja, Ukwala and, as far as from the neighboring towns like Mumias, Bungoma, Kisumu. There are also market days on Thursdays when there is a surge of visitors from the surrounding areas so there is great potential for success. 

Project Details

My goal is to start a medium sized eatery that I will run with three other staff members. My base target customers are the Jua-Kali Artisan, heavy-duty lorry drivers,  the local CBOs and NGOs staff as well as  local businessmen and women who trade within Sega town because they can provide repeat business every day of the week by taking different meals such as breakfast and lunch. Secondary customers will be the travelers passing through the center and the visitors that patronize the area during market days.

The hotel will provide quality meals, which will be achieved through hiring trained and experienced staff members. We will focus on meeting or even exceeding customer expectations. Apart from food, we shall also offer additional services such as special order meals and free Wi-Fi for the convenience of customers. To maintain 90% occupancy and grow our customer base by 10% every year, we will use different approaches apart from offering quality services. We will establish constant presence of social media and especially Facebook and we’ll also have outdoor advertisements in form of posters.

(I).HOW I WILL GENERATE MY REVENUE.

Iam having 10 Strategies to generate my revenues-some of the strategies may happen right away and some are focused strategies for future growth of Sega Supper Star Hotel.

1. FOCUS ON CUSTOMER’S SATISFACTION.

98 % of our guests will spend more, if they feel like they get maximum value, if our guests are not happy with our services, it will hurt our hotel’s reputation. We are determined to keep up with a high stand of service. Also we need to respond to our guests in calm and in a friendly manner.

2. OFFER A BETTER PRICE THAN COMPETITORS.

Offer a better value for our guests, so we should make our price more flexible and make easy for our customers.

3. MAKE OUR EMPLOYEES HAPPIER.

It is very important to keep the hotel’s staff happy. The reason behind this is because we want to provide top-class services to our guests. By paying them fairly and recognizing their work it will help them stay motivated. When an employee goes above and beyond their duties, guests’ expectations will be fulfilled and exceeded; therefore improving the reputation of our Hotel.

4. MAKE THE GUESTS FEEL AT HOME

Offer warm welcome talks or messages before the arrival of our guests. This will create a strong guest-hotel bond. Our Hotel must fulfill all requests from the quests.

5. ASK THE CUSTOMERS IF THEY NEED AN UPGRADE

It will be our routine to ask our guests if they are interested in upgrading our meals. We will strive to do our increment by 30% on what the guests have been paying, and we trust most of the time they will agree to it.

6. SELL THE OTHER HOTEL PRODUCTS.

We will increase our Hotel’s revenue stream by making available for purchase branded our Hotel products like towels and shampoos. This we hope will make our guests to buy our products to take home as a gift or souvenir.

7. SELL TICKETS.

We will suggest and make special tickets offers to guests for upcoming events. This will be a great opportunity for us to up sell our Hotel’s additional services. For example the local Musician band show and events. As a result, the guests will enjoy the environment more while our Hotel earns more revenue-a win-win for both parties.

8. SOCIAL MEDIA MARKETING

Social media trend help Hotels connect more with old and new guests. We shall be promoting our Hotel’s activities on Facebook.

9. SEND PERSONAL EMAILS

To add a personal touch, we will maintain writing text messages or emails to our guests. This are great opportunity for our Hotel to increase our revenue using a returning customer method.

10. INVEST IN AUTOMATED UPSELLING SOFTWARE.

To understand customer needs, while increasing our Hotel revenue. We will need upsell software. It will be too much work if we will be searching our guests through data, this will take a lot of time. Therefore we will be able to fix using ready and automated upsell software where the system analyzes the guest’s data and sends special offers to them automatically. This will bring for us more revenue, while saving a lot of time.

(II).  OUR COSTS STRUCTURE

We are having six (6) strategies on our costs structure as indicated below:-

1. PRICING STRATEGY BASED ON FORECASTING

The single most important pricing strategy for our Hotel is to master the use of forecasting to set our prices based on anticipated demand. Essentially,  this mean that our Hotel meals rate being charges will depend on how high demand is. For instance, times of high demand may lead to higher meals rates in order to maximize revenue.

A robust fore casting strategy relies upon accurate records being kept, with historical data, it is important to make use of data that is already in the books, such as reservations as well as any wider market trends.

2. RATE PARITY STRATEGY

Rate parity strategies will involves maintaining our consistent rates for the same products, across all distribution channels. The key benefit to our Hotel will be to provide transparency to our guests, while it also often a pre-requisite of advertising.

3. PRICE PER SEGMENT.

One of the most commonly used pricing strategies for Hotel business is price per segment, and this is where we will offer the same products at different types of customers.

4. DISCOUNT CODES TO STIMULATE CUSTOMERS.

Although a price parity strategy prohibit some of the pricing incentives that can stimulate our guests one highly effective strategy involves the use of discount codes to encourage future direct customers.

So, when a guest visits our Hotel after ordering through a third party, we will offer them a discount for future ordering they will make with us. This will create a dual benefit of encouraging repeat business and encouraging them to make more orders in future and bring new guests.

5. OFFER A PACKAGE.

Another option we shall be using to maximize our revenues will be to create packages, allowing our guests to pay more than just a meal. Additional items services or products will feature in a package deal which shall include snacks.

6. EXCELLENT REVIEW MANAGEMENT

Finally, we shall implement a better review that will result in improved conversion rates. We believe most of guests are usually willing to spend more on meals in Hotels with positive reviews, because they can have greater confidence in their choices. Indeed, when two Hotels offer a similar product, the one with superior reviews will often be chosen by guests.

For this reason, to maximize our revenue, it will be important for us to have a comprehensive management strategy in place. This will likely mean striving to deliver an excellent guest experience, encouraging guests to leave reviews and responding swiftly and competently to reviews and feedback posted on social media. 

(III). OUR EXPECTED PROFIT MARGIN

We anticipate that our profit margin will be at 36%.