In any industry, it’s important to understand what influences customer spending habits. In the lodging business, most hotels are adapting to the preferences of Millennials, who are the biggest spenders in the market. Where digital convenience ranks high on what travellers want from the hotel experience, is it really something that all lodging services can offer?
Keeping up with hotels
Some customers disregard motels because it is a cheap and does not promise of grandeur or comfortability. But the motel boom in the 1960s illustrated how the motel evolved from a simple and urban accommodation to becoming classy and sophisticated to adapt to the growing needs of tourists.
Hotels are usually located near tourist attractions where they entice more customers, especially those planning an elaborate stay. Motels are often near highways and access points, far from business centres and commercial establishments. The challenge for investors is to find a motel in a good location that customers would enjoy just as much as a hotel.
Keeping an eye on your surroundings
Inspecting a motel’s environment is crucial because it says a lot about a location’s appeal. Looking for a motel to invest on is like buying a home. It’s important that you’re happy and comfortable with what you plan to purchase. In Victoria, there are a number of motels for lease that offer a balance between quality and price, which most investors would find acceptable.
A motel’s overall construction and operating costs are lower than a full-service hotel, making it an attractive business prospect for investors. The only big difference that sets it apart from a hotel is the quality of the facility. It is always important to set a priority on improvements. Spending money on refurbishments will increase patronage and make the motel a better place to stay.
Millennials may be changing the lodging business by popularising hospitality technology, but this does not necessarily mean that it’s always the best option for customers. Sometimes it is up to an investor to change customer perspectives and make people realise how staying in a motel can be a better local experience by creating a comfortable environment and well-maintained facilities.