Mar
25
I noted with some disappointment yesterday that Google are testing a price comparison feature using a combination of their maps and adwords products you can read about their plans here.
My disappointment isn't with what Google are planning - they've got the technology and the market opportunity appears to be a strong one - my worry is that the hotel industry will do what it always does when threatened with downward pressure on price...
...and cave in.
So today, dear reader, we're going to take a quick look at how you can tackle the prospect of price comparison websites.
Here goes.
What makes your hotel unique? What is it about the way you do business that makes you different (preferably "better") from your competitors?
If you're struggling to think of answers to those questions, good luck with the price comparison websites.
If there are things you do which nobody else does, no matter how small they might be, then you might have something to work with.
Price, no matter what it is, does not confer uniqueness. There is nothing unique about price - every product has one. If you differentiate on the basis of a low price you will be left to defend the position nobody else really wants. The position where you are really busy making no money.
You want to make a comparison of price meaningless. You do this by talking about the aspects of your product or service that aren't price related: The things that matter to people when they make their buying decision.
On your website, you need to create an image for the reader of what it will feel like to be in your hotel. Talk about what the service does (not what you think it is), concentrate on what the customer will experience.
That way, when somebody says to you, "I found a room for £25 less on cheapnasty.com", you can say "ah yes, but this hotel offers a full porter service for all your heavy bags" - and so on.
Price comparisons can only be made when you know you're comparing like with like. Your mission is to make sure you have so much differentiating you from your competitors that it becomes impossible to be compared on a like-for-like basis.
This is harder than it sounds, of course it is. if it was easy, everybody would have done it by now. But with a little application, you can raise your sales propositions above "tea and coffee facilities" and "trouser presses" and talk about the things your customers really want to experience.
My disappointment isn't with what Google are planning - they've got the technology and the market opportunity appears to be a strong one - my worry is that the hotel industry will do what it always does when threatened with downward pressure on price...
...and cave in.
So today, dear reader, we're going to take a quick look at how you can tackle the prospect of price comparison websites.
Here goes.
What makes your hotel unique? What is it about the way you do business that makes you different (preferably "better") from your competitors?
If you're struggling to think of answers to those questions, good luck with the price comparison websites.
If there are things you do which nobody else does, no matter how small they might be, then you might have something to work with.
Price, no matter what it is, does not confer uniqueness. There is nothing unique about price - every product has one. If you differentiate on the basis of a low price you will be left to defend the position nobody else really wants. The position where you are really busy making no money.
You want to make a comparison of price meaningless. You do this by talking about the aspects of your product or service that aren't price related: The things that matter to people when they make their buying decision.
On your website, you need to create an image for the reader of what it will feel like to be in your hotel. Talk about what the service does (not what you think it is), concentrate on what the customer will experience.
That way, when somebody says to you, "I found a room for £25 less on cheapnasty.com", you can say "ah yes, but this hotel offers a full porter service for all your heavy bags" - and so on.
Price comparisons can only be made when you know you're comparing like with like. Your mission is to make sure you have so much differentiating you from your competitors that it becomes impossible to be compared on a like-for-like basis.
This is harder than it sounds, of course it is. if it was easy, everybody would have done it by now. But with a little application, you can raise your sales propositions above "tea and coffee facilities" and "trouser presses" and talk about the things your customers really want to experience.
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