Jordan Ellis
The global travel and tourism industry is worth $5.3 trillion, with the hotel industry making up a significant chunk of that at $550 billion. Hotels rely on vendors to provide them with services, goods, and materials needed for their daily operations, so becoming a vendor or supplier can be a great way to get your business or product into the hospitality industry. However, it can be a long process that requires building solid relationships and trust with clients. Understanding the industry, its trends, and its key players is crucial, as is knowing the pain points of your target hotels and tailoring your pitch to address their unique challenges. For example, hotels are increasingly competing by offering improved food and beverage experiences, so vendors in this space could be in high demand. Likewise, hotels are increasingly adopting digital solutions, so vendors that can help them bridge the digital divide may have a competitive advantage.
| Characteristics | Values |
|---|---|
| Industry structure | $5.3 trillion global travel and tourism industry, with $550 billion for hotels globally and $218 billion in the US |
| Trends | Digital transformation, sustainability, AI integration, cloud-based solutions, improved food and beverage experiences |
| Key players | Major hotel chains, hotel vendors and suppliers, hotel management companies, directors of food and beverages |
| Trade shows | Boutique Design New York, Boutique Design West, Shanghai International Hospitality Design & Supplies Expo |
| Trade media | LinkedIn, social media, industry blogs, events, LinkedIn Sales Navigator, Google Reviews, Yelp, TripAdvisor |
| Relationship building | People in hospitality want to do business with people they know and trust; building solid relationships is key |
| Providing solutions | Buyers are looking for solutions, not just products or services; understand their needs and help them improve efficiency and customer satisfaction |
| Understanding the business | Know the type of hotel, target guest, tech stack, and pain points to tailor your pitch |
| Personalization | Guests want to feel valued; selling in hospitality is about attention and personalization |
| Brand reputation | Positive reviews and a solid online presence can enhance brand reputation and sale price |
| Location | Prime locations near tourist destinations, high-traffic roads, or popular event venues contribute to higher revenue potential |
| Cost management | Demonstrate clever cost control to enhance your company's perceived value and alleviate buyer apprehensions |
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What You'll Learn
Understand the industry and its stakeholders
The hospitality industry is a large and complex sector, with a few major hotel chains dominating the market. It is a people-driven industry, with a focus on personalised service and guest experiences. It is also an industry that is rapidly undergoing a digital transformation, driven by cloud computing, mobile technology, AI, and data. As such, it is important to understand the balance between traditional, face-to-face interactions and the potential benefits of digital solutions.
The industry includes food and beverage, leisure, and is part of the larger travel and tourism sector. It is worth noting that the global travel and tourism industry is valued at $5.3 trillion, with the global hotel industry valued at $550 billion, and the US hotel industry at $218 billion. This is an industry that has seen tremendous growth since the 2008 recession.
Hotels rely on vendors and suppliers for their daily operations, and this is an effective way to enter the market. However, it is important to build solid relationships and trust with key stakeholders and decision-makers. Understanding their pain points and challenges, such as labour shortages, rising costs, and supply chain issues, is crucial. Vendors should position themselves as offering solutions to these problems, rather than just selling a product or service.
It is also important to understand the structure of the industry, including key players, trade shows, and trade media. Social media and LinkedIn can be useful tools to gain insight into the industry and connect with stakeholders. Additionally, understanding the unique challenges of different types of properties, from large hotel groups to compact roadside motels, is essential for tailoring your pitch and demonstrating the value of your product or service.
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Focus on building relationships and trust
Building strong relationships and trust is crucial when selling to the hospitality industry. The hospitality industry is a small world, and with only a few major hotel chains at the top, it's important to focus on cultivating relationships over time. Being honest and genuine with your customers can set you apart from competitors.
To build trust, it's important to understand the unique needs of your clients and offer tailored solutions. Hotels are in the business of providing experiences, and vendors should demonstrate how their products or services can enhance these experiences. Whether it's through improved food and beverage offerings, interior design, or technology systems, vendors should showcase how they can help hotels reach their goals and improve the quality of the guest experience.
Communication is key to building strong relationships. It is important to clearly communicate throughout the project and work collaboratively with clients to develop value statements that align with their business goals. By evaluating progress against these agreed-upon statements, vendors can show their commitment to their clients' success. Being open and honest about your professional opinions and viewpoints can help build trust, even if it means disagreeing with the client. Vendors should aim to become trusted advisors, providing valuable insights and expertise that help hotels make better decisions.
Additionally, building a network of relationships within the industry can be beneficial. Platforms like LinkedIn provide opportunities to connect with potential clients, industry professionals, and stakeholders. By actively engaging on such platforms, vendors can enhance their visibility and establish themselves as thought leaders. Celebrating achievements and milestones with partners can also strengthen trust and rapport.
Finally, it's important to remember that the hospitality industry is all about people. While the relationship with clients is professional, acknowledging them as individuals can go a long way. This can include asking about their personal lives, sharing relevant articles, or simply showing appreciation. By building genuine connections, vendors can create lasting partnerships that benefit both parties.
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Offer solutions to pain points
The hospitality industry is an incredibly competitive market, with hotels vying to offer the best experience to their guests. This includes the quality of food and beverage, interior design, furnishings, lighting, and décor. Hotels are also under pressure to stay current with the latest styling, décor, lighting, and finishes to maintain their brand and room rates.
Hotels are in the business of selling experiences, and this is where vendors can step in and offer solutions to pain points. Vendors can provide services and goods that enhance a guest's experience, from improved food and beverage offerings to the latest in-room technology. With the industry's rapid digital transformation, vendors can also help hotels bridge the digital divide by offering cloud-based solutions. For example, an AI-powered concierge can provide personalized recommendations and make reservations.
Additionally, hotels are under pressure to reduce their environmental impact, so vendors can provide solutions to help them become more sustainable. This could include software that helps track energy consumption and waste, as well as source sustainable products.
When it comes to the hospitality industry, it's important to build solid relationships and focus on offering solutions rather than just products. Buyers want to know how your product or service can help them improve the quality of their guests' experiences and reach their business goals. For instance, if a hotel is facing labour shortages, vendors can provide solutions to streamline hiring and reduce turnover. Understanding the unique challenges of the property and the industry as a whole is key to becoming a trusted vendor.
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Embrace digital transformation
The hospitality industry has been slow to adopt revolutionary changes, but the COVID-19 pandemic accelerated the need for digital transformation. The industry is now spoiled for choice when it comes to digital platforms, with many hotels investing in cloud technologies to improve operational efficiency, enable employees, and better work with B2B partners.
Digital transformation in the hospitality industry involves adopting advanced digital tools and technologies to elevate the guest experience, optimize operational processes, and foster innovation. It is about rethinking how services are delivered and creating a seamless, personalized experience for guests.
Hotels can automate mundane processes and use data analytics for thoughtful decision-making, such as anticipating guest needs. This includes everything from room booking to staff scheduling, billing, and customer relationship management. For example, guests can now control lighting, temperature, and entertainment via an app, and mobile check-ins and smart room controls improve the overall stay experience.
Digital transformation can also help hotels streamline operations, improve communication, and gain valuable insights. It is important to note that digital transformation in hospitality is not just about integrating technology but also about carefully deploying the right tools to enhance every touchpoint of a guest's journey. This includes the initial booking process through mobile apps or online platforms, self-check-in kiosks, digital menus, contactless payments, and guest management platforms.
By embracing digital transformation, hotels can improve the overall guest experience, increase operational efficiency, and drive revenue growth.
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Provide a personalised service
The hospitality industry is built on face-to-face interactions and personalised service. Guests want to feel valued, and this desire translates to B2B sales as well. When selling to the hospitality industry, it is important to show your clients that you understand their business. This means going beyond simply knowing that they are a hotel. You should research the type of hotel, their target guests, their tech stack, and their pain points. The more you know about your client, the better you can tailor your pitch.
For example, consider the differences between a large hotel chain and a compact roadside motel. Understanding the general pain points of both can help you get your foot in the door. However, it is then up to you to listen to and address the property's unique set of challenges. Ask yourself how your product or service can help the hotel lower costs, increase revenue per room, or streamline an upcoming renovation. For instance, if you are selling a food or beverage product, you might want to reach out to the director of food and beverages. If your product is eco-friendly, you could explain how it can help the hotel reduce its environmental impact.
To provide a personalised service, it is important to stay informed about the industry. Join LinkedIn groups, follow industry blogs, and attend events to stay ahead of the curve. You can also use LinkedIn Sales Navigator to learn about decision-makers, track company updates, and identify opportunities. When pitching, avoid using jargon and instead demonstrate your knowledge of industry terms like RevPAR, ADR, occupancy rate, and GOPPAR. Show that you understand the challenges faced by the industry, such as labour shortages, rising costs, online ratings, and guest expectations.
Finally, remember that the hospitality industry is small, and relationships are key. Be honest and genuine with your customers, and focus on building solid relationships by offering solutions. Buyers are looking for solutions rather than products or services. They want to know how your product or service can help them reach their goals and improve the quality of the customer experience. By showing that you understand their needs, you can help them find ways to make the most of their budget while improving efficiency and customer satisfaction.
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Frequently asked questions
It's all about relationships and trust. Understand the industry, its trends, key players, trade shows, and trade media. Know your customer and their pain points.
Be honest and genuine. Offer solutions, not just products. Show that you understand their needs and can help them improve efficiency and customer satisfaction.
Hotels are in the business of creating experiences, so focus on how your product or service can enhance their guests' experience. For example, highlight how your offering can help them stay current with the latest styling, décor, lighting, and finishes.
High operational costs, including labour, housekeeping, front-desk services, food and beverage supplies, and facility maintenance. Demonstrating cost control can enhance your company's value.
Hotels want to create seamless, personalised guest experiences, driven by digital solutions like cloud computing, mobile technology, AI, and data. Sustainability is also a must-have, with travellers seeking eco-friendly options.
