Avoid the Commodity trap
Somewhere is a math formula showing how commodities have to be sold in huge volume — or are un-profitable.
Think soy, corn, sugar, and wheat.
We don’t have relationships with commodities — we just have “what’s the cheapest price”.
I’m afraid that hotels have been moving in this direction — and it’s time to course correct.
The opposite of commodity sales is relationship sales and people pay more ( 22% more) versus non-relationship sales.
I’ve interviewed a bunch of travelers — both business and personal.
Universally they want hotel relationships and complained at the lack — from hotels.
A couple of the executives commented how much better the hotels maintained relationships in the past — and that they would pay more to get those relationships back.
Strangely, when I talk with hotels they all have a blind spot here.
I fully get that with the rise of online options the world has changed — and that’s really no excuse.
Posting on social isn’t relationship building.
Engaging with your audience in social media — that’s relationship building.
Relationship selling means more money — what else could a hotel want?