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Friday, October 10, 2014

Mistakes in a business strategy

You are bound to make mistakes in your tourism business strategy. No one is perfect, and we are going to help you figure out what mistakes you are making and how to stop them.

1. Using post stay reviews and checkout surveys

Those things are not current anymore. They are a thing of the past and should be avoided. Make sure you collect feedback from your guests before they check out, because you can react much more quickly.

2. Focusing too much on frequent guest problems

This can be a bit counter-intuitive, but it is true. The most frequent guest problems, as you can tell, are the ones that occur most often but usually have the smallest impact on your business. Fixing the smallest mistakes can cost you huge amounts of money, while fixing the less frequent, but big ones can save you money, and help you manage it's impact on your business much better. Don't you think it's better to fix a problem that might occur but would tear your business down, than to focus on something so small that is barely visible, but happens a bit more often? Think about that.

3. Focusing too much on the four P's

Corporate strategic management
Strategy steps that are proven to work reduce risk
Although it can be good to dedicate some focus to them, they aren't exclusively the best strategy for you and your business. For example, having the lowest price can be good, but it is not always the best strategy. You see the logic here. Focus on them for a little bit, but leave room to consider other strategies that can be much better for your business. Be flexible, without it you can't go far.

4. Leaving all the major decisions to the HQ

A lot of people believe this approach is the best. But leaving all the decisions to the HQ has a lot of downsides. The biggest is cutting the lower employees from the experience they would gain if they were involved in the decision making process. Involving the staff increases worker experience and their ability to react quickly and properly, which helps your business thrive.

5. Focusing too much on the NPS score

You may be wondering what the NPS score is? It's short for Net Promoter Score. It's a new trend around the world that has been spreading like wildfire in tourism businesses. It is calculated with a simple equation and it is there to determine customer loyalty to your company. How is it calculated? By asking the simple question, “Would you recommend us to a friend or colleague?” You probably see the fault here.

Although it can be good to use this NPS, focusing just on it can be a disaster for your business. As we said before, be flexible. Asking your customers one question can't be good for your business. Ask them “Would you recommend us to a friend or colleague?”. But also ask them what they like about your company, what they don't like, what would they change about it. More questions, more information, more knowledge, more success.

About the author: Milan Budimkic is a creative freelance writer for industries that include but are not limited to the travel, sport, entertainment, internet marketing, and much more. When not blogging, Milan likes to travel and read a lot.

Images: 1. Sebastiaan ter Berg "Bootcamp Business Model Canvas the Game", CC BY 2.0; 2. Author owned and licensed