March 28, 2023
Lauren Platero

Hotel Franchise | 7 Best Ways to Innovate a Franchise Hotel

Opening a hotel franchise is a very profitable business venture. There are many lucrative business models within the hospitality industry. However, granting a franchisee access to an established brand is a successful way to launch a new hotel. 

In recent years, hospitality software companies have been enabling hotel franchise owners with the tools to excel. From smart in-room features to restaurant tech, there are many ways that a hotel franchise can surpass rivals in the market.

If you'd like to learn how to innovate your hotel franchise, look no further. But before we go over several ways to innovate a franchise hotel, we’ll begin by answering, "what is a hotel franchise?"

 Now, without further ado, let's get started. 

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What Is a Hotel Franchise?

A hotel franchise is a business model in which a hotel owner partners with a franchisor. Then, the franchisee is able to use the brand name, its systems, and marketing tactics. In fact, franchisees are given a manual to achieve optimal success. For these services, the franchisee pays a fee. 

7 Ways to Innovate a Franchise Hotel 

There are many ways to innovate a franchise hotel and surpass rivals. By using the right strategies, hotel franchises can boost the customer experience and maximize profits

Whether you're learning how to manage a hotel or would like to improve your current franchise, we've got you covered! Read on for the details.

1. Adopt Hotel Technology 

Innovative solutions can create product differentiation for any hotel franchise. With the right tools, hotels can provide the best experience possible. Plus, they can streamline tasks for the staff, too. 

When you automate standard processes for guests, each employee's job becomes a lot easier. In doing so, you can boost efficiency and lessen work overload. It's also just as valuable to guests. 

Some of the most groundbreaking hotel technology solutions include:

2. Offer In Room Dining

Think of in-room dining as a more luxurious version of room service. Guests are able to order food and drinks via online ordering apps, in-room tablets, QR codes, or by phone. 

Allowing delivery to hotel rooms with the help of tech solutions makes it very convenient for guests. It also helps to incorporate ADA compliance standards. Over time, it’ll increase the total number of orders. 

If you use in-room tablets for this service, use their features to promote other amenities. For instance, find ways to display information about other features, like promotions and restaurants. 

The in-room tablets are also where you can offer the use of chatbots. In doing so, you can offer 24/7 support to boost customer service

3. Use Hotel POS Systems

Hotel POS systems are vital for accepting transactions and reservations. Utilize a platform with integrations designed for a hotel franchise. This will ensure the best experience. 

For instance, cloud-based technology will come in handy to sync data across multiple units. This way, executive leadership can view the whole brand at a glance. 

Advanced POS software can also allow contactless payments. For example, many consumers prefer mobile POS features. Mobile wallets are simple, convenient, and secure. Plus, contact-free options speed up wait times. 

4. Express the Importance of Sustainability 

Staying conscious of the environment is a major value proposition for restaurant and hotel customers alike. Even in the restaurant industry, many consumers prefer eco-friendly restaurants to others. So, keep this in mind at all times. 

By implementing sustainable tactics, you'll be catering to a niche market and helping the environment at the same time. In the long run, this will improve the brand's reputation and cash flow.  

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5. Provide Stellar Customer Service 

 Great customer service is a necessity if you want to improve guest retention. It will ensure that guests have a positive experience and are happy with their stay. In fact, customer satisfaction is the foundation for all customer retention strategies

It's also important to remember that every geographic area has a vast array of hotels. If customers are unhappy with their visit, they have a ton of others to stay with next time. 

Stellar customer service can also lead to positive customer reviews. Over time, online reviews can nurture an impressive reputation and attract new guests. After all, these are the goals of any enterprise hotel

6. Create a Customer Rewards Program

An enticing rewards program will persuade people to choose your hotel over others. Once guests sign-up, offer great perks upon coming back. Popular rewards amongst hotel franchises are free upgrades, discounts on rooms, and exclusive access to amenities. 

Ensure that the hotel has the financial health to offer such rewards. The idea is that you're generating so much revenue that guests end up earning rewards. However, you don't want to be so lenient that you're giving way too much too quickly. Over time, this can lead to drops in profits. 

7. Use a Premium Pricing Strategy

Premium pricing is a marketing technique that uses psychology to allure guests. Consumer data shows that people are more inclined to spend a little extra money on something if they believe the quality is better. 

And what would dictate that something is of better quality than something else? The price! Many hotel franchise brands price their rooms slightly higher than competing chains. In doing so, consumers are more likely to spend the money to stay there. 

Frequently Asked Questions About a Hotel Franchise 

Learning how to innovate a hotel franchise takes much time, effort, and money. However, once you onboard the proper tools, systems, and Investments, efficiency, productivity, and cash flow should increase in no time.

Want to learn more about the basics of a franchise hotel? If so, we've got you covered. Read on to learn all about it.

What Are the Costs Associated With Owning a Hotel Franchise?

Owning a hotel franchise comes with numerous costs. However, they can vary depending on the franchisor and the brand. Generally speaking, such costs usually include the following: 

  • Initial franchise fee
  • Ongoing royalties 
  • Training costs 
  • Advertising costs 
  • Support services

Can I Own Multiple Hotel Franchises? 

Yes, many hotel franchisees own multiple units. Some even own multiple units across multiple hotel brands. Just check with the franchisor what the criteria are to own more than one unit. 

What Support Services Are Typically Provided to Hotel Franchisees?

Hotel franchisees can receive various services from the franchisor. To name a few, they typically include:

  • Marketing resources 
  • Training programs 
  • Operational support 
  • Access to system upgrades

How Do I Choose the Right Hotel Franchise for My Business?

Research various factors, such as the franchisor's reputation, requirements, and the franchisee policies. Before choosing the right hotel franchise, you want to ensure that there is potential. 

What Are the Advantages of Owning a Hotel Franchise?

Owning a hotel franchise can offer numerous advantages, many of which include:

  • An established brand name
  • A proven business model
  • A brand manual and guide
  • Marketing and advertising services
  • Staff training support
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Key Takeaways 

The tech ecosystem consists of endless solutions for growth and advancement. As each hotel franchise searches for ways to rise within the market, it's inevitable that they'll onboard advanced solutions to do so. With this in mind, consider these tips to improve the future of your hotel franchise.