SWOT Analysis

What is SWOT?  SWOT stands from Strengths, Weaknesses, Opportunities, Threats.

In the hotel industry particularly in Sales and Marketing department, SWOT analysis becomes one of the regular topics during daily discussion, weekly meeting as well as monthly meeting.

SWOT analysis is a method to assess strength, weakness, opportunity and threat of a particular company. 

In this writing, I will elaborate several factors related to SWOT analysis which include the importance of SWOT analysis, when SWOT analysis will be implemented, and what important points to consider when developing SWOT analysis.

It is important for hotel sales persons to have clear understanding on SWOT of the hotel and the competitors to support the strategy and action being created and implemented.

Why SWOT analysis is important? Several points below are to determine the importance of SWOT analysis,

• To identify the Unique Selling Points (USPs) of the hotel
• To understand the strength and identify ways on how to maximize the strength points of the hotel to generate opportunity and revenue
• To understand the weaknesses of the hotel and find ways on how to improve the weaknesses points or turn them into strength
• To focus on strength and opportunities rather than weaknesses and threat
• To determine several opportunities with the aim to achieve the targeted result
• To minimize the threat by understanding the hotel and market situation
• To recognize SWOT of the competitors and how to use those factors to become opportunities for the hotel
• To acknowledge the hotel positioning versus competitors

Besides becoming the hot topic discussion by sales and marketing team, SWOT analysis will be mostly discussed during several occasions, such as, during yearly budgeting process, during the process of pre-opening set up of hotel as well as renovation or refurbishment of hotel and also is important to be part of quarterly and bi-yearly sales and marketing strategy review.

SWOT analysis will be a significant aspect of the development of hotel marketing plan as well as during the review of competitors set being chosen and decided.  When there are new hotels soon to open within proximity, then SWOT analysis of the particular hotels will also need to be developed to adjust the right strategies and actions applied.

How do we create a thorough SWOT analysis? Let’s go into each point in more details.

1. Strengths

When determining the strength points of the hotel, it will usually refer to the product, facilities and services offered and provided.  Do review and analyze if the product, facilities and services will be resulted as opportunity.

For example, if the hotel has a spacious and nice lobby, will this become a nice decoration and display only or will this drive people to come to the hotel, of course, to take some pictures while dining at the restaurant or staying at the hotel.

Another example is the hotel location.  The hotel location can become strength or weakness points depending on how you will perceive the factor. Says, the hotel is located in the residential area where access might be a challenge.  This location could become a strength point if sales team is able to find a unique and specific market to target.

2. Opportunities

If we look into determining opportunity, then do review if the opportunity will generate result, such as, room revenue, meeting and event revenue, as a decision factor for group business, guest’s interest to visit the hotel, increasing number of followers in social media platform, and other potential result.

Do not mix up between strength and opportunity which mostly happen during discussion.

3. Weaknesses

Weakness points will also usually refer to the product, facilities and services offered by the hotel.  You can also do an analysis whether the weakness points can be improved and changed to become strength point.

For example, swimming pool as one of the hotel facilities is considered small which become less attractive to guest.  Obviously, it may not be possible for the hotel to enlarge the size of swimming pool due to space restriction and another factor.  The question is whether you can look into organizing an interesting event or Food and Beverage activities surrounding the swimming pool area to enhance the environment and create tempting atmosphere. If so, then you can turn the weakness point into strength point.

4. Threats

Threat points will refer to factors that are difficult to improve which lead to losing the market.  For example, if the hotel has limited numbers of twin-bedded room while several potential businesses is derived from group with twin-bedded request, then this factor will become a weakness point since there is potential loss revenue generated.

SWOT analysis is an interesting topic to debate because the topic will continue to evolve adapting to the changing of the dynamic market situation.

Have a creative day.