How to grow your accommodation business

by Genius Homes

Tourism is New Zealand's largest export industry in terms of foreign exchange earnings. In 2016 alone the total amount generated from tourism revenue was $12.9 billion but even though international tourists are flooding to New Zealand domestic tourism is also a strong market.

The average stay for an international tourist is 3 nights, whereas a domestic tourist, on average, stays 7 nights.

According to the Ministry of Business Innovation & Employment's Key Tourism Statistics from July 27th 2017 the two biggest growth areas for nights stayed are Motels and Holiday Parks, both up 5% on last year.

Regional growth has also seen significant increase on last year. As expected Auckland has the lion's share of where tourists spend their money but in joint second place, on 8% each, are Christchurch and Queenstown.

Commercial accommodationThe big figure of interest to most tourism providers is who spends the most. It may surprise many that it's the domestic tourists that contribute the most.

What does this mean?

Well, if you own a holiday park or motel complex you're in one of the highest growth segments for nights stayed. If you are in Christchurch, Queenstown or a destination near those locations the question you have to ask is whether you're capitilising on the tourism growth.

If your marketing focuses on international tourists are you missing out on the growing domestic market? Is your accommodation looking its best on your website, or in leaflets, are people leaving positive reviews?

If you're reaching capacity every holiday season could you increase your earnings with more property investment? If some of your self-contained units are beginning to look tired, could they be putting people off returning?

prefab cabin unitsUltimately if your park/site is being compared against another local provider what does your facility have that they others don't? Would more modern, warmer, cleaner accommodation help you win that business?

Another thing to factor in is ease of maintenance. Is a chunk of your annual revenue going into keeping your accommodation looking fresh? Have you looked at whether alternatives can result in lower maintenance costs?

You are likely concerned with development work disrupting the operations of the site, it looking undesirable while building crews operate, or the disruption to guests at the time. A prefab accommodation unit or cabin can be made off-site and delivered with minimal disruption. Have a look at the commercially-focused accommodation range on our website or by downloading our latest product catalogue - the designs are great for both tourists and staff!

Download our 2021 product brochure

filed under Genius Homes , Property Investing

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