Sorry for the long respoonse
I am in the Hospitality Industry as well, have been for a couple years now, and it seems like maybe your business plan from the hotel side of things may be off. Already you have stated that you are going to have to lower your rates and give a kickback to the concierge at the hotel. In my honest opinion this could be problematic. One because you are already cannibalizing your business. If you came to me and asked me to recommend you because you had the lowest fares, to and from places, I would automatically think its because you have less product to offer.
Also I want to just be clear because you said the word concierge that i'm taking this as more upscale hotels in the area. Im not too familiar with the area you are speaking of but the word concierge tends to mean you are operating in an upper scale hotel.
In any case, to give you an example I work at a Crowne Plaza in the Phoenix Metropolitan area. This is slightly different than what you have planned but stick with me. Everyday there are plenty of people who need rides, especially to the airport and there are several options to get there.
1) Taxi-
Costs about $45 dollars but that could vary depending on traffic. could be $60.00 and you may want or have to share the cab with another person
2) SuperShuttle-
Very popular option for singles as this only costs 23 dollars per person plus tax. BIG downside is that you could be the first pcikup and have to ride around the phoenix area picking people up. Could get crowded.
3) Gold Rush (private sedan service)
We are fortunate enough to offer a private sedan service because we are linked through our ownership to the Sheraton Crescent 1 mile south of us. This is my favorite option because this is a $45.00 flat rate to the airport and you make no unnecessary stops.
There are a few other options but those ones are the most popular. Now you may ask what one I will ALWAYS go to first. Hands down I will work with gold rush for several reasons.
1. Flat rate
2. My guests feel better about themselves when I say private sedan
3. I have met the owner and hes a stand up guy
and one of the most important things
4. When I call to make a reservation or pick up, I get someone on the line that says hello.
This means more to me than anything. I DO get a kickback from some of the other options but less inclined to use them because I dont care about the 4 dollars I may or may not ever get from them. What I care about is that my guests are happy, welcomed, and most importantly, safe. Most of the front desk agents you encounter will be all about the kickback but if the service they are prepared to offer for a less rate and kickback makes the guest feel less secure and less happy you will hear about it one way or another. Could be in surveys, management going out to talk with you, or just loss of business and revenue.
This has been kind of long winded but I PROMISE you that if you start off but cutting your prices you will suffer. Match prices and serve people better. Free water to any guests that jumps in your trolley/bus, free maps of the area that are completely free to you from the Chamber of Commerce. Lots of different ideas you can come up with to get your fair amount of revenue and win business.
I do wish you luck in your endeavors as one day I would love to be a business owner but just be smart about it. I could write another 10 pages to you with ideas and plans but I think this gets the point across. Let me know.
Johnathon
Also-for the record- I never went to business school let alone any school at all. Ive got my GED and maybe 12 community college credits. Everything I know has come from experience and things I have learned over the years.
I am in the Hospitality Industry as well, have been for a couple years now, and it seems like maybe your business plan from the hotel side of things may be off. Already you have stated that you are going to have to lower your rates and give a kickback to the concierge at the hotel. In my honest opinion this could be problematic. One because you are already cannibalizing your business. If you came to me and asked me to recommend you because you had the lowest fares, to and from places, I would automatically think its because you have less product to offer.
Also I want to just be clear because you said the word concierge that i'm taking this as more upscale hotels in the area. Im not too familiar with the area you are speaking of but the word concierge tends to mean you are operating in an upper scale hotel.
In any case, to give you an example I work at a Crowne Plaza in the Phoenix Metropolitan area. This is slightly different than what you have planned but stick with me. Everyday there are plenty of people who need rides, especially to the airport and there are several options to get there.
1) Taxi-
Costs about $45 dollars but that could vary depending on traffic. could be $60.00 and you may want or have to share the cab with another person
2) SuperShuttle-
Very popular option for singles as this only costs 23 dollars per person plus tax. BIG downside is that you could be the first pcikup and have to ride around the phoenix area picking people up. Could get crowded.
3) Gold Rush (private sedan service)
We are fortunate enough to offer a private sedan service because we are linked through our ownership to the Sheraton Crescent 1 mile south of us. This is my favorite option because this is a $45.00 flat rate to the airport and you make no unnecessary stops.
There are a few other options but those ones are the most popular. Now you may ask what one I will ALWAYS go to first. Hands down I will work with gold rush for several reasons.
1. Flat rate
2. My guests feel better about themselves when I say private sedan
3. I have met the owner and hes a stand up guy
and one of the most important things
4. When I call to make a reservation or pick up, I get someone on the line that says hello.
This means more to me than anything. I DO get a kickback from some of the other options but less inclined to use them because I dont care about the 4 dollars I may or may not ever get from them. What I care about is that my guests are happy, welcomed, and most importantly, safe. Most of the front desk agents you encounter will be all about the kickback but if the service they are prepared to offer for a less rate and kickback makes the guest feel less secure and less happy you will hear about it one way or another. Could be in surveys, management going out to talk with you, or just loss of business and revenue.
This has been kind of long winded but I PROMISE you that if you start off but cutting your prices you will suffer. Match prices and serve people better. Free water to any guests that jumps in your trolley/bus, free maps of the area that are completely free to you from the Chamber of Commerce. Lots of different ideas you can come up with to get your fair amount of revenue and win business.
I do wish you luck in your endeavors as one day I would love to be a business owner but just be smart about it. I could write another 10 pages to you with ideas and plans but I think this gets the point across. Let me know.
Johnathon
Also-for the record- I never went to business school let alone any school at all. Ive got my GED and maybe 12 community college credits. Everything I know has come from experience and things I have learned over the years.
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