USP or Unique Selling Proposition is that one novel aspect of your business that sets you apart from the rest and makes your company extraordinary. In a market saturated with homogeneous products, a business cannot thrive without a strong and clear USP. It is the uniqueness of your business which will provide you the opportunity to rise above similar businesses and get noticed by consumers. A consumer’s loyalty to a brand is also dependent to a great extent on its underlying selling factor that promises to provide an experience like no other.In a service based industry like the hotel industry, consumers have a wide range of options to try out before they choose one particular brand. This results in cut throat competition in the market and the only way to get noticed is by leveraging your hotel’s USP. You need to delve deep within your business strategy to identify one single factor that no one else in the business can offer. It can be something as simple as affordability or something grand like premium luxury in difficult or unexplored terrains. Whatever the USP is, your hotel must be the only business in that geographical area providing that service.

How does it Work?

Identifying your brand’s USP might seem like a simple task but it is one that requires great consideration and analysis. Do you want to be known as the hotel with the most spacious rooms or the one with the best view on a hill top? Many hotels try to project themselves as being the best in every possible aspect but fail to deliver the promise. Your company’s USP is closely linked to your brand promise and must be credible and lucrative at the same time.The USP of a hotel needs to transcend the boundaries of tangible commodities and translate into an experience. For example, “Enjoy your stay at the hotel with the best view of sunset” and “Make memories under the crimson skies at our hotel” highlight the same feature but with different effects. It is important to not just identify your business’s key strength but also to transform it into a unique offering for the customer.While the USP of one hotel is friendly service, the USP of another might be great food. You must zero in on a single “peg” from which your company’s marketing strategy can flourish. You can take help of the “four P’s” of marketing, namely, price structure, product characteristics, placement strategy and promotional strategy to decide your USP.

Need For USP in Hotel Industry

  1. Reach Target Audience – Your hotel’s USP is the easiest way to get your target customers hooked on to your brand. An effective USP lets a customer get a brief idea of whether the product will be useful to meet their needs. In order to create a niche for your hotel, it is imperative that you sell your product to a selected customer base that will benefit the most from your offer. In the pursuit of attracting customers, hotels often try to cater to all kinds of audience and become unable to provide specialized services to anyone.
  2. Highlights Your Uniqueness – In a market full of similar goods, your USP can make or break your brand image. It is imperative that rather than projecting varied advantages of your hotel, you market a single factor that others are not in a position to offer. Building on this unique proposition can help your company mark the beginning of a new trend.
  3. Strengthens Brand Image – A hotel needs to develop a loyal customer base to generate big revenue. This can be made possible by your USP that can establish your brand image in people’s minds. The goal should be to be remembered only by your USP even without your hotel’s name being explicitly stated.
  4. Drives Your Marketing Strategy – Marketing strategies often fail owing to the lack of vision. USP sets this vision by defining a single point from which all marketing strategies of your hotel branches out. For example, if you consider ‘presence at remote locations at affordable costs’ to be your USP, your marketing strategy can drive home the difficulty of finding budget accommodations at such locations through its campaigns.
  5. Sets Goals for Employees – Employees of a hotel need to be aligned to its USP in order to provide the best possible service to the consumers. Defining roles and responsibilities for each employee becomes easier when each one of them is bound and guided to deliver the promise stated by the USP.
  6. Retains Website Visitors – The online presence of a hotel is considered successful if the number of visitors converts into the number of guests. Your USP is a great way to ensure that your target customers spend time exploring the benefits offered by you in your hotel website. Just as it is a wastage of time on the part of a customer to look for hotels that don’t meet their needs, it is a hotel’s loss if a potential customer overlooks the hotel website because its novelty is not accentuated by its USP.
  7. Allows Premium Rates – Since a hotel’s USP is the first thing that a customer notices about it, you can charge higher rates for services that set you apart. Price is not the only parameter based on which a customer chooses a brand; in fact a considerable number of customers are willing to pay a great deal for a memorable and fulfilling experience.
  8. Builds a Loyal Customer Base – Your hotel’s USP not only attracts target customers to your brand but when you fulfil the services that you had promoted through your USP, you also generate repeat customers. This loyal customer base can differentiate you from your rivals in the business as maximum revenue is generated by existing customers. Delivering your unique selling proposition also aids in generating referral customers in the hotel industry. A guest who is satisfied not just with the stay but with the food, location, service, luxury and security provided by a hotel can be a great resource for word-of mouth publicity.
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