Boutique hotels and villas - highs and lows
23 September 2024
“We need to get away from this high-season, low-season model” said the Sri Lankan boutique hotel owner, repeating the thoughts and sentiment of every other owner before him.
“Well we’re actually doing very well in-low season now”, lied the other.
Bemoaning the seasonality of Sri Lanka’s hospitality market is a bit of a trope. Equally cliched (and questionable) are those claims on the secret source of avoiding the “quiet season” dip.
Or so we thought.
We’re speaking to Sri Lankan boutique hotel and villa owners now who not only tell a more positive story on seasonal flux but show it in their numbers. And having gone to stay with one or two we can testify to it. So what are these guys doing to smooth those ups and downs? We thought to share three little nuggets from recent conversations and experience.
Committing to an attractive rate policy
It is anecdotal but the villas and small hotels that we see doing well in (traditionally) quieter months have a pretty long-term and committed “quiet” season strategy. They’re not (just!) fiddling around with last-minute, short-term flash sales and quirky offers. They’re offering consistently attractive room/villa rates and building a business model around decent occupancy with that pricing.
Cutting costs
Those strategies are far more palatable if overheads aren’t cutting a huge chunk from the top line. We’re seeing owners who are being creative with automations and outsourcing to reduce fixed costs which in turn gives the scope to stand out on price.
There’s much more of a supportive eco-system for boutique hotels and villas in Sri Lanka now than there was even two-to-three years ago. Some of the smartest operators are making use of it.
Engaging with technology (and smart people to operate it)
Within the framework of that attractive rate policy - already mentioned - the properties doing well in ‘tougher’ months are being proactive with their OTA (booking.com, Expedia etc.) listings to maintain a good ranking on those pages.
They’re making efforts to understand the way those platforms operate (e.g. boosting properties that convert consistently from views to bookings - and vice versa; rewarding properties with good guest interaction and feedback) and adjusting their strategies accordingly.
There’s often a cost to this work - it’s not an overnight or necessarily easy fix - but, if committed to, can really pay off.
Here’s the listing of one villa for sale currently (actually a collection of three) that is employing some of the strategies above and doing well in a (not so) “Quiet Season”.