ProblemsHow Do We Get More Customers? › Hotels & Hospitality

How Do We Get More Customers?
in Hotels & Hospitality

More occupied rooms is an outcome. The decision is which route to guests you can afford to repeat. Independent hotels carry a specific bind here — £11.4 m capex need against £2.3 m annual free cash flow with fixed costs at £41.2 m. Until that is priced, £124.75 will keep moving for reasons nobody can attribute, and the debate about CAC by channel will stay a matter of opinion.

The short answer

More occupied rooms is an outcome. The decision is which route to guests you can afford to repeat. Independent hotels carry a specific bind here — £11.4 m capex need against £2.3 m annual free cash flow with fixed costs at £41.2 m. Until that is priced, £124.75 will keep moving for reasons nobody can attribute, and the debate about CAC by channel will stay a matter of opinion.

Almost every independent hotel can name several ways to lift occupancy and few can say which one improves GOP. That is the actual constraint: not a shortage of channels, but no evidence about which channel to scale when fixed costs sit at £41.2 m against £2.3 m free cash flow.

The productive framing is route economics. For each plausible route — direct, OTA, partners, events — what does it cost to acquire one guest, how long until incremental RevPAR covers that cost, and can it be repeated without the cost rising as you scale it toward the £72.4 m revenue from 1,980 rooms.

Most routes fail the third test. They work at small volume because they depend on the operator's network or attention, and quietly stop when either runs out.

How to tell this is actually your problem

These three together are the signature. One on its own usually points somewhere else.

✓ Occupancy depends on one person's relationships with key accounts
✓ RevPAR or GOP contribution is unknown or known only in aggregate across channels
✓ Every distribution channel is being used a little and none is being tested properly

The move that usually makes it worse. Running several channels at sub-scale simultaneously, which produces no conclusive result on any of them and adds to the £11.4 m capex pressure without lifting the £18.1 m line.

Who this is for — and who it is not

It is for you if you run or finance an independent hotel and growth depends on one person's relationships. It is the situation where the numbers are available but nobody has put them in an order that produces a decision.

It is not for you if Percision is the wrong tool if you already know the answer and only need execution capacity, or if the business is pre-revenue — then the constraint is evidence about the market, not analysis of your own figures. Percision is not a lawyer, tax advisor, auditor, licensed appraiser, clinical or regulatory filer, or an AI implementation shop. It does not do HR casework, creative-only brand work, or impersonate a named consulting firm. It is a strategy analysis engine — not a template library. Also wrong if you need facilitation, politics, or someone to sit with a lender or buyer. Those are human jobs.

Percision is not a lawyer, tax advisor, auditor, licensed appraiser, clinical or regulatory filer, or an AI implementation shop. It does not do HR casework, creative-only brand work, or impersonate a named consulting firm. It is a strategy analysis engine — not a template library.

What this looks like when the analysis is actually run

Below is an excerpt from a real run of this analysis on an independent hotel. It is a sample profile rather than a customer, and it is unedited engine output — this is the format you get, on your own numbers.

The subject is Aldermere Hospitality Group, a sample company profile used for testing rather than a customer — £72.4 m total revenue from 1,980 rooms.

Excerpt from a real Percision run · Competitive Positioning · sample company profile

The move. Leverage existing central overhead and owned-asset scale to lock in 6–9 % supplier discounts and energy-price certainty, cutting the fixed-cost ratio from 57 % to 54 % within 18 months.

What the run committed to
Investment required£180–220 k annual opex (two FTE analysts) plus £50 k one-time hedge setup and legal fees; funded from existing £2.3 m free cash flow.
Expected returnPayback within 4–6 months; 5.0–6.4× annual cash-on-cash return once fully ramped (conservative base case).
Revenue, year 1Cost reduction £0.7–0.9 m (phased implementation from Q2 2027); net GOP uplift £0.5–0.7 m after opex
Revenue, year 2Full run-rate savings £1.1–1.4 m; GOP margin 27–28 %
Revenue, year 3Margin sustained at 27–28 %; incremental £0.4–0.6 m cash available for capex or debt reduction
Exit criteriaStrategy should be reversed if, within 12 months of launch, (a) realised energy-cost inflation exceeds 10 % versus market or (b) supplier framework discounts fall below 4 % on an annualised basis, OR if cumulative programme opex exceeds £400 k without achieving at least £600 k in verified annual.

This is one move out of a full analysis. Read a complete report — every page, no email required.

What the engine does with this question

This question routes to Go-to-Market & Commercial Strategy, one of 29 engagements the platform runs. For independent hotels it works through £124.75, 67.8 %, 25.0 % and £18.1 m, then produces the sequence rather than a list of options — which move first, what it funds, and the observation that would say the sequence is wrong.

You watch the analysis get built before paying anything. Read a complete report here if you would rather see the depth first.

Questions people ask about this

Which acquisition channel is best?

The one where your buyer already is and where you can pay back the acquisition cost within a period you can finance. That is business-specific, and the general answer is worth very little.

How many channels should I run?

One that works, then a second. Running four at a quarter of the necessary budget reliably produces four inconclusive results and the belief that nothing works.

How long before a channel proves itself?

Your sales cycle plus one payback period, with enough volume to distinguish the result from noise. Setting that number in advance is what stops the decision being made by whoever is most persuasive.

Is this different in hotels & hospitality than in other industries?

Materially, yes. £11.4 m capex need against £2.3 m annual free cash flow with fixed costs at £41.2 m — which changes both the diagnosis and the order of the fixes. The metrics that decide it here are £124.75, 67.8 %, 25.0 %, and an answer built on industry-general benchmarks will usually point at the wrong one first.

What data do I need before this analysis is worth running for an independent hotel?

Less than most people expect. Your last twelve months of revenue and cost split the way you already split it, plus whatever you hold on £124.75 and 67.8 %. The analysis is explicit about what it is assuming where your data stops, which is more useful than waiting for numbers you may never have.

When is Percision the wrong tool?

Percision is the wrong tool if you already know the answer and only need execution capacity, or if the business is pre-revenue — then the constraint is evidence about the market, not analysis of your own figures. Percision is not a lawyer, tax advisor, auditor, licensed appraiser, clinical or regulatory filer, or an AI implementation shop. It does not do HR casework, creative-only brand work, or impersonate a named consulting firm. It is a strategy analysis engine — not a template library. Also wrong if you need facilitation, politics, or someone to sit with a lender or buyer. Those are human jobs.

Does Percision replace a lawyer, tax advisor, auditor, or AI implementation team?

Percision is not a lawyer, tax advisor, auditor, licensed appraiser, clinical or regulatory filer, or an AI implementation shop. It does not do HR casework, creative-only brand work, or impersonate a named consulting firm. It is a strategy analysis engine — not a template library.

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