Your helpful guide to a hotel SWOT analysis

Strategic decision-making is crucial for hotels to continue growing. If you are wondering where to start, look no further than the traditional SWOT analysis for hotels: this tool is key to understanding your business, relative to the competition. Performing a SWOT analysis focuses your attention beyond immediate needs and enables you to take strategic action for your hotel business.

This blog explains what a SWOT analysis is and how you can perform an effective SWOT analysis of your hotel, including key examples and tips.

What is a hotel SWOT analysis?

The traditional SWOT analysis focuses on its abbreviated components: strengths, weaknesses, opportunities, and threats. These can quickly be divided into internal (strengths and weaknesses) and external factors (opportunities and threats).

A common visual layout when summarising a SWOT analysis to others is on a 2×2 grid, although this has been criticised for causing condensed highlights, leading to shortcuts in thinking. Ideally, a SWOT analysis of your hotel strikes a balance, neither appearing too condensed nor taking the form of a long list or essay. Action-focused statements are a key element in achieving this balance.

Hotels make the strategic task of performing a SWOT analysis particularly interesting: for one, the product is made up of brick and mortar, service, and a wide range of intangibles relative to the competition. Thankfully there is a growing amount of information at the fingertips of hoteliers thanks to hospitality technology. Hotel commerce platforms provide detailed forward-looking and historical information that has never been organised in a more absorbable way.