Independent hoteliers exploring their options on how to grow the appeal of their property and maximise their sales and marketing efficiency have never had it so good in terms of brands and management companies with which they can align.
But at the same time, the market has also never been so complex, challenging yet exciting and rewarding for hotel owners, especially long-term or generational operators who may know their property back to front but have always done things a certain way or been nervous about adapting to change. Sad as it may seem, but in the modern travel landscape, those who are not willing to embrace change will run the risk of being left behind.
As an independent hotel owner, considering third party management or turning your property into a franchise and aligning with a brand in order to prosper should not be viewed as giving up control, but rather engaging experienced and highly knowledgeable people to work to make your property perform to the best of its ability.
Doing so can ultimately improve your margins and profits. It can open up your property to a completely new way of thinking, greater access to new opportunities and the opportunity to reach new audiences.
Best of all, it can minimise your operating costs, opening up your property to group-buy deals and obtaining discounts on electricity, gas, insurance, even fresh fruit, vegetables and non-perishables you’re serving in your restaurant or selling in your mini bars. These are just some of the many benefits possible from engaging a third-party manager and brand.
Further perks a third-party management brand can bring include the ability to streamline profitability by introducing integrated systems and services such as financial and accounting systems, payroll, cash flow and auditing processes. These may already exist but may benefit from new technology or expertise that may previously have been unavailable.
Perhaps most importantly though are the new reservations and marketing channels that a third-party partner can provide. In years gone by, if you didn’t use a travel agent, finding a hotel usually involved opening the Yellow Pages or even visiting the Post Office and finding a hotel. If you missed the annual listing deadline, your business didn’t appear in the following year’s edition and professionally speaking, that could have been fatal. The halcyon days of yesteryear…
Here and now though, online travel agents have made the marketplace extremely crowded and if your hotel is not on many or all of these platforms, you’re not being seen. But managing your presence on these labyrinthian digital colossi can be a full-time job in itself. Rates can change not just daily or weekly but by the hour or even the minute and having access to the pilot expertise needed to navigate these waters is now just an essential cost of doing business.
“Hotel business is far more complex than it was in past decades,” said Choice Hotels Development Director, Tim Mayoh.
“Online travel agencies, non-traditional providers such as Airbnb and digital marketing have made the hotel market highly complex and extremely competitive. Online Travel Agents have consolidated and become multinational conglomerates with multiple brands spread across different markets.
“Third-party managers have the experience and specialised expertise to help owners and investors navigate and find opportunities in this complex environment.
“Considering third-party hotel management and the expertise, financial systems, digital expertise and supplier relationships it brings to the table could be a prudent decision.”
Engaging a third-party management and franchisee alignment for your property is like listing in the Yellow Pages was many years ago. It can be the vital link to ensure your hotel continues to grow and prosper.
To learn more about potential opportunities, download the Choice Hotels Asia-Pac Third-Party Hotel Management White Paper.