The Top Concerns of Independent Hoteliers
And Some Solutions
By Pamela Barnhill President & COO, IHT, IBC and IVH Hotels | October 16, 2016
Even though independent hotels consistently make the news, the concerns of the owners and managers of independent hotels are often overlooked. Many cite consolidation, low margins, distribution, loyalty programs, rising operational expenses and technology as some of their key issues. How are independent hotels meeting these challenges?
With capital flush and entrepreneurs eager to enter the new peer-to-peer economy, the rise of fresh ventures has created a breadth of innovative, stimulating options for independent hoteliers. This is an exciting time for hotel owners who are ready and willing to embrace the changing landscape.
Last year and early this year have been a banner period for deal-making for buyers and sellers alike. What's curious is how attitudes differ on whether it is time to buy with plenty of upside or time to sell for fear of oversupply and a pending recession; opinion is truly split. Also, many are rumbling about a hospitality technology bubble in the brewing. In this low-margin business, we have already seen large consolidations among OTAs, so one may say that is a natural progression in brands, management and tech companies to scale.
But the naysayer may counter, "How will they maintain the culture or loyalty program?" or "Why was that really necessary?" Could it be that as brands, they are suffering and direct bookings are down? Could the brand be delivering less? Look at the monthly bills and line items and it's clear which bookings came from GDS, OTAs, meta and brand.com/CRO. A recent review of one such bill was very interesting: After stripping out GDS, OTA and meta, what was left that was truly owed to the brand.com was minimal.