Hotel management: independently or through the management company?

The hotel business is considered one of the most profitable and affordable. You can manage a hotel even without special knowledge in tourism, but it is desirable to have experience working with hotels.

At the same time, the hotelier has a choice: to manage independently or to give the hotel to a Management Company. Consider the advantages and disadvantages of each type.

Independent hotel management

Hotel management includes the following processes:
  • Meeting and accommodation of guests
  • The cleaning of the hotel
  • Work with the bookings
  • The administrative part
  • Accounting Management of staff, administration of hotel.


The main advantage of self - management is profit. You don't share it with anyone, and you don't pay a Commission. But at the same time, the hotelier takes all the time to manage the hotel. If you are ready for this, then this path is for you.

To shorten the start of a hotel launch and save time on creating your own plans and strategies, you can join a hotel franchise. In addition, the franchise will allow you to build a competent advertising campaign and promotion, ensure loading and increasing the average receipt.

Self-management is an option for those who are ready to" live " only this business.

But this format is not suitable for investors without experience, those who are located far from the hotel, as well as large hotels. The easiest way to build your own management in a mini-hotel with up to 25 rooms. If you are in the subordination of several accommodation facilities that you can consider the option of creating their own Management Company.
Hotel management: independently or through the management company?

Management Company

Advantages:
  • You save your personal time by getting passive income
  • Cheap promotion and advertising
  • Management Company can increase the hotel's revenue
  • Choosing any Management company
  • Hiring highly qualified employees for all positions

Disadvantages:

  • An unfair management system may not show all the revenue and deceive the client Travelto guarantees a clean business by setting up a separate checking account, connecting a terminal for non-cash payments, and the investor is also given access to the Bnovo system so that he can control the loading of the hotel and the payment of guests.
Usually, the management company takes 20-40% of the profit. Travelto charges only 30%.


The reliability of the management system can be checked by planned indicators:

-Loading. In hotels of the Travelto chain, the UK provides a year-round load of more than 80%.
-Room rates and profitability. Indicators should not be lower than in previous periods.

In addition to ensuring profit and load, the Management Company must also maintain high ratings of the hotel and work to create a positive reputation. It is desirable that the rating on Booking and other sites should be at least 8.

Travelto management Company manages more than 20 hotels in St. Petersburg. We can help you create a hotel from scratch, join a hotel franchise, or buy a ready-made hotel in St. Petersburg. It takes 5 days to transfer the hotel to management. During this time, we:
  1. Making an inspection of the object.
  2. We conduct a free audit.
  3. We draw up and sign a contract.
  4. We train staff and interview existing employees.
  5. We take control of the hotel and begin to increase its performance
You can learn more about the Travelto Management Company on our official website.
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