Characteristics of an Independent Hotel
The hospitality sector is vast and made up of a multitude of accommodation types, thus, it’s important to establish that all of the lodgings not related to a Hotel chain are considered “independent hospitality”.
Beyond a simple status, small and medium size businesses that operate in this sector share similar performances and characteristics- along with their advantages and disadvantages.
The independent hotelier manages his establishment following a family business model, with a small team, multipurpose and a versatile activity. The volume of passengers is certainly not very high in comparison to a hotel chain but similar in terms of activity results.
This result is the direct consequence of a specific hotel management and administration:
Advantages of the independent Hotel
- Flexibility. The managers reactivity supposes an almost instantaneous power of decision that limits monetary looses and boost management tasks (ex Organizing employee schedules from one day to next with only ten people).
- Fixed prices. The set pricing policy being slightly variable ensures a constant and clear revenue. Saving from “Yield Management” expenses
- A unique experience. From the Hostel to the Hotel Boutique, everyone has something different to offer. It’s not only the place architecture but also the special services designed for the niche clientele that gives a unique supply that cannot be compared, therefore lending to less competition and a specialization economy (reduce costs when not having an extensive public to please, concentrating all efforts in one market).
- Financial autonomy, the independent lodging does not have financial pressures from a chain group that requires a certain performance. It is yield by independency of decisions on his capacities and accommodation abilities.
- Proximity, a unique customer relationship that enhances client experience with quality communication and a near support team (favored by social media).
Advantages of hotel chains = Independent hotel disadvantages
- Volume, the sales volume of hotel chains offers an extensive benefit of scale economy due to his standard offer. The expanded business lower-costs by bulk purchasing and successful management (ex. an employee for 50 clients instead of 10, is dwells profitable).
- Yield Management, this system improves benefits through out the calculation of supply and demand – widely used by hotel chains.
- Promotion, marketing and communication offices that handle the advertising of the whole hotel chain, enhancing the individual recognition and reputation of each structure.
- Agreements, with a major booking platform accompanied by numerous agreements with agencies, Tour operators, OTA’ s… that confers an impressive sales force.
Trying to maximize the advantages of independent hotels in small accommodations such as B & B, Hostels, Cottages, small hotels … is one way to be differentiated from hotel chains and succeed!
If you think of more ideas to define the independent Hospitality, please submit them in the comments area!