Direct bookings are a key, strategic priority for hoteliers worldwide.
Whilst many publications broach the subject, we aim to cut down the surf-time for real enthusiasts.
Through this comprehensive guide, we hope to add value to your strategic understanding on the subject, whilst giving you practical solutions for getting better results with your direct bookings.
Direct Bookings for Hotels: The A-Z Guide for Owners & Revenue Managers
- 1 Direct Bookings for Hotels: The A-Z Guide for Owners & Revenue Managers
- 2 Are Hotel Direct Bookings Really Worth The Hassle?
- 3 Is There Any Room For A Hotel Direct Bookings Strategy To Coexist With OTAs?…
- 4 Main Sources for Driving More Direct Bookings for Hotels
- 5 A Business Case for Hotel Direct Bookings
- 6 What Difference Does An Optimized Hotel Website Really Make?
- 7 Head-to-Head Comparison: In-Built Direct Booking Engine Vs. 3rd Party Booking Engine
- 8 Profitable & Effective Online Business Development For Hotels!
- 9 The Bottom Line: Hotel CashFlow & Direct Bookings
- Are Direct Bookings Really Worth The Hassle?
- Is There Any Room For Direct Bookings To Coexist With OTAs?
- Main Sources for Driving More Direct Bookings
- A Business Case for Direct Bookings
- What Difference Does An Optimised Website Really Make?
- Head-to-Head: In-Built Direct Booking Vs. 3rd Party Booking Engine
- Profitable & Effective Online Business Development For Hotels
- Direct Bookings: The Bottom Line
The Bottom Line: Hotel CashFlow & Direct Bookings
According to industry quotes from professional M&A consultants, like Business Legacy Strategies Inc.:
“…most business owners who are asked about their exit plans will reply that they want to exit their business ‘in about 5 years’.“
Whilst the enjoyment of running a business should suffice the years of labour, there comes an end to all things, including your hotel business.
Intermediate profit and earnings are one thing, but making sure that you get a substantial reward at the end of the journey of ownership is another.
i.e. ensuring your hotel business holds ‘transfer value’ takes solid planning and preparation.
Can Investing In A Direct Booking Website Add Transfer Value To Your Hotel Business?
Ask Nam Quach of DC Advisory, Mergers and Acquisitions Firm to Hospitality Clientele:
“Every investor will look at valuation differently, and that is what, essentially, creates the market. The most common valuation factors when looking at hotels is a measure of profit and cashflow…”
Here's how in a snapshot you could add £254,000 ($343,800) profitable cashflow onto a 15-room B&B/Small Hotel within 5 years having invested in hotel direct booking software...
At a conservative ‘trot’, this cashflow generating thoroughbred of a direct bookings software added a further £254,000 cashflow to the bottom line of this small 15-room hotel/B&B operation.
Do you have more rooms? Simply extrapolate.
Not to mention accomplishing the No.1 exit planning recommendation from Ernst Young to small business owners of all kind seeking not to be disappointed upon exit:
“…make yourself redundant…If I go on vacation for a month, can the business run on its own? The best advice is to “make yourself redundant” before a business sale starts as this can become a deal breaker. “
So, it’s clear that online direct bookings software is about the best investment you can make whether you are starting-up, growing or exiting the hotel trade.
It’s integral to profit, cashflow and valuation of your hotel business – no matter the scale.