Investing in local accommodation is a business with immense potential, bringing together two growing sectors: tourism and real estate. In an era where globalization and technological advancements have shrunk distances and turned the world into a global village, managing local accommodation offers a unique opportunity for additional income.
However, there are many factors that influence the commercial success of local accommodation. Contrary to what some may think, running a local accommodation isn’t just about opening the door and counting the money at the end of the month. There are various bureaucratic processes, secondary tasks, and both direct and indirect complications that are not immediately apparent. This is where local accommodation management companies come in, providing an excellent way to maximize your earnings.
What are the Advantages?
- There are several benefits to choosing a local accommodation management company, but the main one is the simplification of processes. Especially for those who have more than one property to manage, the bureaucracy and all the associated tasks can become overwhelming for a single person.
- Traditional management of a local accommodation demands the owner’s full availability, 24/7, 365 days a year. Meeting a guest's needs doesn’t take weekends, holidays, or vacations into account. In fact, these are often the times when issues arise and are most urgent. This is why a management company is invaluable, allowing you to free up time for your family and loved ones, while relieving you of concerns like refund requests, cancellations, or overbookings.
- Local accommodation management companies also have a significant advantage due to their access to management platforms that individuals don’t typically have. These include channel managers, PMS (Property Management Systems), and CRM (Customer Relationship Management) tools, which help maximize time and increase profitability. Additionally, these companies handle all communication with booking sites, ensuring that the property is listed on various online platforms. They also benefit from established partnerships with specific websites, offering more personalized and advantageous arrangements.
- Another benefit of local accommodation management companies is that they handle all cleaning and property preparation after guests check out. This can be a very tiring and demanding task, but it becomes the company’s responsibility. Additionally, these companies often offer extra services that the property owner might not be able to provide, such as guided tours or airport transportation, for example.
- Lastly, and perhaps most importantly, it’s crucial to remember that these companies are professionals with expertise in the field. While personal connections with guests are important, studies show that guests prioritize quality and professionalism. Most property owners, however, don’t have experience in the hospitality industry. In fact, just one off day can affect our mood and result in poor service for the customer.
And what are the Disadvantages?
- Naturally, opting for a local accommodation management company instead of managing it traditionally comes with some drawbacks. The most obvious one is the lack of direct contact with the guests staying in your property. This is mainly a concern for those who have just one local accommodation, as it becomes difficult to personally interact with every guest when managing multiple properties.
- However, with just one local accommodation, traditional management allows for more personalized direct contact with guests. Additionally, you keep all the earnings, as there are no shared commissions, and you have full control over everything happening in your property. But at what cost? That’s the crucial question to ask yourself. The commercial success of any business relies on carefully weighing the pros and cons. In this case, the overall balance seems to clearly favor opting for a local accommodation management company.
