Dear Property Owner
If someone told you 15 years ago that there would be a business that you would pay 10-15% of your TOP line every time they brought you a booking, you would tell them to bugger off.
Agents had relationships with you and their clients – and they took 10%. That was tough enough to deal with. But in hindsight, they earned it.
Now, a wicked combination of technology and marketing – in the form of online booking engines – is who we are falling victim to.
I used this word wisely, because we are victims (sometimes willingly so) and they are so powerful. We have removed ourselves from some as they really are a law unto themselves. and others I find ourselves thinking – can we cut this pipeline of revenue off?
But, he who owns the customer is king. Period.
I think one of the biggest challenges for us owners is managing margins, and HUGE booking fees make it so much harder to turn enough profit to keep our businesses afloat.
If you can get direct business, GREAT. If you can’t, then stop and work on a strategy to build up your brand, your name, your ability to be less dependent on the ‘middle man, the OTA, the faceless technological engine’ creaming off the top.
On that note, thank goodness travel is growing.
Have a wonderful month of April.
Yours in hospitality.
Richard Lendrum & the GHASA team
