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5 Tips for a Successful Hotel Deflag

Posted on Jul 24, 2018 8:03:45 AM

With franchise fees increasing at a greater pace than rooms revenue, many hoteliers are contemplating hotel deflagging. If you fall into this category, the first question you’ll need an answer to is: “How to deflag my hotel and make the entire process successful?”

Here we share five tips for hotel deflagging success. 

Pegasus_hotel DeflagTIP #1: Consider the Power & Price of Independence

Gaining control over your newly independent hotel is exciting. You can finally customize your property in ways that speak to your target audience, and better position your hotel among its competitive set. But it’s important to plan for the costs associated with your new independence, such as replacing branded signage, floor mats, stationery, computers, and technology systems.

TIP #2: Streamline Marketing & Distribution

Online distribution and digital marketing tactics have leveled the marketing-and-distribution playing field for independents, and you only have to focus your efforts on filling one hotel in a specific market. For the greatest impact, make sure you have a mobile-first booking engine and cost-effective revenue management system, and that your website contains compelling search engine optimized (SEO) content.

TIP #3: Create a Staffing Plan

Did your brand provide call center reservations support, a global sales staff, marketing, and employee training? If so, these functions will now be your responsibility. Evaluate whether any current brand-oriented positions in your hotel are transferable when it comes to meeting your new needs as an independent. In addition, you’ll likely benefit from increasing your sales, marketing, and revenue management teams.

TIP #4: Know Your Assets & KPIs

Complete a thorough review of your assets, considering how you can best leverage them as an independent. Your hotel’s location, product, service, and amenities are all valuable in positioning your property for success. And take a close look at your numbers. Before you deflag, imagine life without your brand in the picture. Estimate changes in key performance indicators (KPIs) such as annual revenue and profits, occupancy rates, RevPAR, acquisition, and operating costs. 

Pegasus_Luxury HotelTIP #5: Capitalize on the Boutique & Luxury Lifestyle Trend

Research shows that the global luxury hotels market is expected to reach $194.63 billion by 2021. And today’s travelers have a growing preference for boutique and luxury lifestyle hotels. As an independent, you’ll enjoy the flexibility to capitalize on this trend. Feature inspiring décor by local artisans, and create destination-specific experiences that appeal to this audience.

Above all, your guests need to know that the quality of their stay at your hotel won’t be negatively impacted by the changes. And in fact, will improve. So, to ensure success, seek counsel from financial or management professionals with the expertise to help you identify your options and successfully guide you through the process of hotel deflagging.

Are you considering joining the ranks of successful independent hoteliers? 
Contact us for a free assessment to see whether deflagging may be right for you!

Contact Pegasus Solutions


Topics: Hotels, Blog, Pegasus Solutions, increase hotel sales, hotel deflag, deflagging a hotel

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