Benefits Of Third-Party Operator
There are mainly three ways of operating a hotel in the hotel industry: owned, franchised, and managed. In India, all three have been very popular over the years.
Another model that is gaining popularity with each passing day is third-party management. In this model, the hotel owner has a hotel but lacks the team, skill, or capacity to run a hotel successfully. The owner also gets the added advantage of having an already established name for their hotel.
What is a third-party operator?
A third-party hotel operator manages the hotel’s daily operations and gets a fixed amount or a percentage from the hotel. Their services include providing the best staff for the hotel or training existing staff, bringing finance, providing marketing support, advertising online and offline for the hotel, managing revenue, etc.
The main aim of the third-party operator is to enhance the profit and the value of your hotel.
Why should hotels and resorts consider third-party operators?
Many hotel and resort owners cannot manage their property’s daily operations. Marketing, sales, revenue management, and finance need a lot of energy, time, and skill, which is why hotels and resorts should opt for third-party operators.
What are the problems encountered by the hotel business?
The hotel business is not as easy as it was a few decades ago. However, online travel agencies, digital marketing, etc., have made the business competitive.
Third-party operators are well experienced and skilled to help the owners to go through these complexities successfully and provide business in the competitive environment.
Third-party operators seem to take a good chunk of the profit from the hotel, but that’s not true, as they prove to be economical in the long run. In addition, they bring digital expertise, financial systems, and great supplier relationship, which may prove an excellent decision for hiring a third-party operator.
How to choose a third-party operator?
Third-party operators know their strengths (and weakness) and work on them to give the owners the best results. Like some operators are great at operating resorts, some only select service properties, and many are good at providing excellent catering service for the hotels.
The hotel or the resort owner should know which is their weak point and must work on them with an experienced third-party operator. Unfortunately, some hotel owners struggle to run their luxury hotels, and others may fall short in marketing experience. That’s when they should go for a third-party operator.
Factors to be considered before hiring a third-party operator
- Type of property.
- Location(Resort, Airport, Religious importance)
- Knowledge of the local market
- Brand Affiliation
- The phase of the project
(under construction, new, performing steadily)
How does a third-party operator increase the profitability of a hotel?
- Third-party operator gets in finance if required for the hotel for renovation or other purposes, which gives a new look to the property.
- They bring in dynamic and well-trained staff for the hotel.
- They take the business on all social media platforms in a big way, increasing the bookings for the hotel.
- They are budget friendly and save money for the hotel in the long run because they are well-skilled be cost efficient.
Hotels are hard to run in general, and after the pandemic travel and tourism industry is going through a lean patch. However, the third-party operator can take any hotel or resort to the next level of growth and profitability.
If you are looking for a third-party operator Sapphero Hotels and Resorts is the best choice. We take care of all the aspects like pre-opening support, post-opening support, development, digital marketing, revenue management, accounts, reputation building, and much more.
With Sapphero Hotels and Resorts, it is our responsibility to take your dream project to new heights of growth and profit.
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