Hotel Franchising May Help New Hotels Avoid Dreaded Failure
New hotels are more vulnerable to failure. Statistically they have the highest chance of closing down! This is what Forbe’s data suggests.
The Reality of New Startups:
A lot of businesses fail during the initial years of their startup. This includes hotels, motels and lodges. The failure rates can be very high for newly started businesses. According to Forbe’s data, nearly 80% or more businesses fail during the first 2-3 years of their launch. Only 20% survive the first couple of years and out of them a lot of businesses may probably go down in the next 3-5 year period.
As you can see only a handful of businesses make through the initial 5 years. What could be the reason for the extremely high failure rates? It could be the inexperience of the people who started those businesses.
It is said that humans are designed to learn through failure. So each successive failure can be a learning step. That is why some business coaches have advised people to fail as fast as possible so that they can reach to success sooner than those who fail slowly. In any case, statistics suggest failure is a high probability in the life of an entreprenuer.
One of the ways to prevent failure is to take the assistance or help of people who have tons of experience in the business; those people who have seen lots of ups and downs and have achieved good amount of success.
Hotel Franchising Can Turn The Odds In Your Favor
Fortunately in the hospitality business you can easily enlist the help of such experienced individuals. How? Through the medium of hotel franchising. Hotel franchising is an awesome concept because it can help new hotel startups in various ways:
1 – First of all you can get the expert assistance of industry experts who can guide you in various matters of running the hotel. They can advise you on what steps to take and what things to avoid.
2 – By joining a brand, your hotel can instantly acquire the goodwill, trust and reputation of the people. Many of the popular brands have spent years in building their reputation, which you can benefit from instantly by joining their flag. On your own, it might take years or even decades to build up such a strong reputation!
3 – You can get worldclass training and support from the brand. Most of the brands develop top notch professional training for their franchisee partners. You can benefit from these training programs. You can get your hotel staff trained by experts on how to conduct their activities with perfection and professionalism.
4 – You can also get access to advanced and feature-rich tools and resources that can normally cost you thousands of dollars to develop. Hotel applications like PMS, website booking engine, Channel manager, GDS/IDS connectivity are just a few of these.
5 – You can also benefit from the marketing that the brand does. The brand may spend hundreds or thousands of dollars upon advertising at local, national and global levels. Each promotion of the brand can directly or indirectly help your own hotel as you are now part of that brand family.
You Need a Fair & Ethical Brand
As you can see there are tremendous benefits of joining a proper hotel brand. However not all brands are the same. Some of them may be there just to take away your money without providing proper value or benefit. There may be other brands which provide lot of value but are also very expensive, thus putting you in huge loans.
What you need is a fair, transparent and ethical brand that provides value, cares for your success and is also affordable. We believe our brand Stay Express qualifies to be named among those few brands out there that fulfil all these mentioned criteria. So if you want more success for your hotel, avoid failures or shut downs and also avoid paying huge brand fees, get in touch with us – Join Stay Express