Soaring Costs and High Competition Severely Affecting Boutique and Independent Hoteliers

9th January 2018
Spokane,WA / London, UK

Owners of boutique hotels are facing an uphill battle when it comes to revenue as costs continue to rise and competition within the industry remains fierce, according to leading brand Magnuson Hotels. Despite a growing trend for travellers to choose independent hotels for an authentic experience, owners of these businesses are facing significant challenges as they strive to compete with large, established chains, hampering revenue streams.

According to experts at Magnuson, hardworking hotel owners are being forced to give away significant chunks of their profit just to be able to compete in the market. Whether it’s through making payments to be part of a franchise, with the costs potentially outweighing the benefits, to the large sums of commission they must pay out to list rooms on digital booking platforms, the skewed landscape of the hotel market is hampering the potential of boutique options.

Stephan Fortier, Business Development Manager of Magnuson Hotels, said, “The hotel industry is tough but the amount of money independent hotel owners are being forced to pay out frequently means they’re finding it difficult to keep up. These small but successful businesses need to increase their brand awareness, digital accessibility, and online booking process to attract customers, but they require investment. The need to pay for franchise options and online travel agents puts further pressure on budgets, meaning hotels will potentially fall further behind over the long-run too”.

“With travellers regularly choosing to stay at boutique accommodation options for a better, local experience, it would be a real shame if these hotel owners were pushed out of the industry. They’re a vital part of the sector that truly offers something unique to guests that chains simply can’t compete with.”

Magnuson was created to offer independent hotels an alternative to the usually costly franchise model. Designed with affordability in mind, the Magnuson brand gives hoteliers the power, awareness, and expertise that chains benefit from. However, unlike other franchise options, the brand recognises the importance of retaining a hotel’s identity and delivering the services that they need, noting there’s no one size fits all approach to running a successful hotel business. Through forging close partnerships, Magnuson gives hotel owners the tools they need to retain and even grow their slice of the hospitality market even as competition intensifies.

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