Rising costs mean that a lot of hotel property owners are finding ways to better manage their finances-such as imposing attrition and cancellation fees.
Why it’s Happening
A lot of the available online booking programs make it easy for consumers to book multiple lodgings and then cancel before the period where cancelation fees apply. This is a disadvantage for hotel property management teams. When they receive bookings that quickly get cancelled, they get an inflated figure on potential occupancy levels which then compromise decisions they make involving issues with the way the property’s revenue is managed.
How Cancellation Fees Help
To control pricing and inventory, more companies are imposing cancellation and attrition fees. Doing so has made it possible for hotels to bear the brunt of other costs in the business and has added a viable source of added income.
Whether you manage a hotel personally or allow a management team to run it for you, knowing issues like these will help you make better and smarter decisions.
Getting a Broker
Don’t waste your resources on the wrong property. Hire a brokerage firm to help you locate a hotel property for sale that’s perfect for you. Look for a hotel property for sale with a NewGen Advisory agent.