How a Small Hotel and Hostel Answering Service Can Improve Business

Tourists rely on comparison sites and travel agents to ensure safe and comfortable travel lodgings. This is especially true for tourists visiting the locale for the first time and, therefore, not knowing their options. Travelers who are particular about the quality of their accommodations and those concerned with their safety also rely on intermediaries because they don’t want to take risks.

The problem is that hotel and hostel owners sacrifice a profit margin whenever intermediaries are involved in bookings and reservations. Comparison sites and travel agents advertise accommodation rates for a commission.

Some complications arise from the involvement of intermediaries. The more evil ones, for instance, might provide inaccurate information to tourists to get a commission. This could lead to misunderstandings and unmet expectations.

Outsourcing a small hotel and hostel answering service can do away with third-party and travel agents. It’s the same as hiring a contact center to handle customer calls, manage bookings, provide information about rooms or the immediate area, and clarify hotel policies. Here’s what small hotels and hostels can get out of it:

1. Maximize profit margins

Unlike luxury hotel chains, small hotels and hostels may not have the resources to regularly pay intermediaries commissions. This reduces their earnings, especially if their room rates are already low.

With outsourcing, small hotels and hostels would only have to pay the contact center for its answering service. Outsourcing to offshore destinations like the Philippines can help them keep costs to a minimum, expanding their profit margins.

2. Communicate with customers directly

Small hotels and hostels will have the opportunity to coordinate directly with customers, minimizing the chances of a misunderstanding or misrepresentation of their amenities. This will also help these hotels and hostels build relationships with their customers as early as the booking phase.

3. Offer discounts and packages

Intermediaries are not incentivized to offer discounts or low rates to tourists because it can affect their commission. Tourists aren’t necessarily getting the best deal possible through third-party agents. However, small hotels and hostels can offer discounts at their discretion or allow tourists to negotiate room prices if they outsource answering services.

4. Streamline processes

Small hotels and hostels can streamline their customer service by outsourcing directly to a contact center they deal with. This makes it easier for them to keep track of the volume of queries and bookings they receive at specific points of the year.

Outsourcing small hotel and hostel answering services can help small businesses maximize their limited resources and grow their profit margins. It allows them to reduce costs by not offering commissions to third-party agents. It also puts them in the position to provide reliable customer support to tourists, which can ultimately give them an edge over the competition.

Magellan Solutions supports a wide range of call center services. Our small-business live answering service can be a good fit for hotel and hostel bookings, reservations, and other hospitality businesses.