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How to Run Your Motel or Small Accommodation Business? - 5 Valuable Tips



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Dylan here there are many ways to make

money of your New Zealand hotel while

you celebrate life I don't mean live

life but what I mean is celebrate life

having the time and the money to

celebrate life what I'm about to share

with you the next few tips which I'm

about to share with you

he's relevant to your New Zealand motel

to your pattern complex or your small

little hotel operation which you run so

listen very carefully I'm gonna share

five really important tips with you tip

1 do you know about the three-second

rule

now what I mean by the three-second rule

is that people make impressions about

yourself or you will tell you or your

business within the first 3 seconds you

do the same thing you're gonna guess

walks in and you would kind of make an

impression of that person within the

first 3 seconds and if that person

looked like a little party animal you

would say hey nobody's in the rooms in

the same manner your guests will make a

decision about your hotel about the

quality about the value of your property

within 3 seconds now think about it

where do your guests walk into they walk

into your reception or check-in area now

I'm not wrong here because I've seen

many many motels around the world I've

seen many many motels around the Newseum

but as an average we need to understand

that in New Zealand we don't care much

about the first impression no we don't

because when you walk into your hotel

reception of the check-in area it

doesn't give you that wow factor now

think about it like this what about the

New Zealand hotels a 4.5 star 4 star 5

star hotel you walk into you know you

have that impression you have that wow

factor the three-second rule works there

because it's all it looks luxurious it

looks clean it smells good it's got good

atmosphere it's got music etc etc now

there's no reason why you cannot do that

now I'll tell you why you should do that

because when the guest does not have a

first good first impression about your

Motel

you cannot add value to your motel oh

you can't even charge them a higher

price you can't sell them that little

extra service and make a commission of

it first impression the three-second

rule is really important so immediately

after this video I'm gonna ask you to

walk to your entrance of the motel or

hotel or apartment complex so go to your

driveway first and in your driveway and

see the impression you know when you

drive into a resort hotel in Fiji you

don't see dope you see flourish you see

inviting welcoming flowers etc etc so

how does your driveway look does it give

you that first impression if not do

something about it stand in front of

your reception as a guest not as a motel

yet not as a owner of apartment hotel

complex as a motel you stand in front of

your reception and have a look

is there clutter do you see all those

brochures scattered around can't you

find a little rack and kind of display

nicely those DVDs you don't need to

display them you're not a DVD rental

shop have a little catalog with a list

of the DVDs you have so that the guests

can choose the DVD and take you no you

don't have to have it on display doesn't

have to be in the front desk in your

Lobby what else do you have there holds

trophies are your vaults clean is it

full of notices all those things take

note of it now when you walk into a

five-star hotel lobby do you see notices

behind your reception no there

discreetly hidden beautifully noticed

and cobble the back of your reception

what can people see have you seen those

clutter and ugly paintings just behind

nice nice five-star hotel receptions

where you dump it is inviting it is

luxurious it is well coming now one of

the key challenges as I said again is

that our rooms are pretty good but men

when you look at the reception it's

really really not good

so you know give your reception clean

maybe of coat of paint it's not gonna

cost you that much give it some some

atmosphere give it some luxurious value

give it some inviting value if your

reception are nice

fragrance you're not the smell of rice

cooking in your little apartment of the

smell of a steak you know give it a

beautiful fragrance when somebody walks

in when you walk into your reception

think about touching the five senses

make sure the visual sense is beautiful

make sure that the Vols have that little

feeling little texture so that the

tactile sensation looks and feels

beautiful think of what you're hearing

you know make sure there's a little bit

of like music playing in the background

then think of the smell burn some

incense make it though coming please the

five senses so that you can create a

very good first impression three-second

rule remember that tip number two

fencing it's a term which we use in a

professional hospitality in a yield

management environment now we have this

issue where we need to depend a lot on

our teammates and they charge you 15%

Commission right it is an important

sector however you are supposed to have

rate parity right across the broad with

amongst the other OTAs and amongst your

little property where direct bookings

are welcome now what is the advantage of

direct bookings first of all that is you

don't have to pay 15% Commission now

remember you're paying 15% Commission on

the whole amount which includes GST I

know it's insane but that's the way it

is so what is fencing fencing is where

you come up with a certain package and

because of that fencing you don't have

to have rate parity now let me give you

an example if you sell you a motel room

with a breakfast basket so when I booked

your motel directly with you at the

reception you offer a free cooking

breakfast basket if you have said

catering facilities you get two eggs and

toast and etc etc but you don't offer

that with the OTAs now that is called

fencing fencing is that you have

structured something which is different

to what is in the ot8 in order to

promote direct bookings do something

called

and package something and don't offer it

to the OTS but sell it for you direct

bookings through your website now that

will save you 15% now if there's a

chance of saving that 15% plus

Commission let's say it adds up to $30

that's a reasonable amount of money a

day and if we had 10 rooms at $30 that's

$300 in your bottom line money in your

pocket not somebody else's pocket but

money in your pocket tip number three

let's say your apartment complex or your

motel complex has 25 rooms in total and

out of that 22 are leading or standard

rooms and three are sweets

now if you look at your statistics you

would notice that the three suites in

most cases it could be different in some

cases in most cases the three Suites has

the lowest occupancy but those 22

standard leading rooms has the highest

occupants if you look at it per room a

wealthy and luxurious traveler will

always take your suite a family of it's

a specifically designed suite they will

always take your suite that's a

different story but the average standard

traveler will always look at the leading

room so here's a secret I'm sharing

where big hotels do and this can be

implemented in your motel if you have

two different room types when you have

sold your 22 standard rooms don't say

that the standard rooms are sold out and

only the three suites are available what

I'm asking you to do is go to your

channel manager there's a few

modifications you can do and say that

look there's three more available as

standard rooms because then you attack

the psychology of your traveler but sell

them at top dollar I mean if you saw the

standard room at 120 dollars sell the

last three rooms at 250 dollars and when

your guest comes say even though you

bought a standard suite at $250 I have

upgraded you to this suite remember

always say that when you do this you are

making sure that you have 100% occupancy

and you are yielding of your highest

room

category you're making money instead of

not making money because if you really

look at it you know there is no

significant difference in cost of

cleaning that room and having it ready

for sale there is no significant

difference so instead of not making

money by using trick number three you

are making money tip number four in the

business of hospitality we are playing

with a lot of variables there's a lot of

moving parts you know there's a lot of

influences to your business for an

example if a road is closed then you

lose business so you need to have this

strategy called make hay while the Sun

shines

you need to capitalize on the concept

called supply and demand and you need to

capitalize on making money while you

have demand because there are days where

you will not have demand and there are

days which can be affected because of

our fragility so think about it a room

not sold yesterday cannot be sold today

for yesterday it's a perishable asset

you need to make sure that you sell your

rooms and you know build that revenue

even when the demand is low so you might

have to drop the price a wee bit this

would happen if you're in a resort motel

where you you know midweek is quite low

this would happen in a city motel this

will happen in a weekend if you don't

have any events or activities so think

about it you need to structure dynamic

rates now how do you find your minimum

possible room sales minimum cost per

room sale the easiest and the most

realistic technique is for you to take

your total expenses of the last year

take your total expenses of last year

and divide it by the number of rooms

sold now that will give you a cost per

room I'm not only talking about the

cleaning cost I'm talking about the

electricity and we're talking about your

take home because if you're selling a

room it's not only the cost of service

in the room or the sheets

it's your costume it's your structure

it's your overheads etc so take the

total cost of last year and divided by

the number of total rooms sold then you

will have a cost per room

so let's say it came to $90 $90 easier

average cost per room sale now as any

circumstance you should not set your

room below $90 because if so you lose

money you still can't sell it at $90

because you know why there is GST

there's the OTA Commission's because

most of those last minute you know

midweek rooms you can sell through OTAs

and you're at the credit card charges so

you have to add let's say another you

know 35% to it so $90 plus 35% so if

your minimum cost is $90 when you had

35% it'll become 121 dollars 50 so your

minimum room sale price if your cost is

$90 should be 120 150 unless you're

really really really tight on cash flow

you should not sell it below your

minimum cost of room sale so think about

it there's a leverage for you to drop

the price and fill up the rooms while

you still don't lose money there's a way

of building cash flow and what we call

revenue per available room tip number

five mind game you need to write down

your financial goals that is you need to

write down that you're gonna make say

seven thousand dollars this week you're

gonna make 25 thousand dollars this

month or two hundred and fifty thousand

dollars revenue this year and I'm gonna

take home $100,000 you need to write

these things down it is scientifically

proven that goals which are written down

has a higher chance of being realistic

so if you want your goals your financial

goals to be realized you need to write

them down you're in business for the

money isn't it you're not here for fun

you're not here for charity you here to

make money this is why you bought a

motel in the first place so focus on

your financial goals

now here's an additional tip take a book

and write down your daily weekly and

annual financial goals make sure you

write them down very very clearly every

morning when you wake up every morning

when you wake up within the first 10

minutes of your waking time while your

mind is very fresh look at that note

look at that book imagine and visualize

that you're gonna make $7,000 example

this week and that you're gonna take

home $125,000 that's net profit at the

end of this financially visualize it and

program the day I had program your mind

so that's every morning as soon as you

wake up within the first 10 minutes of

your wakeup time even before you look at

your phone and the messages while your

mind is fresh and once again before you

go to bed now these are proven

techniques before you go to bed

visualize and look at your financial

goals again imagine that amount of money

which you're gonna make this week

imagine the money you're gonna make this

month and this year I promise you that

this technique will help you achieve

your financial success because you are

getting focused to achieving financial

success money is attracted to the mind

so think about it I have loads more tips

in my program and I really introduce

that to you very shortly until then this

is Dylan saying goodbye remember to

watch the next video and we will share

more tips of how you can make more money

and have more freedom running in New

Zealand motel or an apartment complex

take care and we'll see you in the next

video