Tourists rely on comparison sites and travel agents to make sure that they have safe and comfortable lodgings when they travel. This is especially true for tourists who are visiting the locale for the first time, and therefore don’t know what their options are. Travelers who are particular about the quality of their accommodations, as well as those who are concerned with their safety, also rely on middlemen because they don’t want to take risks.
The problem is that hotel and hostel owners sacrifice a profit margin whenever middlemen are involved for bookings and reservations. Comparison sites and travel agents advertise accommodation rates for a commission.
There are also complications that arise from the involvement of middlemen. The more unscrupulous ones, for instance, might provide inaccurate information to tourists for the sake of getting a commission. This could lead to misunderstandings and unmet expectations.
Outsourcing small hotel and hostel answering service can do away with third party agents and travel agents. It’s the same as hiring out a contact center for the specific tasks of handling customer calls, managing bookings, providing information about rooms or the immediate area, and clarifying 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 give middlemen commission on a regular basis. This takes away from their earnings, especially if their room rates are already low to begin with.
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, helping them expand profit margins.
2. Communicate with customers directly
Small hotels and hostels will have the opportunity to coordinate directly with customers, hence minimizing the chances of a misunderstanding or misrepresentation of their amenities. It also helps these hotels and hostels build relationships with their customers as early as the booking phase.
3. Offer discounts and packages
Middlemen don’t have the incentive to offer discounts or low rates to tourists because it can affect their commission. This means that tourists aren’t necessarily getting the best deal possible by going 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 to a contact center that they deal with directly. This makes it easier for them to keep track of the volume of queries and bookings they receive at certain points of the year.
Outsourcing small hotel and hostel answering service can help small businesses make the most out of their limited resources and grow their profit margins. It helps them cut back on costs by not having to offer commission to third party agents. It also puts them in the position to offer 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 and reservations and other hospitality businesses.
photo from Booking.com