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Toll Free: 1 800 371 6224 | US: +1 650 204 3191 | UK: +44 8082 803 175 | AU: +61 1800 247 724 | Philippine Local No: 63-2-83966000

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What is the Benefits of Outsourcing to Your In-House Employees
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10 Essential Services SMEs Don’t Have That BPOs Can Provide

Home | Blog | How a Small Hotel and Hostel Answering Service Wins Back Direct Bookings

How a Small Hotel and Hostel Answering Service Wins Back Direct Bookings

By Magellan Solutions

Updated on October 9, 2026

A guest is looking at your property on a comparison site and calls to ask whether the room has air conditioning. Nobody picks up — it’s 8pm, or the one person on shift is checking someone in. So they go back to the tab they came from and book there instead.

You get the booking either way. The difference is the commission.

For a small hotel or hostel, that’s the whole economics of the phone in one sentence. A missed call rarely means a lost guest. It usually means the same guest, booked through someone who takes a cut, on a rate you didn’t set.

The booking you lose to commission is one you already had

Comparison sites and travel agents are how most first-time visitors find a property they’ve never heard of, and for a small operator that’s genuinely useful. The problem isn’t that they exist. It’s that they collect on bookings that were already coming to you.

A traveller who has found your listing, read it, and picked up the phone has done all the choosing. At that point you aren’t paying for demand. You’re paying for the fact that nobody answered.

There’s a second cost that’s harder to see on a balance sheet. Intermediaries sit between you and the guest, so rates, amenities and policies get relayed second-hand. When a detail comes through wrong, the guest arrives expecting something you never offered — and you deal with that at the front desk, on arrival, with someone who is already unhappy before they’ve put their bag down.

What a small property needs from a phone line

A forty-room independent and a four-hundred-room group have the same phone and completely different problems. The group has a reservations department. The small property has a front desk that is also the concierge, the complaints desk, and the person carrying a bag upstairs.

So the requirement is narrow and specific.

Someone answers, every time. That includes 11pm, Sunday, and the twenty minutes when three arrivals turn up at once.

They can quote a rate and describe the room. They work from your own information — room types, what’s included, parking, pet and cancellation policy, how to find you — rather than a generic script.

They can take the booking, or capture it properly. Where you give access, agents work inside your reservation system and finish the booking on the call. Where you don’t, they take dates, party size, the rate discussed and contact details, and the enquiry reaches you complete.

They know when to stop. Anything that needs a decision — a discount beyond your threshold, a group with unusual requirements, a complaint — goes to you rather than to a guess.

That’s an answering service. It isn’t a reservations department, and a property this size doesn’t need one.

A hostel is a different operation

Hostels get bundled in with small hotels and then handed hotel advice, which doesn’t fit. The calls are different in kind.

Dorm beds and private rooms are two different conversations. “Do you have anything Friday” means one thing when the answer is a bed in a six-share and another when it’s a private twin. An agent working from your own inventory notes can answer both. One working from a hotel script answers neither.

Group bookings arrive by phone. School trips, sports teams, walking groups and film crews do not book through an app. The bookings with the highest value and the most questions are the ones that come down the phone, and they need someone who can talk through beds, dates and deposits without putting the caller on hold to go and check.

Arrivals are late and unpredictable. Backpackers land on night flights and overnight buses. The call asking how to get in at 1am is routine in a hostel and rare in a hotel, and it’s the call most likely to go unanswered.

Volume is high and value per call is low. Callers want dorm availability, check-in windows, luggage storage, whether there’s a kitchen, and how to find the entrance. None of it is hard, all of it interrupts whoever is on the desk, and it repeats all day.

Callers may not share your first language. Hostel guests are the most international travellers in accommodation, and the phone is where that shows up first — long before anyone reaches your door.

Answering the phone costs less than staffing it

Most small properties reach the same conclusion. The phone needs covering, and nobody can justify a hire to cover it.

You’re not paying for a night shift. You get overnight and weekend cover without recruiting, rostering, or paying premium hours for a shift that might handle six calls.

Capacity moves with the season. Volume swings hard in budget accommodation, and staffing for August means carrying people through February. Outsourced coverage scales in both directions.

You keep control of your rates. With a direct booking you can discount, bundle, or let a guest negotiate, at your own discretion — options an intermediary has no incentive to offer you, because it affects their commission.

Your desk gets its attention back. The guest in the lobby stops competing with the guest on the phone, because they’re no longer the same person’s problem.

When an answering service is enough, and when it isn’t

For most small hotels and hostels it’s enough. The calls are enquiries, bookings, arrival questions and after-hours cover, and a shared team briefed on your property handles all of it.

It stops being enough when the reservation line carries real volume and enough of it turns on judgment rather than instruction — rate plans, group contracts, upselling, a brand standard that has to hold call after call. At that point you want a team assigned to your property alone, trained through incubation on your rate plans and procedures, with supervisors behind it. That’s hotel contact center outsourcing, and most small properties reach it later, if at all.

Start with the calls you’re already missing

Your listing is doing its job. The phone is where the margin goes.

See what a shared answering team covers for a small property — which calls agents handle, what stays with your front desk, and what a quote is based on. Or call 1-800-371-6224 and describe your property.

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