Deflagging your hotel: Is going independent the right decision for you?
🏨 According to STR, 70% of US hotel rooms belong to brands or chains. Deflagging, a growing trend, allows hotels to escape royalty fees of 4-6% of gross revenue, gaining financial and operational autonomy. Independent hotels leverage local experiences, which is important as 52% of Gen Z travelers prioritize unique experiences. Deflagging can lead to reclaimed revenue, such as saving $100,000 a year on a $2 million revenue with a 5% fee, and higher profit margins by eliminating franchise fees, flexible revenue management, and creating new revenue streams. Successful deflagging involves cost-benefit analysis, technology investments, direct booking strategies, brand identity redefinition, and robust marketing efforts.
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