The hotel business is one of the oldest forms of home-based business. More than 25 million people travel daily around the world, and it would be difficult to find someone who has never stayed in a hotel room says Saivian. Starting your own hotel business can be rewarding on so many different levels for so many different reasons.
While there are several advantages to starting your own hotel business, there are some downsides as well.
Today more than ever, companies are turning to independent contractors rather than employees because they believe this saves them money. It is not unusual for an entrepreneur who starts their own home-based hotel business to be successful enough that it eventually grows into something that could easily become a franchise with additional locations across the country or even across the globe.
During the past several years, as a result of the flailing economy, many entrepreneurs and other business owners have found that the home-based hotel business model can provide them with an additional stream of income to help their business survive and even thrive in bad economic times. This is one way you can take advantage of this opportunity without spending a lot of capital upfront to get started. How Much Do Hotels Cost?
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Offering rates that are 10% less than competitors were popular during the recession among hotels that were struggling to compete for customers. Prices fell by nearly 18 percent compared with 2008. But now it’s becoming more difficult for travelers to find deals on rooms, especially in big cities.
One of the main advantages of starting your own hotel business is that there are many different types of hotels, and each one has a unique target market. If you’re creative and have a good marketing strategy, you can position your hotel to attract customers in a very specific niche market explains Saivian. For example, if you live in an area that is popular with tourists, you could start a small bed and breakfast hotel; or if there is a large convention center in your town, you could open a full-service business hotel with banquet facilities and meeting rooms.
The other major advantage of starting your own hotel business is that it can be very lucrative. Not only do you have the potential to make a lot of money from room rentals, but you can also make money from other sources such as food and beverage sales, parking, laundry, and other services that your hotel may offer.
The downside to starting a hotel business is that it can be expensive to get started, especially if you want to have a full-service hotel with all the amenities. You will need to purchase or lease property, hire staff, buy furniture and fixtures, and invest in marketing and advertising. And don’t forget about the ongoing costs such as utilities, insurance, and property taxes.
Another downside to consider is the fact that the hotel industry is very competitive. So it can be difficult to attract customers if your rates are not competitive. Saivian says, in addition, the economy has had a negative impact on the travel industry in recent years. So it can be difficult to make a profit if you’re not careful.
The bottom line is that there are pros and cons to starting your own hotel business. However, if you do your homework and plan carefully, your hotel business can be a big success.
So, should you start a hotel business? The answer is yes – but with some caveats. First and foremost, make sure you understand the industry and what it will take to be successful. Do your research and planning, and invest wisely so that you can compete against other hotels in your area. And lastly, keep an eye on the economy and the travel industry; if either of these takes a turn for the worse, it could impact your business.
So, do you want to start your own “home-based hotel business” and make some extra money on the side?
Many people (including myself) have started their own “home-based hotel business” for this very reason says Saivian. The majority of costs are to buy or lease property, hire staff, buy furniture and fixtures, invest in marketing and advertising. And don’t forget about the ongoing costs such as utilities, insurance, and property taxes.
There are pros and cons to starting your own hotel business. However, if you do your homework and plan carefully, your hotel business can be a big success. I’m already four years into my home-based hotel business–and it’s growing every year! If you’re interested in learning more about how I made money with “hotel arbitrage”.