Thrifty Motels Pty Ltd was established by myself William (Bill) Black as Director and CEO of the Company in January 2002.
Why Did I Do This:
As a Business Broker and Motel Broker for many years prior to this, it quickly became apparent to me that many motels that I was trying to sell were not being operated in such a proficient manner that enabled the owners to be able to offer for sale an efficient and profitable business. This became much more apparent after 2006 and the beginning of the worldwide financial crisis – at this time many motels suffered badly from simply fewer customers walking in the door.
The Main Reasons For This Were:
- Through lack of training and/or prior experience, many motel owners did not have the business aptitude and training to rise to the occasion and efficiently operate a motel under tight circumstances to full profitable advantage – in other simple terms, many were not operating their motels as efficiently as they should have been.
- Many motel owners did not even appreciate the benefit of or have the basic
knowledge of how to turn a first time customer into a repeat customer.
- Likewise, many motel owners did not have sufficient exposure to the traveling public to ensure that they would get their fair share of first-time customers anyhow. It was not apparent to many, that it was no longer sufficient, just to turn a Motel Open light on at night and wait for customers to walk in the door.
- The easiest way to get customers without any effort is to rely completely on the online booking Agencies – which is what many were already doing – this is OK and is a necessary part of any motel’s marketing but then, of course, a certain percentage of monies received this way for accommodation has to be paid out in commission. Naturally, this reduces income and profits – so on the other hand, direct bookings, whether from first time or repeat customers is definitely the best way to go.
How to Achieve More Direct Bookings and the reasons Thrifty Motels Pty Ltd became involved.
1) It is a well know saying that there is “safety in numbers” – the same can be applied to motels under the term branding – ie a group of Motels gets together under a common name and the intention is quite simple and clear – 100 motels can have 100 times the exposure to the public as 1 motel has by itself. The Thrifty Motel Group was born!
2) The benefits were not only direct exposure – many travelers do not book ahead which opens the door for a chain motel member to suggest helping a traveler to book ahead to ensure accommodation is available for the travelers next over