Imagine this; you are carrying an extra slack on a hiking trip, which is slowing you down, what do you do? You cut it loose!
In a competitive field there is no room for carrying slack, be it an employee holding back the company from growth or even under performing properties or assets; there is no room for what slows you down.
Hotels are beginning to be less hesitant about cutting the cord from what is holding them back. This practice, known as de-flagging, can help hotels stay on track or achieve their full potential. De-flagging is the practice of hotel operators becoming independent of their big brand franchisers. This is fast becoming a common occurrence these days, whether it is on the accord of the hotel chain or the individual property. Certain hotels are leaving their flagship owners with hopes of becoming a successful independent property, while others are being swiftly kicked out the door by the big name chain to flounder on their own.
The most common reasons for de-flagging of hotels;
- The economic slowdown – Hotel groups may not be able to foot the bill for the operational expenses that they once did. Properties that do not want to make cut backs may want to explore options outside of present flagship.
- The desire for a more creative outlet – When under the umbrella of a major brand, properties need to adhere to specific standards and appearances. Those properties that do not want to be held back by stricter and specific rules, may want to make their own.
- Crunching numbers – Property management may realize that they could be doing better on their own, without depending upon brand labels.
- Going boutique – The boutique hotel market is attractive and lucrative. Properties that have the funds to make the switch, could fare well.
- The chain is losing reputation– If a property no longer wants to be associated with a particular brand or name-tag, they can de-flag themselves and transform into a brand new independent property.
When a hotel is de-flagged or de-flags itself, strong business practices and an organized front desk need to be revived and reinstated. If the property wants to land on its feet and start a new beginning, staying on top of the trends and quality of service is extremely important when trying to make a name for itself.
De-flagging of properties is a quick adaption to the needs of economy and management policies as well. Being de-flagged doesn’t imply doom for properties; a split from flagship has its advantages if the property is equally prepared for its new birth and independence. Hotelogix’s descriptive PMS, provides that much needed valuable edge, scalable credibility and vital tools to help head start another innings for de-flagged properties; both swiftly and efficiently.
