Every Dollar Counts: The Real Meaning of Hotelier Profitability
Running a hotel is running a family business. For most of us, every decision we make affects our families, our employees, and the community around us. The margins we protect today fund our children’s education, pay our staff, and keep our doors open through tough seasons.
The Hidden Cost of Convenience
Online travel agencies (OTAs) make booking easy, but that convenience comes at a price. As we know, for most hotels, commissions run between 15-30% per reservation. On a $200 booking, that’s $30–$60 gone before a guest checks in.
OTAs have their place — they fill rooms, especially during slow weeks — but they shouldn’t control your business.
I’ve always encouraged owners to balance their channels:
Invest in your own website and local SEO so guests can find and book directly.
Reward direct bookings with small perks: flexible check-in, free upgrades, or loyalty points.
Train your team to convert OTA guests into repeat direct customers.
That simple shift can add tens of thousands of dollars back into your bottom line each year.
Vendor Transparency Builds Real Savings
In my early years as an operator, I accepted the vendor list that came with the brand. I didn’t question prices or rebates. Over time, I realized those “mandated” programs sometimes hid markups or unnecessary middlemen.
Today, I tell every owner: know where your dollars go. Ask vendors for itemized quotes. Compare costs outside the system. Push for transparent rebate disclosures. It’s your right to know what your money funds.
AAHOA’s strength lies in scale. When owners share cost data and negotiate collectively, we create leverage. Bulk buying and verified vendor partnerships can lower prices by 10 to 20%.
Transparency builds collaboration and keeps everyone honest.
Small Operational Choices Add Up
Profitability also comes from how we run our buildings day to day. In one property I renovated, simply switching to LED lighting and smart thermostats reduced utility costs by over 25%.
Energy efficiency upgrades pay for themselves faster than most realize. Regular preventive maintenance (HVAC filters, insulation checks, low-flow fixtures) saves money month after month.
Even staffing efficiency makes a difference. Cross-train employees so they can handle multiple tasks during slower seasons. A well-trained, flexible team not only saves on labor costs but also improves guest satisfaction and retention.
Profitability Is Partnership
True profitability takes everyone, owners, vendors, franchisors, and associations, working together toward the same goal: stronger, more resilient hotels.
When owners have clear information, fair contracts, and access to education, the whole system improves. Every dollar saved strengthens our ability to serve guests, pay fair wages, and reinvest in our communities.
Profit is the foundation of opportunity.
Let’s keep sharing what works, teaching one another, and standing for transparency and fairness across the industry. Because when every owner protects every dollar, the entire hospitality community grows stronger, together.
