Business Idea

Start A Hotel Consulting Business

About

Starting a hotel consulting business requires a great deal of effort, dedication, and most importantly passion.

If you're interested in how to sell hotel consulting, or selling hotel consulting online, you can use this page as a guide for everything you'll need to know.

Want to learn more? You can check out our full guide on how to start a hotel consulting business ➜

Key stats

market size
$343B
revenue (monthly)
$500K
starting costs
$28.4K
gross margin
30%
avg product price
$105
time to build
18 months
growth
Press
business model
Brick & Mortar
time investment
Full time
work from home?
Yes

About

Starting a hotel consulting business requires a great deal of effort, dedication, and most importantly passion.

If you're interested in how to sell hotel consulting, or selling hotel consulting online, you can use this page as a guide for everything you'll need to know.

Want to learn more? You can check out our full guide on how to start a hotel consulting business ➜

Key stats

market size
$343B
revenue (monthly)
$500K
starting costs
$28.4K
gross margin
30%
avg product price
$105

 

time to build
18 months
growth
Press
business model
Brick & Mortar
time investment
Full time
work from home?
Yes

Startup Costs

Min Startup Costs Max Startup Costs
Office Space Expenses $750 $7,000
Employee & Freelancer Expenses $151 $352
Equipment & Supply Expenses $500 $5,000
Website Costs $303 $7,215
Business Formation Fees $5,600 $20,400
Software Expenses $162 $3,094
Advertising & Marketing Costs $75 $5,536
Other Expenses $0 $500
Total Startup Costs $7,541 $49,097

Successful Businesses

Business URL Rank
Marriott marriott.com #1,168
Hyatt hyatt.com #5,762
Trip.com trip.com #6,443
Four Seasons Hotels and Resorts fourseasons.com #13,816
The Ritz-Carlton ritzcarlton.com #14,835
Choice Hotels choicehotels.com #23,259
Lotte Hotel Rewards lottehotel.com #31,779
Shangri-La International Hotel Management Ltd. shangri-la.com #37,294
Reservations.com reservations.com #38,839
Taj Hotels: Luxury Hotels & Resorts in India tajhotels.com #41,166
ایران هتل رزرو آنلاین تمامی هتل های ایران با گارانتی بهترین قیمت iranhotelonline.com #41,883

Pros & Cons

Pros Description
Flexibility You can put as much time into the business as you'd like. If you like the work and have some initial experience, you can start small and manage all aspects of the business on your own.
Meaningful business connections You never know who you will meet as a hotel consulting business. This could be the start of an incredible business opportunity!
High customer retention rates Once a customer invests in your product, they've invested their time and energy to utilize your product/service which is highly valuable to them. Typically, your product or service becomes indispensable to your customer.
Pick & choose the clients you work with Hotel Consulting Businesses have the ability to choose the clients they work with. You have the freedom to work with only a few loyal clients or with hundreds of clients!
Control of workload With starting a hotel consulting business, you have the unique ability to choose how little or how much you want to work. You also have the freedom to decide which projects you want to work on, and can turn down the ones that do not interest you.
Unlimited income potential With starting a hotel consulting business there is no cap as to how much income you can make. The stronger your business skills and the more energy/time you put into your career, the more you'll make.
Cons Description
Longer Sales Process A hotel consulting business can be a big time and money investment for your customer, so it's important you plan and predict a longer conversion funnel and stay in communication with potential customers.
Taxes As a hotel consulting business, you typically pay self-employment taxes which can be quite high. It's important to understand what you will be paying in taxes each year so you can determine if the work you're taking on is worth it.
Stressful work This line of work can be stressful for both you and your clients. This type of transaction is a significant financial decision for your client, so expectations are very high for you. Although this career path can be very rewarding, it also comes with its challenges and stressful moments.
Churn In this business, customers can cancel their membership or subscription for your services - which can make revenue forecasting challenging and unpredictable. It's important to focus on your churn rates and trends so that you can prevent this as much as possible.
Time commitment With starting a hotel consulting business, all responsibilities and decisions are in your hands. Although this is not necessarily a negative thing, work life can take over at times. This can place a strain on friends and family and add to the pressure of launching a new business.
Impatient customers You may offer an engaging user experience for your customer, but customers expect a lot and may be impatient if they aren't pleased with your product or service.

Marketing Ideas

  • 1

    Affiliate Program

    Affiliate marketing is a great way to bring in a new revenue stream, especially when you don't sell products or services.

    Simply put, an affiliate program is an agreement where a business pays another business or influencer ("the affiliate") a commission for sending traffic and/or sales their way.

    The affiliate typically gets a unique link where clicks and conversions can be tracked.

  • 2

    Direct Sales

    Direct sales strategy implies a direct contact between a seller and a consumer without the involvement of any third party. Direct selling is popular in sectors where sellers communicate with their clientele personally. The sales technique occurs at non-store locations which include at home, work, or online.

    For direct selling to succeed, hire a few (or many) salespeople to support the sales conversion process. It's critical that you assign them specific roles and responsibilities to nurture the client and provide excellent support.

  • 3

    Word of mouth

    Word of mouth is when a consumers reflects their interest in a company’s product or service in their daily dialogues.

    Therefore, word of mouth advertising is essentially a free advertising triggered by the customers experience.

    According to Nielsen, 92% of people trust recommendations from friends and family.

    Therefore, in today’s hyper-connected world, a single recommendation through a word of mouth can have a huge impact to your business.