Motel 101: What You Should Know Before Entering This Industry


MotelMotels are lodging places that are relatively more affordable than hotels. They are usually for travelers or backpackers looking for places to stay for just a night or two. While hotels are about classy interiors, motels are more about simplicity and affordability.

Motel Industry in Australia

The motel industry in Australia is one of the industries that experienced the effects of the global financial crisis that happened in 2012. The number of tourists visiting the country went down and the preference for motel rooms decreased as well.

Due to the slow growth of the business, motel owners had to think of several ways to keep up and stay alive in the industry – and one of these is the competition in prices. Motel owners, out of desperation and due to the fact that the number of tourists is decreasing, are choosing to lower their rates than usual. They’d rather offer lower rates to have customers than not to have any customers at all.

Motels as Businesses

Though there has been a significant decline in the industry back in 2012, a positive forecast on the world of motel businesses has been made – it’s expected to grow at least 1.6% in 2014-2015.

Now, if the businessman inside you has been triggered with this positive statistics and is now envisioning yourself starting and buying a motel, says there are some things that you might want to consider.

You always start by answering the questions, “Why would I want to have a motel business?” and “What will my motel have that other motels don’t?”

Remember, that the motel industry is still in its recovery phase. Do not be too complacent and just start your motel business without a good plan.

If you are really keen to start and eventually succeed in this industry, before buying a motel, always have a weapon loaded with new and brilliant ideas that you can use against the Goliaths of the motel industry.