What do you need to know about OTAs’ commission rate?

Online Travel Agencies (OTAs) are now the new big thing in the property rental world. So you might be wondering, how does the OTA make money from listing and selling a property? The profit comes from commission rates. A commission rate is the percentage of the total booking cost that an online travel agent (OTA) charges for their services. This blog will teach you more about commission rates, and their ability to make sure OTAs transact smoothly with the hotel or property company. Commission Rates Overview The average commission rate for OTAs is in the 15%-20% range. While some companies, such as Booking.com, will charge a lower than average commission rate of 10%, others, such as Expedia, have a commission rate of up to a whopping 30%, and others, like Agoda, will charge the rate based on the location of your property, depending on which city or country your property is located in. To make a profit, OTAs take a percentage of the commission rate from the total price of the property being listed. Certain OTAs can also profit from amenities such as breakfast, wi-fi, room service, and parking. Can You Decrease Commission Rates? While it doesn’t happen as much currently, it is possible to decrease commission rates, usually by negotiating with your OTA service provider. OTAs typically have a higher commission rate not only on properties that are in high demand but also on properties that are difficult to sell. Commission rates can vary and are negotiable from the OTA provider to the hotelier/property manager. Always compare commission rates between various OTAs to find the one with the best quality and the most reasonable price.

Why do guests prefer to book your property on OTAs ?

It’s finally vacation time! Or is it time to go live in the great big city! This is the time to go list and rent out hotels, condos, etc. However, renting a place is always a hassle, so welcome to the world of Online Travel Agencies (OTAs)! OTAs will provide you with many benefits that will make your renting experience much more convenient, so without further ado, let’s talk about why guests would prefer booking your property on an OTA. Convenience and Less StressNo one wants renting property to be tedious, but that’s how it’s always been; before OTAs came along. Now, you can rent and/or book a place from the comfort of your own home, while all the booking will be done by the OTA service. The purpose of using an OTA is to make your transactions smooth and straightforward. More OutreachThere’s always ups and downs during certain times of year in which properties will get more or less customers than average. At the times when fewer people come, it may not be because they don’t need a property, but because they don’t know where to look or are not aware of your property. That’s where OTAs once again come into the picture. OTAs can also serve as a marketing tool to get your listing out there to a wider range of people. With your property being listed on an OTA, chances are that people who are loyal to the OTA will be more likely to discover your property, as well as mention your property to others. Safety and SecurityAt this point, if people are still against OTAs, it’s mainly because of safety and security. Using a new OTA in a foreign country may sound risky, but theres’ no need to worry, because OTAs like Spacianet, have an advanced team of members who work to ensure your safety and make sure your transaction is being transferred properly. Spacianet’s new OTA service will include all the aforementioned elements and many more. We will make sure both our local and foreign customers get the best experiences possible in Cambodia’s online travel agency world. 

How will multi-language customer service benefit your properties?

Communication is essential for providing the finest and best customer experience. Any business that invests in a multi-language customer service department or calls center reaps several immediate and long-term benefits especially for property owners to increase the engagement with staying guests. Let's look at some of the most important side effects of multi-language customer service. The customer experience begins when the guest discovers your property and ends when the customer has successfully stayed in your property. Hiring multi-language customer service representatives ensures that guests get the full customer experience and receive assistance in the language they prefer. ALLOW FOR RESERVATION EXPANSION You may host a wide range of people with a diversity of nationalities. If you don't have a multi-language call center, you can be missing out on guests that prefer to speak in a different language. GUEST EXPECTED THAT These services are already provided by most of the properties, therefore providing multi-language customer service support to your guests is becoming more and more expected. Simply providing the choice will make your listings appear more professional, and your guests will feel more at ease contacting for any service they may require. More reservations and better future relationships result from this level of ease. Our online customer service support at SpaciaNet is open to clients who require support at any time of the year. We have 5 different language representatives in our in-house support center to cater to all of our clients' needs.

How Can Property Owners Overcome Challenges With Management System

Many hosts make the mistake of expecting that simply listing their properties on OTAs will result in a rush of bookings. What they don’t realize is that without a PMS ( property management system) or a channel manager, you wind up not just wasting money but also wasting a lot of manpower on a work that could simply be automated.

Cambodia Hotels : To OTAs or Not OTAs?

Online travel agencies are becoming more prevalent in the travel industry. They are one of the most important distribution channels for hotels to market and sell rooms through the night. Yet, there are still some questions that hotel owners in Cambodia are still concerned with. We are hearing a variety of perspectives from hosts about why they are not using OTAs: The process is very complicated and the system is hard to understand I do not have time to manage the listings on those platforms I have a language barrier to host foreign clients I received bad reviews because there is no supporting team in any emergency case However, OTAs can provide a simple and convenient way for hotels to increase bookings during the slow season especially if your hotel is targeting international travel. In this matter, Hotels in Cambodia should host their property on any well-known OTAs worldwide in order to increase their revenue and credibility. To solve the common problems that most of the hosts had encountered, we would introduce hosts to using property management companies or listing management services. The advantage is that they have deep integration with a variety of OTA's means that you can turn on your properties, and your pictures, rates, and calendars will be automatically updated on these sites. Furthermore, they specialize in providing customer support for foreigners as they are supporting mail response and call pick up 24 hours a day in a variety choice of languages. To make it easy for guest communication and maximize hosts' revenue with a highly robust and customizable management system. SpaciaNet is the service provider for this support with the case study of experiencing supporting hosts in Japan for more than 5 years and had brought this service to properties and hosts in Cambodia aiming to develop the PropTech conception in Cambodia.

Get To Know Our Guiding Principles

Anytime we start working, we keep staring at the wall in our office so we can see our guiding principles which teach us how to act among our team members and to our clients and guests. 1. I’m one of the customers. Every time we talk with the customers, we need to put ourselves in their shoes so we can understand how much information you should give them about our service/product also the frustration, disappointment that they faced. 2. Keep learning, keep growing Learning is a never ending journey. There's always something to learn, new skills, new innovative methods to perform in your daily tasks. You could free some of your time to learn new skill set. Doing so is not only for the company's gain but also for yourself. 3. Deliver more value than price 4. Together we can do more If you want to go fast, go alone but if you want to go far, go as a team. We should never underestimate your teammate's abilities. To succeed together, we should help each other and move in unison. 5. Work hard first, then work smart Before you can work smart, you have to work hard in 100 ways to figure out 1 smart way. You can't just sit and try to find a way to work smart in your new tasks. 6. Quantity first, then quality You can not do anything perfectly for the first time.  You have to keep doing it everyday and do it as much as you could at the same time find a way to update it step by step. 7. Think relatively You have to think relatively to all the case. When doing our work we always ask ourselves what is the best question to ask in order to complete our tasks effectively.

Why should you list your property on OTA websites?

As a property owner, being able to find guests and maximize your revenue are a few of your business goals. There are so many ways you can accomplish all of those. For instance, you can invest a lot of budget into advertising your listings or even hired a real estate agent to assist you in finding tenants. Another great way to accomplish your goals is to list them on OTA (Online Travel Agency) websites such as Airbnb, Agoda, Booking.com, or Expedia. Why should property owners consider listing their property on OTA websites? Here are some advantages of using OTA websites. Working with OTA channels help you to expand your property globally and increase online bookings. When you have your properties listed on OTA websites both local and international guests can make reservations for your apartments or houses. Moreover, it also helps to advertise your properties in order to attract more guests. Have you ever faced risks like having a difficult time collecting accommodation fees from guests? If the guests break your amenities within your properties, how do they compensate for the damages if you were to host by yourself? You do not have to worry about these challenges once you start using OTA websites because they have policies that help to minimize the risks for property owners. For example, on OTAs there is a pre-paid payment method, which hosts do not have to worry about their payments nor have to collect it directly from guests. You can control your availability well by controlling the advanced reservation for the available date. They can greatly reduce the risk of double booking on the same day. Using OTAs can help you with setting a reasonable price for both the guests and the hosts. They always come up with brilliant ideas of how and when you should change the price of listing or idea of discount so you could have a smart and competitive price. Working together with OTA websites can be beneficial in helping to increase your brand awareness and optimized your search results. In order to optimize your OTA listing, as a host you need to make sure you have photos of your property in order to increase users visual experiences and include complete descriptions and amenity lists. Remember your goals are too maximize your online bookings globally and give the best accommodation experience to your guests.

5 Essential Real Estate Terms You Should Know

Are you a property owner, a manager, or someone who is interested in real estate business? In order to understand the concept of real estate, you have to understand the basic key terms that are relevant to this field. Let's learn about 5 essential terms that everyone should understand the concept behind these terms. 1. A real estate agent is someone who works for sellers, buyers, or both during a real estate transactions. 2. Interest is the cost of borrowing money. 3. Renting is an agreement where payments will be made for using goods and services temporarily by another user. 4. Investment is the action or process of investing money for profit. 5. Listing is the property that is put up for sale for others to see. These are not the only terms you can learn. There are so many other words that are relevant to the key of real estate.  By understanding their definitions, you will eventually pave your paths into the world of real estate. Contact us to consult now: ☎️ [Cellcard] 077 609 168 (English & Khmer) ☎️ [Smart] 096 988 5941 (Chinese)

House Flipping

Buy Cheap . Change Quick . Gain Profit New buildings are rising every day as we speak, real estate has become one of the key growing aspects in the Phnom Penh cities. But did you know that there is another alternative way to gain profit in real estate besides investing in a newly listed property? What is it?House flipping is a concept where we’re investing in a property that is most likely outdated at an affordable price, then renovating it to sell it back at a higher price. Basically, it means you buy a house to resell it back higher than when you purchased it. Any type of property can be flipped, from older houses that have been leftover on the market, outdated or unattractive to the current trend of the property. However, you need to be mindful before considering it since the price alone won’t make it a great investment.  Why should you consider it?It is an alternative way to invest your money. The majority of people hesitate to invest their money in stock because it is not tangible. Since the property is a tangible asset, it is less risky for beginners to start with. Besides that, the return of investment for house flipping is the potential profit you should consider. If you did it right, it is possible to start a business in that department.MisconceptionWhen we hear about gaining profit through reselling, some people might believe it to be easy money. Consider the house alone, it won’t guarantee you the revenue that you want. We need to consider the location, condition of the house, amenities, and surrounding areas of the property. Besides, one of the key factors you need to consider is the renovation budget. For example, you might buy a house for $50,000 and plan to sell it back double the price. What if the renovation cost more than you expected, like around $45,000, you won't be able to receive as many benefits as you expected. There are countless responsibilities you need to handle and if you get carried away and do not plan an exact plan for it, you could end up destroying the opportunities. It is best to have a professional person to guide you or be in your team, like a contractor or home inspector to help. ConclusionHouse flip is one of the best ways to gain profit, however, you need to be mindful about it. Lastly, house flip is not all about new owners seeking outdated property. It can also be any property of yours that needs renovation or need improvement. Our company also helps leaseholders to renovate their property in order to gain more profit in their rental. Consult us now for more information Contact us

Different Types of Office Space

Just because the space is called the office, doesn’t make it all the same- that is why a general classification system is used to categorize them by the facilities of the building and offering of the space which based on evaluation regard ages, amenities, and general infrastructure. There are three specific classifications for an office space. GRADE A OFFICE In the market, office A is the best quality office space. Generally speaking, it is classified as office-grade A because it is newly constructed and has been filled with top-of-the-line features, amenities, and technological structure. It commands the highest rent because the premier space is super competitive. This office type is mostly attracted among high-profile, formal professional companies, such as law firms or is financial companies. Office grade A is mainly located in a core central business district (CBD).  The office also has a green certification which shows the office operates in a more sustainable compare to other types of office. Grade A office usually has a large space with a minimum floor-late of 1,000SQM and about 2.7m height between floor and ceiling. Moreover, the amenities of this typical building are a large central lobby, a space structure with a high ceiling, and high quality of security and safety such as emergency backup power, fire safety system with strict international code. GRADE B OFFICE  Class B is still a decent space with less high-quality features, design details than the class A office, but it is still a nice office with fully functional facilities. It is usually an average to above-average rent in the market. The office is mostly located in the suburbs or on the edge of a large financial district. To make it even easy to understand is that office Grade B is usually is a building that is slightly older than a class A building with some deterioration. Based on the classification, this office type is usually a space that is a minimum floor-late of 500SQM with a height of 2.5m from floor to ceiling. there is also a good compliance building standard with a bit outdated compare to office A. GRADE C OFFICE This type of office space is usually downgraded from Office grade B, where there are modern facilities which offices unable to be upgraded. This type of office is located in slightly less desirable areas of cities, with rent that is usually set below the market price. They tend to attract small, start-up businesses that cannot afford nicer spaces or that do not need their office to be located in centralized areas. It helps the business to focus on the growth of their financial resources while operating in minimal amenities and roof over it. Moreover, office-grade C is usually small with any set of size from 10SQM, with a bare to solid ceiling with limited Security. The class of the office is of course not an exact science, there's different into it as we all live in a developing world which thing is constantly changing, from the real estate market to the upgrade of the amenities by the building. Something to bear in mind is that the office Grade A today might not be it in the future. Interested in finding the perfect office space for your business, SpaciaNet offer different type office for you to lease Contact us to consult now: [Cellcard] 077 55 84 93 ( English & ភាសាខ្មែរ ) [Smart] 096 988 59 41 (中文)