Let’s be honest—big hotel chains have deep pockets, loyal guests, and teams dedicated to marketing, pricing, and operations. Independent hotels, on the other hand, often operate without the same resources, infrastructure, or corporate playbook that chains have perfected over decades.
But independent hotels don’t need to play the same game to win. What they lack in budget or experience, they can make up for with smart, strategic decisions. And when done right, independent hotels can outperform big brands on guest experience, authenticity, and local charm.
So, how do you compete against these industry giants? Let’s break it down.
Play to your strengths: Personalization & local experience
Big hotel chains are all about consistency, but that often means they lack a little something special. Independent hotels, on the other hand, can really stand out by offering personalized experiences.
Guests today want more than just a place to stay—they want memorable experiences. Unlike chains, you can personalize their stay by remembering their favorite room, wine, or pillow type. Greeting them by name and offering custom itineraries based on their interests makes a huge difference, too. This is where a guest folio feature in the PMS comes in handy. It allows you to track and store guest preferences, making it easy to recall their favorite amenities and ensure each stay feels tailored to them.
Plus, independent hotels have the opportunity to highlight local culture in ways chains can’t. Think local art, food, and traditions that give guests an authentic experience. By partnering with nearby businesses and offering exclusive perks, you can create a stay that feels completely unique—something guests can’t find anywhere else.
After all, if they wanted the same experience everywhere, they’d book a Marriott. Instead, give them something unforgettable and personal.
Smarter revenue management: Make every dollar count
Chains have whole teams dedicated to fine-tuning pricing, but independent hotels don’t have that luxury, so they’ve got to be smarter with their revenue strategies.
You don’t need a big corporate office to make the most of your data—you just need the right tools. Using dynamic pricing software can help you adjust rates based on demand, while tracking occupancy trends, local events, and competitor prices weekly gives you a clearer picture. Don’t rely on gut feelings—use real-time insights to make pricing decisions. When it comes to direct bookings, independents can really shine.
While chains rely heavily on OTAs, you can reduce your dependence with a strong direct booking strategy. Offering perks like free upgrades or early check-ins for direct bookers makes a big difference, and making your website’s booking process quicker and easier than an OTA can help too.
Engaging past guests with email marketing and retargeting ads can bring them back for another stay. After all, every percentage point you shift from OTAs to direct bookings saves you thousands in commissions.
Market smarter, not harder
Independent hotels often face a challenge when it comes to marketing—they don’t have the huge ad budgets that big chains can throw around. But the good news? You don’t need a massive budget to make a big impact. The key is focusing on high-impact, cost-effective strategies.
One way to do this is by leveraging social proof—encourage guest reviews on Google and TripAdvisor to drive direct bookings, and share user-generated content from guests on your social media to build trust. Running a photo contest or giveaway is another great way to boost engagement.
For SEO, make sure your Google My Business profile is fully optimized with quality photos, updated hours, and keyword-rich descriptions. Also, consider creating blog content like “Best things to do in [Your City]” to attract more travelers.
When it comes to digital ads, don’t waste money on broad campaigns. Instead, retarget website visitors and past guests, or run highly targeted ads on Facebook and Instagram for people actively searching for hotels in your area. Google Ads for searches like “hotel near me” or “best boutique hotel in [Your City]” can also bring in quality leads.
Many independent hotels think they need big budgets to market effectively, but they really just need to market smarter.
Invest in technology: It’s your secret weapon
While big chains rely on custom-built technology, independent hotels can now use affordable, cloud-based solutions that level the playing field like RoomRaccoon.
A Powerful PMS (Property Management System) should do more than just manage reservations. It should automate tasks, keep track of guest preferences, and seamlessly integrate with other essential tools.
Contactless Check-In & Mobile Keyscan set you apart by providing a seamless arrival experience. With more guests expecting hassle-free check-ins, offering mobile check-in and digital room keys meets these demands and enhances their stay.
Automated Upselling Tools can suggest room upgrades, dining experiences, or late checkouts to boost revenue without extra work.
Pro Tip: The right tech stack isn’t an expense—it’s an investment that saves time, increases revenue, and improves the guest experience.
Build Guest Loyalty Without a Corporate Rewards Program
While big chains have massive loyalty programs, independent hotels can build guest loyalty in a much more personal way. Start by creating a simple VIP program—offer returning guests discounts, room upgrades, and free perks without complicating things with a points system.
Keep it straightforward and give them a reason to book directly with you, rather than through OTAs. Direct email marketing is another powerful tool. Send personalized thank-you notes after their stay, along with an exclusive offer for their next booking.
You can also offer past guests early access to holiday promotions and special packages. Engaging on social media is just as important—respond personally to guest comments and reviews and feature returning guests in social media spotlights.
The more personal the connection, the more likely guests will return—and book directly with you.
The bottom line: Independents can win—with the right strategy
Big chains may have more resources, but they don’t have a monopoly on guest experience. Independent hotels can not only compete but also outshine the big guys by being more personalized and offering unique and memorable stays that chains just can’t match.
They can be more strategic by using data, smart pricing, and high-ROI marketing to make every move count. And they can be more tech-savvy by using affordable tools that automate and optimize their operations. The biggest mistake independents make? Believing they can’t compete.
With the right strategy, the right technology, and a focus on guest experience, independent hotels can thrive—even in a market dominated by giants.
About RoomRaccoon
RoomRaccoon is an innovative all-in-one Hotel Management System that provides hoteliers with all the tools they need to manage their property at the click of a button. Designed by hoteliers, the cloud-based system comes with a host of exciting native tools that work together seamlessly to unlock new ways to generate revenue, streamline property operations, and enhance the guest experience. And with its extensive marketplace, hotels can easily integrate with their favourite tools and applications. In 2020 and 2021, RoomRaccoon was awarded as the All-in-One Best Hotel Management System in the World at the HotelTechAwards. For more information visit: https://roomraccoon.us/.
Lindsay KrauseDigital PR & Outreach ManagerRoomRaccoon
