Under the traditional “Management 1.0” model, the standard approach was to outsource the operation of vacation rentals, ryokans, and hotels to external management companies. This was largely due to the requirement that operations be entrusted to companies officially registered as vacation rental management providers.
However, under a fully outsourced model, even owners who would prefer to manage their properties themselves often find it difficult to do so. Language barriers, limited operational experience in Japan, concerns about providing support in English, and hesitation toward face-to-face interactions with international guests can all lead to a situation where they simply “do not know how to operate the business effectively.”
As a result, many property owners have relied on external management companies, paying substantial management fees of 15% to 20% of their revenue in exchange for outsourced operations.
But was this really the best solution? According to our research, more than 90% of vacation rental, ryokan, and hotel owners who outsource their operations to external management companies are dissatisfied with the current situation. At the same time, as the number of hotels continues to increase year by year, competition within the hospitality industry is becoming increasingly intense.
- Despite paying high management fees, the business is not achieving the results that were expected.
- Revenue is not growing—or is even declining.
- Operations are running at a loss.
These are some of the most common concerns we hear from property owners. In response, MOTO SMART has adopted a new operational approach: “Handle what you can yourself, and outsource only the tasks you cannot.” This model empowers owners to retain greater control while reducing unnecessary management costs.
For example,
- Guest Support (Message Responses)
- Supplies Management
- Cleaning Coordination
This model allows owners to use only the services they need, when they need them.
With this approach, owners no longer pay a flat management fee of 15%–20% of their revenue as they would under the traditional model. Instead, they gain clear visibility into where costs are incurred and how much is being spent on each service, significantly improving operational transparency. In fact, owners who have switched to Smart Management 2.0 have shared feedback such as:
- Management fees have been reduced to less than half of what they were before.
- Revenue has increased by more than 30%.
We have received many positive comments and success stories like these from our clients.
Furthermore, when owners become actively involved as part of the management process, the quality of the property improves, guest reviews become more favorable, and ultimately this leads to higher revenue and greater profitability.
Traditional outsourced management models often resemble a sublease structure, where the breakdown of management fees is not always transparent. In some cases, business performance may even decline after outsourcing. In addition, many property owners feel hesitant or concerned about switching to a different management company.
MOTO SMART is more than just a management company.
We work alongside property owners as part of the same team, actively participating in the operation and management of their properties,
We are a partner dedicated to maximizing the profitability of vacation rentals, ryokans, and hotels together with their owners.
Would you like to join us in shaping the future of hospitality operations?
