Guide

Hotel Revenue Marketing

The deflagging process: What happens from decision to go-live

The TL;DR

Deflagging isnโ€™t chaos by default. Hotels that plan early and treat it as a commercial transition regain controlโ€”and set themselves up for long-term independence.

Deflagging doesnโ€™t happen all at once. It unfolds in stages, each with its own risks, decisions, and deadlines.

And itโ€™s far from rare. Over the past three decades, CoStar reported that 19,400 properties deflagged to become independent, making this a well-traveled path in hospitality.

From the moment a brand is notified to the day systems are shut off and relaunched, every step matters. Some hotels navigate this transition smoothly. Others run into avoidable disruption not because they made the wrong decision, but because they underestimated what the process actually involves.

This page breaks down what to expect from decision to go-live, including timelines, responsibilities, and actions that need to happen before brand access is removed.


How long does it take a hotel to deflag?

Thereโ€™s no single, universal timeline for a hotel deflag. Like most complex hotel transitions, the answer depends on many factors, many of which are out of the hotelโ€™s control. 

In an ideal world, hotels would always have months to plan. In reality, many donโ€™t get that luxury, especially in forced deflag situations.

6+ months: The ideal planning window

This is the lowest-risk scenario. With six months or more, hotels have time to:

  • Research and select the right systems 
  • Rebuild distribution deliberately 
  • Design future-state workflows and technology with intention
  • Line up partners, train teams, and pressure-test systems before go-live

This window gives owners and operators the space to think beyond survival and toward long-term goals and performance.

3-6 months: Doable with experienced partners

This is a common voluntary deflagging window. At this stage:

  • Decisions need to be made quicker
  • External expertise helps prevent blind spots

 <3 months: Possible, but higher risk 

Shorter timelines usually mean the deflag is forced or accelerated. While it is possible to go live in weeks, the focus shifts dramatically:

  • Priority moves to staying operational on day one
  • System choices are driven by speed, not optimization
  • Gaps in revenue, visibility, and distribution are more likely

In these scenarios, experienced partners are often the difference between continuity and disruption.

I would say, 3 to 6 months is a good window [for deflagging], more towards the 6-month time frame.

– Jason Edwards, Director of Hospitality & Advisory Services at Premier Advisory Group

Short on time?

See how The Troubadour went independent in just 72 hours.


Who is responsible for the deflagging process?

In most cases, the decision to deflag is made at the ownership or asset-management level. The execution, however, usually lands much closer to the property.

More often than not, deflagging is handed to:

  • General managers 
  • Directors of operations 
  • Directors of revenue

The challenge? Most of these leaders have never managed a deflag before and are doing it on top of their full-time job.

Without a clearly defined project owner, deflagging quickly becomes fragmented. Critical tasks fall between teams and problems surface late, often when thereโ€™s little room to course-correct.

When ownership isnโ€™t clearly assigned, hotels are more likely to experience:

  • Missed dependencies between systems and vendors
  • Late or incomplete coordination with technology and distribution partners
  • Disruptions to bookings, visibility, and revenue

The people you have running the hotel have a day job to do, if you dump all this on them, you both lose service before and after you migrate.

โ€“Caryl Helsel, Founder & CEO at Dragonfly Strategists

A successful deflag requires active leadership, coordination across departments, and partnerships with experienced tech vendors and consultants.


The deflagging timeline

Deflagging isnโ€™t a single event but a sequence of phases, each with different risks and priorities. 

In this section, weโ€™ll walk through what happens from the moment you notify the brand through termination day, and the key considerations to keep in mind at each step.

Notifying the brand 

Notifying the brand is the point where deflagging becomes operationally real. Up until now, the decision may have lived at the ownership or board level. Once notice is issued, brand-controlled processes, timelines, and restrictions are set in motion.

Before submitting your termination notice, be sure to review your franchise agreement and take note of any notice periods, obligations, or penalties. 

Then, you can submit your termination notice, which should include:

  • Your intended termination date 
  • A request for a written acknowledgement by a specific date 

You must receive written acknowledgement from the brand confirming receipt and acceptance of your termination notice. This is what unlocks all downstream actions. 

The preparation window: Before access is removed 

Once you receive written acknowledgment from the brand, the clock is officially ticking.

This preparation window isnโ€™t about optimizing performance or reinventing your brand just yet. Itโ€™s about ensuring continuity. The goal is simple but critical: when brand access is removed, your hotel must still be able to operate, sell rooms, take payments, and serve guests without interruption.

This stage involves:

Securing core systems

The first priority during the preparation window is securing the systems required to run the hotel day-to-day.

For most branded hotels, technology decisions are made for you. Once you deflag, that constraint disappears, which is why early research matters. 

This is also where working with an experienced consultant can be valuable. With hundreds of tools on the market, identifying what you actually needโ€”and what you donโ€™tโ€”can save time, money, and future rework.

Core system considerations include:

Property management system (PMS) 

Your PMS is the operational backbone. During this phase, youโ€™ll select and set up your PMS, configuring basics like:

Staff training is just as important as system setupโ€”no matter how good the technology is, confusion at the front desk on day one will ripple through the guest experience.

Our PMS User Experience Report found that 52.2% of managers estimated that it takes about 4 months for new employees to feel confident using their PMS. This is significantly reduced when hotels choose a user-friendly system.

4+

months to feel confidence using PMS

Channel manager & central reservation system (CRS) 

Once your PMS is in place, distribution connectivity becomes the next critical layer.

Hotels need to ensure inventory and rates can flow accurately to OTAs and the GDS under their new independent identity. During this phase, teams should:

  • Select distribution tools (channel manager, CRS)
  • Configure OTA and GDS connectivity
  • Validate rate and inventory syncs
  • Confirm which connections require brand release before activation

Distribution delays are one of the most common pain points in deflagging. Even if the hotel is operational internally, a lack of connectivity means lost visibility and bookings.

A partner can help.

Weโ€™ve established close relationships with leading OTAs to get your connections expedited.

Website & booking engine 

When you leave a brand, you lose more than a logo; you lose a digital storefront.

Before termination, hotels should ensure they have:

  • A live website under independent branding
  • A functioning booking engine connected to their PMS
  • A tested booking flow from search to confirmation

Weโ€™ve walked into situations where the booking engine wasnโ€™t working, there was no connectivity to the OTAs, there was no centralized call center โ€” because they forgot they lost that support when the brand left. They were literally gridlocked with booking. Thatโ€™s a high-risk situation, and it happens more often than people expect.

โ€“Caryl Helsel, Founder & CEO at Dragonfly Strategists

Payment processing 

Payments are often underestimated during deflagging, but itโ€™s one of the easiest ways to disrupt operations if overlooked.

If a new processor is required, hotels should allow time to:

  • Sign contracts and complete underwriting
  • Order and receive payment terminals
  • Configure integrations with the PMS
  • Test transactions before go-live

Shipping delays, approvals, and configuration issues can easily take weeks

Termination day

Termination day is all about executing whatโ€™s been prepared and minimizing disruption for guests, staff, and revenue.

Ideally, the transition should feel almost uneventful from the outside. Guests should still be able to book, check in, and pay. Internally, teams should know which systems are live and which are no longer in use.

Key actions to complete on termination day include:

  • Closing inventory in the brandโ€™s system to prevent reservation crossover 
  • Settle outstanding invoices and financial obligations
  • Confirm the release of systems and listings
  • Go live across booking channels and confirm everything is functioning properly

A smooth termination day helps set the stage for the stabilization period that follows. 

Stabilization

The first 30 to 60 days after termination are typically the most challenging. Even with careful planning, some instability is normal.

The important thing to remember is that this phase is temporary. 

During this early stabilization period, priorities usually include:

  • Validating booking flows across all channels to ensure reservations are landing correctly
  • Monitoring rate and availability accuracy to avoid missed revenue or overbookings
  • Managing increased short-term reliance on OTAs while direct channels ramp up
  • Supporting staff confidence as new workflows become routine
  • Communicating clearly and proactively with guests to reduce uncertainty

Stabilization is where independence starts to feel real and where momentum begins to build.

On the next page of this guide, weโ€™ll go deeper into what happens after go-live, including how to drive bookings and rebuild revenue.


How Cloudbeds helps during the deflagging process

Our role โ€” alongside experienced deflagging consultants โ€” is to help hotels get through the hardest part and show you the magic of independence on the other side. 

While every deflag is different, transitions with Cloudbeds follow a familiar rhythm:

1. Stabilize the foundation

  • Define what success looks like post-deflag
  • Review existing workflows, room types, and pricing structures
  • Audit current tools: what stays, what goes, what needs replacing

Here, we want to understand how you want your property to operate. We can dream big here and create a plan to get you there over time. 

2. Configure & connect

  • Configure your PMS to match real operational workflows
  • Safely protect reservations and booking pipelines
  • Reconnect OTAs quickly (including Booking.com, Expedia, Airbnb)
  • Maintain flexibility with 400+ marketplace integrations

Weโ€™ve established close relationships with leading OTAs to get your connections expedited. 

3. Go live 

Post-termination, we are ready with:

4. Optimize and build forward

Once the pressure lifts, we help: 

  • Streamline workflows and reduce manual work
  • Introduce new processes like digital check-in and guest messaging
  • Rethink pricing and demand strategy
  • Start shaping a long-term direct booking strategy

Whatever you choose to do post go-live is up to you! We just provide the tools and support to make it happen.


A strategic reset

Deflagging is a moment of opportunity. While the transition comes with complexity, hotels that approach it intentionally often come out more in control and better aligned with their long-term goals.

A few important principles to keep in mind along the way:

  • Planning creates momentum โ€“ the earlier teams begin preparing, the more control they retain over timelines and decisions
  • This is a chance to rethink your commercial strategy โ€“ decide how you want to sell, market, and operate moving forward
  • Clear ownership drives confidence โ€“ when thereโ€™s a defined leader guiding the process, teams stay aligned
  • Short-term disruption is normal โ€“ a brief adjustment period doesnโ€™t mean something is wrong
  • Independence unlocks long-term upside โ€“ hotels that invest energy into the transition often gain more control over pricing, marketing, guest relationships, and the overall experience they deliver

With the right preparation and perspective, hotels can move through the transition with confidence and set the foundation for sustainable, independent growth.

You donโ€™t have to do it alone.

See how our deflagging experts can help you navigate this transition.

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