Showing posts with label brand. Show all posts
Showing posts with label brand. Show all posts

Sunday, November 23, 2014

Fitting the pieces together a boutique hotel cocept


Fitting the pieces together a boutique hotel cocept
For several years, 'hotel concept' has been the buzzword among boutique hotel owners and operators looking to differentiate their property. Often misinterpreted as a purely aesthetic notion, a 'hotel concept' actually means much more: its strength lies in piecing together many disparate elements to create a coherent and compelling picture. Whether you are in charge of developing or refurbishing a property, here are five points that you should seriously take into account to create a unique boutique hotel concept.

#1 Segment your customers according to their behaviour
Demographics and purpose of travel are no longer accurate means to segment customers as the line between work and leisure is getting thinner every day.

Instead, guests should be grouped according to their behaviour. You should ask such questions as: which customers stay in this hotel mainly because of its convenient location? Which customers require a business centre? Which customers want in-house evening dining options? By focusing on what drives your customers rather than on simple demographics, you will be able to develop a more coherent concept that avoids stereotyping. Forget about the traditional all-day dining restaurant for hotel guests.

When it comes to targeting the local market, don't see it as a homogeneous group. Your local market is made up of myriad individuals with different habits, behaviours, and purchasing power.

#2 Identify your protectable assets
To stand out, a good concept should be based on tangible attributes that are specific to the hotel. These attributes should be authentic and coherent with the pedigree of the project. The landscape, the history, the location, the building itself, the unique mix of customers and your own specific know-how are all attributes that can serve as the basis of a strong concept. Ideally, several attributes can combine to create a concept that is truly differentiated.

It is important to assess whether these attributes are relevant to the entire hotel or to specific outlets only, e.g. a great view from the top-floor of the hotel only. If they aren't relevant to the hotel as a whole, the concept should act as the underlying thread which links the specific features together.

#3 Take social interactions into account
To improve guest comfort, public outlets should be designed with social interactions in mind. Social enjoyment is key to customer satisfaction and loyalty. The type of customer, the time of day, the culture and the price range are all aspects that will influence the level of social interactions that you are looking for in your hotel. Hallways, restaurants, lifts and lobbies are all environments that trigger social interactions.

As you look to develop the appropriate social setting for your hotel, you should ask yourself such questions as: does the lighting encourage people to talk together? Does the layout of the lobby ensure that people have enough privacy? Can guests easily establish eye contact if they are seated at the bar?

#4 Focus on the brand story, not the design
A brand story is unique to your property and serves as an underlying thread for your products and services. A compelling brand story is infused into all aspects of the guest experience, giving more depth and substance to the hotel product. It should appeal to your segment and use the hotel attributes as artefacts of the story.

Creating a brand story requires digging into the past while embracing the future. Ask yourself the following question: can you come up with any witty anecdotes about your hotel? What values or beliefs guided your decisions? Is your tone of voice appropriate when communicating? Also, remember that the great advantage of a good story is that you can build on it endlessly: you can always add a new chapter.

In summary, it is essential to take a holistic approach to concept development at an early stage of the project. This will ensure the creation of a coherent value proposition that will hold a distinct position in the mind of the customers. From concept to reality.

#5 Maximise revenue per square metre
Similar to the retail business, a hotel concept should be designed to maximise revenue per square meter. As you plan your layout, you should ask yourself such questions as: how much income would a gift shop generate? How many non-hotel guests might use the fitness room? Does it make sense to have rooms on the top floor of the building?

Dormant areas such as oversized lobbies, empty gyms or space-consuming decorations should be converted into points of sale when possible. However, due to mandatory standards, upscale hotels are obliged to keep added value guest facilities that do not necessarily drive revenue. The key here is to strike a fine balance between satisfying guests' expectations and generating revenue.

Friday, August 8, 2014

Top 10 Reasons Why You Should Develop a Boutique Independent Hotel



Top 10 Reasons Why You Should Develop a Boutique Independent Hotel


Trying to decide whether or not to go independent or with a brand?  Here are the top 10 reasons why you should reconsider that tired old brand and make your mark on the world….
  1. Franchise fees: An independent property won’t be paying franchise fees. How much does this cost? According to the HVS 2013 Franchise Fee Guide, up to 17.2% of room revenue. Not profits, room revenues. This is big money. How much business will the brand actually bring? In fact, Marriott’s own “boutique” hotel is outperforming all of its other brands on RevPAR except the Ritz Carlton (Source: HVS – Marriott Brands Performance Update).  
  2. Use of technology: Now there is a better line of communication between you and your guest thanks to vanishing travel agents, online search engines and websites dedicated to helping consumers find their next place to stay. The mass marketing of brands may not be necessary for your property. Tripadvisor.com is the largest travel website with over *40 million unique visitors per month. You property willbe found. *Source: comScore Media Metrix, Worldwide, August 2010
  3. Incentives are equalizing: With Stash Rewards, consumers are no longer tied to one brand to accrue points.
  4. Old or historic properties: They lend themselves better to boutique hotels where uniqueness is celebrated, odd floor layouts embraced. Adhering to a brand’s standard here could be costly and difficult in itself.
  5. Targeted niche markets: Boutique Hotels are reflective of today’s celebration of individuality.
  6. E-commerce: Online travel agencies such as Orbitz and Expedia have replaced travel agents, your website can replace them. Our group has been able to reduce our reliance on online travel agencies to as little as 15%, having the property take in as much as 85% of the total business in house. This greatly reduces expenses and adds directly to the bottom line.
  7. Higher rates: In many markets boutique concepts are able to command better rates than branded properties with similar amenities and room sizes simply because the consumers they cater to want to “experience something different.” Real Estate Weekly’s article, Boutique Hotels Reaching New Height writes, “at the national level, boutique space reflects an occupancy premium of approximately 13%. The boutique sector also exhibits strong growth in RevPAR. In 2012, 2013, and 2014 RevPAR is trending at 6.3%, 7.4%, and 8.8%, respectively, exceeding national averages, for the sector at large, in the last two years. The demand in growth for boutique rooms is predicted to exceed the growth for traditional hotel rooms and the growth in demand for boutique hotel rooms will continue to exceed the growth in supply through 2015 with RevPAR premiums continuing through 2017.”  This is why the big brands are all developing boutique brands. Source: The Rush to Boutique by Jane Levere of The New York Times
  8. Boutiques are growing by as much as 10% in the next 10-15 years. They will go from making up 3% to up to 6% of all hotels in the United States. Source: The Rush toBoutique by Jane Levere of The New York Times
  9. Happier neighbors: In our experience, boutique hotels have been better embraced by their neighborhoods than their branded counterparts. They tend to blend in with the community, offer high quality dining and bring up local real estate values.  
  10. Proud ownership: Boutique hotels are a reflection of their owners. Nothing can replace making your own mark.