The future of travel, 10 reasons for the continued success of Independent Hotels
Resort Borgo Syrah - An independent Treasure in Italy
The hotel chains are realizing it, with the continuous launching of ‘unique’ brands by hotel chains, they are working hard to keep up with the success of independent hotels.
According to the Expedia Group, independent hotels are seeing greater growth in overall revenue and average daily rates, than the large hotel chains, in fact double comparing 1st half year 2017 and 1st half year 2018.
Simon Sinek says: ‘If you don’t understand people. You don’t understand business’. His view on Millennials, corporate organizations and leadership is revealing a lot of truth in the way people want to work, be treated and for example travel. Independent hotels can learn from this and apply this directly to the management and the way hotels communicate with their guests.
In short here are some of the reasons why independent hotels or boutique hotels are booking success.
Superior use of technology, fast adaption, flexibility in use of and selection of technology
Localize experiences in efficient fast and last minute manner, adjusting to guest demand.
No need to wait for direction from the head office and compliance to standards that perhaps from the start were already irrelevant
Quick strategic and tactical decisions on pricing and yielding, adjusting to the local activity
Increased efficiency, less reporting and paperwork
Increased focus on personnel, use of their ability and flexibility
Strategic use of OTA’s, with great flexibility and improved input in marketing
Great creative freedom, meaning use of the local environment, projecting that in the offering to the guest, and even change design to the local environment to make the environment more attractive and fuller of soul
Local influencer & marketing opportunity, an entire new world that needs tapping into urgently. Differentiating between real value influencers that can make a serious difference to your establishment and all the pretend influencers is a need. There are not many tools out there but keep an eye out for www.valuefication.com launching in Q1 2019
Quick adaption to changes in the behavior of the traveler. Ability to offer outstanding personalized communication and service (marketing)
These are just a pick of many, that will create success. Understanding there is a need for global recognition and loyalty programs for travelers, is clear too, which is probably the main reason for independent hotels and guests to join and choose larger representation companies. In addition to much of the points made before that are focused on revenues, there are many advantages with regards to costs too.
Independent hotels have great impact on the way we travel and eventually might phase out the existing star rating as well, remains to be seen, but certainly food for thought.
Keep an eye out for a disruptive new hotel company that listens to the traveler first and applies that to development of personal experiences based on behavior and matching that with the great independent and boutique hotels out there www.local-treasures.com.
About the writer
Jeroen is a well-travelled hospitality professional with 20+ years’ experience within the Hotel & Spa segment. His expertise ranges from streamlining of cost and operational models, strategy yielding, business development and marketing to digital marketing.
Jeroen has excellent business development skills developed through several key Sales & Marketing positions in large blue-chip companies, including Starwood Hotels & Resorts and Millennium Hotels & Resorts, as well as small boutique companies and hotels.
Over the years his leadership, his team skills have led to significant change within existing independent and hotel chains. He is particularly skilful in turning innovative and disruptive ideas into reality.
A Strategic leader and planner, Jeroen is a Lean and Six Sigma professional. His focus is on Innovation and Development, where he addresses main goals through development of innovative concepts which provide incremental revenues and cost savings.