May 2, 2011

Innovative business models for hotel

During my recent vacation in Greece, I discovered a remarkable boutique hotel.

As expected, a concierge led us to our room and points to the mini-bar. Rather than showing us the price list, he said that everything was free, as a gift from the management. “Water and sodas,” I thought. Well, not at all. There was a selection of alcoholic beverages, as well as a bottle of wine—not a half-bottle, a large one, the real thing.

It goes without saying that breakfast is complimentary as well, and so is room service—eggs, waffles, pancakes, sausages, everything is prepared upon order, not like a buffet with overcooked and tepid stuff. And no surprise there, Internet access is also free.

However, in hotel marketing, there are rules about basic rates and additional fees. Budget hotels charge few additional fees, because the customers of this hotel category tend not to spend too much money. Luxury hotels, on the other hand, can afford to lower the room rates to attract customers since every additional product or service will be charged a steep price and will generate income to the hotel. This is the classical business model.

In this luxury hotel in Peloponnesus, once you’ve paid for your room, you get lots of freebies. Why? It’s all about word-of-mouth, recommendations written on tripadvisor.com, and the many positive comments from tourists and from locals who have dinner or a drink there. I can’t help but tell this anecdote. I was unsure about my wine choice. The sommelier suggested the house wine. I was still skeptical—the house wine should often remain hidden in the house. He offered me a taste, and opened a bottle. The wine was good. And since it was a wine from the hotel estate, the sommelier gave it to us at no charge.

Do you remember the last time you received something for free in a high-end hotel? Can you name one hotel that doesn’t charge Internet access? And which hotel can you recommend? The rules of marketing have changed.

Discover an article about the Kinsterna Hotel on the blog


This article has been posted by Olivier Kennedy
on May 2, 2011
in #Other
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