Concept Hotels: Offering Unique Experiences to Travelers and Increased Profitability to Businesses

Abstract

Today’s tourists are no longer mass consumers of travel product. They look to form an emotional connection to an instantly shared experience based on interest, relations and authenticity. Within this idea, accommodation product development is increasingly moving away from commodity stock and becomes differentiated and customer centric. Concept hotels are crafted to fit individual holiday needs, which differ greatly between adult couples, families, youngsters and solo travelers, with services and facilities, tailored according to the target customer. Hotels that meet a particular specification enjoy loyal customers who return twice as often, thus lowering the acquisition/conversion cost. These customers offer higher than average quality scores, enhancing the value-for-money perception of the accommodation. Finally, concept accommodation benefits from a longer booking cycle, avoids the great discounts of last minute yielding and enjoys low cancellation ratio, as customers have made an educated choice. Concept product targets high operating profitability, giving hoteliers a strong foundation for growth. An analysis of concept accommodation products indicates that recently, most of the development is about selling a unique and enticing experience to guests. Most travelers are willing to pay a premium if the hotel offers value that goes beyond what its competitors can offer. The recommendation of the analysis is to find a niche and dominate it with the primary goal of offering customers the greatest possible experience.