It is currently a relatively difficult time for the hotel industry due to the status of the economy. That being said, one particular group of entrepreneurs have worked hard to promote their “no-name” hotels in an attempt to compete with the major hotel chains such as Marriott, Westin and Hilton. These entrepreneurs strategized as to how they could compete with these well-established hotels, and decided to base their strategy on having their hotels be cheaper than hotels like the Marriott, Westin and Hilton. They also try to emphasize music and local culture, have new and up-to-date hotels, and have “the consistency, reliability and accessibility of a branded hotel.” Starwood executive, Brian McGuinness, thinks that one particular group, Aloft is so successful because they suggest to their customers that they will get “style at a steal” for their money.
Aloft currently has 42 locations and InterContinental Hotel Group's boutique-style Hotel Indigo has 36, while Hyatt has 156. Aloft and InterContinental have some work to do in order to promote their name, but it seems like they are off to a great start. In order to be a successful entrepreneur, you need to be innovative and have something that your competitors do not offer. While many hotel chains have recently renovated their existing hotels and built new ones to provide a similar experience no matter where you are, Aloft thinks that their hotels should reflect where they are located. In order to present their customers with the local feel, while still having necessary attributes like loyalty points in which the customer can develop a relationship with the chain.
The competitive landscape for the hotel industry has inevitably changed now that these entrepreneurial hotel chains are entering the industry. These hotels have taken a new stance on the hotel industry, and appear to be successful. Aloft and InterContinental need to be smart in order to maintain an edge on hotels like Marriott, Westin and Hilton, but they seem to be on the right track.
http://travel.usatoday.com/hotels/2010-07-29-newhotels29_ST_N.htm
This article is very interesting because it not only shows entrepreneurship in the new hotels, but it also shows the level of competition that takes place throughout the industry. Being that Aloft is a rather small chain when compared to Hyatt, it is fascinating to see that they have have steady customers who stay at their hotel.
ReplyDeleteI'm curious to know what amenitites Aloft and InterContinental offers that set them apart from their competitors.