The Differentiation Game

This article showed about the luxury hotel business is down. But there were still plenty of customers who wanted luxury services.

According to the Buyer Interactive Trade Alliance and Conference(BITAC), 42% of the attendees agreed the recover about hotel industry and additional 32% agreed the luxury market has already stabilized.

Thus, the hotel’s differentiation strategy is changed from seeking potential customers to offering the right services to customers to come. Although this strategy is hard question for CEO to execute, but offering the highly differentiated services combined with unique experiences became important.

Christophe Vallet, Founder & Managing Director of Authentic Hotels, said “My guests are looking for a good experience. But they also want you to be able to personalize experiences to excite them.” He thought this trend was the changed meaning of the ‘true luxe.’ For example, it is more crucial to deliver the customers natural materials such as fresh tomatoes with bio olive oil and bio wine rather than offering them luxury rooms decorated with gold and diamonds and marble. Also he thought plenty of clients wanted "bio" luxe.

Looking this article, we can summarize this with the Meg Prendergast’s word who is Senior Vice President of the Gettys Group, a hospitality design firm. He said “You can create the most beautiful property, but you have to have the service to differentiate you,” said Prendergast. This means that each hotel must be focused their service based on their experience because in the long run, all of hotels might offer the similar services with the best labors. Thus, they didn’t differentiate with others by focusing the better services without experience.

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