Squaring the circle

Karl Ayssia of creative.union offers some advice on localising hotel chain properties to improve the guest experience

Hotels are mainly concentrated in cities and in some cases, embed themselves so deeply into the character of the city that they become a part of it. Tea at the Ritz, is a hallmark of London just as much as red buses. Consumers are often willing to spend extra to partake of this more “authentic” experience, and there is a strong move away from global template models in areas such as retail and architecture.

Furthermore, cities are typically saturated at the high end but underserved by budget brands, so the question arises: is this “synonymousness” with a city and more authentic experience the preserve of the luxury market or can the budget brands respond?

The budget hotel chain must retain those aspects that consumers find appealing. The safety of a predictable, standardised level of service. Low costs enabled by economies of scale. But can this still be offered whilst re-orienting a property to better reflect the city of which it is a part, and in doing so, improve the guest experience?

Much of this will translate to physical changes within the hotel – the look and feel of decoration and furnishings, menu offered, staff uniforms etc.

Technology has an initial role to play in delivering some of these materials at a cost point low enough to allow deviation from the standardised template. For example, 3D printing of sculptures / artworks from local artists or high resolution digital archives of wallpaper designs. This will also likely impact the supply chain, as the centralised procurement function of the hotel moves to retained arrangements with suppliers that guarantee execution across a range of different designs, adding value.

This still leaves the question of why hotels in the budget space need to consider this project? Simply put, they will soon have no choice. The strong competitive threat of the likes of AirBnB demonstrates that there is a growing demand for a more authentic stay at this price point. Savvy travellers know that where they stay is just as much of their city experience as sightseeing, eating and culture – and they want all of it to be authentic.

Budget chains have their sense of familiarity to help combat this, but the smarter play is to offer both the safety of a large brand, as well as an authentic city experience. The city must enter the hotel room, not just be a picture on a wall. Budget hotels that move away from the airport lounge template, embrace authenticity and adapt to include differentiation will not only gain competitive advantage, but move towards becoming just as iconic as their luxury counterparts.