'Boutique hotel' concept - its future relevance

Vipula WANIGASEKERA

Traveller preferences are unpredictable and they keep changing. This is the reason for marketing management to start the process from the customer. It is in this scenario the Boutique Hotel concept came into being.

The concept of boutique hotels is no longer new and has spread throughout the world. Many boutique hotels are sprouting even now, especially in resort locations particularly in the far eastern countries that are direct competitors to Sri Lanka. Nevertheless Sri Lanka has quite an advantage in the Boutique concept for the future because of her diverse locations.

A boutique hotel in Sri Lanka

Boutique hotels have become popular because they offer an intimate and memorable experience for the holiday maker. They have reached out to new market segments from honeymoon couples to families.

The main characteristics of Boutique hotels are their size, service and individuality with which they could differentiate from other normal accommodation facilities, whether they are star class hotels or guest houses.

The size of the Boutique hotels is generally smaller than the larger chain or branded hotel and most of boutique hotels can have anything from 10 to 25 rooms but various definitions have indicated the different range of room sizes, upto even 100 rooms. The service focuses on providing a unique experience with the staff providing exceptional levels of service tailored to satisfy the individual needs.

Individuality is the most prominent factor in the Boutique concept with many hotels having a theme which is relevant to the location or region where the product is situated with every aspect of the product contributing to the theme. Artwork in lobbies, designed equipments in bathrooms, wine and champagne, guest's favourite CD collection plus the atmosphere comprising the decor, ambience, mind-set of hotel staff and the know-how combine to enhance the theme.

There are well over 100 properties in Sri Lanka claiming 'Boutique' status and leaving aside whether they are qualified to be so in a Boutique definition, the purpose of this piece is to point out why such properties are important to Sri Lanka in the future product development.

Branding of a country requires fulfillment of the brand promise. Brand perception, recollection and loyalty in the long run depends on this and Sri Lanka will be truly seen from the eyes of the majority of the potential visitors after a while with the changing macro scenario of last year.

With the current boom in tourist arrivals and hotels enjoying high occupancy rates, the existing products will enjoy optimum levels of income. However most products will not be able to over-charge the customer above an optimum level, as the price factor will change consumers mind to another destination unless there is value that is attached to the price. Sri Lanka could therefore focus on the development of Boutique type properties where the consumer will pay the price thus raising the revenue as against the numbers.

Boutique hotels are always individual hence their ability to charge an individual rate which cannot be compared in the general range of accommodation.

The Boutique Hotel concept was originally popularized in North America and the United Kingdom to differentiate such hotels from larger chain or branded hotels and motels. By doing so, these hotels were able to tap various niche markets by providing themed, stylish and personalized service.

While it is necessary to have larger chains and branded hotels to reach the necessary tourism targets, for which the authorities are focusing heavily on opening up new locations and inviting investors, the Boutique Concept should be given equal priority considering the availability of limited lands and locations.

A Boutique Hotel targets middle to upper income levels. For some boutique hotels, the main segment is the corporate traveller who will offer repeat business for the hotel.

What is communicated is the 'experience' hence its uniqueness which requires less advertising efforts. Personalized service is essential without which the consumer will not pay a fancy price. The staff should know each guest by his or her name. 24-hour guest services and all other comforts should be available to the guest. The staff must be trained to predict consumer needs and wants of the guests rather than just responding. And this is where Sri Lanka can score heavily with necessary training.

Boutique hotels are within the reach of medium scale potential investors for hotels to be developed in the areas opened up for development. They are environment friendly. Little or no harm is done to the location in terms of its geographic and ecological values. There will be less marketing issues when they are branded individually and they could attract individual travellers but high spenders. Most boutique hotels are marketed online and will be less dependent upon sales pitches being made overseas among tour operators.

The high revenue they generate, (In fact some Boutique Hotels in Sri Lanka were charging as high as USD 400 per night even during the conflict), mean that the employees will benefit through service charges etc. And high revenue generation lessens stress on the Managers to push their products to have the rooms full all the time.