Posner Advertising

Boutique hotels are on the rise. We see this growing trend first hand in New York City with the recent opening of The Ace, The Mondrian Soho, The Gramercy Park and The Bowery.

According to a NY Times article, the lifestyle hotel trend is largely due to travelers becoming increasingly tired of the ubiquitous nature of large hotel chains and their growing preferences for unique and “off beat” hotel experiences. NYU’s Hospitality & Tourism Dean, Bjorn Hanson, estimates that almost a third of hotel openings this year will be boutique hotels, with increased revenues per available room projected at 12 percent in 2011.

As a leader in hospitality marketing, I believe that, as more and more boutique hotels are introduced, being unique and “off beat” will no longer be enough. Boutique hotels will soon have to establish proactive marketing strategies to help differentiate themselves and to create visibility in a saturated market.

With all the newly created and planned boutique hotel brands coming to market, which will be the winners? Only those that employ ongoing exposure. Below are some suggestions that can help a burgeoning boutique brand achieve the marketing thrust they need to stand out.

Five Tips for Hospitality Marketing

Apply branded advertising to establish a mood and expectation for the consumer

Utilize online marketing to help guide and influence consumers with their initial online research through SEO, SEM, banner advertising and customer reviews on travel related sites

Develop superior customer service to ensure long-term brand loyalty and substantiate premium pricing

Strengthen internal sales team with practical pricing strategies, collateral, email marketing and accurate CRM programs to build strong corporate and travel partner alliances.

Employ public relations to create visibility and credibility through third-party endorsements

A unique hotel experience will make a lasting impression, but to be a “winner” in a saturated market, boutique hotels must employ a diverse marketing strategy that keeps them in the forefront of the consumers’ eyes. Long-term brand loyalty is as much dependent on experience as it is on discovery. Every customer must believe that they are valued. With the plethora of new boutique brands entering the market, only the brands that provide a truly seamless experience and messaging campaign will stand the test of time and maintain customer loyalty at premium price points. If not, boutique hotels may quickly find themselves competing with well-known hotel chains that often experience rate pressures.