The trend to be “green” is now mainstream. Sustainable and eco-friendly has come to be expected – like having a roof over your head or a toilet that flushes. “Green” or “Leed Certified” is no longer a differentiator. However, unique and memorable ways of contributing to society at large will never go out of style. Resorts such as the Banyan Tree in the Maldives that have programs for Marine Conservation, or the Six Senses Resort and Spa in Bangkok which has a program for the protection of elephants, have found ways to be green that double as incredible memorable marketing campaigns and ways that truly create a niche in a highly competitive market.
Loews Hotels—which operates hotels and resorts in 16 cities across North America—recently announced its ‘Adopt-a-Farmer’ initiative. The aim is to promote local farming while providing customers with food made from ingredients that are locally-sourced, organic and sustainable. The company’s New York headquarters connected with the Old Chatham Sheepherding Company, procures only artesian sheep’s milk made in the Hudson River Valley. Since many ingredients are seasonal, customers will have to wait until June for that strawberry tart, hopefully appreciating it all the more when it does arrive on the menu.
A survey done on boutique hotel clients in the UK reported that success was attributed to hotels with unique architectural elements and furnishings, strategic locations, personalized attention and the conversion of unique buildings into hotels for example old hospitals or breweries. Purificadora in Puebla Mexico is built from the ruins of a water purification plant.
“The top five attributes that impacted guests’ decision to stay at a boutique hotel were location (65.9%), quality (56.8%), design uniqueness, personalized service, and a homelike atmosphere (average 33.5%). These findings confirmed those of a previous study (McIntosh & Siggs, 2005) in which four of the five attributes (i.e., location, quality, personalized service, uniqueness) were found to be the main factors attracting guests to boutique hotels. Design factors most valued by guests were unique interior architecture (40%), unique building (20%), and unique furniture (17.1%).”
According to the Urban Land Institute, the dominant trends for hotels and resorts during these challenging economic times are: 1-To renovate, re-brand and redefine their existing facilities, programming and amenities, rather than expand. 2-To find real, tangible ways to differentiate their product from their competition. 3-To reduce expenses while still finding creative marketing solutions to sustain demand. 4-To turn resort condos into boutique hotels. 5-To upgrade on-location amenities to create a unique experience and build brand value. 6-To make sustainability a priority. 7-To build in flexibility for changing markets and economic conditions. 8-To incorporate one-of-a-kind concepts into their experience.
Gone are the days of the business class hotel, or the purely for pleasure resort destination. Technology, changing demographics, and more flexible schedules are creating a grey area that includes both work and play. Studies show that Americans and Canadians are taking less holidays, and combining work and vacation. Add to the mix the fact that as the world’s middle class grows, especially in Latin America and India, more and more families are traveling together, adding young and old to the mix as well. One of the biggest challenges hoteliers are finding now is balancing these multiple guest experiences.
An Ipsos study of Americans in 2007 polled over 3000 people. When asked “If you could have more of anything” 26% of the respondents answered “Travel and Getting Away”, while 25% said “Money”, 15% said “More free time.” 14% “Sex”. 9% “Shopping”. 8% “Food” and 3% wanted more “Fame”.
Shopping as recreation has become a key attraction for resorts and hotels. Retail is becoming increasingly geared toward both the local community and specialty niche activities that are local/regional. Jumeirah, in UAE boasts a “unique shopping experience” including 75 shops within a vibrant Arabian bazaar-like atmosphere with meandering paths, animated trading culture, open fronted shops and intimate galleries. The guests experience the sound of craftsmen at work, and aromas from street cafes. (Thomas Consultants (http://www.thomasconsultants.ca/)
General Growth Properties has found that 32% of U.S. domestic leisure travel activities are spent on shopping. This represents a trip volume of 490.1 million trips, with an average of $372 per household spent on each trip (excluding the transportation). An amazing 77% of those trips were overnight, and averaged 2.9 nights at a hotel.”
As people yearn for authentic, one-of-a-kind experiences – and cultural tourism gains popularity – some resorts are paying attention. The Amari Palm Reef in Koh Samui, Thailand offers free afternoon cooking classes with their own chef. The Study At Yale Hotel guests are encouraged to rest, read and reflect in the academic but sophisticated surrounds. Unique cultural attractions can act as powerful differentiators for resort properties. At the Benesse House complex on the tiny Japanese island of Naoshima, world-renowned architect Tadao Ando was enlisted to create a complex of hotels, art galleries, and outdoor art installations – all built around a spectacular art collection featuring Monet’s Waterlillies, James Turrell’s sky spaces and many other important pieces. This unique cultural experience is generating strong international word of mouth – the hotel has recently doubled it’s capacity to meet increasing demand.
Cultural and heritage tourism involves attractions such as museums, music, art, displays, and related sites (Sigala and Leslie, 2005). The typical cultural tourist makes and spends more money, spends more time in one spot when vacationing, is more highly educated, and is more likely to be older and female (Silberberg, 1995; Kerstetter, Confer, and Graefe, 2001).
It turns out, what feels intuitive in the design of our favorite, most memorable spaces are actually connected to how humans are psychologically hardwired. Although often dismissed in the planning of public, institutional and hospitality spaces, the practice of Architectural Psychology has been scientifically shown to have a profound effect on our emotions, and can affect whether we view spaces positively or negatively. For example, research shows that we are biologically drawn to natural materials, textures and environments, with one study showing that hospital patients with rooms facing a natural environment healed faster and required less pain medication than patients in rooms facing a parking lot. Researchers at the University of British Columbia have compiled data showing the presence of natural materials, like wood, can actually reduce stress, blood pressure and aggression. Other studies confirm that we are biologically predisposed to choose spaces with vistas and courtyards, and the right balance of ceiling heights, corridors, dividers and so on, which makes the planning of hospitality spaces designed to relax guests and encouraging them to return so important.
The science of place attachment looks at the bonding of people with spaces. Done properly with the right cues people will remember and return. This data is priceless to the planning of retail, restaurants, resorts or any place that their revenue relies on the length of stay and likelihood of their guest to return.
Using the right scent in casinos was believed to make people gamble more. Research now shows that scent used properly in retail and hospitality could increase the chances for people to return.
Everywhere you turn, statistics tell the story of shifting demographics, new trends and a significant redistribution of wealth – and that means a global rethink for hospitality businesses everywhere. One study, for example, shows that one-third of Americans take only half their vacation time, which may mean a rise in multiple short breaks as an ideal vacation option. Other studies predict that the global elderly population of 440 million in 2000 will double by 2020, which may decrease seasonal demands on peak travel and give rise to resorts that cater to senior crowds with activities, design and services just for them. Studies show that Gen-Xers (the 60 million Americans aged 25-40) has the larger growth in lodging demand, up 7% in 2005, surpassing the Baby Boomers. They are already shaping the tourism industry by amping up everything from adventure and cultural tourism to the prevalence of more mid-priced boutique hotel options. The Y generation will lead to a complete revolution and fundamental overhaul of traditional media and marketing communications.
Research shows that more Xers are staying in hotels than Boomers, and they spend more per trip. They tend to consume more entertainment – and even if traveling on business will seek out some fun.
A study by the McKinsey firm points out that since 46% of boomers are widowed or divorced, they want to retire in a place where they can interact with the community. 60% of sexagenarians have medical or psychiatric problems, therefore specialized medical facilities are an important amenity. Mexico has a unique opportunity to attract Americans – a routine medical procedure costs one tenth that of the same procedure done in the US.
The New York Times bestseller, The Long Tail, describes a phenomenon that will soon impact the resort real estate and hotel industry. The idea is this: in the past, retail stores could only stock what they knew would sell because shelf space was expensive. But, with the rise of online venues and other non-bricks and mortar stores, consumers are now being offered infinite options. Online retailers such as Amazon to iTunes can now stock everything, from the sure-fire hits to niche items that sell in much smaller quantities. And the research shows that, as more choices become available and people’s niche interests are revealed, it becomes impossible to lump consumers into a one-size-fits-all box. This fundamental shift in economics reveals that the sum of these many small niche markets are now beginning to surpass the size of the traditional mainstream market.
The 13-suite Nimb Hotel in Copenhagen, bordering the famed Tivoli Gardens, that boasts an on-site food market, chocolatier and quaint dairy that handles its organic single-origin milk with the same care and devotion more commonly seen with single-malt whiskies.
Mexico’s Grupo Habita is quickly expanding with a group of boutique hotels including Deseo, Basico, Purificadora, Condesa DF and Habitat, each one completely different, each one using one of Mexico’s leading architects. Non-traditional design sets them apart from the mainstream. Basico is constructed completely out of recycled materials with railings salvaged from a 1950’s cruise ship and the rooftop swimming pool made from a retrofitted oil tank from a decommissioned offshore oil drilling rig.
Travelers or buyers looking for unique experiences are often challenged to find them, given the uniformity and conformity that govern so many of the dominant hotels, resorts and resort real estate offerings today. From bustling urban experiences, to tropical overseas paradises, the topographical and cultural settings for these destinations vary wildly but the approach to hosting people in them often doesn’t. Most use the same descriptions: “Five-Star luxury” and offer a carbon copy list of amenities: infinity pools, spas, and fine-dining. Something that counted as a differentiator yesterday is mainstream today.
A quick online search of the Cabo San Lucas “Corridor” of luxury resort hotels revealed fifteen 5 star properties with prices up to $945 night. The same descriptors such as ‘luxury’ and ‘world class’ were often used, with all fifteen offering a spa and or spa services as a main differentiator. The majority promoted infinity pool or swim up bar and the same combination of views, fine dining, and fitness.
However, in a small town called Valladolid on the Yucatan peninsula is a hotelier named Nicolas Malleville. Previously a male model, he has recently changed careers to build a seven room hotel called Coqui Coqui. Hand carved stone tubs, traditional mayan hammocks and an on-site perfumeria are some of its unique selling points. The hotel has no internet and runs on 12 volts from solar panels on grass roofs.
