Boutique hotels are a unique lodging option. Unlike many hotel chains, which may have hundreds or even thousands of rooms, boutiques are usually smaller, with between 10 and 100 guest rooms, and offer a specialized experience. They may offer specific themes, including quirky options that focus on trends, fandoms, or personal interests. Increasingly, many travelers are choosing boutique hotels as their lodging option of choice when they’re away from home. Not only that, but some people also even choose to travel to boutique hotels deliberately, selecting their destinations to specifically match the options available.
Consumer Preferences & Trends in Travel
There are several essential consumer trends that are increasingly influencing the way they connect with their lodging options–and many boutique hotels are ideally positioned to take advantage of those trends.
Personalization
Personalization is a trend that has increasingly made its way across industries–and it has become the bedrock of consumer expectation. Because of their smaller size, boutique hotels are able to offer more personalized experiences, whether that means travel packages specifically designed to speak to the needs of their guests or guest services designed to enhance the overall travel experience.
Wellness Focus
The health and wellness market has grown substantially, with around 5-10% growth per year over the last several years. More than ever, Gen Z and millennial consumers are paying attention to their health needs, including sleep, fitness, and mindfulness. Many of them don’t lose that focus when they’re traveling. They want healthy meal options, to keep up with their workout routines, or to be able to check out new products that will help them meet their overall goals. Boutique hotels are better able to provide many of those options than their larger counterparts, making them the ideal choice for members of that demographic.
Technology
Of course, modern travelers expect modern technology in their experience–and many boutique hotels have stepped up to the challenge. Travelers are looking for:
- Smart rooms
- Personalized concierge services
- Mobile check-ins
- Digital keys
- Chatbots and virtual connection options
- Hospitality software that provides a quality experience
- Digital payment options
Both Hilton and Hyatt, for example, are offering extended convenience options via their apps, including digital check in and checkout experiences as well as concierge planning that allows each guest to make the most of their trips.
Unique Local Experiences
Today’s travelers often seek deeper understanding of and connection with the local area. They want to try out local dishes, explore local sights, and learn more about the local culture. Boutique hotels, rather than providing the same experience to guests no matter where they are, can offer a closer look at and connection to that local culture, whether that means offering local cuisine in the hotel restaurant or tailoring tours to their guests’ interests.
Challenges for Boutique Hotels
Boutique hotels offer a number of potential advantages to travelers, allowing them to maintain their popularity. However, they also face significant challenges as they work to maintain their place in a competitive market.
Relevance
Boutique hotels that focus on a specific type of experience can draw a lot of interest and traffic. However, they must pay attention to sustainable trends that are likely to maintain consumer interests. While some themes may draw immediate attention from consumers, including a surge of guests when they first open, they may not continue to draw in that level of traffic over time. In order to maintain their place, boutique hotels should keep the changing needs and interests of their target market in mind.
Pricing
While travelers are often willing to pay more for the luxury experience offered by boutique hotels, it’s important for those hotels to meet their customers’ needs when it comes to pricing. Increasing the cost of packages too much may decrease overall interest or prevent some consumers from being able to enjoy those experiences, particularly in an economy where prices for everything from food to gas have risen considerably over the past several years. Boutique hotels may need to carefully consider their own budget needs as they work to maintain their place in the market.
Size
Boutique hotels must strike a balance between growing large enough to offer consumers adequate options when they come to stay and ensuring that they continue to offer the smaller, more private experience guests are looking for. Staying small and keeping admission exclusive can go a long way toward helping boutique hotels remain relevant.
Location
Some boutique hotels become locations all on their own. However, as hotel owners and providers consider new locations, they may need to carefully consider what those locations have to offer. Some travel locations are becoming increasingly popular, meaning a flood of guests to those areas–and in some cases, that can mean that boutique hotels are lost in the shuffle. Others are decreasing in popularity, which means there may not be an adequate tourist base for more hotels in those areas.
Future Trends in the Hotel Industry
Boutique hotels, like other travel industry providers, must carefully consider future trends as they build their business models and determine what consumers are looking for.
Group Travel
Increasingly, travelers are choosing to go on vacation with larger groups, including friends and family members. Offering options that will allow groups to stay together and make the most of their visit can help boutique hotels remain relevant. Hotels may want to offer something like
- Large group rates
- Travel options and support, like shuttles from the airport or rental car options as part of the travel package
- Group excursion options
- Access to special areas of your facility
- Event planning support
Consider what groups are most likely looking for when they visit your hotel, then provide packages and support that will allow them to make the most of it.
Luxury
While many travelers are looking to remain within their budgets, luxury travel options are becoming increasingly important. Boutique hotels that offer that luxury experience are more likely to remain relevant, especially as travelers move away from one-size-fits-all options and increase their overall expectations. Luxury experiences may include:
- Excursions and adventure
- Luxury services, including pools, specialty design elements, tours, and more
- Immersive vacation experiences
- Enhanced comfort and convenience
- Spa-like accommodations, including spa bathrooms or on-site spa treatments
Take a look at your target market and how you can tailor your boutique hotel experience to their specific needs.
Sustainability
For many demographics, sustainability has become increasingly important. Modern travelers want to minimize their impact on the world while still making the most of their travel time. Sustainable boutique hotel options may include:
- More reusable items: for example, many hotels have gone to large toiletry bottles in the shower, rather than individual, single-use items
- Sustainable hiring and work practices for employees
- Eco-friendly choices in and around the hotel, including options like farm-to-table service in restaurants
Providing those sustainable options can help shape your brand and interest travelers who are looking for those solutions as part of their travel.
Choose Your Next Boutique Hotel Location
Boutique hotels have become an increasingly important part of the travel industry, and this trend seems to be one that is here to stay. By taking a careful look at the challenges of boutique hotel ownership and considering how boutique hotels can fit current needs within the travel industry, owners can expand their options and reap the benefits.
Are you ready to select your next boutique hotel location? Contact us to discuss the options available on the market and how you can make the most of your next property purchase.