High-End Hotels Should Focus on "Best Customers"

Luxury brands that have established a name for themselves are now finding themselves in a bind. The bad economy has taken its toll on everyone. In fact, even highly successful establishments that had successfully invested in image marketing are forced to rethink their strategies and come up with new approaches. Does this mean that they need to lower their prices? It may be an option but this is not necessarily a good idea.

A lot of hotel revenue managers have found out that exploring strategies like the packaged goods approach can yield rewards. The so-called symbolic clients or those households with incomes ranging from $250,000 to $500,000 have become fewer. Because of this, the very definition of luxury is evolving. Though genuine luxury will still be noted for its inherent value, guests are now looking for great experiences including those that produce unforgettable memories, give unique experiences, or are sensually orchestrated. Taking advantage of these changing trends can increase hotel sales.

Boosting profitability also means getting out the comfort zone. Some luxury hotels are now experimenting with time-out travel such as relaxing vacations, eco-travel, and exotic travel. All these will aid in helping hotels thrive, increase RevPAR, and increase hotel profitability even during bad times. Luxury clients are usually educated consumers. They know when to put a premium of things even if it cost little or nothing. For example, luxury buyers are happy when they get dry firewood, can enjoy a hot bath, eat fresh food, or receive something in elegant packaging.

Smart hotel revenue management teams are now trying to focus on their best consumers in order to surprise and delight the. The “best customer” is defined as one who is more loyal, spends more, and refers friends to the hotel. In addition, customers who forgive readily when some errors are committed are the most preferred customers. And most of all, they are value-sensitive and not just price-sensitive.
Luxury brands need to identify who their “best customers” are and cater to their needs and wants especially during bad economic times. It will help them boost hotel sales and enhance overall profitability of the hotel.