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December 2000 Volume 2.04
What do travellers value in a hotel?
by Rodger Gallagher
The Value Position
Hotels and motels come in all shapes and sizes and the various types
are designed to cater for market segments that have quite different
needs and expectations. Traditionally hotels have followed the classic
value positions and hotel star ratings corresponding to Economy,
Mid-range, and Premium zones along the fair value line. The range
of complimentary toiletries provided in a hotel bathroom is a revealing
indicator of what the hotel thinks of itself and where it sees itself
positioned along the fair value line.
The most basic motels in the Economy position just provide those
little slivers of soap - unwrapped and unperfumed or perhaps a bulk
dispenser on the wall of liquid soap. The slightly better establishments
compliment the soap with a plastic sachet of conditioning shampoo,
and some supply the soap in a plastic wrapping. The Mid-range establishments
still provide only soap and conditioning shampoo, but perhaps it
is of slightly better quality. What is different is the packaging.
The soap now comes in a paper wrapping, and the conditioning shampoo
is in a plastic bottle with a twist off lid. Entering the Premium
value position we find that the hotels in this zone don't just provide
conditioning shampoo, instead they provide both shampoo and conditioner
in separate plastic bottles with a screw lid. Perhaps these hotels
even provide a plastic bottle of bath gel. Moving deeper into the
Premium value position, the quality of the toiletries improves.
Here we find name brands being provided along with a more extensive
range. Perhaps a shoe mitt, or soap flakes complements the shampoo,
conditioner and bath gel? But is the type of toiletries really important
in meeting the needs and expectations of travellers? Is this what
travellers make their purchasing decisions on? An associate once
told me that he could tell a good hotel by the height of the ceiling
in the hotel restaurant. Perhaps that is what people buy on rather
than the type of toiletries? Fortunately a few accommodation companies
have worked out what different types of people are really looking
for in hotels. Rather than following the traditional star rating
approach these companies have built hotels aimed at the needs of
specific types of travellers. One of the companies that have done
this is the French based ACCOR group.
Prioritisation and getting rid of what customers don't value
ACCOR have a range of hotel brands with each one aimed at the needs
of a specific group of people. In Europe ACCOR have been very successful
with their innovative Formule 1 brand aimed at the business traveller.
Formule 1 hotels have an automated check in rather than an expansive
staffed lobby area, and quiet comfortable but fairly basic rooms.
Vending machines provide snack food and essential supplies such
as a forgotten shirt. Breakfast is provide but there is no on site
restaurant. ACCOR say that Formule 1 promises, "A good night's sleep
in a functional, pleasant space". So Formule 1 delivers when travellers
want this promise at a good price.
While ACCOR's Novotel brand caters for travellers wanting a traditional
hotel in the premium value zone, their Ibis hotels are aimed at
travellers who want a hotel room similar to a well furnished home.
ACCOR recently opened co-sited Novotel and Ibis hotels just out
of the city centre in Auckland, New Zealand in the grounds of the
Ellerslie racecourse. So I thought I would check them out.
The hotel complex has two wings built in the shape of an 'L' with
one wing housing the Novotel and the other wing housing the Ibis.
The reception area is at the corner where the two wings join. The
Novotel entrance is on the right with the Ibis entrance on the left.
So each hotel has a separate entrance and reception area, but the
supporting administration area between both receptions is common
as is the restaurant and bar that serves both hotels.
ACCOR say that Ibis provides a bedroom just like home. Expanding
on this theme their advertising states, "A bedroom in the modern
mode, comfortable and restful, a cosy bed, a functional bathroom,
simple but real pleasures..." So what have they done to achieve
this at the Ibis Ellerslie? A premium hotel bedroom has many features
not found in a bedroom just like home, so there is an opportunity
to save costs by not providing these features that do not line with
the Ibis promise. Specifically the features I found missing at the
Ibis Ellerslie were:
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An iron to press clothes
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Two way light switches near the bed and door
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Minibar
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Fridge
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Newspaper delivered to room
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Face cloths
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Rubbish bin in bedroom
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Door on the wardrobe
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Bathroom with marble surfaces
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ACCOR loyalty programme
And I would have to agree that most of these are items not found
in a home bedroom or an ensuite bathroom. The Ibis Ellerslie bathroom
resembled a concrete water tank with a door in the side. Inside,
the bathroom had 100% plastic easy clean surfaces, and high quality
German tap fittings. The bedroom was modern as promised with excellent
lighting, a comfortable bed, and very quiet even though a major
motorway is only 50 metres away. This location provides a good base
for getting around Auckland with a car. Other pluses were blankets
rather than a duvet, a phone with a data port, and a high speed
Internet connection. In terms of free toiletries they provide shampoo
and conditioner in plastic bottles, but nothing else.
And of course the Ellerslie racecourse is well known for its extensive
attractive gardens so the hotel rooms have a relaxing outlook, inviting
a stroll in the gardens.
So Ibis have removed what some customers don't value in a hotel,
but provided the essential features as well as some excitement features
such as the gardens and the high speed Internet connection. Removing
the unwanted features has reduced the hotel's capital and operating
costs. Lower costs have allowed the rooms to be priced much lower
than similar quality accommodation. The combination of moderate
quality and lower price delivers superior value to the target group
of travellers.
EATING ON HIGH
Meals served by airlines often provide scope for comedians. Perhaps
I shouldn't admit this but I'm finding these days that even the
meals Air New Zealand serves in Economy on the cross Tasman shuttle
service are rather tasty. A recent flight from Sydney to Auckland
saw a menu with mineral water, a bread roll, green salad with a
whole mustard vinaigrette dressing, cod and lemongrass filo pastry
with tomato ratatouille, strawberry mousse, cheese and crackers,
and coffee. And a mini bottle or two of Chardonnay wine went nicely
with the meal. I can honestly say that this was the best Economy
class meal I have ever had on an airline. What a contrast to the
tasteless concoctions of finely chopped veggies served a few years
ago.
One area where Air New Zealand still need to improve is the actual
delivery of the meal by the cabin crew. While the menu may say 'cod
and lemon grass filo parcel' or 'Spicy beef tortilla', the cabin
crew often appear to lack any knowledge of what they are serving.
Typically after a brief confab in the aisle, they agree that they
have fish and beef. And then the passengers are asked if they want
fish or beef. It would be better if they were offered a meal with
the same description as on the printed menu, but anyway I am happy
with the type and quality of the meals.
Regards,
Rodger Gallagher
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