I watched a fascinating video about how hotels are changing to cut costs and attract customers in a competitive market. Declining occupancy rates and alternatives such as Airbnb have caused the industry to rethink its properties in substantial ways, as has social media. Hotels are no longer beholden to AAA or other ratings with set criteria and instead are chosen through guest comments on posted sites.
The video outlines changes that hotels have made to shrink the size of rooms without impacting guest satisfaction. Wardrobes were replaced with hooks and open closets, irons are no longer in each room, mini-bars were replaced with refreshments for sale in the lobby, and the bathrooms were redesigned to remove amenities, among other changes. And while the rooms themselves have been reduced in size, the lobbies have transformed to become large, communal spaces where people gather to work, drink, do laundry, and socialize.
I think the video provides a lesson for other organizations facing a changing environment. Instead of staying the same and bucking the headwinds with more advertising or reducing prices, the hotel industry shows that you can make changes in some areas by cutting and other areas through addition. The smart move is to rethink what you have to offer and maximize what your customers truly value, not just what they have always had.
The next time you stay in a hotel, take a critical look around. Do you even notice how it has changed from a decade ago? The evolution of the facilities can be a model for your transformation.
Thanks, Brian!
