The expansion of boutique hotel chains is one of the most notable trends within the hotel industry today. With customers’ continual quest for the value for their travel dollar, boutique chains like Kimpton, Design Hotels and Joie de Vivre Hotels are becoming as recognizable to consumers as the big-boys of corporate chains, Hyatt, Hilton and Marriott.
Boutique chains, beyond satisfying the consumer’s urge for more intimate, less formal accommodations and their need for the best value, are also performing well financially, generating substantial profits for their ownership even in markets crowded by traditional chains with traditional brand names. One of the chief reasons they are able to do this – and thus one of the reasons the industry has seen such a significant boom in boutique chain growth – is that boutique chains are nimble, responsive, and forward-thinking enough to embrace the sophisticated revenue management technology that is necessary for their financial survival.
The forward-thinking California-based boutique brand, Joie de Vivre, currently utilizes the REVPAR GURU Yield Dynamic Price Engine in select properties; the REVPAR GURU system optimizes seven aspects of revenue management to deliver substantially increased revenue per available room. While Joie de Vivre can cite a strong operating model and an emphasis on guest experience as the primary drivers of their financial success, the REVPAR GURU system enables users to maximize occupancy while getting the best rates for individual units at each property.
As a nimble operator, Joie de Vivre was able to implement the REVPAR GURU system relatively quickly at selected hotels within its portfolio. By doing so, the boutique chain has embodied one of the main advantages boutiques have over their traditional, large-scale counterparts: the ability to respond to market conditions proactively.
This is one of the biggest advantages that has propelled boutique chains to prominence within the industry.
Whereas once hotel owners would have had to settle for two options – operate under a traditional chain flag, or go it alone – the rise of boutique brands has presented a third (and often better) way. It is important to remember that without the ability to respond quickly to changes in the market, and without the relatively nimble management structure needed to adopt cutting edge strategies and technologies, the boutique hotel chain would simply be a mash-up of the independent property and the traditional chain.
Brands like Joie de Vivre, with the help of innovative revenue management solution providers like REVPAR GURU, are demonstrating that boutique chains are more than just the sum of their parts. With effective revenue management at the heart of their operating strategy, boutique hotel chains are expanding aggressively, and are forever changing the face of the hotel industry.
About Joie de Vivre
San Francisco-based Joie de Vivre (www.jdvhotels.com) manages a portfolio of creative lifestyle businesses, including hotels, restaurants, and spas. Founded in 1987 by entrepreneur Chip Conley, Joie de Vivre is recognized for creating some of the most innovative hospitality services and products and designing one-of-a-kind properties. It is the second largest independent boutique hotel company in the country and California’s largest boutique hotel collection. With more than 30 properties in the state, Joie de Vivre offers a wide range of unique urban, suburban, and waterfront boutique hotels that cater to leisure and business travelers in all market segments. Joie de Vivre hotels are located in San Francisco, Silicon Valley, Marin County, San Francisco East Bay, Big Sur, Sonoma County, Santa Cruz, Sacramento, Los Angeles, Huntington Beach, Long Beach, Laguna Beach, and Venice Beach.
Blogger Jean Francois Mourier
Jean Francois Mourier is CEO and founder of REVPAR GURU, creators of a revolutionary revenue and inventory management solution that increases hotels’ RevPAR, occupancy and online bookings. The company’s Yield Dynamic Price Engine, an integrated revenue management and pricing solution, adds unprecedented power and real-time adaptability to the pricing process, leaving managers more time to run their hotels. REVPAR GURU has grown rapidly, now working worldwide, and offering full XML integration through its partnerships with leading travel booking sites. Reach him at jfmourier@revparguru.com or visit REVPAR GURU for more information about the company’s services.
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This is really becoming a trend in the hotel industry. Many people who are check in to hotels really appreciate boutique hotel chains.
I agree about your opinion ! Joie de Vivre is a boutique that has a good quality, and many people liked this boutique! Hotel management Should be clever in choosing boutique chain who have a good quality because many hotel guests, really appreciate the boutique hotel chains !
hmmmm…. Starting a boutique in a hotel is not a bad idea! After all, most people like to hang out to see more valuable things. Mostly tourist are interested in souvenirs they can buy! So I suggest that planning a boutique will earn a good revenue.
Hi
Jean! When I travel I always check-in with the Hilton Hotels. I do this because of brand awareness. I am not particularly sure where to go so I always say to the taxi, take me to the Hilton Hotel.
Hi Jean! When I travel I always check-in with the Hilton Hotels. I do this because of brand awareness. I am not particularly sure where to go so I always say to the taxi, take me to the Hilton Hotel.
I am working as a Hotel manager here in Manila, this post just gave me an idea so that the struggling hotel industry in our country can get a boost. Associating and branding a 2nd Hotel that offers cheaper services but is associated with the name of a famous hotel could attract thrifty tourists. Boutique Hotel is the best term and I will continue to call it that way.