Sincerely, BLLA
As the boutique hospitality industry continues to evolve, staying informed is critical for executives navigating new opportunities. At BLLA, we bring...
November 13, 2024 – 5 min read
As the boutique hospitality industry continues to evolve, staying informed is critical for executives navigating new opportunities. At BLLA, we bring you the latest stories each week in our BOUTIQUE WEEKLY newsletter, designed specifically for boutique hotel executives seeking a competitive edge.
Here’s a glimpse of what we’re covering in this week’s edition:
From Skift: Direct digital bookings are predicted to become the primary distribution channel for hotels by 2030, according to Skift Research’s latest report, Hotel Distribution Outlook 2024. This shift is expected to generate over $400 billion in global hotel gross bookings, surpassing the $333 billion projected from OTAs. Skift’s findings reflect a growing emphasis on profitability and guest relationships within the hotel industry.
Pranavi Agarwal of Skift explains the motivation behind this shift: “Hoteliers want more direct bookings… [they] allow hoteliers to retain data about their consumers,” which is invaluable for loyalty programs and long-term guest engagement. The report shows that while OTAs will remain a vital part of the distribution mix, hoteliers envision an optimal distribution balance by 2030, with digital direct bookings representing 42% and OTAs reduced to 13%.
This movement also underscores the differences between branded chains and independent hotels in their approach to distribution. Skift’s report reveals that “independent hotels would like more digital direct bookings than the branded chains,” with chains preferring offline group bookings. As experiential travel continues to grow, independent hotels, in particular, are seizing this opportunity to optimize customer acquisition through direct channels that enhance guest loyalty.
From Sincerely, BLLA: Chris Lindsey, Co-Founder of PeopleVine, emphasizes the crucial role of personalization in boutique hospitality. “Consumers are increasingly demanding personalized itineraries, loyalty rewards, and communication,” Lindsey explains, highlighting how data-driven guest experiences are becoming essential in building long-term relationships with boutique hotel guests.
PeopleVine’s platform is designed to gather and leverage guest data, enabling boutique hotels to create tailored experiences that cater to individual preferences and needs. Lindsey explains the shift from traditional loyalty programs toward experiential rewards: “Traditional point-based loyalty programs are becoming less appealing. Guests prefer experience-based rewards, and we support hotels in designing programs centered on exclusive perks,” which helps boutique hotels foster deeper guest loyalty.
A growing trend Lindsey identifies is “blended travel,” where business and leisure intersect seamlessly. “Our platform allows hotels to offer personalized packages, combining workspaces with leisure options,” he notes, adding that this integrated approach is particularly appealing to younger travelers seeking multi-functional spaces. By allowing guests to book workspaces alongside leisure activities, boutique hotels can capitalize on this trend and attract a diverse range of guests who appreciate a flexible environment.
Lindsey further emphasizes the importance of real-time, omnichannel communication, which PeopleVine supports across email, text, in-app notifications, and social media. “Guests expect seamless communication across multiple channels… whether it’s responding to a booking inquiry or fulfilling a special request via the hotel’s app,” says Lindsey. This level of responsiveness not only improves the guest experience but also reinforces loyalty by making each stay feel truly personalized and accessible.
From The Eastsider: In Los Angeles, a beloved neighborhood landmark, the Tokio Florist building—a 1911 Tudor Craftsman home—will soon become a boutique hotel, blending historical preservation with modern hospitality. New owner Chris Amendola, formerly a Canadian tech executive, purchased the site with plans to restore its unique character while introducing luxurious guest accommodations. His vision for the property includes 1920s-themed guest rooms, a restaurant, and a cocktail bar crafted from an existing shed on the property.
Amendola’s passion for historic properties is evident in his approach: “I have always wanted to open a boutique hotel,” he shares. “It was always about finding the right place with a story, which Tokio Florist has. I knew immediately when I saw it that this was the place.” Amendola intends to preserve the original elements of the home, such as the leaded glass windows and chandeliers, which cast colorful light prisms throughout the rooms. Susie Kozawa, a member of the family that once owned Tokio Florist, has saved chandelier crystals that will be reinstalled in the restored hotel. “We loved how the chandeliers and leaded glass windows would cast rainbow prisms through the course of the daylight,” Kozawa reminisces, expressing her support for Amendola’s plans.
This boutique hotel will retain the building’s historic essence while adding a new guest building with 12 additional rooms and a rooftop pool, blending the past with modern hospitality amenities. The transformation of the Tokio Florist building highlights the growing trend of adaptive reuse in boutique hotels, where preserving history becomes an integral part of the guest experience.
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