HomeHotelIndependent hotels: pros and cons in their value proposition

Independent hotels: pros and cons in their value proposition

Customers rate independent hotels more highly than chain hotels thanks to the personalized service and unique experience they offer, according to the “Observatory of Independent Hospitality in Spain”, powered by Keytel and Braintrust. Despite the level of overall customer satisfaction, the lack of investment and renewal of assets can be interpreted as an absence of professionalism and playing tricks.

The study prepared by the Independent Hospitality Observatory in Spain arises to x-ray the current situation of the sector compared to the large chains and, once the diagnosis is obtained, provide solutions to reinforce its value proposition and increase its competitiveness.

The work has been based on the analysis of the evaluations made by clients in Booking.comrelating to independent and chain-affiliated establishments, urban and vacation, in the 3, 4 and 5 star category, in addition to interviews with experts.

Report from the Independent Hospitality Observatory

At this time, when travelers seek to immerse themselves in the place they visit, independent hotels have a better rating than chain hotels, since guests perceive that this local experience is “more feasible” in this type of establishment.

In the positive assessment, the determining factor is their ability “to offer more personalized treatment and a unique experience, which reflects the identity of the destination, with respect to the standardized accommodation formula offered by hotel chains.”

Rating of independent and chain hotels, according to category. Source: Keytel.

A second reality that the study reveals is that prices at independent hotels tend to be lower. “A priori this could only be understood as a customer-facing strength. However, it could reveal a double deficiency in sales management,” they comment.

Independent hotels, they believe, “have an opportunity to maximize your profits, maintaining the current quality and increasing its prices in a certain way to match the chains” and thus capture the maximum potential of its customers’ willingness to pay based on their perception of value for money.

The pros and cons of independent hotels in Spain

Price-quality assessment: independent hotels vs. chain hotels. Source: Keytel.

A final point that the study detects is a greater presence of independent hotels among the best and worst rated, revealing the two sides of the same coin in terms of customer satisfaction.

The personalized service and attention to detail offered by hotels not affiliated with chains and which, if used properly, can be perceived as a differentiating element and an added value that improves the traveler’s experience, “can become a negative input if “It is associated with a lack of professionalism or inattention of the guest.”

The uniqueness and care of independent hotels elevates some of them to the highest part of the rating rankings, while the lack of investment and asset renewala bad pricing policythe lack of procedures and service standards They can be perceived as unprofessional or even “careless” treatment, leading these establishments to the bottom of the table.

“The lack of dedication and focus penalizes, in many cases, the value proposition of their independent hotels, which should materialize the opportunity for franchises and soft brands to help these hotels improve their service and results,” says the study prepared by Keytel.

According to the study, the contribution of independent hotels to the tourist offer is “positive” but there are points of improvement that represent opportunities to continue competing, improving their offer and reinforcing the sustainability of the independent operator model.

Source: Hosteltur

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