If you already own or manage a boutique hotel or are considering starting one, you will need to carefully consider who your ideal guests will be and understand what they look for when choosing a boutique hotel to stay at.
In short, you need to understand who the target market for boutique hotels includes.
Boutique hotels are becoming increasingly popular, but they are not for everyone. Many people prefer the comfort of a luxury hotel or the simplicity and homeliness of a bed and breakfast.
And so precise targeting is essential to have marketing strategies that will attract the right guests to your boutique hotel.
So who is the target market for boutique hotels and what do they look for?
Let’s dive in and find out!
Who is the Target Market for Boutique Hotels?
To best understand the target market for boutique hotels we need to understand why someone would choose a boutique hotel over another type of hotel.
So why choose a boutique hotel over a luxury hotel, when in a luxury hotel people can be pampered and enjoy some of the finer things in life? Or if people are looking for a more personal or intimate experience then why not go to a bed-and-breakfast?
The answer is simple: boutique hotels can give people the best of both worlds – the luxury and comfort of a big hotel with the personal service and attention to detail of a bed and breakfast.
Once we know this we can classify the target market for boutique hotels into the following customer segments:
- People looking for luxury and comfort (but on a manageable scale)
- People who like staying in charming, little hotels
- People looking for a hotel with intimate or personal service
- People who like to support small, local businesses (including hotels)
- People visiting an area with a scarcity of large hotels
Let’s now look at each of these segments in detail.
#1. People looking for luxury and comfort (but on a manageable scale)
A reliable segment of the target market for boutique hotels includes those looking for a mix of luxury and comfort. These are people who want more personal service, meaning they expect more from the employees than just being greeted by someone at the front desk when they check-in.
Also, smaller, intimate establishments allow guests to mingle with other guests, which may be something a lot of people might be looking forward to. If you can channel your marketing efforts toward guests that’ll rather have their hotel experience personalized, then this category of people won’t be difficult to attract.
#2. People who like staying in charming, little hotels
This is another set of people who typically prefer boutique hotels. They are usually looking for a smaller, more private stay that has fewer activities going on around them unlike in like a larger hotel.
In addition, they like their surroundings to be more intimate and authentic, so they prefer not to be in the middle of a busy tourist area with shops and restaurants everywhere.
On the other hand, for people traveling with children a boutique hotel may not be the best choice because there may not be as many activities to keep the kids occupied as there would be at a larger hotel.
#3. People looking for a hotel with intimate or personal service
If you’re still planning to open a boutique hotel, this is the customer segment you’ll want to focus on.
However, it’s important to remember that not all people like staying in small spaces, and some may have allergies or other health conditions that could be aggravated by tiny spaces or the amount of dust they would encounter in such an environment.
It’s also unrealistic to expect every guest to enjoy having a less-controlled experience at your establishment–not everyone wants their stay at a hotel to feel like vacationing in someone else’s home. People who go for boutique hotels want their small space personalized – they want the home feel.
#4. People who like to support small, local businesses (including hotels)
Boutique hotels are typically small with rooms as few as 10 and there are people who’d rather patronize smaller businesses than large establishments as a form of support.
They often don’t mind whether a small hotel lacks some of the amenities the big hotels have like free breakfast, gym access, etc. For them, it’s about showing support and encouraging small business owners. In fact, sometimes especially during economic downturns, it’s people like these that help a boutique hotel stay profitable.
Then there are also those who will choose a local business, including a hotel, just to contribute to their community growth. These guests are interested in supporting the city’s economy and strengthening its cultural identity by staying at a boutique hotel.
#5. People visiting an area with a scarcity of large hotels
Another major target market for boutique hotels is people who are on a visit to an area that lacks large hotels.
This category of potential guests doesn’t necessarily go for a boutique hotel by choice. They often pick hotels based on proximity to their travel destination or out of lack of more information.
To get this market, your hotel has to be located in the city, closer to tourist attractions. When they can’t get the large hotels they want, they are more likely to filter their search by proximity. You can get to them by providing information that is helpful to tourists around your hotel area.
Conclusion
The target market for boutique hotels includes people looking for luxury and comfort but on a manageable scale.
These people like staying in charming, little hotels with intimate or personal service. They like to support all kinds of small, local businesses including hotels.
This market also includes people visiting an area with a scarcity of large hotels and who choose a boutique hotel not out of choice as much as out of necessity.