Value propositions in the hotel industry are methods and means which hotels use to increase their values in competitive markets. They may choose to offer better services, improved gift packages to their clients, or introduce amazing, luring aspects to what they provide to their customers. It is responsible for making potential clients pick one hotel and its services over another. A strong value proposition assists in explaining to potential clients what offers a hotel provides and why it is important to choose that hotel. Creating, communicating and measuring the value proposal are the biggest hurdle for a hotel but by being able to identify and bring it to life clearly, a hotel may enjoy loyal and committed clients.
Evolution of Value Proposition and its Effect on Behavioral Change Across Generations
The hotel industry has shifted how it conducts business a lot over the past 20 years to adapt to the many changes of customer preferences and new technology. These changes have impacted the sales and productivity of the field in numerous manners. Introduction of services not available before, becoming more customer friendly, and learning to adopt have just been examples of changes the hotel industry has gone through. All these have been based as different value propositions in the pursuit for better customer satisfaction. Many customers prefer being in a customer-based program that provides them with special amenities every time they pay a visit into a hotel. This motivates them to get back the next time since the hotel of choice readily provides these services. This has been felt by all generations but least felt by the millennial guests. They have shown very little interest where only 39% of them are involved in such programs while the baby boomers recorded the highest stake of 66%. This clearly goes to show that younger generations are attracted more by value proposition. A millennial client will prefer to go for Airbnb where its technological advancements meet the generation and the preferences of the client. For example, Airbnb, with the help of pools that contain diverse services, can be able to offer the client a week stay at a comfortable location where the client can even be able to cook for himself or herself. Now, with a budget in mind, it might seem economical and less tiring to cook rather than have to order meals that do not match the client’s preference. The client has a larger range to choose from while cooking than from a menu.
Value proposition has developed in numerous manners. However, the once exciting services like free Wi-Fi and access to online services provided to hotels do not intrigue anymore. They have blended in and become necessities in today’s setup. This has led to hotels digging deeper to realize more and better ways of providing added value to their clients. Reduced prices and increased loyalty has been a method of value proposition that has been implied to be able to engage more clients. Hotel rates are always fluctuating up and down. This is especially important in luring more clients to participate in the hotels when the prices are low such as during the holiday season. Example of these seasons is during the festivals where hotel bookings go from vacancies available to fully booked. This is another splendid manner in which value proposition engages every generation and their behavioral change.
It, however, in the millennial generation is plateauing. The generation is usually more involved with changing times and trying and testing new products more often. The generation finds it easy to choose with the services being readily available online. There are usually different packages to select from. This generation is more susceptible to choose services out of the ordinary being provided by numerous numbers of hotels. They look for unique features like the service that rents out people’s places instead of hotels. This improves their interactions with the real world while at the same time providing them with better comforts than in a hotel.
It is arguably the most valuable aspect of marketing a particular hotel and its services. With most bookings being done online, transportations from pickup points to the specific hotel have improved the value of other hotels over others. There calls for different clientele classes with different offerings but the service has been proven to improve the value of a hotel. Example, there are hotels that provide a car and a driver for their clients during their stay in the hotel. This means that from the moment the client checks in to the moment they check out, they have a car and a driver to take them around to wherever they need to be. Also, in different cases, the experience is the hotel itself. This is usually found in high-end hotels where the experience of being in the hotel is unmatchable. Example of this is the Dubai Marina where the entire experience is rated seven star. Of course the experience is felt across all generations among those who can afford it. Different generations have different preferences when it comes to satisfaction. It is up to the hotel to understand and come up with a strategy that best suits every generation.
Value proposition has been used in the past few decades to improve the quality of services offered by hotels. The changes felt have been enormous with the change in technology and rampant economic growth. Different generations have different preferences when it comes to values provided by hotels. The hotels may benefit much in understanding the different audiences and their preferences in order to meet them. The scale on value proposition is also plateauing meaning there needs to be changes and new advancements implied in order to keep the growth steady.