Too big for boutique?
by Lee Jamieson on Tuesday, 24 March 2009
Up close and personal
Andaz's philosophy is at the heart of today's branded boutique experience: getting closer to the guest than ever before in a non-hotel-like environment.
"It is essential to personalise the whole guest experience," says Per Aquum managing director of marketing and communications Mark Carson.
"Before our guests arrive at Desert Palm, Dubai they can tell us what books, films, drinks, and amenities they like - even smells. We can then arrange for that to be part of their experience.
"For example, if we know a guest likes a particular author, then we can use our connections with publishers to get an advance copy of their latest title. So we have a research team that works hard to personalise the experience and gather information through tour operators and concierge services like Quintessentially."
In true boutique style, Per Aquum partner with other key high-end luxury brands to create unique guest experiences. Its partnership with Bang and Olufsen allows guests to trial the company's latest products in the guest room, and a partnership with Aston Martin has resulted in test-drive experiences.
"Aston Martin knows that we have like-minded customers and we know they have like-minded customers," says Carson. "It makes sense to find synergy in our marketing and utilise each others databases to create stronger campaigns.
"Also, Smallbone Kitchens are opening a showroom in the Middle East, so we're planning to install one of their kitchens in one of our Middle East villas and get celebrity chefs to deliver gourmet cookery experiences."
Too big for boutique?
Traditionally, boutique properties have either been privately owned or part of a very small group and consequently this market segment has remained relatively under-exposed. Broadly speaking, the "muscle" that the larger brand operators can bring to the boutique market has been welcomed. They bring with them a wealth of experience and resources that boutique operators have been unable to access. Ultimately, this increased competition should be beneficial to the Middle East's hospitality industry and consumers.
"Big brand operators can bring back-of-house operating efficiencies and economies of scale to this new category of boutique properties," explains Jumeirah's Brown.
"These efficiencies can cover areas from procurement to reservations, from sales distribution to loyalty platforms and recruitment. Bigger brands also have the opportunity to attract investor interest and related capital to this segment."
Despite the mammoth advantages of these operations, some commentators are concerned that the rigidness of these systems may have a negative affect on the branded boutique concept.
"The danger lies in the standardisation that these efficiencies of scale often bring," says Podaras.
"It is inevitable that certain aspects of the operation will have to be kept separate. For example, the customer facing staff will need to be trained in a completely separate way to maintain the brand's uniqueness."
"Big brand operators are well-positioned to bring their huge marketing budgets, extensive local connections and robust operational procedures, but I think this all adds up to a regimented, controlled environment," adds Carson.
"This is not what the boutique experience should be about. The clever hoteliers and marketers are already moving the goal posts to maintain their advantage."
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