by Georges Panayotis
Within a globally deflationary economic context, the success of businesses is built on three conditions: a low-cost supply adapted to the needs of the market, intelligent integration of technology, and increased conviction of brands.
The movement began in the hotel industry in the 90s, but did not go to the end of its logic. The development of new concepts that would be affordable to a larger population was stalled by the rise of Revenue and Finance Management caught up in the speculative housing bubble. The increase in average daily rates, driven by the shortage of new supply, widened the gap and allowed the sharing economy to settle in and new innovative players to pick up the baton.
A new hospitality landscape is taking shape. It is influenced by new generations who are transforming the very purpose of the hotel and reviving its central role in social life. Generation Y and those that follow open the way to concepts that illustrate a new way to experience the hotel as a destination in and of itself.
The traditional partitions of functional hotels are broken down to create an "oasis" in the city, a cultural crossroads, a place for meeting and sharing. Accommodations are no longer the only function of the new generation hotel: it has become the heartbeat of local life, the engine powering social life, the center of its animation.
This new approach to the hotel industry relies on sharing values, on a socialization that is lived and desired by the community of travelers. This generation has different priorities, and a different order of values. Sustainable development, social responsibility, the move from abundance to shortage have lead to an economic model of hotels in which spaces are redistributed, waste is rejected, recycling encouraged, sharing accepted – including some of the intimacy previously offered by the room and bathroom.
When traditional hotels believed the solution lay in dynamic pricing and on-line distribution, new concepts have emphasized belonging to a single community, affective belonging to an important brand. They go hand in hand with the transformation of the urban landscape. They are fed by the city which they draw into the hotel with animations, gastronomy, identity. They play on becoming a part of the destination, giving the primary area all its importance.
Today, stuck between the pressure of on-line distribution giants and the rising power of the sharing economy, the "classic" hotel – whether it is business or tourism oriented – is struggling to promote its originality. But it is not too late to take the right leap. More than ever, the brand drives the future. By developing an authentic identity through strong attributes, it advantageously replaces all the likes on the social networks and is no longer subject to the diktats from "reviews". Its reputation is built on an experience that needs to go beyond digital and superficial marketing.
In the new landscape that is developing around on-line distribution, the new low-cost generation, traditional hotels, brand concepts and the shared supply, each player needs to rediscover its position by meeting specific market expectations: price, sharing, experience,…. The good news is that it is growing steadily, but the battle will impact the breakdown of market shares.
