Segmenting leisure hotels

The original idea for this pertinent observation comes from the wife. However, since she’s on an extended vacation and hence unlikely to blog this soon, I’m blogging it.

Hotels are traditionally classified into “business” and “leisure” hotels. As the names suggest, the former mostly cater to business travellers and the latter to vacationers. The lines can be a little blur, though, since business and leisure travels have complementary seasonality, thanks to which hotels practice “revenue management” by using their capacity for both business and leisure.

However, as we discovered during our vacation last week, leisure hotels can be further segmented into “couple hotels” and “family hotels”. Let me explain using the example of Vythiri Village Spa Resort where we spent most of last week. Based on our reading of the hotel, it was initially built to be a “couple hotel” but perhaps based on the kind of clientele they were getting, they turned it into a “family hotel”.

Now, the difference between couple hotels and family hotels essentially has to do with how child-friendly the place is. Vythiri, for example, had a “kids play area”, the balconies had been shuttered up with windows (creating greenhouses inside the balconies which made them horrible to hang out it, but making them safer for kids),  had a pantry area (the balcony had been converted into a pantry – so people wiht babies could bring their electric cookers and cook!) and activities such as “guided nature walks” and “artificial waterfalls”. Even at its deepest the swimming pool was not more than three feet deep (no I didn’t test it).

The reason I say that the hotel was built for couples is to do with the large bathroom which also included the walk-in closet. Given that you might want to multiplex between one person showering and another dressing at the same time, this design made it obvious that it only works for couples, but not for people with kids – most parents are shy about letting their kids see them in various stages of undress.

Then this resort advertised itself as a “spa resort”, and a massage was included in our package. This is again a “couple thing” for people with kids are unlikely to be able to take time off from their kids to visit the spa! So everything about this resort told you that it had been designed for couples, but then changed its positioning to become a “family resort”!

I guess you get the drift. And so whenever the manager would accost us and ask if things were good, the wife would quickly nod him a “yes”, and then privately tell me that we were the wrong target segment for the hotel, and so our feedback didn’t really matter to him!

And so we stayed there, for three nights and a bit, looking at screaming kids every time we hit the restaurant (the buffet spreads were nice, so we didn’t order room service); looking in bemusement at people “going on nature walks”, ignoring the “entertainment” at the “gala Christmas dinner” and so forth.

We had a good time, though, eating, sleeping, talking, hanging about – mostly within the confines of the room. The service was great, the staff extremely friendly and pleasant. Only that we were the wrong target segment for the hotel, and we didn’t realise that while booking!

PS: I tried looking for a “marketing” category to put this post under but realised that none such exists. Goes to show what I’ve not been blogging about!

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