Savills News

Unleashing the Power of Personalisation: Exploring Niche Markets in the Hotel Industry

In today’s highly competitive market, travelers have numerous options at their fingertips, making personalisation a key differentiator and a crucial factor in creating guest satisfaction and generating loyalty.

Pet Friendly Hotels

In the UK, 62% of households have pets (Statista 2022). TripAdvisor found that 53% of pet owners travel with their pets, highlighting the substantial demand for pet-friendly accommodation and the already apparent customer base to target. Pet friendly hotels can achieve a substantial increase in market share as well as improving revenue through the chargeable pet related fees that have become a norm for pet owners. Catering to pets also enhances customer satisfaction and enhances guest loyalty and the opportunity for repeat business, establishing a solid foundation for long-term success.

Pet friendly hotels offer a range of amenities and services, from comfortable pet beds and in-room amenities, to offering specialised pet services such as pet-sitting, grooming and even pet dining menus.

Wellness Retreats

Wellness retreats have emerged as sanctuaries for people yearning for much-needed relaxation, rejuvenation and self-care. According to The Global Wellness Institute, the UK wellness tourism industry was valued at £135.9 billion in the UK alone during 2020.

Wellness retreats go far beyond providing spa amenities, they curate holistic experiences encompassing yoga and meditation classes, nutritious cuisine and serene surroundings, providing a transformative experience that surpasses the ordinary hotel stay. The Wellness Tourism Association reports that 84% of respondents stated that they participate in wellness activities when they travel, allowing businesses to foster lasting impressions and heighten guest loyalty.

Culinary Experiences

With the popularity of food-related content on social media and television, consumers are increasingly seeking hotels that offer exceptional culinary experiences. A study by the World Food Travel Association revealed that 80% of travelers considered food and drink experiences as essential to their travel plans. Hotels are capitalising on this trend by collaborating with renowned chefs, local artisans and farmers to create farm-to-table dining experiences and cooking workshops.

While food and beverage operations may not always yield high profitability on their own, hotels that prioritise their culinary offerings as a destination experience can thrive. These destination dining hotels have the advantage of attracting guests year-round, transcending the limitations of peak seasons as well as achieving premium room rates for guests looking to dine and stay over.

An exemplary illustration is Rick Stein's Seafood Restaurant, which incorporates guest rooms as well as a number of other dining offerings including Rick Stein’s Café and St Petrocs Bistro. During off-peak seasons, visitors flock to Padstow to indulge in the fine dining experience and partake in captivating cooking workshops. This strategic approach not only enhances the business’ reputation but also contributes to increased room rates and number of room nights, boosting overall profitability.

Adventure

Adventure travel is one of the fastest growing segments in the tourism industry, with a CAGR of 28.7% between 2022 and 2032 (Adventure Tourism Market Report). Some hotels have embraced the natural beauty of their surroundings and offer a plethora of outdoor activities to cater to adventurous souls.

One remarkable example is Another Place, an extraordinary destination hotel that goes above and beyond to provide an unforgettable experience. Guests are immersed with a range of outdoor activities including paddle boarding, open water swimming and kayaking, as well as trekking, sailing and even skiing! This caters to the diverse interests of guests, ensuring a tailored and captivating stay. It keeps guests at the hotel for the entirety of their stay, and everything from food, accommodation and activities are part of the revenue-earning guest experience.

By catering to pet owners, wellness enthusiasts, foodies and adventure seekers, hotels can tap into new customer segments, drive revenue growth and establish themselves as leaders in their respective markets. Personalisation is no longer a luxury but a necessity for hotels aiming to thrive in today's competitive landscape.

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