Product differentiation is key to the success of your boutique hotel. It will define the way in which your hotel will stand out from those of the competitor.

Product differentiators could be positive attributes such as importance, distinctiveness, superiority, affordability, profitability, communication, etc. At the same time, due to the high costs typically involved with the development of a boutique hotel, it is important to study the product components that your guests appreciate the most.

At a basic level, common product differentiation strategies include:

  • Physical attribute differentiation of the hotel
    • Size
    • Architecture
    • Furnishing and aesthetics
    • Cleanliness
    • Signage
    • Lobby space
    • Parking
    • In-house leisure & wellness facilities
    • In house wellness facilities
    • Swimming pool
    • Meeting rooms/Event space
    • Fast Wi-Fi
    • Security
  • Physical attribute differentiation of rooms includes
    • Size of bedrooms
    • Design
    • Furnishing
    • Sleep comfort
    • Soundproofing
    • Bathroom size and amenities
    • Good quality towels
    • Tea & Coffee making facilities
    • Smart televisions
    • Fast Wi-Fi
  • Service differentiation includes
    • Room service
    • Speed and process of check-in/check out
    • Speed of service
    • Concierge service
    • Quality of housekeeping
    • The appearance of front line staff
  • Personnel differentiation includes
    • Training and professionalism
    • Knowledge about food, the destination, hotel & local experiences
    • Attitude and friendliness of front line staff
  • Location differentiation
    • Access to important places to visit nearby
    • Proximity to the airport or other public transport hubs
    • The convenience of reaching the hotel
    • Convenient parking
  • Image differentiation
    • The positioning of the hotel against the competitor set
    • Branding and any association to a well-known brand in the market
    • Reputation and reviews
    • Classification – eg: star rating

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