From Guest Experience to Market Insight: Why Hotels Are the Perfect Testing Ground

From Guest Experience to Market Insight: Why Hotels Are the Perfect Testing Ground

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Hotels are known as places of intermingling and being a home-away-from-home, which means they curate experiences that are luxury enough to be desirable but familiar enough to be comfortable. These guest experiences are largely conveyed through the quality of amenities, services offered, and how well guests’ needs are satisfied.

This protocol is consistent across all hospitality institutions but the achievement of it is adjusted depending on the property’s scale and target market. This means that hotels are an untapped testing ground for brands venturing new products. Their versatility in services and amenities mean that the most niche products can still find a platform to be introduced through. Their diversity in guests means that brands can find future clients from a vast array of markets depending on the hotel they partner with. It also means hotels have the opportunity to be innovative with facets of their operations, from new products to fragrances and confections offered.

The Unique Demographics of Hotels

Hotels host various guests from a vast range of demographics. As connection points for global travellers, their walls frequently house multiple different nationalities, which introduces various cultural expectations and standards into that space. Depending on the target market of the hotel, they will either have diverse age groups staying with them—including various income levels—or they will home in on a specific clientele. This is the same with the type of travellers they host, yet you can always rely on a mix of leisure and business travellers simply looking for a sanctuary in their trip.

This diversity makes hotels a microcosm of the global consumer market. Regardless of how exclusive a hotel’s guest list is, there will always be a range of cultural backgrounds entering their doors and different guests seeking specific services at a high standard. Large, corporate hotels and boutique, independent hotels all have particular representations of the global economy staying with them—making them an even more beneficial space for market research.

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Hotels as Ideal Market Laboratories

Most companies have relied on focus groups, employees, and beta testing their potential products before mass production. These avenues of market research are inherently limited when compared to what hotels offer. Focus groups work in sterile environments with a contrived engagement with the product that is always speculative and only provides qualitative feedback.

Hotels, on the other hand, provide real usage scenarios where clients can engage with the product in practical and applicable ways throughout their stays. Both the longer stays of guests and the changeover of visitors mean that products are repeatedly exposed to various potential clients, which provides are far more accurate stress test of their longevity. Since guests are relying on the products to supply their needs, there is more authentic and immediate feedback when they are put to use. Beyond just testing a product’s potential reception or validity, partnering with hotels also provides brand discovery through guests that enjoy the quality of a brand during their stays. Repeat visitors at hotels recurringley interact with the brands being used, which introduces brands to future faithful customers.

Success Stories

The providence of this collaboration can be seen in the success of many companies and hotels. It could be the consistency of quality experienced by guests in hotels due to their relationships with certain brands. Relying on specific brands as the sole supplier of toiletries, coffee, wellness products, or even their linen and sleep products can aid hotel reliability and identification. Reciprocally, it could also be companies that flourished by having hotels as their stable clients that also allowed them to test a product’s reception before taking it further than the hospitality setting.

This was the case for CHARLOTTE RHYS, a fragrance brand that originated in Cape Town and found success through their presence in high-end hotels and elite retreats across South Africa. This exposure allowed them to become a familiar name for locals and global travellers alike, which increased demand for their fragrances after clients were introduced to them through their travellers. Eventually, they were able to grow into a well-respected name in the sustainable, luxury amenities industry and expand into toiletries and wellness products. Now they are globally recognised and available for personal purchase beyond luxury hotels through their online platform.

Similarly, Molton Brown was one of the first luxury British amenity houses to supply hotels in the 1980’s. Beginning as a small, independent salon that pioneered naturally minded amenities of a high-end standard, they grew from being popular amongst prestigious clients to being a nationally recognised name. This success led to their collection of fragrances being extensively accoladed before further partnering with Ascot and the English National Opera to supply these prestige institutions with their toiletries.

Molton Brown

A Mutually Beneficial Relationship

Partnerships between brands and hotels have consistently proven to encourage mutual flourishing. Hotel identities become further refined through their unique brand partnerships, providing guests with niche experiences at the forefront of product innovation. This differentiation makes the hotel more recognisable and increases visitor engagement, inciting more guests and establishing regulars. It all works together to elevate the guest experience so that each person staying at the hotel knows they are experiencing something special.

For brands, they get to surpass the corporate methodology that produces constrained feedback and product review. Instead, by placing their products in environments where they are being authentically engaged with, brands receive genuine feedback on products’ success in reality. Thus, their testing procedures simultaneously function as a marketing tactic and provide a means to develop customer relationships with direct access to high-value consumers. The international nature of hotels also provides brands with global exposure that would have been difficult to achieve otherwise.

Future Opportunities

These collaborations not only strengthen both parties involved and improve guest satisfaction, but they also establish a level of quality in the hospitality industry. Beyond amenities and wellness products, brands that prioritise sustainability can find reliable clients and hotels can ensure eco-friendly practices. Hotels can be elevated through the incorporation of smart room technology and those brands can be introduced to more consumers that are likely to consider the products in their homes. This also provides locally sourced goods with a platform to be strengthened and to be introduced to a vaster array of customers.

The relationships between brands and hotels can truly grow beyond the success of the two companies when applied with consideration for mutual growth and giving back.

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