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February 2011

Thinking

Why Differentiation is More Important than Ever for Hotels

February 4, 2011

I recently heard a shocking statistic at a hotel conference that clearly explained to me why differentiation has become such a problem in the hospitality industry. A German hotel association study found that hotel companies in Germany invest 95 percent of their budget on product and a tiny fraction of anything remaining (maybe 1.5 percent) on people. The speaker mentioned that this statistic was probably true for hotels in other parts of the world as well. No wonder then that it has become almost impossible to tell one hotel room from the next, leading to very bland and generic experiences at most hotel chains.

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