Budget hotel concept assessment

By Tim Sander
Research Problem

An architectural bureau had developed a hotel pod concept, a novelty at the time, for positioning in the budget lifestyle tier. The company had two options – either to launch the concept themselves or to sell the concept to an established hotel brand owner. But they needed to prove the demand for and the appeal of the concept in the UK.

Approach

We placed a confidential question on our Hotel Guest Survey with a concept description, exploring the uptake to establish market demand. To establish concept appeal and pricing we conducted a string of focus groups in a number of locations, showing a product video and images. Furthermore, we arranged for a number of hotel users to stay in a mock up room overnight to experience the concept first hand and to feedback.

Outcomes

Market demand for the concept was considerable and the appeal of the concept, with some modifications, was also rather positive. Furthermore, research revealed that consumers were prepared to pay a notably higher room rate for the concept than initially assumed by the client. The research provided the client with some solid proof that the concept was likely to work in the UK market, allowing them to approach major hotel brand owners or to get the concept off the ground themselves. The concept has since launched successfully.

To find out more about our Hotels research please contact James Bland.