Boutique Hotels and guests are emphasized, for example, a warm, caring attitude on the part of management and staff is encour Currently, there is no one definition of a boutique Chord, however, most people think of a boutique agext, and staff members acknowledge guests by names hotel as a small, upscale hotel with a hip environ Also, boutique hotels are known to provide a higher ment where the customers feel connected to the staff quality and wider range of guest amenities; such hotel The beauty of the boutique segment is that it properties surpass the standard amenity set by provid- provides a wide range of opportunity for devel- ing whimsical offerings such as stuffed goldfish, pillow opers. Unlike the name implies, boutique prop- menus, and complimentary candies and nuts. Technol ertas no longer have to be small to fit into the ogy is also widely used to enhance the cutting-edge Category: they can have hundreds of rooms design, fashionable image, and convenience. Every What hotels do need to have to enter into the room has high-speed Internet access, a flat-screen TV, a expanding segment is panache, some roster of DVD player, and other latest technological gadgets. unique features, services, or amenities that sets The third feature is the number of rooms. Most them apart and easily confirms that sense of exclusivity upon guests by association, commentators agree that boutique hotels should not exceed 150 rooms to maintain the intimacy between Stefan C. O Connor, Executive News Editor the guests and the hotel staff, and the Hotel Business, 70/06 attention by the staff. Recently, however, there seems personalized to be no upper limit on the maximum number of rooms, for example, among properties operated by Ian Schrager, Paramount Hotel has 594 rooms, and Hudson Hotel has 821 rooms. The last characteristic is the market that is at- Even though people seem to disagree on the defl- nition of boutique hotels, most commentators agree that they have four major defining characteristics. First, as a general rule, boutique hotels put more tracted to boutique hotels. These hotels generally emphasis on design and architecture than traditional chain hotels. Incorporating cutting-edge design and target customers who are in their early twenties to decor and featuring celebrity architects and designers’ mid-fifties, in the mid- to upper-income brackets. work, boutique hotels look very distinctive inside and Also, these hotels’ corporate accounts include media, outside. These interior and exterior designs create the fashion, entertainment, and advertising companies “personality” or “identity” of each hotel. For exam- that are attracted to the trendy design and lively ple, each guest room in Library Hotel in New York atmosphere.” City has a different theme, such as romance and mu- Although boutique hotels might vary in many sic. The goal of these hotels is to create a unique, aspects, they can be grouped into two types based on intimate, and stylish environment that makes every their location. single stay different, even for repeat guests. Boutique The first type is city destination hotels. These hotels try to entertain their guests by creating a theat- hotels are in urban edgy and chic neighborhoods in rical atmosphere that attracts all the senses though major cities like New York, London, San Francisco, the use of design, color, lighting, aroma, and music and Miami. However, even though many boutique The second common feature is superior personal hotels are still located in major cities, more compa- service. Intimacy and familiarity between hotel staff nies have recently been targeting less cosmopolitan Wichard Müller and Kein Washington, Hotels mit Reports 2007. Harry Nobles and Cheryl Thompson, What Is a Boutique (Georgia: Richard K. Millet & Associates, 2007). online.com/News/T’R2001_4th/Oct01_BoutiqueAttributes.html Lucienne Anhat, The Definition of Boutique Hotels,” HVS In temational, December 13, 2001, January 29, 2008; http//www. Peter Jones, Boutique Hotels.” October 18, 2004 March 2 hospitalitynet.org/news/4010409.print 2008; http://hotel-online.com/Views/1000.hui. Jones lang Lasalle Report * Anhar, “The Definition of Boutique Hotels.” Jones Lang Lasalle report Paula Drayton and Kristy Rodwell Boutique Hotels An Anhar, “The Definition of Boutique Hotels Australian Perspective.” September 2001. January 29, 2008, httpwww.hotel-online.com/trends/Andersen/2001 butique HINH CI?ve html Ibid 101 CHAPTER 3 New Product Development QUESTIONS cities. Unlike traditional hotels, proximity or conve- nience is irrelevant for boutique hotels, but they are often located in cities with vibrant economies that are media or big fashion capitals to best attract their tar- get market. 1. What are the operational challenges associated with developing new boutique hotels? 2. What can we learn from the mass customization of tangible goods (e.g., Lands’ End or Dell) that can be applied to the mass customization of ser- vices (e.g., boutique hotels)? The second type is resort destination hotels. Lo- cated in well-hidden deserted corners of islands or mountains tucked away from the world, these hotels are smaller, more intimate, and less technology- focused. Unlike city destination hotels, the guest ex- perience is based not on having cutting-edge technology, but on excluding it. Also, the more dif- ficult it is to reach the destination, the more fashion- able the location is considered. The goal of these hotels is to provide the ultimate “get away from it all.” 3. How can boutique hotels maintain a consistent/ standard level of service without compromising their unique/personalized service mission? Source: This case study was developed by Melissa Reich and Ho Jung Kim under the guidance of Rohit Verma