Marketing strategies of boutique hotels : a demand pattern analysis

Abstract

The maturation of the hospitality sector in Singapore has led to a number of product innovations within the industry. The boutique hotel sector has emerged from this evolution of product concepts in a response to the more discerning traveler. As emblems of ‘new tourism’ and the postmodern age, boutique hotels exemplify anti-mass principles of small individually owned and designed businesses catering to niche markets and segmented interests. Although a new concept in Singapore, the number of boutique hotels has grown inline with an increasingly affluent and consumerist society seeking the exclusive lifestyle that they offer. These hotels offer designer lifestyles which target trend conscious individuals and are a major phenomenon in today’s consumerist culture. This trend towards designer lifestyles is noticed particularly among the higher level market segments. Although the burgeoning upper income levels in society represented a unique business opportunity, this phenomenon has only recently started to be embraced by the local hospitality industry Hence this dissertation seeks to examine the current state of the boutique hotel industry in Singapore and its prospects for future development. Demand and supply figures are projected to show the potential of this niche market. The tourism market and outlook is also analyzed to gauge the concept’s viability in the current economic climate. A survey analysis of the guests of three boutique hotels which represented the various segments within the industry was also carried out to determine their target market profiles as well as their overall marketing focus. This step was crucial to understanding how the positioning of these establishment would affect their sustainability given the slow down in the market. Lastly marketing recommendations are given to help these niche developments capture a larger share of the hospitality market.