Boutique Hotels - A New Choice for the Consumer - Essay Example

?Boutique Hotels – A New Choice for the Consumer The term ‘boutique hotel’ refers to a style of accommodation which focuses on individuality, intimacy and style (Wilson, 2004). Boutique hotels are often associated with independent owners or small hotel chains, although this is changing in recent years (Aggett, 2007). The purpose of a boutique hotel can vary depending on the owner, with many offering state-of-the-art technology and others shying away from WiFi access and focusing on comfort and intimacy (Lim & Endean, 2009). The purpose of this literature review is to explore whether boutique hotels provide the consumer a new choice within the accommodation market, exploring how these new options may appeal to a variety of different individuals. It will also explore how the notion of the boutique hotel has evolved over time but still remains an important mainstay within the market. In particular, it will consider the factors that have influenced the growth in the boutique hotel sector. Swig (2000) examined the boutique hotel in more detail, suggesting that, whilst the major hotel chains are not suffering in any meaningful way, the boutique hotel never-the-less presents the consumer with a new and interesting option within the accommodation market. Swig (2000) suggests that an important characteristic of a boutique hotel is that the theme of the accommodation is somehow linked to the destination or neighbourhood in which it is situated, as well as taking into account the personality of the intended consumer. The article also uncovers the characteristics of this consumer, quoting Chip Conley (of Joie de Vivre Hotels); “sophisticated, artistic, literary and conscious” (Swig, 2000, p2). The boutique hotel may be hard to define in any definite terms, but essentially this is the purpose of the boutique hotel – it represents the personality of the individual consumer, in opposition to the chain hotels (Mcintosh & Siggs, 2005). Wilson (2004) covered in more detail what she termed ‘the boutique mystique’, stating that ‘not every distinctive property is a “boutique hotel” (p54). The emphasis on properly defining a boutique hotel suggests that it must be “trendy” (p55) in a similar way to the 1960s fashion boutiques. This means that the boutique hotel is not limited to traditional standards of beautiful architecture; indeed, many boutique hotels are located within urban areas and utilise refurbished “ex-factories and warehouses” (McNiell, 2008, p383). Thompson & Thompson (1995) suggest that this variety is a contrast to the anonymous larger chains, which is part of the reason why boutique appeals hold such an appeal. McNiell goes onto suggest that the boutique hotel may not be a separate concept from the traditional B&B (McNiell, 2008, p384). In this case, we can see that some scholars believe that the boutique hotel may not be different to previous choices within the accommodation market. The difficulty in defining a boutique hotel is part of the reason that they appeal to such a wide variety of consumers. McManus (2001) suggests that the hotel consumer is now “turning to boutique hotels to give them the same services, but with greater intimacy” (p103), and the only applicable term for the boutique hotel user is “sophisticated” (p104). Fanning (2006) uses the term “cultural” to describe the consumer. These are both umbrella terms, with the precise demographic and tastes of the boutique user being hard to ascertain precisely because different hotels appeal to different consumers (Lim & Endean, 2009). Iwata (2006) proposed that the boutique hotel appeals more to the homosexual male than the heterosexual. This literature seems to be in agreement that the boutique hotel offers something different, which contrasts with the opinion of McNiell (2008) above. More evidence that the boutique hotel can be considered different to the standard offerings is the literature exploring the global chains like Starwood Hotels & Resorts Worldwide (Chang & Teo, 2009). There are even chains which are dedicated solely to the boutique hotel brand, such as Epoque Hotels (Chang & Teo, 2009). It could be argued that the very existence of these chains is contrary to the notion of the boutique hotel; they are not offering anything different in that they can be part of chains, which contrasts with the opinion of Wilson (2004) that the concept of a boutique hotel relies on individuality. The boutique accommodation market, as defined by the literature below, appears to have gone worldwide. There are examples of boutique hotels in Romania (Irina-Rabontu & Niculescu, 2009), Peru (Riviera Garcia, 2011), Turkey (Erkutlu & Chafra, 2006), and further afield, which suggests that this concept is international. It could also be suggested that boutique accommodation has an appeal to the more intrepid traveller, particularly those who want to get involved more directly in local culture (Murphy et al, 2000). The problem with boutique hotels in these areas are that they are even more difficult to separate from normal hotel offerings, which almost always take some stylistic flourishes from the local environment (Irina-Rabontu & Niculescu, 2009). Some even suggest that they are no different from the standard offerings except in price, and even these far-flung locations are cashing in on the trend without offering any different experience (McNiell, 2008, p312). Many scholars find evidence that the boutique hotel market has seen a significant growth in the last few years (Victoriono et al, 2005). It should be noted that this does not definitely mean that it offers a different experience from the traditional (Chang & Teo, 2009) but that more people are purchasing options with the label of boutique. There are a number of reasons for this. Firstly, there is a trend in the tourism industry that sees a number of individuals wanting to interact more with their environment and experience the local culture (Murphy et al, 2000). The development of the budget boutique hotel allows the notion to be viable to wider group of individuals, although again this has been identified as controversial as these chains may not be offering anything new (Swig, 2000). Aggett (2007) placed a huge emphasis on the way that boutique services were more personal to the consumer, which is one of the major reasons for their appeal. The literature on boutique hotels is evidently in agreement that the term boutique hotel is incredibly difficult to define. It is also part of what makes some scholars, such as McNiell, question whether the boutique hotel really does offer a different option to the consumer. To some, it fills a gap in the market dominated by larger hotel groups, and offers a more personalised service. To others, it may be a mere extension of the traditional B&B or hotel market, and some may even feel that the label cons the consumer into believing they are purchasing a different experience, which they are not. Perhaps the strongest evidence that the boutique hotel offers a new experience is the wealth of information in the literature which suggests that the charm of the boutique is in individuality and personality. References Aggett, M. (2007) What has influenced growth in the UK’s boutique hotel sector? International Journal of Contemporary Hospitality Management [Internet], 19 (2), pp. 169-177. Available from: Emerald [Accessed 12 February 2012]   Chang, T. C., & Teo, P. (2009). The shophouse hotel: vernacular heritage in a creative city. Urban Studies, 46(2), pp. 341–367. Erkutlu, H. V., & Chafra, J. (2006). Relationship between leadership power bases and job stress of subordinates: example from boutique hotels. Management Research News, 29(5), pp. 285–297. Irina-Rabontu, C., & Niculescu, G. (2009). Boutique hotels-New appearances in hotel industry in Romania. Annals of the University of Petrosani, Economics, 9(2), pp. 209-214. Iwata, E. (2006). More marketing aimed at gay consumers [Internet]. USA Today. Available From: USA Today Online: [Accessed 20th April 2012] Lim, W. M., & Endean, M. (2009). Elucidating the aesthetic and operational characteristics of UK boutique hotels. International Journal of Contemporary Hospitality Management, 21(1), pp. 38–51. Mcintosh, A. J., & Siggs, A. (2005). An Exploration of the Experiential Nature of Boutique Accommodation. Journal of Travel Research, 44(1), pp. 74–81. Available Through Emerald: [Accessed 20th April 2012] McManus, R. (2001). Dublin’s changing tourism geography. Irish Geography, 34(2), pp. 103–123. McNiell, D. (2008). 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