Boutique Hotels: Operational Challenges

Boutique Hotels Your Name Your Institution of Affiliation April 19, 2018 1 What are the operational challenges associated with developing new boutique hotels? 1 Due to its primary focus on providing service that is superior, personalized, and chic some of the operational challenges that boutique hotels are facing are (1) decreasing operational expense, (2) keeping the current market base, and (3) creating strategic partnerships and alliances (Gupta, 2016). The main reason why it would inevitably struggle to decrease operational expense is that these days most of the boutique hotels focus on personalized service, not only by having a superior customer and staff interaction, but also a unique atmosphere. Some of these hotels, for example, have different rooms with different themes, which would cost more to renovate and maintain, than hotels with similar rooms. Another operational challenge would be keeping the current market base. As discussed, most boutique hotels rely on its stylishness and uniqueness as compared to other hotels. Thus, customers would usually try different hotels every time they stay to have different experiences. Also, creating strategic partnerships and alliances would also be difficult for starting a boutique hotel. On the one hand, city destination hotels would need to find viable real estate developers to cut cost for the construction of the infrastructure. On the other hand, resort d...