Hotel Brand Standards: How to Pick the Right Amenities for Your Property
By Chekitan S. Dev, Rebecca Hamilton, and Roland Rust
Hotel owners and brand managers often have contrasting views of which amenities should be offered by a hotel. At issue for the owner is whether offering a particular amenity justifies the expense, while brand managers are typically more concerned with maintaining consistent brand standards systemwide.
This report enhances that discussion by demonstrating an analysis of the short-term return on investment amenities offered by 33 upscale and luxury hotels, offering three popular complimentary amenities—bottled water, Internet access, and fitness center use—both in terms of their effect on first-time visits and in influencing repeat business.
While Internet access held the greatest attraction for first-time buyers, complimentary bottled water offered the highest ROI for returning guests. Analyzed over a twelve-month period, the fitness center had a negative ROI for both groups. Looking at the full range of amenities offered, the study also found that guests greatly overestimated the likelihood that they would use the hotels’ amenities, but the analysis determined that guests’ actual use of amenities was a significant predictor of both future visits and revenue.