Emerging trends in the hotel industry: no frills, more trills for European travellers?

No-frill chic is a new consumer trend that is going to deeply affect the hotel industry, by shifting consumer expectations and changing the traditional segmentations in which marketeers try to squeeze - with decreasing success - the modern travellers.

Trendwatching defines the No-frill chic trend as:

"low cost goods and services that add design, third-party high quality elements and/or exceptional customer service to create top quality experiences at bottom prices.

No-frills chic is important to all consumer sectors because of its power to change consumer expectations. Frugal consumers will like the chic experience at virtually no extra cost, dumping 'no-chic' low cost offerings. Old-style 'luxury' consumers may be tempted to forego more expensive, traditional products and services. This is in many ways a natural evolution of the no-frills concept. In the end, there aren't that many goods and services that require no experience at all."

When it comes to hospitality, the concept is very well represented by a wave of new hotel companies that promise to (finally) bring some real innovation to the industry by combining style with budget, mixing the chic with affordable rates.

No-frill chic hotels want to appeal to both budget consumers who will love to experience some extra chic at no extra costs, and to the more demanding travellers who are ready to welcome a non-traditional concept of luxury and service. The spectrum is indeed quite wide, and ranges from the core "no-frills/back to the basics" model (very close to the low-cost airlines concept) to a more chic level, where also the sophisticated desing-minded types and the business travellers can feel confortably cocooned by stylish architectural details.

Here an overview of the new-comers...

1.
Yotel has recently opened its first hotel at Gatwick Airport and a new opening has been confirmed at London Heathrow for the end 2007. The target is very specific: rooms are defined as “Business Class Cabins” with “luxury yacht finishing”, and are available from £25 for hourly or overnight stay, for a perfect match with travellers air-plans. The declared ispiration here are business class airlines "because they know how to use a small space and some of the technology of luxury yachts".

2.
Keeping on the budget-side of the lot, EasyHotel.com is the natural extension of the EasyJet concept, with the same focus on aswering to a basic need with a basic but "to-the-point" product, at low prices. As a low-cost carriers understood that the core need was flying from A to B, not necessary eating an on-board meal, EasyHotel akwnoledges that short-stay customers will accept less space for a better price, and offers very basic but safe, clean rooms for the night at budget prices. Customers pay for what they use (e.g. television, extra housekeeping, extra towels). Five hotels are now open in London, Basel and Budapest, and more will come soon, as the company can count on the very significant EasyJet customer base.

3.
The latest technology and quality products in a sociable atmosphere, a comfortable bed and great pillows with no out-dated services. This is what Amsterdam-based CitizenM chain offers to its clients. A dedicated offsite factory allows the company to consistently maintain high quality standards and streamline the building process of new hotels. Significally, CitizenM’s founders include professionals from both the hospitality and fashion industry. The stylishly designed lobby, furnished with Vitra furniture pieces, allows customers to programm their personal RFID card so tha the room settings are adjusted to preferred lighting, music, temperature and mood. Landlines calls and on-demand blockbusters are offered for free on the top on the free wi-fi. Rates starting from 69€ per night; a range of special offers and dedicated contents from the CitizenM community are offered to discover the city's hippier secrets. The first hotel is opening at Amsterdam Schipol at the beginning of 2008.

4.
Althought the date of the first opening is still to beconfirmed, Starwood's lifestyle brand, Aloft "infused with the DNA of W hotels" should be definitely mentioned, as it promises to "shakeup the lodging industry with urban-influenced design, accessible technology, style and a social atmosphere". Rooms will be designed with loft-like high ceilings, oversized windows and stylish bathrooms; wi-fi and a one-stop connectivity will be provided to link all the conceivable electronic gadgetry to a large flat panel HDTV. Prices will probably be at the higher-end of the affordable chic. The plans for the company are extremely ambitious, 50 development projects have been announced, mainly in the US, or, as their press release states "with locations expected to be anytown/anywhere... ". Anywhere but not in SecondLife, where their much hyped virtual property was shut down some times ago (you can read our post here).

The list should continue, and include other interesting ventures such Nitenite and Qbic up to André Balazs’ hip QT New York Hotel (still reasonably priced at from $175 in the heart of Manhattan)...something is definetely happening.

Why is no-frill chic important? Because it appeals to a very wide range of potential customers, in a contemporary way, far beyond the traditional revenue-management and socio-demographic clusters in which many hotel-chains seem to be stucked...more and more removed from the blurred boundaries of the post-modern society where high income and a taste for luxury goods do not necessary overlap anymore.

Who is addressing the needs of the 35-years old manager who books his travel on the internet, dislikes boring, expensive corporate hotels and looks for a hassle-free wifi connection and free-movies within a sociable, not stiffed atmosphere? Who's talking to the young trendy couple who will recognize the iconic piece of furniture in the room, and still be happy to have some money left from the hotel-bill to go and spend it at the closer sushi restaurant? Who's attracting back the growing audience of chic B&Bs and rented apartments, often located in the very city centres, that welcome you in an informal yet cozy and friedly environment, surprise you with some unespected architectural details, and let you walk in the quiet lobby with you wifi connection on, all at very resonable prices?

And no-frill chic is important because new service standards for reasonably priced-room are being set: most of the mentioned hotel companies offer wi-fi, rain-shower, flat-screen tv at no extra-cost. All of them are very straightfoward in using their websites to clearly explain what to expect from your room and your next stay. All of them seem to be run by modern travellers, with modern travellers in mind.