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HOTELS
CHADAMAS CHINMANEEVONG
Koravic: Uniqueness is key to suvival |
Small hotels need to differentiate themselves to survive tough competition and the price war with big hotel chains, says the general manager of a small boutique hotel in Bangkok.
The Thai economy is sliding along with the global economy and this will surely affect tourist arrivals this year. The slowdown has forced many big hotel chains to wage a price war to attract more guests, with average room rates cut by 30-50%.
Koravic Bhanubandh, general manager of Ma Du Zi Hotel, said this posed a big problem for small hotels which were in no position to join the price war.
''The big chains can cut their room rates, as they can offset the losses with profits from their other facilities,'' she said.
''We must differentiate from big hotel chains or even hotels at the same level. It is impossible to compete with big chains if we are not unique,'' she added.
The Ma Du Zi Hotel has its gate locked all the time to make guests feel more at home. |
Small or boutique hotels have to do something different such as offering designs and decorations that attract some target groups since many guests tend to select hotels that match their lifestyles.
If a hotel's design and decorations could win the customers' hearts, they would come back and recommend it to their friends.
Ms Koravic recalled that her family was successful in running the 17-year-old Chom View Hotel in Hua Hin using only the word-of-mouth marketing strategy to expand the customer base.
But recently the family realised that it should expand the business. It decided to invest around 500 million baht in Ma Du Zi Hotel, whose name literally means ''come and see'' in Thai. The 41-room hotel is located near the Asok junction and the prices start from 17,250 baht per room per night.
''The hotel's concept is to keep the rooms private and offer home-like services. Guests feel safe and have as much privacy as in their homes,'' she said.
Unlike most hotels, its gate is locked all the time and no strangers are allowed in unless the guests specifically instruct the reception desk to do so.
''Many people say we are crazy to do this _ it's like we don't welcome people. But since our concept is to make our guests feel like home, no home in the world opens its door to unknown people,'' she noted.
Besides, Ms Koravic said the hotel had customised its services to meet the demands of each guest.
''Our staff will memorise what each client likes or dislikes. Then, if they come back to us again, we will serve only the things they like,'' she said.
Since its opening in February, Ma Du Zi Hotel has had only a 5% occupancy rate. It has yet to fully promote the hotel among foreign tourists out of respect to the mourning period of the late Princess Galyani Vadhana.
Ms Koravic said the hotel would register as a member of a foreign marketing group early next year and will also sign contracts with tour agents. The main markets are Hong Kong, Japan, Singapore and Malaysia.
Although today the Chom View Hotel has to shoulder Ma Du Zi's expenses, she believes the small hotel will earn more next year when the economic situation is projected to improve. She expects the hotel to break even within eight years like most of its peers in the business.
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