Elevating Experiences to Drive Differentiation

In today’s competitive hospitality landscape, a hotel’s success hinges on more than just providing a place to sleep. A hotel’s unique experiences, amenities, and outlets—such as restaurants, bars, spas, and curated guest experiences—are not just profit centers; they are essential tools for differentiation. When a hotel focuses solely on the direct profitability of these outlets, it risks eliminating the very elements that make it stand out. And, if a hotel lacks differentiation, it will inevitably find itself competing on price—a race to the bottom that rarely leads to long-term success.

Guests choose hotels for various reasons, and while price is a factor, it’s not the sole driver of decision-making. Memorable experiences create emotional connections, leading to repeat business and word-of-mouth recommendations. Hotels that offer signature experiences—whether through culinary excellence, immersive wellness offerings, or hyper-local adventures—create value beyond the cost of a room night.

“We’ve seen firsthand how these experiences set us apart. They’re not just events; they shape our identity, attract the right guests, and create lasting loyalty. When done right, activations aren’t just a marketing tool—they drive real profitability by keeping our hotel top of mind and our guests coming back.” Donte P. Johnson, General Manager, Thompson Atlanta Buckhead

Creating Value-Driven Experiences That Stand Out

To ensure long-term success, hotels must shift their mindset from short-term profitability to sustained differentiation. Here’s how:

1. Identify and Amplify Signature Experiences – Every hotel should have at least one unique experience that defines its identity. Whether it’s an exclusive dining concept, a partnership with local artisans, or an adventure-driven activity, these elements should be woven into the hotel’s brand story.
2. Leverage Outlets as Marketing Tools—A well-conceived restaurant or spa is not just a revenue stream; it’s a marketing asset. A destination-worthy rooftop bar can generate PR buzz and attract both travelers and locals, reinforcing the hotel’s brand beyond traditional advertising.
3. Integrate Experiences into the Stay – Rather than treating outlets as separate businesses within the hotel, integrate them into the guest journey. Offer packages that include curated dining experiences, wellness treatments, or cultural excursions to enhance the perceived value of a stay.
4. Measure Success Beyond Revenue – While profitability is important, hotels should also assess guest satisfaction, brand perception, and long-term loyalty. A restaurant that increases guest engagement and contributes to higher repeat visitation may be more valuable than one that simply turns a higher profit margin.

While events and activations haven’t traditionally been part of a GM’s role, growing competitive pressure has led forward-thinking GMs to embrace them as strategic tools to drive rate and capture market share—aligning directly with their core responsibility. “It’s catching on. It’s not always plug-and-play. Most of our operating models weren’t built with this idea in mind. The alignment work can be challenging, but it’s worthwhile.” Mr. Johnson adds.

Conclusion

Hotels that view experiences and outlets purely as revenue drivers risk diminishing their brand appeal, forcing them into price wars that erode long-term value. By focusing on differentiation—creating memorable, value-driven guest experiences—hotels can attract the right audience, command higher rates, and build lasting guest relationships. In the end, it’s not just about how much an outlet makes today, but how it positions the hotel for success tomorrow.

Mr. Johnson sums it up, “Events and activations, large and small, can add to a business financially and meaningfully elevate brand cache.”

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