Business Strategy

5 Challenges Facing Independent Hotels & How To Overcome Them

Often the hidden gems of a destination, independent and boutique hotels deliver experiences that are more personal, distinctive, and deeply rooted in local culture than those offered by large, branded properties. As storytellers and pioneers of hospitality innovation, they play a vital role in shaping the travel landscape. Yet despite their strengths, these properties face a distinct set of challenges in an increasingly fast-paced and competitive environment.

In a conversation with Jennifer Barnwell, President of Curator Hotel & Resort Collection, she highlighted the five most urgent challenges independent and boutique hotels face today – and how they can thrive by staying nimble, building strategic partnerships, and embracing what makes them one-of-a-kind.

Awareness In An Oversaturated Market

Against the backdrop of massive marketing budgets from hotel giants and OTAs, standing out is one of the biggest hurdles for independent properties, according to Barnwell. “Curator is not a commodity, but a collection of unique and creative hotels. Getting the word out to the right audience that we exist and the type of experience you can have with us is crucial.”

Independent hotels resonate with travelers who crave authenticity, charm and a sense of place, whether through design, service or community connections. They also foster innovation, frequently leading the way in creative guest experiences, and economically, they support local jobs and contribute to the cultural and social fabric of their destinations. “Our heart, soul, storytelling and creativity are where we shine and where we’ll win because we’re clearly differentiating ourselves in the industry,” Barnwell noted. “Our member properties are encouraged to have deep community roots and facilitate pop-ups and activations on property with local businesses, and as their partner, we advise on how to effectively explore and leverage these opportunities.”

Escalating Operating Costs

High costs and increased market uncertainty are an ever-present challenge for the hotel industry, especially for independent properties operating with tight margins and fewer resources compared to big brands. Yet, their autonomy can be a strategic advantage.

Since these properties are not beholden to brand standards, there are great opportunities for them to strategically manage costs associated with back-of-house and guest-facing operations, explained Barnwell. “In the independent space, we have so much flexibility both operationally and with purchases, and this nimble nature is a proven strength. Nothing is mandated, so an individual property can pick and choose the services and tools that are best for them, their team members and their guests.”

Curator launched five years ago as a champion for independent and boutique hotels with the goal of saving them money and improving their profitability. As a result, Curator now has approximately 100 proprietary vendor agreements, including with PMS, CRS, POS and revenue management companies – vendors who really understand the hotel space and can customize their solution property-by-property accompanied by uncomplicated, straight-forward training.

Barnwell noted that members are also encouraged to look at a GPO (Group Purchasing Organization) for controlling costs related to food and beverage, linens, furniture, supplies, and other goods. “We advise members to pilot-test options that we have vetted for both current services and ones they’re not using today to see if they deliver positive outcomes.”

Navigating Technology & Guest Communication

Keeping up with the rapid pace of technology and communication tools is daunting for lean teams that don’t have the time and resources for the task. Aligning with like-minded hotel owners and operators, though, provides the support necessary for this monumental endeavor.

Curator vets technology and communications platforms for their positive impact on guest satisfaction, operating efficiency, and ROI, presenting robust options for their hotel community. “We also help negotiate better terms than our properties might get on their own, particularly in a time when consolidation may be forcing hotels to take on required services they don’t need or want,” said Barnwell. Since technology and communication are intertwined, Curator’s independent hotels are encouraged to consider how they communicate during the entire guest journey, from booking to on-property engagement to post-stay.

Curator guides members on finding the best technology stack and communications tools to help achieve their goals, remarked Barnwell. “We don’t mandate requirements for our hotels, so they can confidently stitch together the systems that truly serve their needs.”

Winning & Keeping Guests

With economic pressures mounting and travel behavior shifting, guest acquisition and retention are top concerns. According to Barnwell, companies are pulling back on top-line projections for RevPAR due to underperformance, inflation concerns, dipping consumer confidence, shortened booking windows, and decreases in international in-bound visitors.

Independent hotels can successfully navigate this difficult landscape by doubling down on their core strengths of personalization, agility, and local authenticity. Leaning into personalization fosters loyalty and word-of-mouth referrals. Flexible cancellation policies and exclusive offers drive direct bookings. Amplifying social media strategies helps reach fresh audiences. Forming partnerships with nearby restaurants, artisans and activity providers allows hotels to tap into new customer networks.

Barnwell also suggests focusing on guest appreciation and recognition to deepen loyalty, using first-party data for retargeting and remarketing, and leveraging Curator’s new consumer-focused website, social accounts, sweepstakes and special offers. “We’re experiential by nature and must evolve to stay relevant when it comes to guest acquisition and retention.”

Attracting & Retaining Talent

Independent hotels face an uphill battle in finding and retaining quality talent, especially without the brand recognition, corporate benefits, or career pipelines of major chains. But again, flexibility is their superpower.

Forward-thinking independent hotels can promote their personal, values-driven culture through open communication and recognition; offer flexible schedules and cross-training opportunities to build new skills and keep work interesting; invest in on-the-job training, mentorship, and career development to show staff a clear path forward; leverage community centers, hospitality schools, and job centers to create pipelines of local talent; and creatively enhance compensation with perks like free meals, discounts or housing assistance.

Barnwell understands that fostering a sense of purpose is key, and this mindset is invaluable when it comes to sharing insights with members.  As with all areas of operation, Curator consults with its hotels on how to retain and attract new team members who want to be part of something unique and meaningful – properties with rich histories or strong ties to the local community – rather than just another job.

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Independent and boutique hotels are facing real headwinds, but with the right support, they’re well-positioned to lead the future of hospitality. Contact Curator Hotel & Resort Collection to learn more about thriving through shared resources, flexible partnerships, and tailored strategies. www.curatorhotelsandresorts.com/join; Jennifer Barnwell, President, jbarnwell@curatorhotelsandresorts.com

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