Value Proposition in Hotels, Free Essay Sample

Published: 2022-03-04
Value Proposition in Hotels, Free Essay Sample
Type of paper:  Essay
Categories:  Hospitality
Pages: 5
Wordcount: 1153 words
10 min read

A hotel is one of the only places in the world that strives to give you an unforgettable experience. Its sole purpose is to accommodate you in the best way that it possibly could while you can relax and enjoy yourself without worrying about cleaning up after yourself or others. The purpose of this paper is to examine how the value proposition in the hotel industry has evolved to change guest behavior across generations. What is a value proposition? What is consumer behavior? What are some examples relating to the hotel industry changes? The article "North Americans feel better about hotels than ever. The goodwill is unlikely to last: Future reservations" (2016), states that surveys taken are reporting a higher number of guests not being pleased or impressed by the traditional perks offered with your hotel stay. "Guests are asking, 'what have you done for me lately?" (The Economist, 2016). What is value proposition? According to the Investopedia, (2017), value proposition is a promise perceived by the customer of what he or she will receive as a result of using the company's product. This resulting mutual value exchange helps a company stabilize and strengthen its competitive position in the market. Also, what is consumer behavior? Investopedia, (2017), describes consumer behavior is the act of fulfilling a customer's value proposition toward the company's product. It is driven by the perceived needs, wants, and desires of the customer.

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Value proposition

When a customer feels like their needs, wants, and desires are not being met, they will eventually gravitate to where those things are being offered. Some hotels are in dire need of value proposition that I'm sure will increase customer satisfaction and choice. The value proposition is the ability for the hotel to deliver on not just customer service but on a service that the customers may want or desire and that will go beyond their needs and expectations. Most of the hotels offer the same things; clean rooms, complimentary parking, free Wi-Fi and room service (which is always overpriced).

In a recent article Ting (2017) stated that," Whether or not Airbnb's gamble on trips succeeds or fails, the mere fact that the company has launched tours and activities should be a clear signal to hotels that they too need to be paying more attention to guests' experiences not just inside the hotel but outside of it. They need a much more holistic approach to overall guest experience than they're used to deliver". This statement is very true in my opinion because this is one of the biggest reasons hotel guests are not as "interested" nowadays as they have been in the past. The luxury hotels are more concerned with what's going on inside instead of what's happening in the area the hotel is located within. Chicago, my hometown, for example, has many luxury hotels located downtown and in the surrounding suburbs. When an out-of-towner comes to Chicago to visit, they want to see the city and visit our museums and many of the other great attractions the city has to offer. If the hotel could not only offer its guest a wonderful hotel experience, as well as, offers to participate in other activities around the city, it would make a difference in guest behavior. Las Vegas is another city that offers its guests free tickets, free meals coupons and reward cards at the casinos that make guests happy for saving quite a bit of money which in turn brings a change in guests' behavior. The offer for the locals is also provided so instead of paying too much for a water park or a road trip, they have changed due to the satisfaction they get locally and thus opt for local vacations. The city's airstrip also offers free personal parking for their guests for 24 hours and those that have a fee the charges are as low as $10. Therefore, since the hotel industry is very diverse and can change at any given time especially from season to season. To stay ahead of the competition hotels, need to do a SWOT analysis. By conducting a SWOT analysis is how value proposition has evolved in changing guest behavior across generations (Investopedia, 2017). Travelers want the ultimate vacation experience. There are different incentives such as upgrades that hotels have offered in the past that aren't "enough" anymore. Customers also want and need more and hoteliers have been getting creative with new ideas to give their customers the best experience.

Once the customer is onsite, the hotel team must continue to fulfill the value proposition for the guest, reinforcing the value and benefits of your property. This means that once the guest arrives onsite, the hotel employees should continue to give the guest the best experience possible to ensure that the guest's needs and wants are met so that the guest will be returning guest and will refer potentially future guest to your hotel. If the guest is satisfied, then the guest will return and will speak good things about the hotel when talking with friends, family, and coworkers. The hotels offering needs to be one that is unique to the hotel and different from their competitors. Having a uniqueness from other competitors will differentiate your hotel and help to increase the customer base (Investopedia, 2017). Once the hotel has decided on what they will offer their guest that is different from their competition they will then need to decide on how they will get this information to their target guests such as a website, postcards, fliers, word of mouth or complementary souvenirs.


It is inevitable that things change and evolve as time goes on. It is also unavoidable that hotels must improve their value proposition to meet the needs of their guest to ensure that their guest will continue to return for future stays. While it is true that things will change and the hotels will need to keep to change to meet the needs of their customers it is also creating a generation of customers who are driven by value proposition. Customers are becoming no longer satisfied with what amenities are being offered to them by the hotels that they stay in and are requiring hotels to step up their game and provide comforts that are above and beyond the norm. If hotels are not willing to provide these amenities, then they are taking the chance that their customers will leave their hotel and stay at one of their competitors who is offering the above and beyond amenities.


Investopedia. (2017). Value proposition

North Americans feel better about hotels than ever. The goodwill is unlikely to last: Future reservations (2016, July 18). The Economist. Retrieved from auth=CAS&url= mplete/docview/ 1805954611/fulltext/D41E89BD9BFF4A3CPQ/8?accountid=33337

Ting, D. (2017). Airbnb's Latest Investment Values It as Much as Hilton and Hyatt Combined.

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