What's the point of hotel retail?
The art of selling rooms is a world-building exercise
Hello everyone,
Happy Friday. Today’s letter is a continuation of previous letters: an exploration into less considered aspects of the hospitality business that have impactful potential. It’s also a very Italian letter! As always, I’d love to hear your thoughts. Feel free to direct reply to this email.
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Best,
N
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In today’s newsletter:
Marie-Louise Sciò’s philosophy on hotel retail is a big part of the reason why Il Pellicano is consistently booked through the summer season
Carolina Fumagalli is building a new hotel retail operating model that appeals to sophisticated travelers seeking to experience niche Italian craftsmanship
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What’s the point of hotel retail?
When you think of hotel retail, what comes to mind?
From my personal experience, most hotel retail I’ve seen feels random. Traditionally, hotel retail has been categorized as ancillary revenue. And while that might always technically be the case, the point won’t be about generating substantial revenue from hotel retail (although I’ve seen examples that completely disprove that notion). It’ll be about emphasizing who your hotel is for.
The hotels with the strongest positioning are not selling rooms, because rooms are a commodity. They’re selling proximity to a world the guest wants to associate themselves with, and the rooms are the venue in which the association gets transacted. Typically, travelers and operators have focused on the most obvious outer-facing aspect of world-building, which is the architecture and interior design of a hotel. However, in recent years, smart operators have been increasingly focused on retail as a lever in the exercise of world-building both as a means of expression and of differentiation. As hospitality grows more competitive, the effectiveness of the “world” in selling rooms will be priced into brand value, and therefore hotel retail will transition from an afterthought into a powerful tool to help execute said exercise.
