IHG Used Consumer Insight To Engineer An Efficient, Budget-Friendly Hotel Brand

Hospitality group IHG, owner of sub-brands including Intercontinental, Kimpton and Holiday Inn Hotels, recently expanded its offerings with a new chain, Avid Hotels. Using an elaborate customer segmentation and testing process, IHG identified its target guest, the “Principled Everyday Traveler,” and that traveler’s specific needs. With a no-frills design, Avid Hotels are meant to deliver a seamless customer experience and great night’s sleep without the bells and whistles of a luxury hotel.

VP of Avid Hotels and Mainstream Growth at IHG, expands upon the the hospitality group’s strategy for creating an affordable and reliable hotel experience.

“What we discovered when we did the segmentation study was that there were about 14 million under‑served travelers in the particular segment, and they represent about $20 billion in annual industry revenues. These are travelers that today just don’t have the great travel options. They were telling us that they don’t trust a single brand because there’s so much inconsistency, and so while they find some great hotels out there, they need to do a lot of research to find those hotels. … They’re looking for a brand that they can trust and that’s where Avid can play a large role. To do that, we knew we needed to be disruptive and we really needed to think about the offer in this space to make it work for guests but also to make it work for owners. We’re taking a really different approach to travel in this segment.” This led them to their positioning of “the basic done exceptionally well”.

They will offer their guests an “incredible fitness center”, a “premium coffee experience of bean‑to‑cup coffee that’s available 24 hours a day”, healthful breakfast options, etc. Additionally, their loyalty program will ladder up to IHG’s master brand of Holiday Inn and Kimpton.

Why it’s hot: Many brands are trying to make differentiated hotels for the milenniall “no frills” traveler, so it will be interesting to see if this one sticks!

Source: PSFK