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Why chain hotel are business while Luxury are leisure?

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Why chain hotel are business while Luxury are leisure?

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Old Nov 8, 2017, 4:27 am
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I found most reviews type are " business travel" from tripadvisor if it's a Marriott, Hyatt, Hilton, SPG..ect. No matter it's a hyatt ,grand hyatt, a marriott ,JW Marriott, a Westin, or A LM(claimed as lifestyle type)

But if there is a Four Seasons, MO, The Peninsula , even if built right next to a Marriott or Hyatt, the percentage of review type are mostly leisure traveler instead of business.

I found there are smaller percentage of business traveler if it's a luxury hotel brand, but for a regular 4*/5* chain, it attracts mostly business type customer, even it is in a urban leisure /business mix city such as most Asia city. Even it's a so call lifestyle brand such as Westin or LM or Renaissance.

People tend to categorize a full service 5 star Marriott/Hilton/Hyatt as " a good business hotel" as long as it's located in city, but seldom heard any review would consider a MO as"good business hotel", why? But a full service SPG/MArriott/Hyatt properties in prime downtown location such as Renaissance Bangkok or SHeraton Saigon or JWM BKK , or Grand Hyatt HK, should attracts all kinds of guests, why people usually put the"business hotel"label on them?

I though courtyard is for Business people, not a Grand Hyatt?


And if chain hotels attracts and profit from mostly cooperate/business guest instead of leisure traveler, why they still create a image of upscale and claimed themselve and slogan in web page as " choose your luxury hotel here in XXX", instead of "business hotel"?

I really don't get it, they attracts mostly business guest, but emphasis on the leisure word"luxury". Such as grand Hyatt, JW Marriott in HK, it's very top hotel, but people tend to think it's business hotel, but I rare heard people would put the label " business hotel" on MO or The Peninsula Hong Kong. And indeed JWM in pacfic center and Grand Hyatt in convention center attracts mostly business people while The Peninsula close to Sheraton attracts mostly leisure traveler.


Is it correct to make a conclusion that Chain program company are mostly attracts business / cooperate while luxury chain are mostly attracts leisure traveler? Can a smaller luxury hotels holds a MICE event? Such as a 300 rooms MO , and do they want to? Do four seasons(in Asia) MO and Peninsula want to attracts cooperate client and holding MICE event? Or would they afraid this would this would do no good to their luxury and intimacy image?

Last edited by JY1024; Nov 9, 2017 at 12:48 am Reason: Dupe threads
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Old Nov 8, 2017, 6:32 am
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Not necessarily true, luxury hotels have a great deal of business travelers as guests, and host MICE functions.

But there are obvious reasons why larer MICE functions are hosted at larger (usually four star) chain properties because they can accommodate those groups.

Also, business travelers may have corporate rates at specific properties, or be restricted to pre-approved options. And, of course some people are not comfortable expensing the most expensive hotel in town, when there are less expensive options that dont scream conspicuous consumption. So, it depends on the individual travelers situation.

If one just needs a bed for the night, a Hyatt for $300/night might fit the bill. If entertaining a client, a $1,500/night FS executive suite would be better.

Some corporate rates at luxury are a fraction of BAR.
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Old Nov 8, 2017, 7:46 am
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Old Nov 8, 2017, 8:01 am
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Corporate travel policies usually have agreements with certain hotels and we are told to book at those. So even if a "luxury" hotel might have an equal or slightly lower rate published, the company gets an overall rebate on total annual spend which can lower the published rate beyond what a biz traveller can see.

Also, I worked for one company that wouldn't let us stay at the Ritz, even if it were the same price or lower than others because our clients (to whom we expensed costs) perceived it as more expensive.
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Old Nov 8, 2017, 8:54 am
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Not all city hotels are business hotels. Many cater well to families as well. But resorts in city centers are few and far between. To me, it's rare to find a city-center resort simply because I believe a resort is more than just the building, and very few city centers have the land and amenities to qualify for my definition of a resort.
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Old Nov 8, 2017, 9:40 am
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Full Service hotels in city centers rely on business travelers. They are located close to major business centers. Business travelers tend to book late, meaning the rates can be higher. In fact, these hotels tend to be rather quiet on the weekends. The core clientele is business travelers. Holiday travelers tend to book early to secure the lowest rate available. It makes sense that these city center hotels will cater to their primary revenue source. That said, there are key major cities that have significant tourist traffic. London, Tokyo, and NYC come to mind. I imagine yield management and hotel services will be a mix of both. But there are plenty of Oklahoma City-like locals in the world that have FS hotels, from any chain, due to the business travelers that make them viable.
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Old Nov 8, 2017, 10:09 am
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As a general rule, hotels in cities are business hotels.

Hotels using the term resort are not.
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Old Nov 8, 2017, 10:21 am
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Someone who frequently travels on business to $1,000+ hotels also is going to be working in an industry where secrecy and discretion is going to be very important (private wealth management, finance, real estate, family office, arms trade, organized crime, etc.) and so you're a lot less likely to find reviews of their business trip than from Mike, the Target IT Regional lead for the Mid West.

Last edited by EuropeanPete; Nov 8, 2017 at 1:20 pm
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Old Nov 8, 2017, 12:12 pm
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Originally Posted by EuropeanPete
Someone who frequently travels on business to $1,000+ hotels also is going to be working in an industry where secrecy and discretion is going to be very important (private wealth management, finance, real estate, family office, arms trade, organized crime, etc.) and so you're a lot less likely to find reviews of their business trip than from Mike, the Target IT Regional lead for Kansas for the Mid West.
Additionally, someone on vacation who splurged on a FS is more likely to be excited to write a review.
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Old Nov 8, 2017, 12:44 pm
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As suggested above, in many cases, it's a matter of corporate agreements and perception. Many companies will classify hotels and either recommend or require that business travelers stay in certain classes.

My company, for example, does not have a prohibition on any type of property, but we are guided first toward our "preferred" properties (probably with financial inducements, negotiated rates, etc.), then "business class" hotels (anything from a Fairfield Inn to Grand Hyatt). We are generally discouraged from booking budget properties (Quality Inn, Super8, Econolodge), B&Bs, hostels, and so-called luxury properties (MO, Ritz, Peninsula, St. Regis, etc.).

There are some "gray areas" with hotels that some would consider "luxury" like JW Marriott, Intercontinental, Fairmont, etc. but might still be within policy.

On the whole, I'd say it's more about the marketing and the fact that these luxury properties are aspirational and they don't necessarily want to dilute the perception by equating with business hotels, although they may be business-traveler friendly. Rather, they emphasize their spas, fine dining, concierge services, and other such amenities.
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Old Nov 8, 2017, 1:09 pm
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Originally Posted by Redhead
Corporate travel policies usually have agreements with certain hotels and we are told to book at those. So even if a "luxury" hotel might have an equal or slightly lower rate published, the company gets an overall rebate on total annual spend which can lower the published rate beyond what a biz traveller can see.

Also, I worked for one company that wouldn't let us stay at the Ritz, even if it were the same price or lower than others because our clients (to whom we expensed costs) perceived it as more expensive.
Yes. Staying at Ritz-Carlton, Four Seasons, Peninsula, etc... is immediately perceived as expensive.

Telling your client youre staying at the (Park) Hyatt, doesnt necessarily evoke the same kind of perception as an expensive hotel, even if in reality it is more expensive than other options.
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Old Nov 8, 2017, 8:08 pm
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perception is 90% (if not more) of reality ... marketing is 90% (if not more) about perception
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Old Nov 9, 2017, 8:16 am
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I am now a leisure traveller, but I only stay in IHG properties, specifically Holiday Inns or Crowne Plazas where available, eschewing the luxury hotels completely.
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Old Nov 9, 2017, 8:59 am
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Well, they merged two threads and in the process mixed up two slightly different discussions, Business v Leisure & Business v Luxury. None of these are mutually exclusive. When I travel for work, my interests in lodging focus on location and dependability. When I stay at a Marriott property, my expectation is set because it's consistent. My routine is set. The rules are understood. The amenities needed while on business trips are available and locations known. A good business hotel to me is one that does not become the fodder for post trip discussion and instead remains anonymous. And that's because it served its purpose (bed and shower) allowing me to focus on business.
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Old Nov 11, 2017, 8:24 am
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I travel on business and leisure. If on business, I need to have certain business facilities and to be adequately comfortable. Chain hotels are good at this and come at prices my business can accept.

If on leisure, I have no desire to go to a hotel which is full of business people. I'll either go to a non-chain hotel, preferably one without business facilities or, if I'm feeling particularly flush, I'll go to a top end luxury hotel. In which case I particularly don't want to be rubbing shoulders with people on business.
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