Ever since we heard of economy lodging, we’ve seen this segment of the hospitality sector undergo a continual evolution. What does it really mean when experts talk about this so-called economy lodging, anyway?
There are really just two schools of thought when it comes to defining the underlying principles of economy lodging. The first is that the idea revolves around value and price along with customer satisfaction and market position. The second focus takes a more minimalist approach – sparse physical facilities, amenities, and services. However, you can still nab a top-notch room in an economy lodging.
The two different approaches definitely cause tension within the economic aspect of such hotel management. Remember, the barriers to entry are relatively low, which could lead to future cutting edge amenities or simple hotel renovations to keep the property running.
Part of the whole economy lodging discussion is how to enhance guests’ perception, especially between value and cost. It makes sense that as more and more cutting edge amenities are added, room rates go higher. However, it should not go beyond perceived value or outside of the competitive market.
Most hotel developers try to keep the big picture in sight. That means paying careful attention to all development issues, including day-to-day hotel and project management, while keeping your eye on the prize. The big picture of hotel management and economy lodging is always evolving.