Cut it out – innovation and strategy lessons from hotel chain citizenM

Summary

CitizenM Hotels offers a unique, trendy, and affordable luxury experience, catering to the modern mobile traveler. The brand focuses on efficiency and style, featuring self-check-in machines, compact yet well-designed rooms, and vibrant public spaces filled with designer furniture and art. By eliminating traditional elements like a check-in desk and large restaurants, they emphasize convenience and comfort, similar to a cruise ship cabin. Rooms are only sold online, using a dynamic pricing model similar to low-cost airlines, and they achieve a high occupancy rate by targeting a specific lifestyle market segment.

Takeaways

• 🏨 CitizenM hotels offer trendy, affordable luxury, focusing on an efficient business model.
• 🔑 There are no traditional check-in desks; guests check in themselves using machines.
• 🧳 Guests are encouraged to carry their own luggage, with the attractive lobby spaces compensating for this.
• 🎨 The public spaces are designed with stylish furniture and art, creating a pleasant environment.
• 🛏️ Rooms may be small, but they are highly efficient and well-designed, similar to a cruise ship cabin.
• 📱 CitizenM prioritizes technology and comfort, with spacious public areas for socializing.
• 🍽️ There is no dedicated restaurant; instead, food is available 24/7 to cater to solo business travelers.
• 🚫 Unlike typical hotels, CitizenM doesn't separate restaurants or bars, integrating everything into the lobby area.
• ✈️ Rooms are sold exclusively online, with pricing based on a supply-demand model similar to low-cost airlines.
• 🌍 The brand targets a specific segment—'mobile citizens'—and achieves a high occupancy rate (95-98%).

Q & A

What is unique about Citizen M hotels' check-in process?

Citizen M hotels use self-check-in machines, eliminating the need for traditional check-in desks and long queues.

How does Citizen M balance luxury with affordability?

Citizen M balances luxury with affordability by optimizing space, such as offering smaller rooms and bathrooms but using efficient designs and incorporating technology and comfort in public spaces.

What is Citizen M’s approach to room design?

Citizen M designs its rooms to be highly efficient and compact, similar to a cruise ship cabin, but with a focus on comfort and technology.

Why doesn’t Citizen M have a dedicated restaurant?

Citizen M does not have a dedicated restaurant because many business travelers prefer not to dine alone. Instead, the hotel offers 24-hour food in a more casual and comfortable environment, integrated into the public spaces.

How does Citizen M maximize the use of its public spaces?

Citizen M’s public spaces are designed to be multifunctional and inviting, incorporating designer furniture and art, encouraging guests to spend more time there rather than in their rooms.

What market segment does Citizen M target?

Citizen M targets the 'mobile citizens' of the world, focusing on travelers who value efficiency, technology, and a distinct lifestyle over traditional hotel amenities.

How does Citizen M’s room pricing system work?

Citizen M uses a dynamic pricing model similar to low-cost airlines, where room prices fluctuate based on supply and demand.

What occupancy rates does Citizen M typically achieve?

Citizen M hotels often reach occupancy rates of 95% to 98%, which is significantly high for the hospitality industry.

Why is it important for Citizen M to say 'no' to certain market segments?

Citizen M consciously focuses on a specific market segment to maintain brand identity and appeal to a distinct lifestyle, even if it means excluding other customer groups.

How does Citizen M create a 'home-like' environment for guests?

Citizen M combines its public spaces, food service, and design to create a comfortable, homelike environment where guests can relax and feel at ease, similar to their own living spaces.