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

London Business School
7 Nov 201702:25

Summary

TLDRCitizenM 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.

Outlines

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Related Tags
trendy luxurymobile travelersself-servicetech-drivendesigner spacesaffordable luxurycompact roomsefficient design24/7 foodbusiness travel