Evolution not revolution.

A well-run hotel business must invest in innovation throughout the economic cycle – and investments of this nature will contribute to the evolution of the hotel industry and the brands that make it up.

The hotel and wider hospitality industry is diverse, with numerous brands catering to different market segments. The various brands in the marketplace have unique identities created by hotel chains or individual hotels to differentiate themselves in the market and represent various service levels, from luxury to budget. Leveraging their size for operational efficiencies, centralised marketing, and brand recognition, making it easier for guests to know what to expect.

HYVVU is at the forefront of this process of innovation and is creatively different – www.hyvvu.com

Struggle for existence

Clearly, a hotel brand is not part of the natural world, but perhaps it shares some of the characteristics of animals and plants.

Since Darwin’s birth over 200 years ago, mankind’s understanding of the natural world has changed almost beyond recognition. Most of us accept the idea of evolution by natural selection.

The struggle for existence, often referred to as the survival of the fittest, is made up of four key assumptions:

1. Variation: All living things share a common ancestor; organisms vary from one another, even within a species

2. New variations can arise from time to time

3. Some of these variations are passed on from parent to offspring

4. More individuals are born than can exist in the available space or can be sustained by the available resources

Can we relate these assumptions to drivers of change in the hotel industry?

Indeed, there are diverse types of hotels (urban vs. resort, convention vs. boutique, five-star vs one-star), which reflects Darwin’s thesis that organisms, even within a species, vary from one another.

Innovation within the sector, with the influence of internal and external factors and influences, suggests that new variations do arise.

We know that some elements of limited service, extended stay, or ‘lifestyle’ will be reflected into the mainstream so that the variations these segments utilise are taken forward.

Some hotel brands have been around for decades; the successful evolvers over time remain in existence. Yet others have only come into existence in the last decade. Will they too, last for half a century or more? They will if they learn how to evolve.

Changing needs

Looking back is helpful, but it doesn’t help us anticipate the future or implement business processes to ensure the long-term survival of our hotel brand.

To understand this, let’s remember that business economics and psychology are merging. The concept of ‘rational’ consumer behaviour is being rejected with a move to understanding how customers/guests actually behave. Deep evolutionary influences mean we are more reluctant to act as ‘rational’ consumers than the classical economist would assume.

For example: Over the years, the herd mentality has been generally shown to be useful.

The AI (All Inclusive) model for example, has taken over certain markets and each property and/or brand has followed the herd because everyone else is doing so and tell each other that this is what the customer wants in terms of predictable costs of vacations so everyone follows suit and becomes a self-fulfilling prophecy none challenge the concept and the status quo remains.

The received wisdom of copying what other hotels do successfully means our hotel is also more successful. Avoiding major price differentials with our competitors ensures that we and our competitors trade successfully.

There are, of course, limitations and sometimes the ‘master stroke’ is to make a truly independent assessment of the market rather than follow-the-leader.

HYVVU does not follow the herd. We are seasoned and experienced in our respective disciplines. We understand and learn from the past developing design and operations holistically and in harmony with nature and thus creatively differently.

The evolutionary path

You can help your hotel business develop further by understanding the path it has taken in its evolution and by recognising the mechanisms and rules for its future success.