SPECIAL REPORT
It might say economy hotel , but guests expect more — and brands are delivering
Spark by Hilton is a 100 % conversion brand within what Hilton calls the “ premium economy ” space .
HOTELS IN THE BUDGET SPACE ARE PULLING THEIR PRODUCTS UP A NOTCH , AS COMPETITION BUILDS .
Contributed by STEFANI C . O ’ CONNOR
In a fidgety economy that has cashstrapped consumers utilizing budgeting skills worthy of a Wharton School grad , it makes sense that getting value for price paid has become a rallying cry of many .
Hilton thought so . Acting on a longmulled consideration of entering the economy segment , the company earlier this year launched Spark by Hilton , a “ premium economy ” model that gave the mega-chain its 19th brand .
The “ why now ?” behind the go-forward was as simple as it being the “ right time ,” according to Chief Brand Officer Matt Schuyler , albeit it was a move backed by reams of research and strategic data that pointedly noted 68 million people choose to stay in economy hotels throughout the United States annually .
Schuyler said the all-conversion entry “ fulfills a market need and fills an uncaptured space in our portfolio of brands ,” thereby enabling the company to serve more customers in existing markets while making inroads into untapped markets . “ There are many opportunities … as there are hundreds of markets without a Hilton presence ,” he said .
UPPING THEIR GAME Many of those markets , however , are rife with legacy economy brands , the majority of which have stayed successfully in their lanes upwards of five decades by sticking to the basics . Indeed , veteran segment players can recall a time when consumers booking ( or just showing up at ) an economy property knew the stay would be no frills and they ’ d be well served toting their own shampoo .
That dynamic has notably changed and guest expectations about what an economy
6 hotelsmag . com June 2023