as , if not more than , self-service . No doubt , ancillary revenue opportunities abound with an à la carte system similar to airlines , but the jury is definitely still out on whether paying for services like housekeeping , gym access , bottled water and , dare we say it , free continental breakfast , is the way of the future .
Staffs are lean and guests are noticing , which could also serve to leave bad tastes in the mouths of consumers asked to pay à la carte pricing .
To further take the pulse on this issue , HOTELS reached out to several senior executives to get their take and to ask whether or not it makes sense at a moment in time when so much about service and the guest experience is evolving .
“ This is an interesting topic and we are aware some of the bigger groups ( Hilton ) adopting this approach , and may be interpreted as a cost saving ,” says Dr . Jennifer Cronin , president , Wharf Hotels , Hong Kong . “ However , in the case of our mainland China properties where guests are spending more than ever by way of pent-up demand on luxury hotel experiences , we are actually adding more services based on the significantly higher ADRs being achieved . The à la carte pricing will be determined by the guests ’ expectations in different markets for different travel requirements . For example , the ‘ workcation ’ experience will need different layers of services , while leisure travelers with many travel restrictions are staying closer to home and are prepared to spend their travel dollars on great memories . Therefore , we need to reimagine a travel world of providing additional services rather than taking them away , in my opinion .”
Richard Millard , managing director of business development for New
York City-based owner-operator Highgate , says Tyler Morse is right on with his idea , believing hotels give too much away . However , Millard adds there are issues attached to the concept .
It is like “ no tipping ,” he says . “ If you are the only company adopting such a policy , and other companies do not follow suit , you are doomed not only to failure – you may well lose customers , particularly big accounts ,” Millard says .
Millard says that first , the onproperty team also must buy in to the change , particularly the GM . “ This is new and they will give you every reason not to do it . If they are not convinced , it will fail ,” Millard adds .
There must also be great thought , internal debate regarding the pricing and value proposition , as well as great detail placed on the planning of any rollout , Millard says . “ Is this a service where every customer pays the same amount ? Do hotel guests pay less than non-hotel guests ? Do regular customers receive a special price ?” he asks .
Bottom line , Millard thinks à la carte pricing is a great idea , but needs to be adopted quickly by the “ big boys ” to have a good chance at success .
Also weighing in on the conversation is Michael Levie , COO of CitizenM , who says that to a certain extent , à la carte pricing is already working with amenities such as Wi-Fi , F & B , meetings and other leisure offerings .
Levie says the new housekeeping charge will become an elective in some hotels , for sure . But he
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